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Your credit history, and why it matters

Illustration by Blake Cale

Illustration by Blake Cale

Illustration by Blake Cale

Financial Wellness

Ellen Falbo

Ellen Falbo

6/20/23

/

4

minute read

Share

Summary

  • Credit history is a record of how you’ve managed all your credit and debt 

  • Maintaining credit history isn’t just for getting credit cards—from employment to insurance, it’s used in many different areas of life

  • All the credit bureaus you’ve (maybe never) heard of

Financial Wellness

Ellen Falbo

Ellen Falbo

6/20/23

/

4

minute read

Share

Summary

  • Credit history is a record of how you’ve managed all your credit and debt 

  • Maintaining credit history isn’t just for getting credit cards—from employment to insurance, it’s used in many different areas of life

  • All the credit bureaus you’ve (maybe never) heard of

Financial Wellness

Ellen Falbo

Ellen Falbo

6/20/23

/

4

minute read

Share

Summary

  • Credit history is a record of how you’ve managed all your credit and debt 

  • Maintaining credit history isn’t just for getting credit cards—from employment to insurance, it’s used in many different areas of life

  • All the credit bureaus you’ve (maybe never) heard of

Credit history, explained

Credit history is a record of how you’ve managed your credit and debts in the past, and how you repaid those. Did you pay reliably on time? Did you miss some payments and then catch up later? It would also include a record of your current debt: what you owe to what organization. 

Myth: your credit history doesn’t matter unless you’re getting a house or a new credit card.

Most people think of credit history only in the context of traditional lending—like getting a new credit card, applying for a mortgage or buying a car—but it’s used for so much more than that. Your credit history might be accessed in many different areas of life:

  • Getting a job—in particular jobs with access to sensitive information or financial related industries are likely to look at your credit report if you’re being considered for employment

  • Renting a home or apartment

  • Paying a deposit for services like utilities or cell phones

  • Taking out an insurance policy: insurance companies will use your credit history and that will influence the availability of coverage and the rates you pay

  • Opening and maintaining checking and savings accounts

  • Getting credit cards, auto loans, mortgages—to determine your eligibility and the cost you’re going to pay in interest or fees



Credit reports and bureaus

Since credit history is so important, how is it that people access your credit history? Credit Bureaus are the primary source for credit history data. 

There are three credit bureaus in the United States: Equifax, TransUnion and Experian. But in addition to the traditional credit bureaus, there are other sources of credit history data that banks, rental agencies or employers may use. 

Myth: only the big credit bureaus create credit reports. 

In addition to the big three bureaus, it’s important to know that there are specialty credit bureaus that are used for different purposes. Each one plays its own space in the market: 

  • Veritec is specifically used for payday lending and creates state-level payday lending databases

  • Chexsystems is the primary credit bureau that is used for checking and savings accounts; it’s similar to the main three bureaus, but it’s often used for ID verification, data on rent and utility payments and it collects information about overdraft fees and your history with checking and savings accounts in the past

  • Clarity is also used for payday loans, non-prime lender data like check cashing and rent to own

Factor Trust, Innovis, LexisNexis and Teletrack are just a few other names in the alternate credit history space. These reports are prominently used for fraud and identity verification or by alternate lenders like lease-to-own or payday lenders.


It doesn’t stop here. As part of our commitment to our customers’ financial wellbeing, this financial literacy series will break down these topics. Our mission at Possible is to help you end the debt trap and unlock economic mobility for good. 🟦

All products are subject to eligibility and approval by Possible Financial Inc. dba “Possible Finance” and “Possible” or its banking partner Coastal Community Bank. Eligibility for a product is not guaranteed.

For Loans, Possible Finance has direct lending licenses in CA, ID, LA, NV, OH, OR, UT and WA. Idaho Residents: License #RRL-10073; Louisiana Residents: License #1697898; Nevada License #CDTH11200; Ohio Residents: License #ST.760161.000; Washington License #530-CC/SL-111888. California Residents: Possible Finance is licensed by the Department of Financial Protection and Innovation, pursuant to the California Deferred Deposit Transaction Law, License #10DBO-105848.

