When paying off a PayPal Working Capital loan, it's not just automatic repayments, but forced payments. It basically garnishes your wages. For example, if you have $100 come into PayPal, $30 (or 30%) automatically goes to paying off the loan (there's a 10% interest on the loan overall).

I don't particularly have issues being disciplined, responsible, or remembering to make payments, but the forced part of this makes it so that it's impossible for anything to disrupt the payments, like other bills depleting my balance before the loan payment can be made.

Also, because of this novel approach to recollecting their money, these loans don't require or even involve credit. PayPal simply sees the account history of incoming money and know that you qualify for a loan.

I always have money coming into PayPal, but I don't make enough to have proper savings (like a CD), in case you're scratching your head. However, my credit score is just under 700, so if it would be better to apply for credit instead of a loan for this kind of dynamic, are there options for that that still support this forced repayment plan?

To be super clear, I know that you can set up auto-repayments for a credit card, but again, that's not what I'm talking about. It's this very unique, forced, self-paying mechanism that I find most useful.

Update: I believe I found it. It's called "revenue-based financing":

https://www.nerdwallet.com/article/small-business/revenue-based-financing

I'm curious about PayPal credit's 6 months 0% APR offer and haven't been able to find out if paying off a purchase within those 6 months hurts you at all? This seems too good to be true, just for background I have 3 CCs and have never kept a balance on those cards l, I just pay everything off in full every month. But I'm about to buy something around 1k and having 0 interest deferred payment for this purchase would be great for me right now. I just don't want to hurt my credit by jumping into this because I have a high 700s credit score. Is this a great program for responsible people that pay it in full in 6 months, or just a trap? I'd plan to pay it in full in 5 months just to be safe.

They got me with the promotional 'pay with PayPal credit and pay 0 interest' thing when I was just going to pay with normal PayPal. Though sure, why not sounds good. That first promotional purchase went fine, paid it off, no problems.

Then I try to use the credit account again and it gets declined even though balance is 0. Try it again and again, over more than a year. Everywhere declined, even eBay and Amazon.

I call customer support and they tell me they can't identify the problem and don't know how to fix it. I ask to have the account closed and have it removed from my credit history, since it's not fair to report an account I can't actually use ever.

The rep tells me he will submit a dispute and it should be fine, it should be removed from my credit report no problem. That doesn't happen. I get a letter saying the account will stay in my credit history because it was reported correctly.

I call again and speak to a manager. They tell me there is nothing they can do except submit the same dispute again, but the results would be the same. I ask if there is anything else they can do for me, they say no.

Basically, PayPal processes the transactions but the actual credit account is Synchrony. So anytime there is a problem, they both point the finger at the other and can't help you at all.

My advice is avoid PayPal credit like the plague. I have another Synchrony account with Sweetwater that has been flawless, but PayPal credit has been worse than useless. Just a drain on my time, energy, and now 3 points off my credit score, for no benefit.

I could have left it open, but number of active accounts matters too, and I want to actually be able to use my credit if I need to. I'd advise anyone considering PayPal credit to look anywhere else. I've had a great experience with the Discover it card.