Paypal and Credit Rating Watch

Swayum
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#1
Report Thread starter 10 years ago
#1
Will buying stuff using Paypal (which is linked with my bank account such that payments go from the bank account) improve my credit rating? How significantly (in other words, how much so compared with paying back my credit card, for example)? Does the amount I'm spending affect the rating as well?
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Lisaanne
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I don't see why or how it would have any effect on your credit rating whatsoever to be honest, it's just like buying anything else using your debit card.
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flipshot
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Has no effect on your credit rating whatsoever, your not actually getting any credit from PayPal so there is no reason why it would. Plus you are not credit checked to open a PayPal account, generally only things you are credit checked for will have an effect on your credit rating.
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jacketpotato
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Paypal is not credit. It is debit. There is no debt involved.
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squid
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#5
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(Original post by jacketpotato)
Paypal is not credit. It is debit. There is no debt involved.
You can go into negative balance with paypal, however you just have to repay it if you wish to continue the use of your account, you're right that there is no actual "credit" setup, unless you go for their credit card.
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Swayum
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I'm not convinced to be honest. Ignoring what squid says about Paypal and the negative balance, my bank would charge me if I didn't have enough money in my account to make the payment. This definitely does ruin your credit rating. So surely actually making the payment improves your rating?

If it helps, my bank statement is coming up as "Direct debit - Paypal payment".
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squid
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(Original post by Swayum)
I'm not convinced to be honest. Ignoring what squid says about Paypal and the negative balance, my bank would charge me if I didn't have enough money in my account to make the payment. This definitely does ruin your credit rating. So surely actually making the payment improves your rating?
You're right in regards to bank charges if you don't have the funds, I've experienced this a few times. But, when you're making a payment, all that is happning is;

Bank account > Paypal > Recipient

and Paypal take a set fee along the way, the point of paypal is so you don't have to give out your credit card details and you can keep balance in your paypal account, if you're only using it for transferring from your bank, get a debit or credit card...

It is totally pointless keeping your paypal account empty, because you're incurring £2+ charges everytime you pay with your paypal account, and if you do it a lot of times, it works out a lot of money, just use a credit/debit card.
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la fille danse
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(Original post by squid)
You're right in regards to bank charges if you don't have the funds, I've experienced this a few times. But, when you're making a payment, all that is happning is;

Bank account > Paypal > Recipient

and Paypal take a set fee along the way, the point of paypal is so you don't have to give out your credit card details and you can keep balance in your paypal account, if you're only using it for transferring from your bank, get a debit or credit card...

It is totally pointless keeping your paypal account empty, because you're incurring £2+ charges everytime you pay with your paypal account, and if you do it a lot of times, it works out a lot of money, just use a credit/debit card.
£2+ charges for what?

There are no charges for paying with Paypal...
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squid
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(Original post by la fille danse)
£2+ charges for what?

There are no charges for paying with Paypal...
There is using a bank account, well, I've been charged when doing it?
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flipshot
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(Original post by squid)
There is using a bank account, well, I've been charged when doing it?
You shouldn't have (unless its one of those pre-paid cards which charge for everything), all fees are at the recipients end. Sending money/paying for something with PayPal is free.
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squid
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(Original post by flipshot)
You shouldn't have (unless its one of those pre-paid cards which charge for everything), all fees are at the recipients end. Sending money/paying for something with PayPal is free.
I know how paypal functions, I've had over 3k through my account. My point is, when I've ever had money taken from my bank, so say I send $100 to "John" and I only have $20 in my paypal account, then $80 from my bank account would have fees attached for processing?
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Sports Racer
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PayPal charges fees on the recipient of the moneh, not the sender.
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la fille danse
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(Original post by squid)
There is using a bank account, well, I've been charged when doing it?
Paypal doesn't charge for sending money, in any circumstances. The only thing I can think of is that your bank is charging you...
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squid
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(Original post by la fille danse)
Paypal doesn't charge for sending money, in any circumstances. The only thing I can think of is that your bank is charging you...
Hmmm, must be that then, I was sure I was being charged by paypal when using my bank to pay.

Ah well, more bank charges, heh.
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NDGAARONDI
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(Original post by squid)
Hmmm, must be that then, I was sure I was being charged by paypal when using my bank to pay.

Ah well, more bank charges, heh.
Your bank is? Change your bank!
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squid
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(Original post by NDGAARONDI)
Your bank is? Change your bank!
Can't be bothered, I only use it when Receiving cheques and they're few and far between, it's a hassle switching. I'll switch when I start having more than a few £ in my bank
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NDGAARONDI
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#17
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I'll be getting a 4th bank account soon.
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