If you’re currently in the market for a loan, you might be considering loans like Possible Finance. If so, read on to learn more about them and how they work.
It’s not always obvious where to turn when you need quick cash. There might be a lot of different lenders and options out there, For example the U.S. has more than 4,000 small banks. That’s more than any other country in the world.1 But are these loans from banks or other financial institutions safe? And are they affordable? These are the most important questions to ask when you’re shopping for a new loan or financial obligation.
Possible Finance® is a registered trademark of Possible Financial, Inc.
Finding The Right Personal Loan
One small financial emergency can throw off an entire household budget breakdown. You worked hard, planned out all of your expenses, and then boom! You’re suddenly hit with a medical bill, vehicle repairs, or some other unexpected expense. If you don’t have solid savings which many Americans don’t—36% of all Americans have absolutely no savings at all—you may need to look for a loan option.2
Here are some types of common emergencies:
|Medical||Accidents, sudden illnesses, dental emergencies, prescription medication needs|
|Automotive||Car accidents, major repairs, flat tires, locked keys in car|
|Home/Residential||Natural disasters, home break-ins, major appliance breakdowns, plumbing issues|
|Financial||Unexpected job loss, unplanned bills, fraud/identity theft, urgent travel needs|
|Personal||Death in the family, legal troubles, unanticipated educational expenses, urgent child/pet care needs|
When these situations arise, many people choose to take out a personal loan to settle the expenses. But the loan you select and the lender that offers it could potentially affect your finances for years to come. Therefore, it’s crucial to do plenty of research into loans and lenders before you sign on that dotted line.
One option some borrowers opt for is a small personal loan from Possible Finance.
Possible Finance: What You Need To Know
Possible Finance is an online lender offering a payday loan alternative to borrowers with bad credit. They also have an app that allows people to borrow money through their phone or tablet device.
Their loan options may be called cash advances. Cash advances make a small amount of money available for borrowers, usually in the form of cash; they usually don’t have a credit check.
Cash advance options, in some cases, may have similar qualities to personal loans and payday loans. And so, to understand the product that Possible Finance is offering, you’ll first need to understand what unsecured personal, cash advances, and payday loans are.
Learning About Unsecured Personal Loans
Unsecured personal loans mean that you won’t need to offer the lender any collateral to receive the loan. Instead, these loans are given based on the borrower’s credit history, credit score, income, and overall ability to repay the loan.
Cash Advance Loans
Cash advance loans typically refer to short-term loans that are quickly provided to an individual, usually against a future paycheck or a credit card. There are a few kinds of major cash advance options available; some of these may be similar to what a cash advance app like the one that Possible Finance has:
- Credit Card Cash Advance Option — This is one of the most common forms of cash advances. Here, cardholders can withdraw an amount of cash, which is set to a certain limit, through an ATM or bank branch. This amount is then added to the balance on the card, similar to when you make a purchase. However, there are key differences between credit card use and credit card cash advances. Credit card cash advances often have higher interest rates than regular purchases. And, unlike purchases, there is typically no grace period for cash advances; interest begins accruing immediately. Also, there’s often a fee associated with the cash advance, either a flat fee or a percentage of the advanced amount.
- Payday Loans — These are also sometimes referred to as cash advances. More information will be provided on these below.
- Merchant Cash Advances — A merchant cash advance is given to businesses. In this setup, a business receives a lump sum payment in exchange for an agreed-upon percentage of future sales or revenues.
- Overdraft Protection — Some banks offer cash advances as part of their overdraft protection service. If an individual’s bank account goes into the negative, the bank will provide a short-term advance to cover the deficit.
Payday loans are usually unsecured and need to be repaid in the following pay period. Many payday lenders don’t even care about your credit history or income—there is usually no credit check. This is a red flag of a predatory lender. A credible lender will want to ensure that their borrowers can repay the loan. Payday lenders might not care as much because they tend to make a lot of money on late fees and rollovers.
Rollover is when a borrower can’t repay the loan on time, so the lender extends the loan. This might sound like a good thing for the borrower, but in the long run, it’s harmful. In addition to extending the loan, the lender also adds more fees and interest. This may create a cycle of debt for the borrower that’s difficult to escape.
Possible Finance describes themselves as an alternative to risky payday loans.
Points to Remember About Cash Advances and Payday Loans
- Cash advances, especially from credit cards and payday loan institutions, typically come with high fees and interest rates.
- Payday loans and similar cash advance options are meant to be short-term financial solutions and can become costly if not paid back promptly.
- It’s advisable to understand all terms before opting for a cash advance. Consider other financing options which might be more affordable in the long run.
How Do Possible Finance Loans Work?
Getting personal loans from Possible Finance is similar to other lenders that offer online loans. You can apply from your phone or a computer, get a decision, and receive money in your bank account through direct deposit.
Here is the Process With Possible Finance Loans
- Once you apply, they review your application and financial information.
- If your information is sufficient, they might offer you a small loan.
- Review this loan offer very carefully, check the fees and interest rate, and then decide whether or not you’re able to repay it on time.
- If you do accept the loan, you’ll need to sign for it. Then they will deposit your cash into your bank account.
- Once you receive the money in your bank account via direct deposit, you can spend it on whatever you need. Your repayment will begin on the date they list in your loan agreement—review your loan agreement thoroughly.
