SYNCB/PPC: Why Is It On My Credit Report?

Have you looked at your credit report lately? It’s possible that it may contain information that you don’t recognize or understand. You may see a reference to SYNCB/PPC on your credit. And if you’re like many consumers, you’re wondering what SYNCB/PPC is and why it is on your credit report. This post will help you understand why you’re seeing SYNCB/PPC on your credit, what it is and what to do about it.

What is SYNCB/PPC?

SYNCB/PPC stands for Synchrony Bank/PayPal Credit. Synchrony Bank partners with companies like PayPal by offering white label services to their customers. In 2018, Synchrony Bank bought PayPal Credit, formerly known as Bill Me Later. That is a line of credit that PayPal account holders can apply for. So, money that was once owed to PayPal Credit is now owed to Synchrony Bank since they now own it.

Why is SYNCB/PPC on My Credit Report?

If you previously had an account with PayPal or Bill Me Later and never saw it on your credit report, it’s because PayPal was not reporting this activity to the credit bureaus. PayPal Holdings didn’t report to any credit agencies. But now that Synchrony Bank has taken it over, they can do anything they want. Synchrony Bank is now reporting your account activity to the major credit bureaus. That is the reason it is on your credit report. And it is totally valid.

PayPal Credit is a reusable line of credit. Rather than requiring a credit card, it’s digital like the PayPal platform and can be used anywhere that accepts PayPal payments. The credit line gives you interest-free financing for six months on purchases that are $99 or more, and is totally valid to report on your credit.

Here are a couple of places you might see SYNCB/PPC on your credit report.

Hard Inquiry

When you apply for a line of credit, it’s normal for the lender to pull your credit report to assess your creditworthiness. If you’ve recently applied for a new PayPal Credit account, Synchrony Bank would likely have pulled your credit to evaluate you.

Synchrony Bank partners with over one hundred stores and owns its credit accounts. That means millions of people are impacted and see this on their credit reports. From Amazon to Sam’s Club to Walmart to Verizon … Hard inquiries from SYNCB are affiliated with more than just PayPal.

Account Section

You could also see SYNCB/PPC in the account section of your credit report. Now that Synchrony has taken over PayPal’s Bill Me Later, they may be reporting accounts even if they’re no longer active. Activity or non-activity will show up in either the active accounts section or the closed accounts section.

Even if your account has been closed or inactive for a while, it could be appearing on your credit report. And rightly so. Closed or inactive accounts can be on your credit report for two years.

Should I Close The Account If I Know Longer Owe?

Unless an account in your credit report is in error, it doesn’t fare well to close out accounts. Closed accounts affect your utilization rate, which impacts your overall credit score.

Closed accounts show that you have less credit, which is not always a good thing. It can cause your credit score to decrease, especially if you still have debt you owe. It will look like you’re maxing out your credit with current lenders.

You may want to consider keeping it open to use sparingly to give the appearance that it is still an active account. Using sparingly means using it here and there for low purchases that you can easily repay.

However, if you don’t ever plan to use the line of credit, you do have the option to close it.

What If I Never Applied for PayPal Credit?

If you’re seeing SYNCB/PPC on your credit report but have never applied for a line of credit with PayPal, there are a couple of reasons why this may be happening:

Authorized User

You may not have applied for a line of credit with PayPal, but it’s possible that someone you know and are close to, like a family member, friend, or business partner, may have applied and added you as an authorized user on the account.

As an authorized user, your credit report will also reflect the use of the card, whether you’re using the credit or not. Being an authorized user on an account can be a positive thing for someone who is trying to build their credit, and the primary user is financially responsible and always pays their bills on time. 

Identity Theft

If there’s no chance of you being an authorized user and you didn’t apply for PayPal credit, there is the possibility that you are a victim of identity theft. That can happen to anyone.

Data breaches are happening more frequently, even from major companies where your name could be in their database. Equifax, one of the major credit bureaus, reported that 147.9 million U.S. consumers were affected by its 2017 data breach.

If you are a victim of identity theft, you need to take action immediately. One of the first things to do is contact the company that reported you to the credit bureau.

How Will This Affect My Credit Report?

Anything reported on your credit impacts your credit score either negatively or positively.

Credit Inquiries

A hard inquiry on your credit never reflects well on a credit report. Hard inquiries occur when a lender pulls your credit report to check your creditworthiness before lending you money. Every hard inquiry you receive will lower your credit score by up to five points. That means the more credit you apply for, the more you risk lowering your credit score.

Hard inquiries can stay on your credit report for up to two years. That is why it is important to know whether a company will pull your credit for a hard inquiry or a soft inquiry. Soft inquiries won’t affect your credit score.

Soft inquiries occur when a company does a soft pull of your credit as part of a background check. That could happen without your permission to see if you qualify for certain offers. Or an employer could do this before hiring you.

How badly an inquiry will affect your credit depends on the current state of your overall credit. Adding one or two hard inquiries to your report won’t impact you too badly if your credit score is higher than, say, 700. However, if lower than that, it could cause a problem and hurt your credit. Be sure to take advantage of free credit scores to see how you may have been affected.

Closed Accounts

Having closed accounts on your credit report affects your credit utilization rate. Closed accounts show that you have less credit. So, if you still have debt that you owe, having less credit causes your utilization rates to increase. This negatively impacts your overall credit score since it shows that you’re nearly reaching your credit limits with your current lenders.

Your closed accounts will still contribute to your length of credit history. However, it can take up to 10 years for closed accounts to be cleared from your credit report.

How Do I Remove SYNCB/PPC From My Credit Report?

SYNCB/PPC is a legitimate credit entry and is valid if you have ever opened a line of credit with PayPal. However, if this is not the case, you will want to have this account removed from your credit report. You should act immediately. Here are a couple of things you can do.

Dispute The SYNCB/PPC Report

If you have been the victim of identity theft or if something has been erroneously applied to your account, dispute the report immediately. You only have 30 days to dispute the entry’s validity. And this starts with the date of the first SYNCB or SYNCB/PPC appearance.

You can dispute by submitting a letter of dispute. That will provide written documentation of your interactions with the credit agencies and be a testament to your denial of the account.

To file a proper dispute, write a debt validation letter to SYNCB and the three credit bureaus they report to Equifax, Experian, Transunion. When this is done, SYNCB will need to prove the account is indeed yours. If they’re unable to substantiate that claim, they will need to remove the entry from your report.

Use a Credit Repair Company to Help With SYNCB/PPC on Your Credit Report

You could also invest in financial services such as a credit repair company like Credit Saint to help you dispute your claim. Credit repair companies provide expert advice and provide you with options for disputing your claim. They can also assist in devising the letter of dispute if needed. Credit repair companies can review your entire credit report to determine which issues are negatively impacting your credit score and suggest ways to fix them. Credit repair companies are great for dealing with many issues that impact your credit, from bankruptcies to charge-offs to repossessions and judgments.