Possible Finance loans review. In the app, Possible Finance provides small installment loans at high interest rates through its network of online lenders. Even if you lack credit history or have bad credit, you may be able to get up to $500 if you meet the qualifications; however, you may only be able to get the loan in certain states.
This company offers a low-cost, short-term alternative to traditional payday loans, which can be repaid from your next paycheck, and are frequently considered high-cost, high-risk loans. A possible loan will have a lower interest rate than payday loans (although they are still high), and you will be able to repay the loan over a period of eight weeks with biweekly payments. # Possible Finance loans review
The process of applying for a loan is relatively easy, but if you have a bad credit history or no credit history at all, taking out a loan can be difficult. As a result of being rejected for a traditional loan, many would-be borrowers may turn to predatory products, such as payday loans, in an attempt to get funding, even though doing so can be cost-prohibitive and detrimental to their financial future.
It was founded in 2017 by a fintech startup called Possible Finance with the aim of making the process of obtaining a loan easier and less expensive. As a result of the program, they are able to assist borrowers that fail to meet the credit requirements of other lenders, but still need to borrow money to make ends meet. You can apply for a Possible Finance loan online in just a few minutes and you can get up to $500. As the borrower pays off their loan, the loan will work to build credit for them as well.
Possible Finance loan details
In some cases, you may be able to obtain an online installment loan through Possible, an alternative to a traditional personal loan, a payday loan, or even a credit builder loan. Unlike other lending companies, Possible does not have any minimum FICO credit score requirements in order to qualify for a loan.
While a soft credit check is conducted as part of the application process, this will not impact your credit score or their lending decision. # Possible Finance loans review
|Lending options for installments|
|Limits on loan amounts||Up to $500|
|Rates||150% to 200% APR|
|Funding time||Bank accounts are credited within 1 – 2 business days, or debit cards within minutes|
|Repayment terms||8 weeks|
There are certain eligibility requirements you’ll need to meet in order to be eligible to apply for one of the loans offered by Possible.
- A minimum age of 18 is required
- Have a checking account with at least three months of history (which you will need to link to Possible)
- Make monthly deposits of at least $750 into that account
- Valid identification must be shown
How to qualify for a Possible Finance loan?
As Possible Finance does not check your credit score, you may qualify for a loan even if your FICO score is as low as 629 or less. Borrowers without a credit history or with a poor credit history may also qualify. To decide whether to approve an applicant for the loan and for how much, the lender examines bank account transactions in order to make its decision. # How to qualify for a Possible Finance loan?
The lender says that there are a few things you can do to increase the chances of getting approved.
- The balance of a bank account is regularly positive.
- It is necessary to earn at least $750 per month.
- Your account will be credited consistently over time if you make regular deposits.
- Insufficient funds fees or returned checks are infrequent.
You must meet the following requirements to qualify for a loan:
- The Possible app can be installed on a phone.
- Passport, driver’s license, or ID that is valid.
- An individual’s Social Security number.
- Savings or checking accounts that are compatible.
How does Possible Finance work?
With Possible Finance, you can borrow cash when you need it most, just like any other lender. It works just like any other loan company. By using Possible, you are able to take out up to $500 without the need for a credit check and the application process can be completed within 60 seconds from your smartphone. Despite this, there may be a limitation on the amount of the loan in some states due to the borrower’s regulations.
As soon as you receive an approval from Possible, you will be able to load the funds on your debit card or deposit them into your bank account within one to two business days after the loan has been approved. There are a number of ways in which this money can be used, including:
- Bill payment
- Purchase of a large amount
- Repairing an unexpected problem
- Taking a trip
Whenever you borrow money through a personal or payday loan, you are free to use the money in any way that you see fit.
There will be four installments in total for the repayment of the Possible Finance loan, and borrowers will have eight weeks in which to do so. It must be said, however, that Possible does allow borrowers to adjust their payment date(s) if they need to, and they don’t charge a late fee for payments that are delayed. # Possible Finance loans review
How much does Possible Finance cost?
There is no doubt that a loan’s cost is determined by its interest rate, which is determined by several variables, such as your credit history, period of repayment, as well as the type of loan you are taking out.
