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The Ultimate Guide To Payoff Personal Loan

By: George Baginyan Dec. 30, 2018

If you have good credit and want to consolidate your credit card debt, then you may want to consider a Payoff personal loan. Doing so can help you turn multiple high-interest monthly payments into one low rate while also helping you save money in the future. The application process takes less than three minutes to complete and you can choose the terms that are right for you.

 

APR

5.99% - 24.99%

Loan term

2 - 5 years

Loan amount range

$5,000 - $35,000

Instead of taking out another credit card or borrowing from the bank, the Payoff personal loan is designed to help you get out of debt and pay off your existing credit card bills. Benefits include fixed monthly rates and no late payment fees. The loan is also designed to boost your FICO score while chipping away at your debt with an affordable monthly payment. Here's everything you need to know about Payoff's personal loan.

What is Payoff?

Payoff is a company that specializes in financial services. They work with a variety of lending partners to offer personal loans for people who want to pay off their credit card debt with one monthly payment. The company launched in 2011 and wanted to make the financial experience more fun and engaging for its customers. Their goal is to help you become financially stable by getting rid of debt and saving your money in the future. Their staff consists of a team of financial professionals as well as psychologists, neuroscientists, technologists and data scientists to bring you the best possible tools and services to tackle your financial questions and reach your goals.

Payoff is ideal for people who have good credit and want to consolidate their credit card loans into one small, monthly payment. The company provides you with a fixed rate for your consolidated loans for the sole purpose of paying off your credit cards. According to the Payoff website, the average amount of debt that most people have in credit cards is $18,000. The company helps keep you on track when it comes to making payments so that you can pay this off in a timely matter. 

Signing up with Payoff could be a good option for you if meet the following qualifications:

Although Payoff doesn’t force you to take out a loan strictly to pay back your credit card debt, the company encourages you to do so by making personal recommendations that help you stay on track. They use quizzes and questionnaires to assess your financial responsibility and level of financial stress. They also ask you questions to determine how your finances compare to others. Then the company offers tools and resources to help you out based on your answers to these questions. It’s very much like having a personal financial advisor to guide you through better decisions.

personaloan

640 +

You have a credit score of 640 or higher

2+ years

You have a credit history of two years or more

Top rating

You need help staying on top of your credit card bills

50 %

Your debt to income ratio is 50% or less

$40,000 +

You make at least $40,000 a year

Location

You live in a state where a Payoff personal loan is offered

Additionally, Payoff also offers customer support through their online chat feature for regular questions. Or you can talk to a Payoff member advocate to talk about your goals. They allow you flexibility when it comes to making payments. For example, if you miss a payment, they won’t charge you a late fee. Instead, you’ll work with your member advocate to create a catch-up plan that allows you to continue making monthly payments while also making up the payment that you missed. You have the option of a payment deferral, changing your payment date, or skipping a payment.

What Is A Payoff Personal Loan?

A Payoff personal loan is a loan that is designed to help you pay off your credit card debt. It allows you to consolidate all of your credit card bills into one flat-rate monthly fee with a low-interest rate. It’s an excellent option for someone with multiple credit card bills who has problems keeping track of those payments. Making one flat-rate payment can help you plan for the future and even save money despite being behind on your bills.

With a Payoff personal loan, you have the opportunity to pay off your loans quicker and even increase your FICO score, according to the website.

Here are some of the Payoff loan details:

  • The term is 24 to 60 months depending on the preferences you select
  • 5.99% to 24.99% APR range
  • $5,000 to $35,000 loan amount range
  • Loans are usually funded within six business days after your application has been received and approved
  • Origination fee ranges from 0% to 5%
  • There are no additional fees, including no prepayment fees, no late payment fees, and no other fees

The nice thing about a Payoff personal loan is that there are virtually no fees. The only price you will pay is the origination fee. Other notable features include free monthly access to your updated FICO scores, job loss support, check-in calls every few months from a Payoff member to check on you, and access to tools that determine your stress levels, financial personality, and finances to help you make better financial decisions.

To qualify for a Payoff personal loan

you need to meet the following qualifications:

640+

Have a minimum credit score of 640

50% ratio

Have a minimum debt to income ratio of at least 50%

2-3 years

Have a minimum credit history of at least two or three years with good credit

$40,000+

Have a minimum yearly income of at least $40,000

Payoff also wants you to have at least two tradelines on your credit report, which are open lines of credit that indicate that you’re capable of making payments on time. You must handle any delinquencies or past-due payments before you apply for a Payoff loan. Lastly, you must also not have applied for a personal installment loan within the past 12 months before applying for a Payoff loan. For example, a person who wants to take out a loan with good credit of 640 or higher with a repayment term of 38 months and 18% APR, your monthly payments would be $557.

Keep in mind that Payoff loans are not available in all states just yet. States that aren’t covered include West Virginia, Nebraska, Nevada, Mississippi, and Massachusetts. Also, the only application available is an individual application. You can’t file for a joint application with your partner. In some cases, you can use a Payoff loan to consolidate your student loans, but you’ll want to check with your advisor to confirm this.

