PayPal Credit how is interest accrued after Promotional offers If not paid in full.

[Samskihero]

Hey Everyone, how is PayPal credit's interest accrued on 0% for 4-month promotional offers if you don't get them paid off in full?

For example, lets you bought two items worth £1,000 on promotional offers for 0% for 4 months, so you have an outstanding balance of £2,000 in promotional offers, The minimum payment is 2% of that + £5 = £45* minimum payment, pretty sure that's correct.

If you don't pay them off in full, roughly 21.9%* will be added to the original purchase price making your new total outstanding balance £2438.

Question 1: What's the new Minimum payment? Is the minimum payment now just based on £2438 so that is 2% of that + £5 = £53.70* minimum payment? Is that correct?

Question 2: How is interest compounded yearly ontop of the balance of £2438? or ontop of the original purchase price each year?

Above numbers are all for examples.

Thanks

-Samuel

[PayPal_RachelK]

Hi @Samskihero,

Thank you for your post!

I do understand your concern with this. Your monthly minimum repayment will be shown in each statement and in the PayPal Credit section of your PayPal account. Any offers you have are also detailed in these locations.
 

Your minimum repayment amount is calculated based on your purchases, and will include:

- any instalment offer payments due for that month;

- the full balance if less than £5.00, or the higher of £5.00 or 2% of the outstanding balance (which excludes any instalment offer balances, but includes any 0% for 4-month offer balances); and

- any interest, charges, and arrears.

For details on our interest rates, please click here. 

I hope this helps!
 

- Rachel