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- Payoff offers personal loans specifically for consolidating and refinancing credit card debt.
- The lender is best suited for borrowers with fair credit (details below).
- Payoff doesn’t charge any annual or prepayment fees, but you will have to pay an origination fee if you’re approved for a loan.
What we like:
Job loss support
|Rates (APR)||5.99% – 24.99%|
|Loan Terms||2 – 5 years|
|Loan Amounts||$5,000 – $35,000|
|Fees||Origination fee: 0% – 5%|
Prepayment penalty: None
Late fee: None
Debt can consume your life and make your financial goals seem out of reach. Sometimes a personal loan can help you get back on track by providing you with a way to consolidate debt at lower interest rates.
In general, personal loans can be used for any purpose, but Payoff offers personal loans to pay off high-interest credit card debt. The company was founded in 2011 with the goal of helping borrowers finance debt consolidation, save money, and achieve their financial goals.
Our Payoff Personal Loan review takes a closer look at the process of applying for a loan through Payoff.
In this review:
- The Payoff Loan: At a glance
- Pros & cons of Payoff personal loans
- How to get a Payoff personal loan
- Payoff alternatives to consider
The Payoff Loan: At a glance
|The Payoff Loan|
|Loan amounts||$5,000 – $35,000|
|Term lengths||24 – 60 months|
|APRs||5.99% – 24.99%|
|Origination fee||0% – 5%|
|Late payment fee||$0|
|Minimum credit score||640|
|LendEDU rating||3.92 / 5.00|
Payoff uses science, technology, and psychology to help its members achieve better long-term financial habits. By taking out a Payoff personal loan, customers can pay off multiple lines of credit card debt and be left with a single loan and a lower monthly payment moving forward.
Payoff doesn’t charge any application, prepayment, late payment, or annual fees, but you will have to pay a loan origination fee if your application is accepted and you receive a loan. There are other lenders that do not charge origination fees, but they tend to focus on good credit borrowers.
Pros & cons of Payoff personal loans
- The biggest benefits of taking out a loan through Payoff is the opportunity to pay a lower interest rate, and the ability to consolidate multiple debts into one simplified monthly payment. This makes it easier to pay off your debt and improve your financial situation.
- According to Payoff, individuals see their FICO score increase by an average of 40 points after they eliminate at least $5,000 of credit card debt with a Payoff loan. This is because revolving credit card debt is considered riskier by credit bureaus than installment debt (the kind of debt you’d have with Payoff).
- Payoff is very upfront about its requirements, what borrowers need to qualify for a loan, and about the one-time origination fee.
- There are no application or prepayment fees.
- Payoff members enjoy added services such as free monthly updates on their FICO score.
- If you unexpectedly lose your job, Payoff will work with you on your monthly payments. They will even pass your information onto recruiters to help you find a new job.
- Payoff isn’t available everywhere. Borrowers in Massachusetts, Nebraska, Nevada, Mississippi, and West Virginia won’t be able to apply.
- If you have a limited credit history, you may not qualify for the company’s minimum requirements.
- You may be able to qualify for a lower rate or better repayment terms elsewhere.
- Not all lenders charge origination fees like Payoff does.
How to get a Payoff Personal Loan
Borrowers must also be able to demonstrate at least three years of good credit with no delinquencies.
To apply for a loan from Payoff, you’ll need a bank statement, driver’s license, and a tax return. Your credit score won’t be negatively impacted when you apply for loan preapproval through Payoff.
Payoff alternatives to consider
It’s always important to consider all your options when you are applying for a personal loan. By comparing personalized quotes from a few lenders at once, you can make sure you find the best rates before submitting a full application. Here are a few alternative companies you can consider:
- Upstart: An Upstart personal loan could be the right fit for you if you’re looking to borrow more than $35,0001. With interest rates starting at 7.74%2, Upstart may be a little more expensive than Payoff. But the upside is, you can use the funds for any purpose.
- Prosper: Founded in 2005, Prosper personal loans offer interest rates that are similar to Payoff; in addition to debt consolidation loans, it also offers loans for medical procedures.
- SoFi: SoFi offers personal loans of up to $100,000 with rates that start at 6.79%. Like Payoff, if you unexpectedly lose your job, SoFi will pause your monthly loan payments. One downside of SoFi, however, is that it requires a minimum credit score of 680. Plus, borrowers typically have higher annual incomes. So you may not qualify if you’re early in your career.
If you want to review other options, check out our guide to the best personal loans. It breaks down our top lenders by credit category, so everybody can find a lender that works for them.
1 Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Loans are not available in West Virginia or Iowa. The minimum loan amount in MA is $7,000. The minimum loan amount in Ohio is $6,000. The minimum loan amount in NM is $5100. The minimum loan amount in GA is $3,100.
2 The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 15% and 36 monthly payments of $33 per $1,000 borrowed. There is no down payment and no prepayment penalty. Average APR is calculated based on 3-year rates offered in the last 1 month. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.4.8 Payoff Personal Loans
Author: Jamie Johnson