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Is my credit score guaranteed to increase?
We report to TransUnion and Experian for loans with the intention of increasing your credit score, but an increase isn't guaranteed.
Some customers with sufficient credit history have reported experiencing negative effects. Credit scores can decrease for a variety of reasons. Applying for a mortgage, loan, or new credit card can decrease your credit score, as can closing a credit card, increasing the amount of credit you utilize, or filing for bankruptcy. At this time we’re unable to predict exactly how your score will be affected by using our product. The credit bureaus do not disclose exactly how credit scores are calculated.
If you believe the negative effects on your credit score are due to errors in our report, please file a dispute claim with the credit bureaus. Credit bureaus offer dispute services without charge. We want to do right by our customers and are happy to amend reports that are found to be in error.
When does Possible report loans to the credit bureaus?
We actively report to two of the three major credit bureaus, TransUnion and Experian. We report the status of all loans at the beginning of each month for the previous month.
We do this on purpose to give people a chance to catch back up if they miss a payment. We know you may be eager to see changes in your credit score so we thank you for your patience and understanding!
There is an exception: payments made at the very end of the month may still be processed on the 1st when we do our monthly report. These payments will not be reported as complete yet. Don't worry! Everything will get updated next month.
Here's an example:
On February 1st we'll report for the month of January. Let's say your payments were selected for: January 1st, January 15th, February 1st, and February 15th.
Here's what you can expect to see on your credit report: Your first 2 payments (aka your January payments) will be reported as complete with our February report. Your overall loan status will be reported as ‘open’ since you have 2 payments still remaining. After you make your final 2 payments in February, we will report the payments as complete and your loan status as closed with our March report.
Changes to your credit report won't appear immediately. TransUnion and Experian each process our report at different rates! We don't have control over the processing time. Some changes may appear within 72 hours of our report and some changes may take up to 60 days to take effect. We appreciate your patience!
Why are loans reported as closed?
Once a loan has been paid off it is sometimes reported as "closed" by the credit bureaus. "Closed" status is the same as a "paid in full" status on a credit report. What . Once you see the "closed" or "paid in full" status on your credit report, you've fulfilled your obligation to repay, and no further activity on the account is expected or required.
How Does Closing My Card Impact My Credit Score?
Your credit score is based on many factors, so we cannot predict how each individual will be impacted by closing their Possible Card.
What we do know is part of your credit score is based on the length of time your credit accounts are open. What this means is, anytime you close a credit account, your credit score may be impacted. The extent of impact, if there is any, is unknown since each individual has their own specific credit situations that determine their credit score.
When Does Possible Report Possible Cards to the Credit Bureaus?
At Possible, it’s our mission to help you build credit history!
The Possible Card is currently in beta and we will begin reporting to credit bureaus on November 20, 2023. If you are currently a Possible Card member, there are a couple things to keep in mind:
- If you became a Possible Card member prior to March 1, 2023, we’ll report your account status as of November 20, 2023 onwards.
- If you became a Possible Card member on, or after March 1, 2023, your full account history from the start of your card membership will be reported to credit bureaus—as well as your payments going forward.
You can refer to your Agreement for additional details on your Possible Card terms.
Once we start credit reporting on November 20, 2023, we will actively report to one of the three major credit bureaus, TransUnion. We report the status of all cards once each month.
Changes to your credit report won't appear immediately. Some changes may appear within 72 hours of our report and some changes may take up to 60 days to take effect. We don't have control over the processing times and some credit apps, such as CreditKarma, may take longer to appear. We appreciate your patience while you wait for the changes!
We plan to report to all three of the major credit bureaus for card by the end of 2024. We will keep you notified of changes to credit reporting via email updates.
How Does a Pay Over Time Plan Impact My Credit Score?
When you enter a Pay Over Time (POT) plan, your payment aging freezes.
Enrolling in POT when your account is not delinquent, allows you more time to pay off your balance without becoming delinquent and potentially impacting your credit.
Enrolling in POT while your account is delinquent can minimize further damage to your credit report because your delinquency will not “age” or increase during and active POT plan. This can help you avoid any further negative impacts to your credit score
If you exit POT before paying off your balance, your account delinquency will continue to age from the status your account was in before you entered your POT plan.
For example, if you were delinquent by 45 days when you enter your POT plan, you will stay 45 days delinquent until you catch up on the delinquent balance. Even if it takes you three POT payments (usually about 5-6 weeks) to become current, you will not exceed 45 days delinquency while in the POT plan.
Please note that the final payment amount of your POT plan may change if there are any pending transactions at the time you enroll in your POT plan that post while in your POT plan.