Payoff Personal Loans Review
- March 27, 2017
- Posted by: Andrew Rombach
- Category: Personal Loans
There is no question that debt can consume one’s life and make their financial goals seem out of reach. Fortunately, there are options like a Payoff Personal Loan. A loan from Payoff allows you to reduce your high-interest payments and roll them into one monthly payment.
Comparing Payoff's Personal Loans
5.17% - 15.96%
8.00% - 25.00%
2.29% - 36.00%
2 - 5 years
2 - 7 years
Compare Rates from 9+ Leading Lenders With One Free Application
How to Get Approved
Payoff Loan believes their customers have the right to know exactly what is considered in being approved for a personal loan. Your FICO Score summarizes your entire credit history. For a personal loan, applicants need a credit score of 660 or higher.
Debt-to-income ratio is your unsecured debt, such as credit cards and personal loans, divided by your yearly income. A low debt-to-income ratio equates to having a good balance between your income and debt. To qualify for a Payoff Loan, an application must have equal to or less than a 50% debt-to-income ratio. In addition, a decent credit history of at least three years comprised of good credit is required. To qualify for a personal loan, you cannot have any current delinquencies over a 90-day period within the last 12 months.
Terms and Rates
With low fixed rates, as well as simplified terms, you can get back on track to reducing your credit card debt. Rates with Payoff personal loan vary between 8% APR and 25% APR. As for loan amounts, these typically range from $5,000 to $35,000, with a duration of two to five years.
An origination fee is generated to help cover the costs of going through Payoff Loan. However, the company makes sure this fee is known, meaning they do not try to hide it. This is a one-time charge, which is applied at the time the loan is issued. This fee varies between 2% and 5% of the loan amount, depending on the duration of the loan you secure.
Although there is an origination fee, other common fees are eliminated. For example, there are no application, check processing, annual, returned check, early payment, or extra payment fees.
When choosing Payoff Loan, you become a member. Members will enjoy a host of benefits, including:
- Increased FICO Score - Typically, individuals see an increase of at least 40 points on their FICO score by eliminating at least $5,000 on credit card balances.
- Free Score Updates - Each Payoff Loan member receives a free monthly update of their FICO credit score so you will be able to monitor any changes.
- Career Support/Job Loss – With life, unexpected things happen. If you end up losing your job, Payoff Loan will work with you regarding your monthly payments. They will even pass your resume on to recruiters to help you can find a new job.
- Empowerment Science - Members will understand themselves better, and thereby, enhance their relationship with money by going through personality, cash flow, and stress assessments.
How Personal Information is Protected
Because security is taken seriously at Payoff Loan, they do more than meet security standards, they strive to exceed the standards of most banks. This company uses McAfee technology for their security. In addition, Payoff Loan ensures that both bank accounts and social security numbers are stored in a highly secure environment with 256-bit encryption.
Because of that, you never have to worry about your personal information getting sold. Payoff Loan respects each member’s privacy and will first request your permission before sharing any information with a trusted third-party. They also give you the option to opt out of third-party sharing at any time.
Will Your Credit Score be Affected?
When you apply for a Payoff Loan, your credit score will not be impacted. However, if you are approved, the company will have to pull a hard credit report that will initially influence your score. However, on average, most people see an increase of 40 points on their credit score when they pay down their balances.
Difference Between a Soft Inquiry and a Hard Inquiry
Understanding the differences between a hard inquiry and a soft inquiry is important. A soft inquiry involves a creditor checking your credit report for pre-approval, background information, and so on. This type of inquiry will not negatively impact your credit score. For example, when you submit a loan application, Payoff Loan runs a soft inquiry to determine the applicable interest rate. Most companies including Social Finance and Avant Personal Loans also do soft inquiries.
A hard inquiry is when a bank or other creditor checks a credit report prior to providing a loan. Hard inquiries typically do have a negative impact on a credit score. A hard inquiry will usually stay on the credit report for up to two years.
Information You Need for the Application
You will need to provide certain information as part of Payoff Loan’s verification process. A bank statement, driver’s license, and tax return or two most recent paystubs are needed when applying for a loan.
If you feel discouraged and cannot seem to move forward with your credit card debt, and if you have a decent credit score, consider applying for a Payoff Loan. Having just one monthly payment from Payoff Loan can significantly improve your financial situation, and even raise your credit score by paying the loan off on time.