Payoff is best for those looking to consolidate debt and pay off or down credit cards. You will need good to excellent credit with an average cash flow to qualify.
APR
8.99%-29.99%
Loan Amount
$5,000 – $40,000
Term
24 - 60 months
Min score
600
Payoff is best for those looking to consolidate debt and pay off or down credit cards. You will need good to excellent credit with an average cash flow to qualify.
APR
8.99%-29.99%
Loan Amount
$5,000 – $40,000
Term
24 - 60 months
Min score
600
Payoff is a financial wellness company dedicated to fostering a healthy relationship between its members and money. This lender is powered by the parent company, Happy Money. Payoff specializes in helping pay off credit card debt. It’s available to those with a credit score of at least 640 and they use a soft pull inquiry, so credit damage from applying isn’t a worry.
With Payoff, you’re able to borrow anywhere from $5,000 – $40,000 . The main purpose of this loan is to consolidate various credit card debt to get the lowest possible interest rate.
This is a popular company for a number of reasons. They don’t charge late fees, however, they do charge an origination fee. Despite this, the application process is easy to navigate, you’re able to make flexible payments, and the company offers free credit monitoring when you become a member.
Payoff offers competitive rates but there are a few downfalls if you choose to go with them. For starters, Payoff isn’t available in all 50 states and they don’t offer joint applications either. Your use of the loan is limited and it’s also not available to anyone with bad credit.
- Free Credit Monitoring
- Soft Pull Inquiry
- Competitive Interest Rates
- Boost Your Credit Score
- Easy Application
- Job-Loss Support
- No Late Fees
- Flexible Payments
- “Empowerment Science”
- Payoff deducts a one
- Limited Use
- Not Available in All States
- No Joint Applicants
- Higher Minimum Amount
- Does Not Make Direct Payments to Creditors
In this Review..
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Customer Experience
Payoff's customer service team is available seven days a week. It ensures that borrowers are looked after in a variety of ways, and that assistance is always available.
There are some excellent financial education resources available. Although there is no Payoff app for mobile users, the lender has an A+ rating with the Better Business Bureau.
Payoff | |
|---|---|
BBB Rating | A+ |
WalletHub Rating | 4 |
Contact Options | phone/mail |
Availability | 6am – 6pm (PST) |
Payoff Loan Pros & Cons
As we know, each lender has its own pros & cons – here are the relevant things we found for potential borrowers:
- Free Credit Monitoring
You get a free credit summary report from Payoff. They will send you an updated FICO® score every month. This can be used to monitor your credit and as a resource to improve your credit.
- Soft Pull Inquiry
Payoff does an initial soft pull inquiry so the borrower can get an idea of the options for which they may qualify.
- Competitive Interest Rates
Payoff has very competitive rates for strong borrowers. Their rates are lower than the common credit card.
- Boost Your Credit Score
Payoff claims that the average customer who uses their product to pay off or down credit cards will see a boost in their FICO® score by 40 points within 4 months.
- Easy Application
The Payoff application is very simple and can be completed quickly.
- Job-Loss Support
Payoff states they will work with borrowers who lose their jobs by making adjustments to the payment.
- No Late Fees
Payoff has no late fees or fees for returned checks.
- Flexible Payments
If you miss a payment you can work with your representative to create a plan to catch up. Payoff may offer the option of payment deferral or changing your payment date.
- “Empowerment Science”
“We're dedicated to helping our Members better understand themselves and improve their relationship with money through our scientific personality, stress, and cash flow assessment.”
- Payoff deducts a one
Time origination fee of 0% to 5% of your loan amount directly from your loan funds. This should be considered in the pricing of your loan when you apply.
- Limited Use
Payoff has one loan purpose. If you need the money for other reasons, you will need to look for a different personal loan provider.
- Not Available in All States
Payoff does not operate in Mississippi, Nebraska, Nevada, West Virginia or Massachusetts.
- No Joint Applicants
The application is based on the applicant alone. Payoff does not allow for joint applicants.
- Higher Minimum Amount
The lowest personal loan amount you can get with Payoff is $5,000.
- Does Not Make Direct Payments to Creditors
Payoff does not actually pay anything off. That is up to you once you get the loan. Many other providers require direct payments to creditors because they want to see the debt actually paid down. Getting a large influx of cash could be tempting and some borrowers will not pay off their credit cards.
What Can a Personal Loan Be Used For?
Payoff loans can be used for only one purpose and that is to pay down debt . The product is designed only to help people get out of debt. Payoff personal loans or The Payoff Loan® has borrowers transfer high interest credit cards into a personal loan.
This helps borrowers get out of debt sooner and save money on interest. The loan will be set for a fixed period of time so you know exactly when you will be out of debt.
How to Apply For Payoff Personal Loan?
- 1.
Payoff has a simple and quick application process. You start the application by filling in some basic information about yourself such as your name, date of birth, address, phone number, etc. They will then do a soft credit pull. A soft pull does not affect your credit report.
- 2.
