Payoff Personal Loan Review: Is A Payoff Loan Right For You?
- Suited for consolidating and paying off credit card debt
- Competitive rates
- No late fees or early payment fees
- Good customer support
- Time to funding: 2 to 5 business days
- Minimum credit score of 640
- High borrower requirements
- Origination fees of 0-5%
Unlike the majority of online vendors of personal loans, Payoff’s loans are tailored for one specific type of borrower: Those looking to consolidate and pay off their credit card debt. If this describes you, read on!
Payoff offers fixed-rate personal loans for debt consolidation as well as continuing financial guidance and support via Member Advocates. Payoff describes Member Advocates thusly:
Member Advocates are the people who make up our dedicated, local team working with you one-on-one to support your personal journey toward financial wellness. As a company, we’re heavily invested in our Members’ success, and we only succeed when you make positive steps toward financial wellness.
By consolidating your credit card bills into one monthly payment, you can improve your credit score. You’ll be making one payment to pay down your debt instead of several, which helps to simplify your finances and improve your credit utilization ratio. According to Payoff, those who use their loans to eliminate at least $5,000 of credit card balances “see an average FICO® Score boost of 40 points.” Payoff Loan Members will also get a free monthly update of their FICO® Score so they can track their progress.
Payoff loans are well-suited to consolidating and paying down debt. If, on the other hand, you’re looking for a personal loan to fund a startup business, you should instead check out the options listed in our comparison of the top personal loans for funding a business.
Read on to see if Payoff’s personal loans are right for you.
Table of Contents
Payoff offers fixed-rate installment loans for paying off credit card debt.
Payoff is particularly clear in laying out the eligibility requirements for a loan. The primary requirement is that your FICO® Score must be at least 640. However, there are additional benchmarks you must meet.
For one thing, you must have a debt-to-income ratio of 50% or less. As for your annual income, it must be at least $40,000. You must also have at least three years’ worth of credit history as well as two open and satisfactory trades, meaning you have at least two credit lines on which you’ve been up-to-date on your payments. You cannot have any current delinquencies, nor can you have had any delinquencies longer than 90 days over the past year.
You must also be a US citizen or permanent resident. Another factor to consider: Payoff loans are not currently available to residents of Massachusetts, Mississippi, Nebraska, Nevada, or West Virginia.
Terms & Fees
These are the terms and fees for Payoff’s personal loans:
$5,000 – $35,000
2 to 5 years
5.65% - 22.59%
0% - 5%
5.99% - 24.99% (fixed)
According to Payoff, “Your repayment terms will depend on your APR and loan term. Example: A loan of $16,000 at 10.99% APR will have a monthly payment of $407 for 48 months.” Your payments will be withdrawn directly from your designated checking account each month.
Because Payoff loans come with fixed rates, your monthly payments will always be the same amount, which should help simplify your budget. Furthermore, if you miss a payment, you won’t be charged a late fee. Instead, a company representative will work with you to formulate a plan to get you back on track. You may get the option to defer or skip your payment or to change your payment date. Payoff gives the borrower a greater degree of flexibility than most personal lenders.
While Payoff does charge an origination fee of between 0% and 5%, that’s the only fee you’ll face. There are no application fees, early/extra payment fees, or check processing fees.
The application process for a Payoff debt consolidation loan is conducted online. The documents Payoff asks to see will vary depending on the individual applicant, but Payoff asks that you be prepared to provide the following:
- A bank statement or bank credentials to securely link your bank account
- A driver’s license, passport or state issued ID to verify your identity
- Your two most recent paystubs (or most recent tax return if you’re self-employed) to confirm your income
According to Payoff, after the verification process is completed, most approved loans are funded within two to five business days.
Sales & Advertising Transparency
Payoff is more transparent than most lenders when it comes to its loan products. Along with an FAQ and a comprehensive support page, Payoff also provides a “document upload guide” to walk you through preparing the documents you’ll need to submit with your application.
Customer Service & Technical Support
Payoff provides customer support via live chat for basic questions. For more thorough support, Member Advocates are available to help you set financial goals and develop a plan for paying back your loan.
Negative Reviews & Complaints
The professional reviews of Payoff I’ve come across are all rather favorable, with the only caveat being that the requirements for borrowers to qualify are rather high. Accordingly, some commenters report being rejected for a Payoff loan despite having favorable financial circumstances.
Positive Reviews & Testimonials
Most professional and customer reviews of Payoff’s loan products are positive. Payoff loans have been praised for having competitive rates, a lack of extraneous fees (the absence of late fees is particularly nice), a solid reputation as a lender, and a high degree of customer support and guidance.
Payoff currently has an A+ rating from the BBB.
Payoff may be a specialized lender, but if you fall into Payoff’s target audience (someone with a solid credit history and decent income who nonetheless needs help consolidating and paying off credit card debt), the company is a good choice for a lender. Payoff’s high degree of transparency and lack of extraneous fees lends credibility to the company, as does the lender’s great reputation in the industry.
The worst thing one can say about Payoff’s loans is that the high eligibility requirements may put them out of reach for many of the people who might stand to benefit from a debt consolidation loan. But for those who qualify, you could do a lot worse than a Payoff loan.
As ever, make sure to comparison shop when seeking a personal loan. Only through doing your due diligence will you find the best rates and terms available to someone in your precise financial situation.