Payoff Pros & Cons

  • Flexible payments
  • Low starting rates
  • Consolidate your loans into one monthly payment for convenience and ease
  • Financial guidance available to keep you on track
  • No fees outside of origination fee, including no late payment fees
  • Keep track of your finances better with monthly credit card payment
  • Payoff doesn’t force you to use the loan on your credit card debt, but it’s highly recommended
  • A good option for paying off credit card debt without taking out another credit card
  • Lower interest payments than paying multiple bills per month
  • Free monthly access to your updated FICO score
  • You could boost your FICO score by 40 points, according to the website
  • Fast application process and funds available within six days of being approved
  • Job loss support available
  • No option for co-signers or secured loans
  • Loans are unsecured
  • Doesn’t offer direct payment for debt consolidation loans
  • You must have good credit for at least three years or you can’t even apply
  • The APR is similar to that of other personal loans, which means you won’t be saving a lot of money in this area
  • Origination fee can be high (as much as 5%)
  • Having a late payment within the past 90 days might disqualify you
  • Your debt to income ratio must be less than 50%
  • You must make at least $40,000 a year
  • You cannot add a spouse on to your application

Payoff Personal Loan

You can check your estimated rate for a Payoff loan on the company’s site by entering your name, date of birth, salary and other details

How Do Personal Loans Work?

Personal loans are a good option if you want to consolidate your credit card debt, finance an adoption, or if you move across the country. You’ll want to keep in mind that personal loans are unsecured, which means that they don’t require you to put down collateral such as a car or house to get the loan. The amount that you are able to borrow depends on your eligibility, but most range from $1,000 to $50,000. These are paid in fixed amounts over the course of two to five years. Your terms will depend on your credit profile.

Applying For A Payoff Personal Loan

Before applying for a personal loan, you can check your estimated rate on the company’s website. All you need to do is enter your name, salary, date of birth and a few other financial inquiries such as whether or own or rent your residence. The company will then conduct a soft credit check on you. This will not affect your credit score. They will provide you with your credit card balances. Then a representative will contact you and suggest a loan amount that’s right for you based on your financial situation. In some cases, this may be lower than the amount you asked for.

While you’re on the Payoff website, you can also take a look at some of the other loans that you might qualify for. When you decide to move forward with one, you will be asked to upload several documents, which may include the following:

  • Identification such as your driver’s license or a passport
  • Important financial documentation, such as a current bank statement or a current mortgage statement
  • Proof of income, including your most recent paycheck stub or tax documents such as a 1040 form, Schedule K-1 or C

It’s a good idea to get all of your paperwork organized before you fill out an application. This is because submitting a partial application will slow down the process and delay how quickly you receive your funds. Once you upload the necessary documents to your application, the process moves fairly quickly. If everything looks good with your application, you should be approved within three days. Expect to see your funds within six days. If your application is not approved for some reason, you can always try again after 30 days or apply elsewhere. If you are accepted, Payoff will do a hard credit check on you before dispersing funds.

Payoff vs Other Personal Loan Companies

Payoff isn’t the only company that offers personal loans. Here are some other companies that you can go with if you aren’t approved at Payoff. We’ll also provide a breakdown of how they compare.

Upstart is another company that offers personal loans, but their application process is slightly different from Payoff. For example, they take into account your education, what you studied in school, and your job history when considering your application. According to the company’s website, once you are approved, your loans will be dispersed the very next day. The company also states that you will save 23% on your refinanced credit card debt when you take out a personal loan with them.

The downside is that you are subject to multiple fees at Upstart, such as late fees, check processing fees, and an origination fee. On the other hand, Payoff only charges an origination fee and nothing else. This lender is ideal for someone with good credit but has a short credit history and cannot get a loan at Payoff, but who still wants to pay off their credit card debt.

Here are the terms:

  • APR ranges from 7.98 percent to 35.99 percent
  • You must have a credit score of 640 (just like Payoff)
  • Terms range from 36 to 60 months
  • Origination fees range from zero percent to eight percent (Payoff only goes up to five percent)

If you don’t qualify for Payoff or Upstart, then you can look at Earnest. This company offers personal loans, home loans, and student loan refinancing options. The company claims that it provides lower rates because it uses non-traditional financial information such as investments, career prospects, and savings patterns when evaluating applications. Similar to Payoff, Earnest does not have any fees. The company is ideal for someone who a degree and a steady job but has not yet built up a reliable credit profile.

Terms are as follows:

  • APR ranges from 6.99 percent to 18.24 percent
  • You must have a credit score of 680, which is higher than Earnest and Payoff
  • Terms range from 36 to 60 months
  • Unlike Payoff, there is no origination fee
  • They also don’t make you pay any other fees

Best Egg also offers an unsecured personal loan that you can apply for online. The loan allows you to make home improvements, go on vacation, consolidate your credit card debt, and more. They don’t restrict you to making credit card payments only. All loans come from the Cross River Bank located in New Jersey. However, you don’t have to live in New Jersey to apply for a loan.

Like Payoff, you can consolidate your loans into one monthly payment. The company claims that your funds are available in as little as a day after you’re approved. Also like Payoff, you won’t affect your credit score by browsing your rates. They also offer customer support 24 hours a day and seven days a week. Because it’s an unsecured loan, there is no collateral required. Unlike Payoff, there is no minimum credit score or debt to income ratio required. This means that anyone with any credit score and any debt amount can apply for one of these loans. Repayment terms range from three to five years.

Here are the terms:

  • Monthly fixed flat rate after consolidating loans
  • Funds are dispersed in as little as a day
  • No minimum credit score or debt to income ratio
  • No hidden fees or penalties aside from origination fee
  • Customer service is available 24/7
  • APRs start at 5.99 percent
  • Origination fees range from 0.99 percent to 5.99 percent
  • Interest rate is based on your credit score at the time of your application; therefore, you could get stuck with a high APR for the duration of your loan

Disclaimer

CreditNervana promises to keep our information as accurate and up-to-date as possible. However, you should always consult a financial advisor for specific questions about personal or business finances and investment opportunities, especially if you are looking in your area. Working with a trained professional who is familiar with your case is a safe and guaranteed way to make the best investment decision possible. Please review our terms and conditions before making any decision based on the information we provide. Financial institutions are constantly changing. Because of this, it’s a good idea to cross check the information you read here with any company you are considering working with.

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