I simply don't understand. I've recently paid off my remaining credit card balance in full, to celebrate this great success i decided to chop it in half and rid myself of the temptation. Now i need some rather expensive ticket items I'd rather not sacrifice eating in order to purchase at once. Mainly a few pairs of leather shoes couple additional suits and other work related items i resent having to get. I recently went to order a rather pricey MBP using Paypal credit from apple and they outlined a very straight forward repayment process for me including all the interest. I decided to be a reasonable adult and CANCEL that order because i simply didn't require such a frivolous purchase right now. I logged into Paypal and noticed i had a Paypal credit balance of £1000 by default. I've guesstimated my entire work related purchases will be around £300-£350 and would like to split that bill over 4-6 months with a direct debit in order not to see any initial impact. All my purchases will be from eBay sellers which allow payment through paypal credit. I'm used to using a credit card with a limit of £500 and 0% interest so i don't understand how interest is added on to Paypal credit. I don't want to resort to getting back a credit card if possible because i need these items ASAP for a trip. Has anyone had any dealings with Paypal credit before?
As far as I can see, PayPay credit is the same as a credit card with an APR of 19.99%. The credit you see in PayPal is your 'credit limit' and when you pay for an item you can choose to use this limit or to have paypal use your normal payment method (another card or bank account). Once you use the credit for a purchase, interest if then charged on the amount you have borrowed. Explaining how interest is calculated is quite complex and can vary depending on each lender, but something like this might help explain the basics: http://www.theukcardsassociation.org.uk/individual/interest_worked_out.asp Also just because you've cut up the credit card does not mean it has been cancelled, you need to call the credit card company and cancel the account you have with them.
Oh the account is gone, previously I was sat with a £500 max out on it which became increasingly frustrating when I was earning less a month than my debt. Once I was earning more than triple my debt It was my first call to make sure it was wiped instantly! Ok so I think it makes sense Worst case scenario I make a purchase of £300 at 19.9% APR I'd pay £59.70 interest if not covered in 12 months. So £300 over 4 months sees me spending £19.90 on the credit assuming all payments are met in that period.
