One hand doesn't know what the other hand's doing?

[Syko Nachoman]

Warning: Mild venting ahead.

So lately I've been having issues paying for things online with PayPal. A few months ago, I created a PayPal account and linked it to my bank's checking account. I did this because I didn't want to keep charging everything to my credit card, in the interest of keeping my monthly balance low. For the first month or two, everything was fine. But after a couple months, PayPal stopped working. Every transaction returned the error: "The transaction was declined. Please use a different card or contact your bank."

Naturally, I contacted PayPal. Their customer support reviewed my account and told me that "There are no card declines found in your account in the last 48 hours," adding that I should contact my bank, since the issue was likely with them. They even added: "Yes please let them know that your account is all good and there is no problem on it."

So, I contacted my bank and explained the issue in as much detail as I could. And, naturally, they replied with: "Because this is not a [name of bank] product or service, we are not able to determine why you are having difficulties. Please contact the provider of the third-party service if the problem persists."

So, according to PayPal, it's an issue with my bank. And according to my bank, it's an issue with PayPal. And my issue remains unresolved.

I'm so glad we have competent people running the world.

[daniel]

:-p

I just avoid Paypal. Been a winning strategy for a long time for me. Just an unnecessary middleman and potential security vulnerability, IMO.

Most of my transactions go to a credit card (yay free cash back and better security!), and then those are paid out of checking. Once you do that for a while your limits grow to a level you won't be bumping up against with responsible use.

[Syko Nachoman]

Aug 24, 2020 16:24:30 GMT -8 daniel said:

Most of my transactions go to a credit card (yay free cash back and better security!), and then those are paid out of checking. Once you do that for a while your limits grow to a level you won't be bumping up against with responsible use.

Yeah, I'm trying to stay below 25-30% of my credit limit, because apparently it can hurt your credit rating if your balance goes above that amount. I've also been scheduling additional payments mid-month, in addition to the monthly auto-pay, to try to keep my balance lower.

Looking in my account info, I've apparently had this credit card for 13 years, and my last credit limit increase happened automatically a few years ago. Is there a way to get my credit limit bumped up higher? Or will they likely bump it up again automatically when they see that I've been spending more and making all of my payments in time?

A combination of COVID (and thus preferring to use credit card vs. cash to pay for physical things like groceries) + a recent ability to slightly increase my entertainment budget (no more mortgage, woo!) has led my spending to increase in recent months, so it would be nice to know that I can dip into my savings without potentially hurting my credit. The irony is that I've saved up a ton and lived super-frugally for the past decade, so I have no problem whatsoever paying for anything I buy with a credit card. But I'm also afraid to use too much of my money, due to the credit score thing.

[daniel]

Aug 24, 2020 16:46:59 GMT -8 Syko Nachoman said:

Yeah, I'm trying to stay below 25-30% of my credit limit, because apparently it can hurt your credit rating if your balance goes above that amount. I've also been scheduling additional payments mid-month, in addition to the monthly auto-pay, to try to keep my balance lower.

You've stumbled onto a topic I've spent a lot of time learning about the last few years! The good news is that utilization has no memory, so once it's paid down it won't effect the next month. It only really matters if you're planning on applying for new accounts in the next several weeks. Keeping reported utilization under 30% is "good" and under 10% is "excellent." This goes for each individual account and all accounts in aggregate. Paying early, before the statement report date, is one strategy to mitigate the impact if your limit is low.

Looking in my account info, I've apparently had this credit card for 13 years, and my last credit limit increase happened automatically a few years ago. Is there a way to get my credit limit bumped up higher? Or will they likely bump it up again automatically when they see that I've been spending more and making all of my payments in time?

This depends on the card/bank. Some will slowly go up over time. Some you have to ask them over the phone. Most major cards have a section in your account management info to request a Limit Increase. Some will do this with a "soft pull" where it won't effect your score. Others may require a "hard pull" or inquiry, which can be a 3 to 6 point score impact for 12 months.

But I'm also afraid to use too much of my money, due to the credit score thing.

There are ways to manage that. A few years ago I had about $5k in limits on two cards. Now I have several more and limits that are, um, outsized relative to need.. I will caution that this is only advisable when paying in full and responsibly, as larger limits can mean a deeper hole to dig if you're not responsible. Feel free to private message for specifics if needed.



To circle back to Paypal- I've run into similar issues at my work (my boss likes to use it). It's almost every day where I have to play a game of "which card will go through with Paypal today."