Does PayPal Credit Affect Credit Score?

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Updated: 25th Nov 2020
Written by Kim Pinnelli
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In this Article: Does PayPal Credit Affect Your Credit Score? Does PayPal report to all three credit bureaus? The answer is yes to both of these. Keep reading to find out more details about PayPal Credit.

Do you currently use PayPal Credit regularly? If so, then make sure you read their terms of services carefully.

PayPal Credit does report information (late payments, defaults, missed payments, etc.) to all three credit bureaus, which means it can and will affect your credit score if not used responsibly.

What is PayPal Credit?

PayPal credit is just like a credit card. If you sign up for PayPal credit, you get a line of credit with no annual fee that allows you to pay immediately or overtime.

This credit product is offered by Synchrony Bank and is subject to approval, which means it is not a guarantee.

Does PayPal Credit Affect Credit Score?

With PayPal credit, if you make a late payment, miss a payment, or default, it will affect your credit score. Why?

Like all credit products, a late or missed payment is shown on your credit report, which is not good.

Make sure to control your spending and make your payments on time. This will ensure you do not lower your credit score and will help you build a positive credit history.

Does PayPal Credit Report to the Credit Bureaus?

Before 2019, PayPal credit did not report information to the three credit bureaus. It was like a “credit tradeline.” However, this policy has since changed.

As they explicitly say in their terms of service, “we may report information about your account to credit bureaus.

Late payments, missed payments, or other defaults on your account may be shown in your credit report.”

So, if you make a late payment, miss a payment, or default on a payment, PayPal credit will report it to all three credit bureaus.

After PayPal provides the three credit bureaus with this report, it will appear on your next credit report damaging your credit.

Related: Best Credit Monitoring Services

How to Remove PayPal from Credit Report

PayPal may have made a mistake and reported wrong information to all three credit bureaus. If you are confident, they made a mistake, then write to them directly via certified mail.

Their mailing address is: P.O. Box 965005, Orlando, FL 32896-5005.

If they did not make a mistake and you do in fact owe PayPal money, then pay your debt immediately. After, seek professional help from the best credit repair company who will assist you in removing this negative item from your credit report.

We recommend Credit Saint. They are the best credit repair company and have helped thousands of Americans remove negative items from their credit report.

Schedule a FREE consultation today with Credit Saint.

Related: Credit Saint Review.

Bonus Credit Insight.

Let’s face it. We all want to improve our credit score. If you are looking for a FREE way to increase your credit score by an average of 13+ points, then try Experian Boost.

This nifty product will give allow you to build credit by scanning a selected bank account for previously made payments towards Netflix, phone bills, or utility bills. It is the only credit product to do so, and our favorite free tool!

Related: Experian Boost Review.

Wrapping Up: Does PayPal Credit Affect Credit Score?

As you can see, PayPal Credit does affect your credit score. They will report to all three credit bureaus if you make a late payment, miss a payment, or default.

So, it is best to use PayPal Credit responsibly!

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Kim Pinnelli
Kim Pinnelli
Kim is a personal finance expert with a Bachelor’s degree in Finance from the University of Illinois at Chicago. She has been freelance writing for 13 years for a number of large publications. Kim thoroughly enjoys helping people take charge of their personal finances.