Thread Tools
Feb 07, 2020, 03:32 AM
Trader Rating: 55
Mongo like wind. Wind Good.
V1VrV2's Avatar
Thread OP
Discussion

PayPal and 0% interest payments. It's a trap!


Guys, Paypal (aka Synchony Bank) has set up a beautiful trap to hook you into paying almost 26% interest on those famous 0% loans offered on FeeBay. I made a short PDF to warn you how this trap works. They have set up multiple financing options at 0% to "suck you in" but be forewarned they decide how your payments will be applied and it isn't pretty. Thanks to congress and how they let these crooks get away with this is just amazing to me. Especially after the mortgage fraud from banks in 2008. I guess lobbying is still alive and well in Washington DC.
Sign up now
to remove ads between posts
Feb 07, 2020, 05:51 AM
Trader Rating: 229
Registered User
Joe 1320's Avatar
I’ve used this for certain instances and it does work great, however you should be warned that making multiple purchases will set you up for failure. It is indeed a trap and should not be used as a “finance” option. The few times I use this is when a purchase looks even remotely sketchy and I want a second layer of protection by not having the money come out of my account immediately and even then, it’s only going to be an amount that I pay off in full..... Or there is a special price if paid via paypal. An example of this was when my wife’s family needed to fly to NY for a family emergency and the airline tickets were roughly half the price if paid via paypal. So while everyone’s money was being transferred, I used paypal credit and within a few weeks paid it off.

The moral of the story is, there is no free lunch. Any credit company will screw you over via the technicalities in order to generate profits. That’s what they do and it’s all in the fine print that people never really read and dissect.
Feb 07, 2020, 08:41 PM
Trader Rating: 40
Registered User
Panhead5496's Avatar
Agreed, you have to be very careful when buying stuff that way!

About 2 years ago I got a credit line for $1000 on PayPal. I got a little crazy buying RC stuff, and paid the minimum payment the first 2 months out of 6 months 0 interest. I was not exactly sure what I was doing, but assumed I’d be fine. Next thing I know I have several hundred dollars of purchases that I had to pay off in a short time frame not to have to pay interest. Luckily I was able to pay it all off before I had interest fees. Had I not asked a finance savvy family member for advice I would have had a problem lol! I know that is not exactly the same scenario as you talk about, but thought I’d chime in.

I think it’s safe to use the 6 month $0 interest as long as you know going into it the payments. For example I just recently purchased a dirt bike for about $1400, and I knew I’d be paying about $230 a month for 6 months (my balance was $0 before I bought it). As long as I don’t buy anything else in that 6 month time frame using PayPal credit, I’ll be paying no interest and if paid off at 6 months will have accrued no interest charges, but please correct me if I’m wrong!

Very well done PDF file by the way!!
Feb 07, 2020, 09:47 PM
Trader Rating: 921
Flying Full Size & Fun Size :)
jgalexander's Avatar
Agreed with all. This is super important info to understand. Good job sharing.
Josh
Feb 08, 2020, 06:53 AM
Trader Rating: 30
Sure, I can fly after sunset!?

Legal Highway Robbery!


Guess this just goes to prove what my Father always preached. NEVER buy something with credit payments. If you cannot afford it now, how can you afford to pay even more later?

