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1. Is my credit score guaranteed to increase?
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 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!
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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 ultimately impacts your credit the most will be whether or not the payments on the loan were made on time. 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.
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