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PayPal Credit?Comments • PayPal Credit?

  • 1pt
    When I bought a new car recently, my largest credit line, which is Paypal Credit was not accounted for. With that Paypal Credit is not does not build any credit for you, so you'll have to look for a credit card.

    If you're having problems applying for a card, sometimes banks will setup tables at colleges to offer student promo credit cards. I got a credit card with Wells Fargo that way.

    Reading through the comments, many people are leaving good advice for you, so do keep all that in mind.
    7 months ago
    2pt
    As someone who had no credit for the longest time I can suggest going through your bank. They are more likely to give you a card. However if they don’t you may want to consider an insured credit card option. It works like a prepay gift card where you put the amount on the account and then you can use that as credit. This is really only useful if you can’t get approved for a regular credit card because you have no established credit. There are plenty of credit cards companies that won’t even bother to ask if you have a co-signer with you.

    I had a very hard time getting a credit card because I had no credit record. It took co-signing on a small car loan with my husband to finally get me enough credit that I could apply for a card and not get rejected.
    7 months ago
    1pt
    Ignoring "PayPal Credit"... There's a lot that can be said about credit cards. As long as you don't have a buying problem, it's actually best to have around 5 credit cards with 4 more on rotation (6-7 total at any given time).

    If you're going to get just one, get US Bank Cash+.

    If you buy a lot in foreign currency, then get a second with 0% foreign transaction fee. Something from Chase or Capital One, e.g. Amazon Prime.

    (Of course, if you can't pay off the entire balance every statement period, don't get credit cards. By "buying problem" - having a credit card should not entice you to spend more.)
    7 months ago
    1pt
    I looked around, and it appears that PayPal credit does not report to the credit bureaus, so it would not be a good choice if you're trying to build credit.

    If you haven't already done so, I'd start by opening checking and savings accounts with a credit union (who generally won't nickel and dime you like big banks) and then apply for a credit card through them. If you have no existing credit, you may need a co-signer.

    Once you have the card, do not max it out under any circumstances. This will hurt your credit score and possibly get you in a spiral of debt once you start paying 20% interest on balances. I knew plenty of people in college who racked up mountains of credit card debt before they were 21 years old, and were probably still paying it off well into their 30's.

    Use the card at least once every few months. This way the bank will not close the account and you establish a record of on-time payment. Plus, if you pay the balance in full every month, you will (or at least you should) pay no interest and depending on the card, you may earn rewards or cash back. I love having the bank (or rather all the other people who carry balances) pay me money to get an interest free loan every month!

    Once you've had the card for a while and you pay on time, the bank will very likely start upping your available credit.

    An old adage says the way to build wealth is to use other people's money whenever possible. Building credit is the first step on that ladder.
    7 months ago
    4pt
    Paypal Credit doesn't report to credit agencies. I called and asked in the past, and they said that it doesn't built your credit.
    7 months ago
    1pt
    For paypal Credit, if I'm not wrong, they take into consideration your current credit with the bank your current linked to (Direct linked, CC, DC, ) when you apply for the credit.
    I have BoA and they first had to confirm records of previous credit.
    So I don't think you can start from scratch with them.

    As note paypal credit has two different options

    PayPal Credit, can only be used while online, they don't charge fees when use, 20.00% APR, fee if you don't pay in time, can only be used with your country currency.

    PayPal Credit CARD, same terms as above but physical, meaning you can also use it in-stores, they charge a fee for each swipe/use, not sure if you can use it outside of country where you apply.
    7 months ago
    6pt
    I'd try applying for a "Chase Freedom Credit card" if you are rejected, I'd then get a secured credit card and build from there. I came to the US about 5 years ago, and my credit score is nearly 800 now.

    A secured credit card, is basically a checkings account, you can only spend what ever amount of cash you deposit into it. It's purpose is to build credit score for people that have literally no credit score.

