Tony Huang, Possible Chief Executive Officer and Co-Founder:  “It’s our mission to help communities break the debt cycle and unlock economic mobility for generations to come.”

Possible Finance was created because the companies Founders believe that every hardworking person in our society deserves a path to a better life. Today, millions of Americans feel that they can’t get ahead financially no matter how hard they work. They feel hopeless, undervalued, and stuck. That’s because the existing financial system is designed to keep hardworking people in debt. Both payday lenders and credit card companies intentionally lend to vulnerable people knowing they will get stuck in debt cycles. That’s just how these businesses make money. There is a fundamental misalignment between the interests of hardworking people and the financial companies that exists today.

At Possible, the team is building a new type of consumer finance company. One that helps customers stay out of debt rather than profits from them staying in it. One that truly has Possible’s customer’s best long-term interests at heart. Possible’s brand promise is Here for Good. And the company intends on keeping that promise to its customers and itself.

Benefits of Credit Builder Loans

It’s important to do everything possible to keep your credit strong. And if your financial health isn’t where it should be, a credit builder loan can help get things moving in the right direction.

Let’s examine a few benefits of utilizing this tool:

• A credit builder loan pushes you to save money consistently since you are essentially “depositing” money at regular intervals.
• Approval is easier than other loan products like personal loans, student loans, other traditional loans or credit cards. Because a credit builder loan is secured by the cash in the bank account (secured loan), approval rates are significantly higher than other credit products.
• As you make payments on time, you will build payment history, an important part of credit history. The bank or financial institution will report payments to the credit bureaus, allowing you to build credit and hopefully improve your credit score.
• Interest is low compared to some other products. Not only does the APR tend to be lower than some other loans, but you may receive a dividend or cash back refund on a portion of the interest you paid.

Risks of Credit Builder Loans

While credit builder loans with no credit checks come with several benefits, there are potential drawbacks, including:

• Credit builder loans are not free. You will pay interest on the loan, and some financial institutions, such as Self Lender, charge a non-refundable administrative fee. You should read all the agreements and documentation related to your credit builder loan before borrowing the money.
• Late and missed payments can be reported to the credit bureaus, which will negatively impact your credit score. Since one of the primary purposes of the credit builder loan is to establish a track record of responsible payment history, this can be frustrating. Keep track of when your payments are due to make sure they are paid on time.
• You are committing to a specific schedule and many financial institutions don’t have the flexibility of rescheduling payments. Properly budget the payments on your loan into your monthly budget so you save enough to successfully pay your credit builder loan. If you need payment flexibility, you can try a Possible loan that allows you to change the payment dates directly within the app with no fees.

Laws and Regulations for Credit Builder Loans

Credit builder loans are usually a combination of two products: a loan plus a savings account/CD.

A personal loan or a line of credit is common loans used for a credit builder loan. These loans have federal laws that govern it, such as the Fair Debt Collection Practices Act and the Truth in Lending Act. The Fair Debt Collection Practices Act by the Federal Trade Commission (FTC) governs debt collection practices and prohibits debt collection companies from using abusive, unfair or deceptive practices when collecting debts. The Truth in Lending Act by the Office of the Comptroller of the Currency (OCC) protects consumers from inaccurate and unfair lending and credit practices. Important aspects of this law include disclosure of the APR, terms of the loan, and total costs for borrowers. In addition to these federal laws, there are state usury laws that govern the amount of interest that can be charged on a loan.

A savings account and a certificate of deposit (CD) have a different set of laws that govern them. Federal Reserve Board Regulation D is a federal regulation that sets out reserve requirements for banks in the US. In the US, both savings accounts and CDs may be insured by the Federal Deposit Insurance Corporation (FDIC) for banks and the National Credit Union Administration (NCUA) for credit unions.

Why You Want a California Installment Loan from Possible

Possible Finance is an online lender that offers small installment loans to individuals with no credit or bad credit in many states, including California. Possible offers loans of up to $250 in California that can be repaid in 4 installments over the course of a month.

Traditionally, loans like payday loans were some of the only loans available to people with bad credit. These loans are immensely expensive and require the borrower to pay back the loan in a week or two, which is the cause of many defaults. Even worse, even if you pay back your payday loan successfully your credit score likely won't budge.

Possible's loans are much easier to pay back. Our loans are repaid in installments, and if you are struggling to make a loan payment, you can extend your payment up to 29 days right within the app, at no charge at all.

Further, as you pay back a Possible loan on time, your payments are reported to TransUnion and Experian, two of the three credit bureaus, which could help increase your credit score.

Possible wants to help solve financial injustice, not be a part of the problem like many traditional payday lenders. 

Tony Huang, Chief Executive Officer and Co-Founder

“At Possible, we only do well when you do. We’re here to guide you toward a better financial future, no matter your past.”