Short Answer: PayPal Credit reports your payment history, including any late payments, and your credit utilization to the major credit bureaus — Experian, Equifax, and TransUnion — monthly. PayPal Credit did not previously report customer information but changed its policy in 2019 when Synchrony Bank purchased PayPal’s consumer credit portfolio.
You can now build your credit by using PayPal credit and making on-time payments. For more details of PayPal Credit’s reporting practices and how PayPal Credit affects your credit score, see below.
Does PayPal Credit Report to Credit Bureaus?
PayPal Credit, formerly known as Bill Me Later, reports your account activity to the major credit bureaus on a monthly basis, said customer service representatives for Synchrony Bank, the issuer or PayPal Credit. Synchrony will share your account status, balance, any late or missed payments, and any defaults with Equifax, Experian, and TransUnion a few days after your statement period ends each month. It may also make mid-cycle reports if you make changes to your account, such as updating your address. (For more on when credit card companies report to credit bureaus, see our related article.)
Does PayPal Credit Build Credit?
Because PayPal Credit reports to the credit bureaus, you can use it to build your credit history and credit score. This also means if you do not use your line of credit carefully, PayPal Credit can negatively affect your credit score.
When building credit, it is best to keep your credit utilization low; you do not want to spend up to your credit limit on this account or any other line of credit. Additionally, making on-time payments and avoiding default can help your credit score grow and help you develop a positive payment history.
PayPal Credit Policy Changes
In 2018, Synchrony Bank closed a deal with PayPal to buy PayPal’s consumer credit portfolio. Synchrony began reporting account activity for new PayPal Credit accounts in the summer of 2019; as of October 2019, it started reporting on accounts created before its acquisition. If you have an older account, Synchrony will show the total age of your account but only the payment history beginning in June 2019.
Before Synchrony’s takeover, PayPal Credit did not report to the credit bureaus. Some accountholders joined PayPal Credit for this reason. Accountholders who choose to continue using PayPal Credit under Synchrony should be aware of this change, pay down old balances if possible, and maintain low utilization if seeking to improve credit.
If you have questions about this policy change, you can contact Synchrony Bank at (844) 373-4961.
PayPal Credit Qualifications
While PayPal Credit can help you build credit, you do need an existing credit score of good or better to qualify for approval. PayPal Credit’s acceptance range for FICO scores starts around 670, and your application will require a hard pull of your credit, most likely from TransUnion. For more details of the application process and your PayPal Credit approval odds, see our related article.
If you have a poor or fair credit score, you might want to look into credit cards that only require a “soft” pull of your credit. We also have the list of easy-to-get store credit cards that can help you build your credit profile.