- Possible Finance offers more extended repayment than a lump-sum payday loan. Which means you’ll make smaller payments over time.
- Once you pay the loan and fees in full, the loan agreement is fulfilled.
Who Are Possible Finance Loans For?
Possible Finance describes their loans as payday loan alternatives for the borrower with a low credit score. This means if your credit score is lower than average, you may still be approved.
Having a low credit score makes life difficult in various ways. You might not be able to get a traditional loan from banks or credit unions. This means many borrowers struggling with a low credit score turn to payday loans and other predatory financing options.
What Does a Low Credit Score Mean?
A low credit score means that credit bureaus see you as a risk when borrowing money. It may mean you have too much debt, a bank account in poor standing, or that you don’t make your payments on time. Whatever the reason is, rest assured that it is possible to repair a low credit score.
If you’re one of the borrowers who typically have to rely on payday loans, Possible Finance could be a better alternative. While a payday loan has to be repaid in one lump-sum payment, Possible Finance will allow you to spread your payments out.
But if you need more money than a payday loan will offer, you may need to look elsewhere. Possible Finance only offers loans up to $500.
Can You Improve a Bad Credit Score?
Absolutely, improving a bad credit score is possible, though it typically requires time, consistent effort, and financial discipline. Here are some steps you can take to help boost your credit score:
- Check Your Credit Reports — Obtain free annual credit reports from the three major credit bureaus: Experian, TransUnion, and Equifax. Review these reports for errors or inaccuracies.
- Pay Your Bills On Time — Late payments can have a significant negative impact on your credit score. Ensure you pay all bills, including credit card bills, loans, and utilities, on time.
- Look into Tools — Tools such as credit builder loans can help borrowers build better financial habits and credit without the risk of traditional loans or credit lines.
- Reduce Debt — Work on paying down outstanding debts, especially high-interest debts like credit card balances.
- Limit New Credit Inquiries — Each time you apply for a new line of credit, it results in a hard inquiry, which can temporarily lower your score. Only apply for new credit when necessary.
- Don’t Close Old Credit Accounts — The length of your credit history can impact your score. Even if you don’t use an old credit card, keeping it open (and in good standing) can help improve your credit score.
- Diversify Your Credit Mix — Having a mix of credit types (credit cards, retail accounts, installment loans, mortgage loans) can positively affect your score.
FAQS About Loan Options Like Possible Finance
Cash advance apps allow users to borrow a small amount of their upcoming paycheck ahead of time. While apps like Possible Finance provide payday loan alternatives, cash advance apps typically provide smaller amounts to cover immediate expenses and might not require a full repayment on the next pay period.
Fees can vary across payday advance apps. While some might offer a service with no hidden fees, others might charge monthly fees or fees for instant transfers to bank accounts. Always read the terms and conditions to be aware of any costs.
Most cash advance apps like Possible Finance don’t conduct credit checks, including Possible Finance. When conducted, a credit check can bring down your credit score.
Although there is no check with Possible Finance, they do report your payment history to Transunion, Experian, and Equifax, so your payment history with them can impact your credit score.
Many cash advance apps require users to set up direct deposit because it provides them with a consistent view of your income and ensures they can auto-debit repayments. However, requirements can differ, so it’s best to review individual app policies.
Cash advance apps can provide you with a small buffer of money before your next paycheck, ensuring you don’t overdraw your bank account. By using these apps responsibly, you can potentially avoid overdraft fees charged by banks.
CreditNinja: How Does It Compare?
CreditNinja is a premier online lender offering larger, more secure, and more flexible installment loans than any payday loan you’re considering.
Our installment loans allow you to get more cash than Possible Finance and repay your loan over a longer amount of time than a typical payday loan. And the best part is that you won’t need to have a perfect credit score to be approved.
While both Possible Finance and CreditNinja are better alternatives than payday loans, you can potentially get a lot more cash with a CreditNinja installment loan. Possible Finance is designed for small-dollar loans.
CreditNinja’s Installment Loans
A personal installment loan from CreditNinja is a great option when you find yourself in a financial bind. Whether you need to pay off some bills, consolidate your credit card debt, or pay for your children’s school costs, CreditNinja is here to help.
These loans will provide you with more money than a payday loan, a longer amount of time to repay the loan, more flexible terms and conditions, and an overall lower interest rate.
If you need money in your bank account right away and you want to repay it over time, then a CreditNinja installment loan may be right for you.
How Does CreditNinja Stand Out?
CreditNinja cares about your financial future. We want to help you get the cash you need and the favorable and flexible repayment options you deserve.
CreditNinja stands out for several reasons:
- You can apply online in minutes and receive a decision right away.
- If approved, your cash will be deposited right into your bank account.
- You can still be approved even with a low credit score.
- Spread your payments out over a longer amount of time than payday loans.
- Unmatched customer service whenever you have questions or concerns.
Who Should Pick CreditNinja?
A CreditNinja Loan is for any borrower who has a poor credit history and needs a little extra cash to handle a financial emergency.
If you typically run out of cash before your next payday, and you usually solve that problem by taking out a payday loan, then it’s time to look at your alternatives. There are a number of good reasons to take out a personal loan. If you have one, then it’s wise to check out a personal installment loan.
Don’t let payday loans drag you even deeper into debt. Instead, consider a safer, larger, more flexible personal loan from CreditNinja.