Loans in AL, DE, FL, IA, IN, KS, KY, MI, MO, MS, NC, OK, RI, SC, TN, TX, VA, and WY are made by Coastal Community Bank, and serviced by Possible Finance. Texas Residents: Possible Finance is a licensed Credit Access Business; License #1800061850-160823.

*Funding usually within minutes but may take up to 5 days.

^Loan amounts & structure vary by state. 

°Possible uses fee and payday loan usage information from the Consumer Financial Protection Bureau, Center for Responsible Lending, Pew Charitable Trusts, and the Consumer Federation of America to arrive at our Fees Saved Calculation. Savings based on the maximum fees Possible could have charged customers over the typical payday loan term, including late fees, insufficient funds fees, etc. Results will vary.

¨See possiblefinance.com/samplepaymentschedules for rates & terms examples.

ˇReal customer compensated. Results may vary. 

˘Possible Loans offer up to 29 days of payment flexibility from original due date.

Possible Card is issued by Coastal Community Bank and serviced by Possible Finance, pursuant to its license with Mastercard International Incorporated. Arizona Residents: Licenses #CA-1033558, #CA-1041621, and #CA-1041622; California Residents: License #10595-99; Hawaii Residents: License #COLAX-1238-0; Illinois Residents: License #17.022449; Louisiana Residents: Registration #446766611; Maine Residents: License #SLM15758; Maryland Residents: License #1697898; Massachusetts Residents: Registration #LS1697898; Nebraska Residents: License #1697898; New Jersey: Registration #19095; North Dakota Residents: License #MB104104; Oregon Residents: License #1697898; Pennsylvania Residents: Registration #95262; South Dakota Residents: License #1697898.MYL; Vermont Residents: License #LSO-1697898; Washington Residents: License #6041888588-001-0001: West Virginia Residents: Registration #2417-3349.

All trademarks and brand names are property of their respective owners. Use of them does not imply any affiliation with or endorsement by them.

If you have questions or concerns, please contact the Support Team at support.possiblefinance.com

Mailing Address: Possible Finance, PO Box 98686, Las Vegas, NV 89193

Possible Financial Inc.© 2024 - NMLS #1697898

All products are subject to eligibility and approval by Possible Financial Inc. dba “Possible Finance” and “Possible” or its banking partner Coastal Community Bank. Eligibility for a product is not guaranteed.

For Loans, Possible Finance has direct lending licenses in CA, ID, LA, NV, OH, OR, UT and WA. Idaho Residents: License #RRL-10073; Louisiana Residents: License #1697898; Nevada License #CDTH11200; Ohio Residents: License #ST.760161.000; Washington License #530-CC/SL-111888. California Residents: Possible Finance is licensed by the Department of Financial Protection and Innovation, pursuant to the California Deferred Deposit Transaction Law, License #10DBO-105848.

Loans in AL, DE, FL, IA, IN, KS, KY, MI, MO, MS, NC, OK, RI, SC, TN, TX, VA, and WY are made by Coastal Community Bank, and serviced by Possible Finance. Texas Residents: Possible Finance is a licensed Credit Access Business; License #1800061850-160823.

*Funding usually within minutes but may take up to 5 days.

^Loan amounts & structure vary by state. 

°Possible uses fee and payday loan usage information from the Consumer Financial Protection Bureau, Center for Responsible Lending, Pew Charitable Trusts, and the Consumer Federation of America to arrive at our Fees Saved Calculation. Savings based on the maximum fees Possible could have charged customers over the typical payday loan term, including late fees, insufficient funds fees, etc. Results will vary.

¨See possiblefinance.com/samplepaymentschedules for rates & terms examples.

ˇReal customer compensated. Results may vary. 

˘Possible Loans offer up to 29 days of payment flexibility from original due date.

