Possible Finance is a financial technology (fintech) company offering short-term loans and financial services. A crucial question for potential borrowers is: Does Possible Finance check credit? The short answer is: Yes, but not in the traditional way. Their credit checks are different from those conducted by banks and other traditional lenders. Let's delve deeper into how Possible Finance assesses creditworthiness.
How Does Possible Finance Evaluate Applicants?
Possible Finance doesn't rely solely on traditional credit scores from bureaus like Experian, Equifax, and TransUnion. Instead, they utilize a proprietary alternative credit scoring model. This means they analyze various data points to assess your creditworthiness, including:
- Bank account transaction history: They examine your bank statements to understand your spending habits, income consistency, and overall financial stability. This allows them to gauge your ability to repay the loan.
- Income verification: Possible Finance typically requires verification of income through pay stubs or other documentation. Consistent income is a key factor in their assessment.
- Identity verification: They verify your identity to prevent fraud and ensure the loan is going to the correct individual.
- Alternative data sources: While not explicitly stated, it's possible they utilize other alternative data sources to supplement their assessment. These could include information from publicly available databases or other financial institutions.
This approach allows Possible Finance to offer financial products to individuals who may have limited or no credit history, or those with less-than-perfect credit scores.
What Kind of Credit Report Does Possible Finance Use?
Possible Finance does not use a standard credit report from the three major credit bureaus. Their credit check is internal and based on their own proprietary algorithm and the data they collect. This means it won't affect your traditional credit score in the same way a hard inquiry from a bank would. However, this doesn't mean it has no implications. Consistent late or missed payments to Possible Finance could negatively impact your ability to secure loans or credit from other lenders in the future, particularly those that utilize alternative credit data.
Does a Possible Finance Loan Affect My Credit Score?
While a Possible Finance loan application doesn't directly impact your traditional credit score with the major bureaus (Experian, Equifax, TransUnion), your repayment behavior could indirectly affect your creditworthiness over time. Consistent on-time payments can demonstrate responsible financial management, potentially beneficial for future applications with lenders who utilize alternative data. Conversely, consistent late or missed payments could signal a higher risk to lenders, making it harder to secure credit in the future.
Can I Get a Loan from Possible Finance with Bad Credit?
Possible Finance's alternative credit scoring system makes it possible to get a loan even with bad credit. However, approval isn't guaranteed. Your chances of approval depend on various factors, including your income, bank transaction history, and overall financial stability. The more consistent and positive your financial history, the greater your chances of approval.
What Happens if I Miss a Payment to Possible Finance?
Missing a payment to Possible Finance can have several consequences. It could lead to late fees, damage your relationship with the lender, and potentially impact your ability to get future loans from them or other similar lenders using alternative credit data. Therefore, always prioritize making your payments on time.
Conclusion: Understanding Possible Finance's Credit Assessment
Possible Finance employs a non-traditional approach to credit assessment, making it an option for those with limited or imperfect credit history. However, understanding how they assess creditworthiness and the potential implications of your repayment behavior is crucial. Always review the terms and conditions carefully before accepting any loan offer.
