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 personal loans are aimed at paying 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.
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 their credit cards and have a single loan with a lower monthly payment.
Our Payoff personal loan review takes a closer look at the process of applying for a loan through Payoff.
In this review:
- Applying for a Payoff Personal Loan
- Payoff Loan Rates, Terms, Fees, and Limits
- Pros & Cons of Payoff Personal Loans
- Alternatives to Consider
Applying for a Payoff Personal Loan
If credit card debt has been dragging you down but your credit score is still relatively high, you might consider applying for a personal loan from Payoff.
Payoff says it believes its customers have the right to know exactly what is required to be approved for a personal loan.
To be approved for a Payoff loan, applicants need a credit score of 660 or higher and a debt-to-income ratio of 50% or less.
Plus, borrowers must be able to demonstrate a good credit history of at least three years with no delinquencies.
To apply for a loan from Payoff, you’ll need a bank statement, driver’s license, and a tax return during the application process. Your credit score won’t be negatively impacted when you apply for loan preapproval through Payoff.
Payoff Loan Rates, Terms, Fees, and Limits
Before you apply for a personal loan through Payoff, get familiar with its rates and terms:
- Rates: Payoff offers fixed-rate loans at rates from 5.99% to 24.99% APR.
- Terms: Payoff offers personal loan amounts between $5,000 and $35,000, with loan terms of either two or five years.
- Fees: There are no application fees or prepayment penalties. But there is a one-time loan origination fee between 2% and 5%.
- Limits: Payoff requires a FICO score of 640 or higher and a debt-to-income ratio of 50% or less. Plus, borrowers must be able to demonstrate at least three years of good credit with no delinquencies.
Pros & Cons of Payoff Personal Loans
- The biggest benefit of taking out a loan through Payoff is one simplified monthly payment. This makes it easier to pay off your debt and improve your financial situation.
- Individuals see an average increase of at least 40 points on their FICO score when they eliminate at least $5,000 on credit card balances.
- 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.
Alternatives to Consider
It’s always important to consider all your options when you are applying for a personal loan. Here are a few alternative lenders you can consider:
- Upstart: Upstart could be the right fit for you if you’re looking to borrow more than $35,000. With rates starting at 7.74%, the interest rates are a little higher than Payoff’s rates. But the upside is, you can use the funds for any purpose, such as home improvement.
- Prosper: Founded in 2005, Prosper offers personal loan rates that are similar to Payoff; in addition to debt consolidation loans, it also offers loans for medical procedures.
- SoFi: SoFi offers personal loans 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.
Payoff offers personal loans to pay off high-interest credit card debt. If you’re drowning in debt, consolidating your loans into one simple monthly payment could make a huge difference, but you should ensure you plan your repayment carefully and do not go deeper into debt. Make sure you explore your options and find the loan that makes sense for you.4.22 Payoff Personal Loans
Author: Jamie Johnson
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