Editorial Review

Possible Finance Installment Loans: 2019 Review

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

Steve NicastroSeptember 3, 2019

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Our Take

The Bottom Line: Possible Finance offers a no-credit-check loan that can help you build credit, but high rates make it an expensive option.

Possible Finance Personal Loan

Possible Finance Personal Loan

Min. Credit Score

None

Est. APR

151.00-230.00%

Loan Amount

$0-$2,000

Pros & Cons

Pros
  • Cheaper than payday loans.

  • Flexible repayments.

  • Fast funding.

Cons
  • High rates.

  • Available in a limited number of states.

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 personal loan product. Loan terms and fees may vary by state.

When to consider: As an alternative to payday loans or to cover an emergency expense after you’ve exhausted other options.

Possible Finance is an online lender that makes small installment loans up to $500 to consumers with no credit history or bad credit.

The company is 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.

“You can repay over a much longer period of time across multiple paychecks with our loan,” says Tony Huang, co-founder and chief executive officer of Possible Finance. “This gives the user more time to catch their breath and avoid the cycle of debt that’s a signature of payday lending.”

Unlike payday loans, Possible Finance loan payments are reported 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,” Huang says.

Most of its customers use the loans for emergencies, such as car repairs, but some use it just to build their credit, according to Huang.

Possible Finance loan details

Requirements:

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

  • Live in one of the states that Possible Finance serves: Idaho, Ohio, Texas, Utah and Washington.

  • Link a checking account with at least three months of history and monthly income deposits of at least $750.

  • Having positive cash flow (the money left over after you pay your bills) increases your approval odds.

Fast funding: The loan application can be completed on Possible Finance’s mobile app in about 60 seconds. About half of all applicants qualify, Huang says, and the majority of customers receive funds instantly via debit card. You can also receive funds via bank transfer in one to two business days.

Payment flexibility: Possible Finance loans are repaid every two weeks over an eight-week period. Customers have the option to defer payments up to 29 days past the original 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.

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

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

  • In Ohio and Texas: Monthly fee plus interest. APRs are 215% on Ohio loans and 230% on Texas loans.

“It might cost us $10 to originate a loan of $100, so we have to charge a reasonable rate to have a sustainable business model,” Huang says.

Possible Finance loan example

The typical customer borrows $200 to $300 and is charged a $15 to $22 fee for each $100 borrowed, according to Possible Finance. Fees are divided equally among four payments.

Here’s what a loan looks like for a borrower in Washington state:

  • Amount borrowed: $200.

  • Bi-weekly payment: $57.50.

  • Total amount repaid: $230.

  • APR: 151%.

You can use a loan slider on the Possible Finance app to see how different loan amounts affect the APR.

How Possible Finance compares

Possible Finance’s rates are higher than Oportun and Capital Good Fund, and comparable with LendUp. All three are similar payday-alternative lenders.

Capital Good Fund offers small emergency loans between $300 to $500 to borrowers in four states. Oportun has retail locations in nine states, while LendUp accepts borrowers in seven states.

Possible Finance, Capital Good Fund and LendUp report to all three credit bureaus; Oportun reports to two.

Oportun provides loans up to $9,000 and offers financial education and access to financial counseling. LendUp provides rate-reduction incentives tied to your payment history and the completion of free financial education courses. Possible Finance does not offer such incentives.

Possible Finance is not a good idea if you:

  • Don’t need a loan, but want to build credit:  A credit-builder loan, secured credit cards or paying off existing debt are faster and cheaper ways to build credit. Learn ways to build credit, and if you don't know your score, get your free credit score on NerdWallet.

  • Need a loan and can get cash elsewhere: NerdWallet recommends exhausting cheaper alternatives first, even in an emergency. Take the quiz below to explore your options:

Before you take a Possible Finance loan

  • Exhaust all other options: If you need a loan and the alternatives listed above don’t 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.

  • Compare the cost of taking the loan versus not taking it: Calculate the overall cost of not having money for your purpose and weigh that against the potential cost of this 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 the eight-week time frame.

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's ratings for personal loans award points to lenders that offer consumer-friendly features, including: soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus, and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews. Read our editorial guidelines.