Does closing your Paypal account affect your credit score? The question is more complex than you might think. If you ask about your Paypal account, where you store money, accept payments, and divvy payments, then no.
So when does closing your Paypal account affect your credit score? If you have a Paypal credit card associated with that Paypal account, and it has a balance on it, then it will affect your credit score.
Does Paypal Credit Affect Your Score?
Does Paypal credit affect your credit score? Yes, all credit cards or loans affect your credit score.
When you apply for a line of credit, your collateral is a personal reliability rating known as your FICO score, which we simplify into a credit score. This determines your trustworthiness as a debtor who owes money to someone else. If you close an account with credit due, you are telling the creditor you will not be paying it–and in response, they report to the credit bureaus that you are delinquent and should not be loaned to.
Can Paypal Credit Help Your Credit?
Does Paypal help your credit? Yes, if you apply for a Paypal credit card.
When you pay a credit card on time, it reflects on your credit score. Remember, it is a reliability rating, and the more reliable you are in paying your debt, the higher that reliability rating grows. You can only raise your credit score by reliably paying your creditors back.
Can I Apply for Paypal Credit With My Score?
“Can I get Paypal credit with bad credit” is probably the question going through your mind. If you have a poor credit score, reestablishing yourself through Paypal is an excellent option–though it does come with its challenges.
Can Paypal Credit Negatively Affect My Score?
Does applying for Paypal credit affect your score? Yes.
Paypal does a “hard pull,” which means they check all three of your credit scores with the major bureaus. This can lower your credit score, putting you in a compromised position for current and future applications.
We recommend contacting a credit repair specialist before making significant decisions to ensure you do not damage your credit score irreversibly.
Countering Paypal Credit Issues
So, does closing your Paypal account affect your credit score? The question is, as outlined, very complex and requires a more careful eye than credit bureaus will allow the average person. The solution is to invest in a team of curated credit experts who know how to repair credit, establish new credit, and raise your credit score to an acceptable level.
Think of it like this: if you try to do your credit, there is a high chance of causing irreparable damage to your credit that will always keep you on the backfoot of your financial strengths. Someone who knows how to counter the bureaus and navigate their impressively complex jargon can help you strengthen your credit score, apply for new credit, and refinance existing, dangerous, and debilitating financial burdens.
Plus, who knows what credit-affecting marks you may have on your account? Having a skilled pair of eyes ensures that any account you decide to shut down is paid in full, giving you peace of mind.
