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Payday loans are the worst. Twelve million Americans a year turn
to them for short-term financial help. But instead of being a quick
fix, they can drag you into a cycle of debt with interest rates of
300% to 400%.
No way! Get out of here with that!
But we understand. Sometimes you find yourself without a lot of
alternatives. When you’re really in a bind and need the help,
there’s a way to get the money you need to hold you over without
turning to payday loans. There’s an alternative — one that’s
less expensive, easier to repay and helps build your credit.
Possible Finance is a free app that will lend you up to $500
— without even doing a credit check. You can apply in under a
minute on its mobile app. If you’re approved, you get your money
pretty much instantly.
How to Get up to a $500 Loan Instantly
Possible Finance offers what’s called a short-term installment
loan. It still comes with interest, but it’s much cheaper than
the kind of predatory payday loan that you’d get at your local
Instead of having to repay the entire loan by your next payday,
you can repay it in several installments over a two-month period.
Typically, you make payments every two weeks, and you make four
payments in total. You could use manageable chunks from your next
four paychecks to pay back the loan. That’s way easier and less
Possible Finance also lets you reschedule your payment date up
to 30 days after the original payment date — with no fees or
late-payment penalties. This gives you some extra flexibility.
And you can do the whole thing from your phone. If you’re
short on cash and you need money right away and you’ve exhausted
your other options, this could be an easy option for you.
So let’s take a closer look at the details.
Build Your Credit As You Repay
Unlike with a payday loan, your repayments to Possible Finance
get reported to the three major credit agencies — Experian,
Equifax and TransUnion. That can help you build your credit rating
— or rebuild it if your credit isn’t great.
download its app, go through a few steps and apply for a loan
right through the app. No credit check needed. Instead, Possible
will ask you to link a bank account and will use your transaction
history to see how likely you are to repay the loan. This can be a
lifesaver if you’re in a financial bind.
What You’ll Pay in Interest
Your exact interest rate will depend on which state you live in.
But Possible says many of its loans have an APR (annual percentage
rate) of about 150% — about half of a traditional payday
Here’s what that looks like in real life:
- You borrow $200.
- Over the next eight weeks, you make four biweekly payments of
- When you’re done, you’ve paid a total of $230.
- That amounts to an APR of 151%.
So there’s a cost, like with any loan. Of course, if you need
that $200 in a pinch to help make your rent or avoid a hefty late
fee of some kind, you may decide the cost is worth it.
It’s possible that you could get a cheaper loan from somewhere
else, from a traditional lender. But that typically takes more time
and requires a credit check. For a lot of people, that’s not
really an option.
In any case,
Possible Finance’s customers seem satisfied. The app is
getting good reviews.
It has an “A” rating of 4.8 out of 5 in the Apple App Store,
with 12,700 user ratings. On Google Play, it scores a 4.2 out of 5,
with 2,750 user ratings.
Possible Finance is licensed in Florida, Idaho, Ohio, Texas,
Utah and Washington, and will soon expand to California, Illinois
and Wisconsin. It plans to expand further. In the meantime, it’s
adding customers in other states to a wait list.
A Better Payday Loan Alternative
So if you find yourself in a pinch — unable to pay rent or buy
your groceries, and you’ve exhausted your other options, don’t
turn to a payday loan. Many people end up trapped in that cycle of
Instead, use a more flexible option, like Possible Finance. The
interest rate is much lower, you get longer to repay it, and it
helps you build your credit as you do.
Use its app to see what kind of
loan you qualify for.
Now there’s a better way.
Loan amounts from Possible Finance vary based on eligibility
and APRs vary by state.
Mike Brassfield (email@example.com) is a
senior writer at The Penny Hoarder. He knows what it’s like to be
short of cash.
This was originally published on
The Penny Hoarder, which helps millions of readers worldwide
earn and save money by sharing unique job opportunities, personal
stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder
as the fastest-growing private media company in the U.S. in
Source: FS – All-News2-Economy
This Startup Will Loan You 0 Right Now — with No Credit Check