At this point, you could be declined. Otherwise, Payoff will give you a list of options of rates and terms for which you can apply. If you find an option that will fit your needs, Payoff will do a hard credit check and you will then be asked to upload documents to verify information. You may need to provide pay stubs, bank statements, W-2s, social security card, or state ID.
- 3.
After Payoff receives all the documents and the application is complete, it can take up to 3 day for them to review everything and issue a final approval.
- 4.
You can then sign documents online. You will typically receive funds in 2 to 5 days. Payoff does not actually pay off your credit cards but they deposit funds into your checking account.
When Payoff Shines?
Payoff is more of a financial wellness company that has the ends goal of its customers improving their relationship with money.
Payoff personal loan can be a good fit if you:
- Looking to pay minimal fees
- Need payment date flexibility
- Want direct payments to creditors
FAQs
Is Payoff a good place to get a loan?
Payoff is a good option if you want to consolidate your higher interest debt. The rates are competitive for the industry and the minimum credit score is realistic. Additionally, Payoff doesn’t charge prepayment penalties or late payment fees.
Just be aware that you can only use the loans for debt consolidation and you can be waiting up to 12 business days to receive the funds.
Does Payoff ask for proof of income?
Payoff requires several documents to complete an application. While these documents can vary according to your circumstances, the team will need to verify your income. Payoff allows you to submit recent pay stubs in electronic format, by logging into the website. You can also scan or photograph your paystubs.
For the self employed, Payoff will accept Form 1040 as a proof of income and a copy of Schedule C or a K1 form.
Is Payoff better than Prosper?
Prosper offers decent sized loans at reasonable rates over a term of three to five years. This lender also has more stringent requirements for applicants. Yet, you still need to have a similar credit score. So, if you’re looking to consolidate, Payoff offers more favorable terms and rates.
Is Payoff better than Upstart?
Upstart does allow personal loans for various purposes with a reasonable credit score. However, you must be in full time employment or have another source of regular income to qualify.
Another advantage Upstart has over Payoff is that you can expect to receive your funds as quickly as one day after approval, although there is a three business day hold for educational loans.
So, unless you are looking to consolidate, Upstart is likely to be the better option for you.
Peer to Peer Personal Loans: Alternatives
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|---|---|---|---|
APR Range
The annual percentage rate (APR) is the total annual cost of borrowing money. This rate includes the interest rate as well as any additional finance charges. When you take out a personal loan, for example, you may be required to pay loan origination fees.
| 8.99%-29.99%
| 7.99% – 35.99%
| 5.60% – 35.99%
|
Term
The term of your loan is the amount of time you have to repay it. For example, if you get a 24 months personal loan, the loan term is 24 months.
| 24 – 60 months
| 36-60 Months
| 36-60 Months
|
Loan Amount | $5,000 – $40,000
| 2,000 – $40,000
| $1,000 – $50,000
|
Minimum Score | 600
| 600
| $12,000
|
Funding Time | 2-5 days
| Up to 14 days and then 1 to 3 days to deposit
| 1-2 Days
|
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Payoff vs SoFi vs OneMain
Each of these three lenders will be appropriate for a different type of person. Payoff is generally beneficial for accepting applications from people with less-than-perfect credit.
SoFi, on the other hand, caters to people with good credit who are looking for large loan amounts. OneMain is somewhere in the middle, and it gives you quick access to your borrowed funds.
Read Full Comparison: Payoff Vs SoFi Vs OneMain: Compare Personal Loan Providers
Payoff vs Peerform vs Prosper
All of these lenders have some things in common, such as similar credit score requirements. There are, however, some significant differences that you will notice.
Prosper is a great option for people looking for a small loan, whereas Payoff is better suited to applicants looking to minimize fees. Finally, if you want to get very competitive rates, Peerform is a good option.
Read Full Comparison: Peerform vs Payoff vs Prosper: Which Personal Loan Is Better?
Payoff vs Upgrade vs Discover
Over the years, Discover has earned a good reputation for not charging origination fees, offering flexible repayment options, and providing quick funding. Upgrade has been in the personal loan business for many years, serving over 500,000 customers and originating $7 billion in loans. It gives you quick access to funds as well as flexible repayment terms.
Finally, Payoff is a financial wellness company that wants its customers to have a positive relationship with money.
Read Full Comparison: Upgrade Vs Payoff Vs Discover: Which Personal Loan Suits You Best?
Payoff vs Upstart
Upstart and Payoff both cater to people with low credit scores and offer flexible repayment terms.
Upstart is better suited for people who want a smaller loan amount or who do not yet have a credit score. If you want to keep your fees as low as possible, payoff is the way to go.
Read Full Comparison: Upstart Vs Payoff: Which Personal Loan Is Better?
Payoff vs LendingClub vs Upgrade
Payoff is a lender that focuses on improving its borrowers' financial knowledge while also providing them with maximum repayment flexibility.
If you need quick access to funds and a variety of loan types, Upgrade is the best option of these three lenders. Finally, if you need a joint loan or have a low credit score, LendingClub is a good option.
Read Full Comparison: Payoff Vs LendingClub Vs Upgrade: Choose The Right Personal Loan
