Possible Finance: Credit-Building Payday Alternative Loans with High Interest Rates

Possible Finance provides small installment loans for borrowers with bad credit or no credit history, but its loans are costly; consider alternatives first.

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Our Take

3.0

NerdWallet rating 

The bottom line: These loans are available in an emergency, but even then you may have cheaper options.

Possible Finance Personal Loan

Possible Finance Personal Loan

Min. Credit Score

None

Est. APR

151.00 - 257.00%

Loan Amount

$50 - $500

Pros & Cons

Pros

  • Reports payments to all three major credit bureaus.
  • Option to delay your payment.

Cons

  • Available in a limited number of states.
  • Rates are high.
  • Repayment term of two months.
  • May charge an origination fee.

Compare to Other Lenders

Oportun
OneMain
NerdWallet rating 
NerdWallet rating 
Est. APR

27.74 - 35.95%

Est. APR

18.00 - 35.99%

Loan Term

6 to 46 months

Loan Term

2 to 5 years

Loan Amount

$300 - $10,000

Loan Amount

$1,500 - $20,000

Min. Credit Score

None

Min. Credit Score

None

Compare estimated rates from multiple lenders

Compare Rates

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Full Review

To review Possible Finance, NerdWallet collected more than 30 data points from the lender, interviewed company executives and compared the lender with others that seek the same customer or offer a similar loan product. Loan terms and fees may vary by state.

When to consider: As a last-resort alternative to payday loans once you’ve exhausted all other options.

Possible Finance is an online lender that makes small installment loans through its app. Borrowers with no credit history or bad credit may get up to $500, though the loans are available in only seven states.

Possible markets itself as an alternative to traditional payday loans, which are high-cost, short-term loans that are meant to be repaid in full from your next paycheck.

Possible gives you eight weeks to repay the loan in two-week intervals, rather than requiring full payment on your next pay date.

Also unlike payday loans, Possible reports loan payments to the three major credit bureaus — Equifax, Experian and TransUnion — so making on-time payments can help you build credit.

“We want our customers to qualify for better and bigger-dollar products in the future,” says Tony Huang, co-founder and chief executive officer of Possible Finance.

Possible Finance at a glance

Credit building

  • Reports payments to three credit bureaus.

  • Measures ability to repay before lending.

Affordability

  • Offers triple-digit APRs.

  • No prepayment fees.

Loan flexibility

  • Doesn't allow borrowers to choose payment date at loan signing.

  • Allows borrowers to delay payment.

  • No explicit hardship plan.

  • Available in CA, FL, ID, OH, TX, UT, WA.

Transparency

  • Website does not clearly disclose rates and fees.

Customer experience

  • Customer service contact is through an email form.

  • Questions answered during limited hours.

Possible Finance loan details

Requirements

Possible Finance does not check your credit score, so bad-credit borrowers and those with little or no credit history may qualify.

To qualify for a loan, you must:

  • Provide a valid driver’s license and Social Security number to verify your identity.

  • Link a checking account that has at least three months’ history, deposits of $750 per month and at least occasional positive balance.

  • Have money left over after you pay your bills to increase your approval odds.

Loan features

High rates: Depending on the state, Possible Finance may charge a flat fee or a monthly fee plus interest:

  • In California, Florida, Idaho, Utah and Washington: Flat origination fee between $15 to $20 for every $100 borrowed. With biweekly payments, the annual percentage rate may range between 151% to 200% or higher.

  • In Ohio and Texas: Monthly fee plus interest. APRs are 215% on Ohio loans and 257% on Texas loans.

Loan example: The lender says a $200 loan made in California and repaid over eight weeks has an APR of 178%. That loan would require bi-weekly payments of $61 for a total amount repaid of about $245.

Funding time: If you’re approved, the app will show your expected funding date. If you apply for a loan before 2 p.m. on a weekday, the money will be deposited into your account the following business day. If you apply after 2 p.m., your funds will arrive two business days later, the lender says. You can also have the money loaded onto a debit card to access it more quickly.

Changing your pay date: Possible Finance loans are repaid every two weeks over an eight-week period. Customers have the option to defer each payment up to 29 days past their due date with no additional fees, interest charges or impact to their credit scores.

The company sends text or push notifications from the app the day before a payment is due.

How Possible Finance compares

Overall, Possible’s loans have high rates, even among lenders that don’t check your credit or rely heavily on it to make a loan decision.

Oportun caps APRs at 36% and is available in 12 states. This lender doesn’t require you to have a credit score but will consider it if you have one.

Capital Good Fund also considers a credit score only if you have one and looks more closely at your bank account transactions. This lender is available in only six states but caps APRs at 24%, making it one of the most affordable payday alternatives.

Opploans is a no-credit-check lender that reviews data from an alternative credit bureau to evaluate borrowers and relies on income and bank account transactions. The lender’s rates also skew a bit lower than Possible’s.

Possible Finance is not a good idea if you:

  • Only want to build credit: A credit-builder loan or secured credit card are faster and cheaper ways to build credit, and they’re both less risky than a loan from Possible.

  • You can get cash elsewhere: Cheaper alternatives are not always fast or convenient, and sometimes they require asking for help. But NerdWallet strongly recommends exhausting alternatives first, even in an emergency. Take the quiz below to explore your options:

Before you take a Possible Finance loan

  1. Try all other options: If none of the alternatives listed above work for you, see if you can buy time from your creditor, work out a payment plan or face the short-term financial consequences of not paying, such as a late fee.

  2. Compare the cost of taking the loan to the cost of not taking it: Calculate the cost of not being able to cover your expense, whether it’s an actual cost, like a late fee, or a longer-term cost like missing work because your car won’t start. Then weigh that against the typical cost of a Possible loan.

If you take a Possible Finance loan

After considering your alternatives, you may decide that a Possible Finance loan is your best option. In that case, carve out room in your budget to repay the loan in eight weeks.

You can apply with Possible Finance on its mobile app. The company will ask you to link a bank account and provide a driver’s license and personal information. You’ll receive a push notification, email or text if you’ve been approved.

Personal Loans Rating Methodology

NerdWallet rates lenders that offer high-interest personal loans separately from other lenders due to the consumer risk associated with these loans. We define high-interest loans as those with rates that exceed 36%, which is the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. The maximum allowable rating for high-interest lenders that we review is four stars. We award points to lenders that offer loans that minimize harm to consumers through affordability, transparency and practices that prioritize consumers’ needs. This includes: checking credit and reporting payments to credit bureaus, monthly payments that don’t exceed 5% of a borrower’s monthly income, fully amortizing repayments, transparency of loan rates and fees, and accessible customer service and financial education. NerdWallet does not receive compensation for our star ratings.