Line of Credit (PayPal Credit)

I need some help wrapping my head around how to document a PayPal Credit purchase in YNAB.

I've created the account (linked to PayPal Credit) as a line of credit (LOC) rather than a credit card (CC), because I have 0% interest for several years. And I think in the budgeting window, LOC overspending shows up as yellow, just like CC overspending.

The transaction for this particular PayPal Credit purchase is recorded in my LOC account under the category "categoryname". The transaction happened this month.

Should the "available" column show a yellow amount, with target payback options? Currently it shows red and asks me to cover the overspending, as if I'd paid in cash.

I've already tried creating a new LOC account (just to make sure it's a LOC) and transferring the old transactions.

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  • Hmmm - the secret here is the handling for Lines of Credit is the same as for Credit Cards, so you shouldn't see the transaction show up as cash overspending unless you had a positive balance on that account in YNAB before entering this transaction. Is the starting balance on that account either $0 or a negative number?

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  • The starting balance was 0.

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  • Purple Tape The only other reason I can think of for seeing a red overspend alert in a spending category where you have credit overspending is if there are:

    • Both cash and credit spending in that category, and  
    • Not enough dollars were available to cover the amount of even the cash spending 

    Does that describe what's happened in that category so far this month? If not, it might be helpful for us to take a closer look at things! If you're up for it, you can enable Support Access for your account. Once you’ve done that, let us know—and mention whether you’d like to continue the discussion here or via email instead! 

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  • Nope, there is only credit spending in that category. I've enabled support access--let's continue over email.

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    • Purple Tape Just sent you an email! 

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  • Do you have to Toolkit on that turns all overspending to red?

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