Why do loans go into default?

A loan is considered “in default” when it’s not paid back according to the original terms. Credit bureaus typically define a loan as in default when payments are missed and remain unpaid past the scheduled due dates. This can negatively impact your credit score.

At Possible, we know life doesn’t always go as planned. That’s why we offer a 29-day grace period, giving you extra time to make a payment without penalty. During this time, you can catch up without stress. However, if multiple payments fail, we may consider the loan to be in default internally, even if it hasn’t yet been reported to the credit bureaus.

The best way to avoid default is to stay informed and proactive. Use the Possible app regularly to track your loan status, update your payment method, and make timely payments. If a payment isn't made within the 29-day grace period, the loan will be reported as in default.

If your loan enters default, don’t panic but do act. You’re still in control, and we’re here to help. You can use the app to to help you update your information and schedule missed payments or contact support for scheduling assistance to minimize credit impact. 

 

What Happens When My Loan is Charged Off?

Loans become charged off after the loan is 90 days past due. We recommend settling your outstanding debt as soon as possible so we can report your loan as closed (or paid off).

Once a loan becomes charged off, it may be outsourced to a third party collection partner to assist in collecting payments. The collection partner will reach out to you at the email you have on file with Possible informing you of the balance due and to arrange payments. We recommend working with the collection partner to ensure your payment information stays up to date with Possible and the collection partner.

Once you have paid your balance with the collection partner, we will receive notice and update the loan status. Depending on when you made your final payment, this process can take upwards of 60 days as we receive payment confirmation once per month.

If your loan was charged off then paid, you will still see it reported a charged off, but with a “paid” status added. This means your loan was once charged off, but it is now paid off and closed.

 

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 payments made 14 days past the originally scheduled dates as late when assessing future applications. 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.

 

Possible Cards

When is my Possible Card payment considered late?

Card Program A

Possible Card payments are considered late by Possible when a payment is not made by the due date shown in the app. You will see an Overdue message in the app when this event happens, but your card will not be locked. Even though Possible considers this a late payment, this is not yet reported as late to the credit bureaus we report to. You have 29 days from the statement due date to pay your full statement balance before it is reported as late to the credit bureaus we report to.

Card Program B

Possible Card payments are considered late by Possible when a payment is not made by the statement due date. You will see a delinquent message in app when this happens and your card will become locked. Even though Possible considers this a late payment, this is not yet reported as late to the credit bureaus we report to. You have 29 days from the statement due date to pay the past due amount before it is reported as late to the credit bureaus we report to.

To learn more about the card programs, see this help center article.

 

Why is My Card Delinquent?

Once a statement due date has passed and the payment owed has not been paid, Possible considers the card to be delinquent. As long as a payment is made within 29 days of the statement due date, the payment will not be reported as late to the credit bureaus we report to.

If you become delinquent, you will see a Delinquent message in the app and your card will become locked. This messaging is intended to give you advance notice of any potential negative credit impacts. It is important to make a payment for the full payment owed as soon as possible to avoid a negative mark on your credit report.

Once the minimum balance due listed on your statement is past due by 30 days, the delinquency will be reported to the credit bureaus we report to. At that point, you will still see a delinquent message in app and also see information on when the next negative credit impact will take place. This is intended to help you stay up to date on what is being reported.

Delinquencies on your credit report can have a negative impact and can remain on your credit report for up to 7 years. It is important to make a payment for the full statement balance as soon as possible to avoid additional negative marks on your credit report.

Each delinquency segment can cause an increase in the negative impacts on your credit score, so it is important to get caught up as soon as possible.

The delinquency segments you will see messaging for are:

• 0-29 days past due
• 30-59 days past due
• 60-89 days past due
• 90-179 days past due

After 179 past due, Possible will close the card and consider it charged off. You can still make payments as that will continue to be reported to the credit bureaus we report to. If you do not pay off your card balance, you may not be eligible to apply for a Possible loan in the future.

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 reporting.

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 card payments were late without error on our end, we can't go back and report them as paid on time.

Possible offers members a 29-day grace period (from their statement due date) in which their card 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.

If you have not done so already, we recommend settling your outstanding payments as soon as possible to avoid any further negative impacts on your credit report.