Several states have also set limits on the maximum percentage rate that lenders can charge to borrowers, especially in cases of short-term or high-interest products such as payday loans, which are subject to these limits. # Possible Finance loans review
Data released by the Consumer Financial Protection Bureau (CFPB) suggests that, on average, payday loans come with an annual percentage rate of 613%, or $23.53 for every $100 borrowed. Besides overdraft fees, there are also other fees that borrowers have to pay to their banks: for example, with a median overdraft fee of $34, if a consumer borrowed $24 from their bank for three days, he would have to pay an annual percentage rate of 17,000%.
A Possible Finance loan has an annual percentage rate (APR) ranging from 150% to 200%, depending on factors such as your location, which in turn affects the APR. For example, let us say that a borrower in Washington (a state that has interest rate caps) takes out a loan from Possible for $200. This loan will be repaid with eight biweekly payments of $57.50 each, for a total payment of $230, for an effective annual percentage rate of 151%.
How Possible Finance helps build credit?
As a result of the variety of credit-based accounts that you carry, your credit history is built as well as your credit score. The creditor may post your account history on one or more of the credit reporting bureaus (e.g. TransUnion, Equifax, and Experian) as you manage those accounts, and those credit reports may be added to your official credit report(s) as you manage the accounts.
From your initial balance to your current balance to whether or not you have made your payments on time, this account history covers everything from your initial balance to your current balance as well as your credit inquiries.
Your payments will be reported to two of the three credit bureaus as soon as you repay your Possible installment loan: Experian and TransUnion, as you repay your loan. Providing you with a positive payment history will enable you to build your credit as you pay down the balance and establish a positive payment history.
Possible Finance pros
Accepts borrowers with poor or no credit. The lender says that it has the ability to approve borrowers with bad credit and those who do not have a credit history or have a thin one. Due to its unique characteristics, it is able to provide loans to borrowers who may not be eligible for loans from traditional lenders, such as banks. There is an extra risk that is taken on by lenders who offer loans with no credit checks since they cannot see the credit history of the borrower. Often times, they make up for this risk by charging high annual percentage rates in order to compensate for the risk.
A fast funding process. As soon as you have been approved, the app will show you when you can expect to receive your funding. We will process your loan application if you submit it before 2 p.m. during the business day, and the funds will be deposited into your bank account by the end of the next business day. You can expect your funds to arrive two business days later if you apply after 2 p.m., the lender says. A debit card can also be used to load the money onto so that it can be accessed more quickly.
Payment dates can be changed by borrowers. According to Possible, borrowers have the option of choosing a payment date before signing a loan agreement. There is also the possibility for borrowers to move the repayment date once during repayment, which can come in handy if you change jobs and need to accommodate a new paycheck date or a new bill payment date. As soon as your bank account is deducted from your account, you will receive a text message and an email from the company.
Deferral of late payments. When a loan payment is over 30 days late, it will affect the borrower’s credit score. However, lenders currently allow borrowers to push payments out 29 days without incurring any late fees or affecting their credit reports negatively. It is therefore possible for a borrower to request to be four weeks late on payments instead of reporting the deferral to the credit bureaus, and doing so won’t have any negative effect on their credit score.
Possible Finance cons
High interest rates. It is possible for loan APRs to reach up to 240% in some cases, which is quite high. Even a small loan can become difficult to repay if the interest rate is high and the repayment period is short. Consumer advocacy groups recommend that affordable loans have rates of no more than 36% – lower than Possible’s lowest annual percentage rate (APR).
Customer support is only available via email. In the app or through their online form, you will be able to reach a Possible customer service representative who will be able to assist you. Possible says it takes them one to two business days to respond to their voicemail box, but the lender has a compliant phone number. There is usually a phone number available for customers to call for assistance from most lenders.
Origination fees. The origination fee can range from 2% of the loan amount in some states to up to 4% in others. The lender usually deducts an origination fee from your loan before transferring it to your account, so you may receive less money than you originally expected. # Possible Finance loans review # How to qualify for a Possible Finance loan?