Couldn’t find the discount thread so feel free to move this.
I got this notice on two of my IDs so not sure how many got it.
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I would totally do that if I didn’t hate Paypal so much 
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I did it on a 1400 dollar ebay purchase! Interest free, why the heck not! If it’s free, I’m usually all in haha
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I used to use the PayPal credit a lot, 6 months interest free. Now I try to put everything on my cash back credit card and pay it off monthly.
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US gets all the best deals, eBay bucks now this…
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They have 0% interest car loans
America is an amazing place.
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It’s because more than half of people using these interest free loans don’t pay the balance off in the interest free period and proceed to get bent over with exorbitant interest rates. Same goes for reward credit cards. I have one that saves me 2% on everything I buy since I pay off the statement balance every month. (Citi Doublecash) It comes with something insane like a 28% APR which a whole helluva lot of people pay to fund the great rewards and earn the profits.
@budget last time I was helping my wife buy a new car (before she was my wife) they had a promotion with 3 options at signing. 0% interest, $1,500 off the car or $1,000 cash. Guess which one was the worst deal for someone paying off the car in double time? Even across the whole life of the loan the interest would have been just shy of $1,500 making $1,500 off a better deal. The standard rate at that time was something like 2.2%.
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APR: 26.24%
Deferred interest is calculated throughout the term of your loan and if you fail to pay 100% of the balance back within the 24 months you get charged all the deferred interest. Looks like they only have you paying $28 per month or 3% of the balance whichever is greater for your minimum monthly payments.
Since @mikejofthecoast posted that he purchased something for $1,400 I will use his loan as a guinea pig.
$1,400*0.03 = $42 > $28. So Mike has a $42 monthly minimum payment.
Over the first 23 months he will pay only $966 and owe a balloon payment of $434 for the 24th. If he missed this payment then eBay will tack on penalties, fees and all the overdue interest. If he made every payment except the last on time, across the 24 months his average balance will have been roughly $917 (average of $1,400 start and $434 end). For 2 years at 26.24% interested he would be on the hook for $418.24 in interest and at minimum a $28 late fee for a grand total of $1,846.24 if he paid it off before the 25th month.
Makes things a lot more expensive if an unexpected expense comes up that doesn’t allow you to pay in full before the due date. Like any other leverage/debt use this with caution folks. The minimum payment is only 3% monthly by design so that people get faced with that balloon payment at the end and can’t afford it. Anyone going into this without the full principal set aside ahead of time should pay at least 5% per month, so $70 in Mike’s case so they would have it paid off with a 4 month cushion.
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I wonder what Dave Ramsey would have to say about this…
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They probably are counting on folks like me who didn’t actually read all the terms and conditions and just checked the box. I had no idea about any of that! So on your loan account page it tells you what your minimum payment has to be to avoid the defered interest stuff. I had not looked at the loan page til just now after reading your post, I always just sent the payment from a thing that’s on my paypals home screen which doesn’t show the minimum to avoid defered, just what your minimum payment is. On mine I have to pay a minimum of 58.82 to avoid what you’re talking about. Luckily for me I didn’t have to take this loan, I simply did it cause it popped up as an option on my ebay purchase so I was like whoa cool. I’ve paid two payments so far ,75 once and 70 the other timet so I’m in the clear.
But dude, good of you to bring this up for people to know about!
@mikejofthecoast, it’s nice to see that the minimum payment was actually higher than I estimated. Not sure what I missed. At $58.52 they actually have you paying off the entire balance at 24 months with no balloon payments which is very nice to see.
I know furniture stores, Rent-A-Center/Aaron’s stores used to be really bad with the long term 0% interest with small minimum payments and the large balloon at the end that would catch people but laws have been changing to where that is not allowed as frequently or at least the extremes limited a bit. Same goes for interest rates. Credit cards have to be a lot more clear about all their terms and how long it takes to pay the balance with only the minimum payment as well as how much interest that would lead to but sadly those who need to see it most generally don’t look.
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No I think you were right, that $58 is so I avoid the defered interest and stuff. The monthly minimum I have to pay is something lower then that. I don’t remember what it is though. When I got the loan I was wondering what the incentive was for PayPal to loan money for free, I knew their had to be something
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I can tell you he would not approve. Paypal credit, like credit cards, should only be used in an emergency imo. When you’re buying pokemon cards hardly anything should be considered an emergency lol
I once used my paypal credit line to buy a relatively expensive card that I knew I could sell for more down the road. It worked out, and I made money, but having a debt just staring you in the face is no fun. Paypal credit is 100% predatory as their interest rates are absurdly high, their conditions are mildly confusing as best, and they don’t report to the credit bureaus which fuels financially illiterate folks to rack up even more debt. Also paying off your debts on-time through paypal credit doesn’t increase your credit score. If you’re financially secure you may as well use a credit card to bump up that credit score. There is literally no reason to use paypal credit.
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Just a little misinformation on your part, Paypal credit is now owned by Synchrony, it most certainly does report, it is no longer a hidden credit line.
Well I guess the silver lining is you can bump up your credit score now 
Hahaha… probably that financing a Pokémon card isn’t the best idea.
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