I have followed his advice except for my house. Even that, I purchased with 70% down and paid off in 15 years. I built one of the smallest homes in the neighborhood, but didnít worry about falling behind in my mortgage.
Feb 08, 2020, 09:42 AM
Trader Rating: 61
Send lawyers, guns and money
ahrma_581's Avatar
Going into debt to buy hobby stuff? You guys should look into .40 glow planes. I am being super cereal.
Feb 13, 2020, 05:06 PM
Trader Rating: 76
W4BYE, FAA 107 Certified
FloridaFlyBob's Avatar
Quote:
Originally Posted by ahrma_581
Going into debt to buy hobby stuff? You guys should look into .40 glow planes. I am being super cereal.
Wheaties or Fruit loops?
Feb 13, 2020, 05:54 PM
Trader Rating: 37
Registered User
Quote:
Originally Posted by V1VrV2
Guys, Paypal (aka Synchony Bank) has set up a beautiful trap to hook you into paying almost 26% interest on those famous 0% loans offered on FeeBay. I made a short PDF to warn you how this trap works. They have set up multiple financing options at 0% to "suck you in" but be forewarned they decide how your payments will be applied and it isn't pretty. Thanks to congress and how they let these crooks get away with this is just amazing to me. Especially after the mortgage fraud from banks in 2008. I guess lobbying is still alive and well in Washington DC.
You can call them and tell them that you want your payments allocated to your 0% APR purchases first.
Feb 13, 2020, 07:47 PM
Trader Rating: 92
Registered User
Nutball's Avatar
I use it a lot, I find it handy, but you just have to make sure you have the funds to pay in full by the expiration date. Your payments should go toward whatever is expiring that month. It is set up a little weird, and you do have to be careful. I try to keep back up funds around in case I have to all of a sudden pay something off. In the end it is borrowed money, and you need to be sure to have the funds to pay it off on time. It's probably best to just save up until the last month before paying more than minimum payments, so it goes where you want.

And recently they started reporting to the credit bureaus, they used to never do that. It came as a little bit of a shock to me one day when my score dropped because I tend to keep a high revolving credit usage on that account since it used to not report. It has in a way helped my profile since I've never missed a payment, and have little other credit history.
Feb 13, 2020, 08:12 PM
Trader Rating: 16
the smell of nitro in the morn
Quote:
Originally Posted by mybad
Guess this just goes to prove what my Father always preached. NEVER buy something with credit payments. If you cannot afford it now, how can you afford to pay even more later?

I have followed his advice except for my house. Even that, I purchased with 70% down and paid off in 15 years. I built one of the smallest homes in the neighborhood, but didnít worry about falling behind in my mortgage.
Your Dad is right, Cash is king. I retired at 53 if I didn't have the money for it I didn't buy it, paid my house off early which was the only loan I carried no one gets to steal my credit .. they can't find it cuz I don't have any lol.
Feb 13, 2020, 08:20 PM
Trader Rating: 72
Registered User
[QUOTE=FloridaFlyBob;43817903]Wheaties or Fruit loops?[/QUOTE/' Kaboom' was always my favorite.
Feb 21, 2020, 04:29 PM
Trader Rating: 2
Registered User
Here's a tip, just pay it off in full and be done You guys "financing" your hobbies is nuts.
Feb 21, 2020, 09:29 PM
Trader Rating: 55
Mongo like wind. Wind Good.
V1VrV2's Avatar
Thread OP
Nuts? Only if you don't understand how this "shell game" works. If you do understand it, and could pay cash at the time of purchase, you can turn the table on them. Beat them at their own game, as it were. Otherwise you just aren't able to see how this really works and fall back on simple rules. Which works for the less informed.
Feb 21, 2020, 09:51 PM
Trader Rating: 4
Registered User
koppterX's Avatar
There's nothing wrong with using those programs if you understand that only making minimum payments is a terrible repayment plan. you should be easily be able to pay it off in three to four months, or sooner. it's hardly a trap when you have seen it coming for six months.
Last edited by koppterX; Feb 21, 2020 at 10:19 PM.


Quick Reply
Message:

Thread Tools

Similar Threads
Category Thread Thread Starter Forum Replies Last Post
Discussion Interesting situation: buyer sent PayPal but never picked up plane swill Trader Talk 12 Apr 09, 2019 08:35 PM
Sold Robird G31 FBL controller - $25 shipped ConUS - payment PayPal ricoalonso Aircraft - Electric - Helis (FS/W) 1 Jan 11, 2017 08:47 AM
Discussion Hobbyking not receiving payment from paypal rekim Dock Talk 12 Jul 27, 2016 09:54 PM
Discussion Scammed by Paypal or other payment services contact CFPB.gov Seedyrom Trader Talk 3 Nov 25, 2015 02:24 PM