Possible Card is issued by Coastal Community Bank and serviced by Possible Finance, pursuant to its license with Mastercard International Incorporated. Arizona Residents: Licenses #CA-1033558, #CA-1041621, and #CA-1041622; California Residents: License #10595-99; Hawaii Residents: License #COLAX-1238-0; Illinois Residents: License #17.022449; Louisiana Residents: Registration #446766611; Maine Residents: License #SLM15758; Maryland Residents: License #1697898; Massachusetts Residents: Registration #LS1697898; Nebraska Residents: License #1697898; New Jersey: Registration #19095; North Dakota Residents: License #MB104104; Oregon Residents: License #1697898; Pennsylvania Residents: Registration #95262; South Dakota Residents: License #1697898.MYL; Vermont Residents: License #LSO-1697898; Washington Residents: License #6041888588-001-0001: West Virginia Residents: Registration #2417-3349.

All trademarks and brand names are property of their respective owners. Use of them does not imply any affiliation with or endorsement by them.

If you have questions or concerns, please contact the Support Team at support.possiblefinance.com

Mailing Address: Possible Finance, PO Box 98686, Las Vegas, NV 89193

Possible Financial Inc.© 2024 - NMLS #1697898

All products are subject to eligibility and approval by Possible Financial Inc. dba “Possible Finance” and “Possible” or its banking partner Coastal Community Bank. Eligibility for a product is not guaranteed.

For Loans, Possible Finance has direct lending licenses in CA, ID, LA, NV, OH, OR, UT and WA. Idaho Residents: License #RRL-10073; Louisiana Residents: License #1697898; Nevada License #CDTH11200; Ohio Residents: License #ST.760161.000; Washington License #530-CC/SL-111888. California Residents: Possible Finance is licensed by the Department of Financial Protection and Innovation, pursuant to the California Deferred Deposit Transaction Law, License #10DBO-105848.

Loans in AL, DE, FL, IA, IN, KS, KY, MI, MO, MS, NC, OK, RI, SC, TN, TX, VA, and WY are made by Coastal Community Bank, and serviced by Possible Finance. Texas Residents: Possible Finance is a licensed Credit Access Business; License #1800061850-160823.

*Funding usually within minutes but may take up to 5 days.

^Loan amounts & structure vary by state. 

°Possible uses fee and payday loan usage information from the Consumer Financial Protection Bureau, Center for Responsible Lending, Pew Charitable Trusts, and the Consumer Federation of America to arrive at our Fees Saved Calculation. Savings based on the maximum fees Possible could have charged customers over the typical payday loan term, including late fees, insufficient funds fees, etc. Results will vary.

¨See possiblefinance.com/samplepaymentschedules for rates & terms examples.

ˇReal customer compensated. Results may vary. 

˘Possible Loans offer up to 29 days of payment flexibility from original due date.

Possible Card is issued by Coastal Community Bank and serviced by Possible Finance, pursuant to its license with Mastercard International Incorporated. Arizona Residents: Licenses #CA-1033558, #CA-1041621, and #CA-1041622; California Residents: License #10595-99; Hawaii Residents: License #COLAX-1238-0; Illinois Residents: License #17.022449; Louisiana Residents: Registration #446766611; Maine Residents: License #SLM15758; Maryland Residents: License #1697898; Massachusetts Residents: Registration #LS1697898; Nebraska Residents: License #1697898; New Jersey: Registration #19095; North Dakota Residents: License #MB104104; Oregon Residents: License #1697898; Pennsylvania Residents: Registration #95262; South Dakota Residents: License #1697898.MYL; Vermont Residents: License #LSO-1697898; Washington Residents: License #6041888588-001-0001: West Virginia Residents: Registration #2417-3349.

All trademarks and brand names are property of their respective owners. Use of them does not imply any affiliation with or endorsement by them.

If you have questions or concerns, please contact the Support Team at support.possiblefinance.com

Mailing Address: Possible Finance, PO Box 98686, Las Vegas, NV 89193

Possible Financial Inc.© 2024 - NMLS #1697898