Making payments for a special purchase after the initial 6 months?

[ndk1959]

In December of 2016 I made a purchase of approximately $1,500 and used my PayPal Credit to do so. On my online account it says I have until July 13, 2017 to pay off the $1,500 purchase to avoid paying any interest. On the pull down box, on the details page that describes that purchase it says that $95+ in interest has accumulated since I made that purchase. In all actuality I will probably end up about $500 short of paying for the entire purchase by July 13th. I understand that all of the interest ($95 + what accumulates between now and July 13th) will be added to what I have to pay back. My question is this: If I still owe $500 after July 13th does the entire balance and interest come due all at once after the initial 6 months or can I make payments? If I can make pay payments what would be a "ballpark" estimate for a payment on a $500 balance plus probably $130 in interest by then?

[DPCreations · Accepted solution]

As I understand all acrued interest will be added if you fail to pay the promotional balance in full.  The interest will be added to your balance and then you would pay monthly, including any added interest on what you owe.

As far as I understand there is no negative credit impact for failing to pay the promotional balance in full.  There would be netative credit impact if you fail to make minimum payments after that.

It is also unlikely that you would be granted any more PPC promotions as you would have demonstrated being high risk.

Make sure you review your full PPC statement for the most recent month; that's the PDF version.  It has a lot of details about your purchases and potential interest impact.

My recommendation would be to find some legal way to pay your billl in full, even if you needed a short term bank loan.  Find some way to delay some purchases which really can be delayed or even avoided.  Guarding good credit is important for a secure financial future.

[ndk1959]

Thank you for the reply. I have had a family member offer to "loan" me the $500 for a couple of months. I just did not like the idea of being indebted to a family member but after reading what you say about PayPal not offering me promotional purchases in the future if I fail to pay this purchase in full by the 6 month deadline, I think I will gratefully accept the loan. Again, thank you.

[DPCreations]

As for family loans their are those who consider a loan a gift and there are others who consider a family loan a real loan.  This can be problematic for siblings.  Being more of an accountant type my way is to always document a family loan with details and due dates and even repayment.  It may seem cruel to some, but in the past may way was to borrow from family and document repaying with a couple % interest.  It actually can help build trust.

In future just be more cautious with credit.  Using small credit is the best way to buld up a good history for more credit offerings.  If you need to use your credit limit you're already in trouble.  Using no more than 10% of your available credit is a good start and then pay early; you'll then get better offers.