Paypal credit, how does it work?

[Jux]

DH is thinking of getting himself a piece of work equipment which is fan-tabby-hooby, new in the box, used once, at a 1/3 of the price new, on eBay. It's a piece of equipment he has yearned for for some time.

He can put it on his 'work' credit card (he's self-employed) at a horrible, but typical APR, while PayPal credit is at 0%. They give the repayment of the relevant amount as £n per month for N months, which works out as the amount he would be borrowing, so that's OK.

What has confused us is that they then quote how much he would be repaying at various APRs, but if there is no interest on PP Credit then there's no APR surely?

It's 0% interest for the 1st 4months and thereafter it's around 17% APR if he doesn't pay within the 4 months.

Does it take payments automatically?

You can either setup a direct debit to pay the cash back or you can do it manually.

Thanks Monday55. That's very helpful, don't know how we missed that!

Watch with PayPal, they don't take payment straight away if you do it manually. I got stung pretty badly by that. So you make a payment on the Monday and think that's done. But it doesn't even go into pending on your bank account until about 5 days later. So you think you've paid it and you haven't yet which is fine if you have a nice cushion in your bank account but not if you're up to the wire every month like I am.