PayPal Credit Interest free on £150 or more - How does it work?

Draeger

Draeger

Draeger

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I see PP are doing an interest free credit option on purchases of £150 or more. The details of which are a bit hard to find. The PP website doesn't explain them in any depth.

Has anyone any experience of this? I believe it's over either a 4 or 6 month period. If you choose to pay in full before the end of the period you are charged no interest on that single purchase. If you do not pay in full by the conclusion of the 4 or 6 months then you are charged interest of 17.9% from the initial date of purchase.

What isn't clear is what happens payments wise throughout the interest free period. Is it the case that you can choose to make no payments during that period on the single purchase concerned - like a 'buy now, pay later' deal? I can't seem to find this info anywhere online.
 
Draeger said:
Is it the case that you can choose to make no payments during that period on the single purchase concerned - like a 'buy now, pay later' deal? I can't seem to find this info anywhere online.
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No, from what i can see in the email, you'd still need to make the minimum monthly payments during those 4 months. Exactly the same way a credit card works.

From Email said:
With PayPal Credit, every single time you spend £150 or more in one go, you get 0% interest for 4 months on that purchase*


*The minimum payment due still applies to 0% offer balances. Any remaining balance due after the 4-months promotional period or any transactions under £150 will be charged interest at 17.9% p.a. (variable). In order to maintain the 0% offer, you need to keep up monthly repayments and stay within your credit limit.
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Semple said:
No, from what i can see in the email, you'd still need to make the minimum monthly payments during those 4 months. Exactly the same way a credit card works.
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Yeah, that's the way I read it too. But what do they mean by 'minimum monthly payment during the 4 months'?

Say you purchase something for £150 and qualify for the interest free offer, are the payments due per month, for 4 months £150 divided by x4 = £37.50 per month?
 
No the minimum payment is much less than the balance divided up over the interest free period. I can't actually find how it's worked out. But I currently have about 1K in my paypal credit and the minimum payment is £35.

I tried to set it to pay the balance off monthly but the direct debit system is broken for me and paypal can't seem to fix it.
 
Ah, right. That sounds a bit more plausible. Very little in the way of info on this available, I'd have thought there was a T&C somewhere on the PayPal site but I haven't found it yet.
 
Payments are divided up over your desired term, i believe. It works exactly the same as a credit card.

Only difference is that its a garbage system. Tried to use it with Apple before and caused nothing but headaches. Ended up just using a credit card.
 
Yeah you normally find your minimum payment when you get your bill. It usually says something along the lines of Full balance, £5 minimum balance, or balance greater than £5 but less than full.
 
Sorry to bump this back up but I have another question on this interest free stuff.

I made a purchase for £449 a couple of months ago using the 0% interest for 4 months facility on Paypal Credit. The 4 months period expires in October and I'm now in the position where I'd like to pay the £449 off in full and clear the outstanding balance thus not encurring any interest charges.

I've searched all over the internet to see if there is anything which clearly states how this works but cannot see any info which relates to it. So for example, if I make a £400 payment at the moment using £100 that I have as Paypal balance and £300 from the bank account tied to my account, will that wipe £400 from the outstanding balance of the 0% interest offer, leaving £49 outstanding?

My fear is that I pay £400 to my Paypal account and all it does is reduces my outstanding overall Paypal Credit balance by £400 and the £449 sat currently as interest free doesn't get touched and remains there. There's no clear way displayed within my account which allows you to apply a payment directly to the 0% interest amount owed. Very confusing and very little clear guidance on this available.
 
There is on mine. I can see what purchases are interest free and beneath them is the option to 'make a payment' which directly reduces the amount on that interest free portion. I actually find it quite simple - once I got to grips with it!
 
Thekwango said:
There is on mine. I can see what purchases are interest free and beneath them is the option to 'make a payment' which directly reduces the amount on that interest free portion. I actually find it quite simple - once I got to grips with it!
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Could you screenshot that option for me and post it up m8? I cannot see for the life of me, anything like that in my account. :(
 
spookywillow said:
When you make a payment it will come off the first item you bought, Thats what it does with mine anyway.
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The first item you bought as in on the 0% interest/4 months option? I've only bought one item on the zero percent interest offers so if I punt a £400 payment into my PP account will it reduce the zero percent balance first then? My overall balance on PP credit is £800 ish, I'm worried if I pay £400 it will just reduce the £800 balance rather than the payment be directed towards the current offer balance.
 
I'm not sure, I have only made my first payment yesterday. I bought 2 items using 0% and the money I paid in came off the first items balance.

Try paying a small amount and see what it comes off in your statement
 
It's all very confusing and there's very little in the way of info available anywhere online, perhaps that's deliberately so? ;)

I may have to resort to phoning them to check although I don't relish the prospect as PP's helpline was a nightmare the last time I called them to sort an issue out. Was put on hold for 35 minutes then disconnected. Then finally got through and ended up speaking to a guy who had no idea what I was enquiring about. :(
 
Its fairly straightforward, on my account at least. Each interest free purchase shows as a separate entry, with outstanding balance shown, and when the 0% period expires. If you have a balance to pay, there is a make payment option, for each separate transaction, so you choose which one you're paying. (doesn't show in my screen shot as the balance is paid off, this is from a statement rather than live.)

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Orifice said:
If you have a balance to pay, there is a make payment option, for each separate transaction, so you choose which one you're paying.
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Hi m8, thanks - I cannot for the life of me see that 'make payment' option, can you describe where it is on the page? I see the separate listing for my 0% balance but there's nothing to click on as far as I can see?

This is what I have for my Clifton Cameras purchase. There doesn't seem to be anything to click on in this area to make a payment. The only 'Make Payment' option is further up the screen at the top in the sort of general payments for the coming month part:-

image.jpg
 
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