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.

 

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 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.

 

Possible Cards

When is my Possible Card payment considered late?

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.

 

Why is My Card Delinquent?

Once a statement date has passed and the full statement balance 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. If you become delinquent, you will see a Delinquent message in the app and your card will be locked when this event happens. This is intended to give you advance notice on any negative credit impacts. It is important to make a payment for the full statement balance as soon as possible to avoid a negative mark on your credit report.

Once the statement balance is past due by 30 days, the delinquency will be reported to the credit bureaus. You will also see information on when the next negative credit impact will happen so you can stay up to date on what is being reported. 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.

Delinquencies on your credit report 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.

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. 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.

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