Understanding Late Payments


Why do loans go into default?

Loans are considered "in default" if they remain unpaid past the agreed-upon terms of the loan. The credit bureaus will consider a loan to be in default if payments remain unpaid past the agreed-upon original payment dates. This default status means your loan is overdue for payment, and can negatively impact your credit score.

Possible wants to provide our customers with as much flexibility as we can, therefore we offer a 29-day grace period in which you can repay a late payment without penalty. Possible may also consider a loan to be in default if multiple payments on it fail. If this is the case, however, the default status is not formally reported and is more so an internal status.

We will only report a loan as "in default" if the payment is not made within its 29-day grace period. If your loan goes into default, Possible will reach out to help you update your payment method and repayment dates in order to minimize the negative impact to your credit report. If you believe your loan has been marked as in default in error, please reach out to our customer success team.

How can I reverse a negative mark on my credit report?

Negative marks can't be reversed unless there's an error in Possible's report.

Possible is bound by federal regulation to report accurate information. If there was an error in our system that prevented your payment from being made on time, we are happy to amend the reports. Unfortunately, if your loan payments were late without error on our end, we can't go back and report them on time.

Possible offers customers a 29-day grace period (from their originally scheduled payment date) in which their payments are still considered on time. When payments have exceeded that grace period, it is considered late by the credit bureaus we report to. Increasingly negative marks will appear at 60 days past due, 90 days past due, and so on.

NOTE: Possible considers late payments as 14 days past the originally selected dates. Credit bureaus consider late payments as 30 days past the originally selected dates. Originally selected dates to refer to the payment dates you accepted in your loan agreement.

We recommend settling your outstanding debt as soon as possible so we can report your loan as closed or paid off!

The good news is, loans in any state (late, default, or charged off) can still be reported as closed or paid off. This will stop further damage to your credit score, however, negative marks previously incurred can't be reversed.

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