    It is a bit of a bother, which is why I recommend Chase Freedom, it is the first credit card I got when I entered the US, it has 5% back on certain purchases, it also has no annual fees. It is possible that in these last 5 years a better card came out. You could check youtube out, there are many youtubers with great info, comparing multiple cards. One of them is The Credit Shifu

    Anyways, it would be good for you to start with a good credit card, such as Freedom, because one of the factors used to calculate your credit score, is your oldest credit line, so you should get a card without an annual cost, and decent usability, so that you don't need to close it down the years. Nowadays I just use my chase Freedom, for a monthly subscription of beef jerky on amazon, to keep a small balance on it.

    Something else I'd recommend, is only spend 5-10% of your credit card's max limit. For example my chase Fredom has a $1,000 available credit, so once a month they will issue a "statement balance" which is technically what you owe them. Keep that "statement balance" at 5-10% of your available credit. 10% being the maximum. This is for a better credit <

    In the eyes of the credit card bureau, if you have an available credit of $1000, but you are spending a high amount, they consider you to be unable to pay for it, therefore they will give you a bad score.

    You could always pay your "recent purchases" before it becomes a "statement balance", so if you spend $800 out of your limit of $1000, but you pay $700 or w/e amount to bring your $800 to below $100, before it is reported as your "statement balance", then you should be okay.

    Anyways, I'd recommend that for starters, don't spend more than 5-10% of your available credit, until you get the hang of how it works. (less than that is okay too, as long as you use it, many credit card issuers, will close down your credit card if you don't have a balance throughout many months. But having a small balance is excellent. By balance, I don't mean owing them, I mean making a purchase that month, and having it show up in your "statement balance", so that your statement is not $0, and then paying it off. If you don't pay your statement balance in full before the due date, that is when they start charging you extra, and it becomes a bad thing for your credit score.

    Many people swear that credit cards are money thieves, if you have discipline , you can easily make money off of it, without paying an extra penny.

    Don't keep a balance past the due date, don't fall for "minimum payments", just spend what you can afford, and pay off your whole debt 100% of the times. This has been what increased my credit card the most. Limit your credit card signing, apply for one, use that one for a while, probably a year, build some credit in the meantime, then if you have enough credit, apply for a better card. Remember that simply applying, will affect your credit score, regardless of if you get accepted or denied. I'd stay away from any store credit cards, like a walmart, or target, or jcpenny, or navy credit card. All store credit cards tend to be utter garbage compared to other available choices. Remember that closing credit cards will affect your credit score negatively, so try to only get ones that you will be using for a long time. Plan ahead so that you never need to close them down the line.

    More than two hard inquiries, will affect your credit score. That is why I recommended first try chase freedom, or some other equally good card that is fairly easy to get into. You could have a co-signer, like your parents or a guardian, sign along with your first credit card, but remember to be extra diligent if you do that, because any mess up you do, might affect their credit score too.
    7 months ago
    2pt
    take123 is correct: 'Paypal Credit' is not the same as the 'Paypal credit card'. I am not sure if the 'Paypal Credit' will be reported to credit agencies. I am positive the 'Paypal credit card' is (since I have one, and it shows up on my credit report).
    7 months ago
    4pt
    Kuromii Haikyuu nerdlord
    I have PayPal credit. You can't use it for transactions that aren't in your currency, so you wouldn't be able to use it anywhere that deals in yen. If I had known this, I wouldn't had got it (it wasn't in the terms of use at the time, not sure if it is now). I had to call PayPal to confirm it.
    7 months ago
    2pt
    Not sure if Paypal credit is the same as Paypal credit card credit. I don't think using Paypal credit will be detected by credit rating agencies like FICO.

    I would get a credit card and get more cards over time. Getting more cards doesn't mean spend more. You should pay them off in whole every month. You should get cards that give you points for using them and don't use ones with annual fees. For anime figures get ones with no foreign transaction fees.

    Your credit score will rise with age of your oldest credit card. It will rise when your total credit limit increases and your utilization ratio decreases (credit used / credit available). That's why having a lot of credit card helps since your credit available is large. Your credit also rises if you have history of paying off a car or mortgage on time but that's out of scope probably.

    Your score will decrease if you miss payments, if you make a lot of new credit inquiries (i.e. open new cards, apply for loans, etc). Your score will be bad if your utilization ratio is too high.
    7 months ago
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