We report all account experiences, both positive and negative, to one or more of the credit bureaus. Late payments, missed payments, or other defaults on your account may be reflected in your credit report, as will a record of on-time payments. You may have heard that you can request a good faith update to get negative information removed from your credit report. We're required to report complete and accurate information and can't make good faith updates.
We understand that your credit rating is important and that missed payments can negatively affect your ability to obtain credit, housing, and even employment. Because most negative information stays on your credit report for seven years, the best remedy may be to establish a history of on-time payments moving forward.
If you're having trouble making your payments, please contact us immediately at payments@happen.com or call us at 844-227-5011.
Your Happen Bank lending product will have different statuses on your credit report depending on your payment history. What we report to credit bureaus may change this status.
Fully paid loans
If your loan is fully paid, congratulations! Your credit report will show that your loan has a zero balance and will say something like "fully paid" or "closed." They both mean the same thing, so you're good to go!
Loans in good standing
If you’re still paying off your loan and have no late payments, your loan status is considered “current” or “in good standing.” This is the next best thing to having your loan paid off!
Loans with late payments
Late payments stay on your credit report for seven years. This is true even if you've caught up on your payments and paid off your loan. We're required to report complete and accurate information and can't make good faith updates.
Charged-off loans
If you've missed too many payments, your loan can be charged off, which means that the account has been written off as a loss and is closed to future charges. If a loan is charged off, it doesn’t mean that your debt has been forgiven—you’ll still owe the remaining balance. Charge-offs result in a negative mark on your credit report. Whether you've paid off the balance, settled it, or the loan is sold, the charge-off status will stay on your credit report for seven years.
If your charged-off loan hasn't yet been sold, and you’d like to resume making payments, please contact us immediately at payments@happen.com or call us at 844-227-5011.
You can keep making payments or fully pay off the balance of your charged-off account, and the charged-off status will remain on your credit report. If you do pay it off, your report will show a zero balance and the missed payments that led to your loan being charged off. Paying off this outstanding debt can have a more favorable effect on your credit score, so it's best to keep making payments on the charged-off balance to improve your financial health in the long run.
Settled loan accounts
Settling your loan means you arrange with your creditor to pay back a portion of your debt. While a settled loan is better than not paying back your loan at all, it can still negatively affect your credit score. Settled loans will have a “settled” status on your credit report, as well as a charged-off status if it applies.
Charged-off and sold loans
If your charged-off loan gets sold, your credit report will show a zero balance because you no longer owe the debt to us—you now owe the organization that purchased your loan.
Will checking my rate affect my credit score?
No, checking your rate and applying for a loan with Happen Bank won’t affect your credit score. It generates a soft credit inquiry to provide insight into your creditworthiness. You’ll see that soft inquiry on your credit report, but others who access your report won’t see it.
However, if you receive a loan through Happen Bank, a hard credit inquiry that may affect your credit score will appear on your credit report. Keep in mind that new loans are factored in your credit score, and if you’re consistent with your payments, they can help you improve your credit over time.
If we’re unable to offer you access to a loan, your credit score won't be impacted—the only thing you’ll see is the soft inquiry from checking your rate.
Learn more about the factors that make up your credit score.
