Payoff Personal Loan Review
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
What is Payoff?
Payoff is a financial services company that offers personal loans specifically designed for people who want to pay off their credit card debts.
Payoff launched in 2015 to develop a more human approach to the delivery of financial products. Payoff employs a team of financial services professionals, psychologists, data scientists, neuroscientists and technologists that provides tools and services that enable customers to better understand their finances and reach their goals more quickly.
Payoff personal loan highlights
- Streamlined payment: One fixed monthly payment helps Payoff members simplify the process of repaying credit card debt.
- No hidden fees: Payoff charges a one-time origination fee. There are no other fees involved with the loan, including late fees, application fees, check processing fees, early payment fees or any type of annual fees.
- Free FICO score updates: All Payoff members get to see their FICO score for free, updated monthly.
- Personal service: The Payoff support team makes welcome calls to new members and conducts quarterly check-ins during the first year.
APR
5.99%
To
24.99%
Credit Req.
640
Minimum Credit Score
Terms
24 to 60
months
Origination Fee
up to 5.00%
Payoff is a financial services firm that offers personal loans mainly to help consolidate credit card debt.... Read More
All loans are subject to credit review and approval. Your actual rate depends upon credit score, loan amount, loan term, credit usage and history. Currently loans are not offered in: MA, MS, NE, NV, OH, and WV.
Fees and penalties |
|
|---|---|
|
|
Payoff aims for fee transparency: The only fee associated with a Payoff loan is the origination fee. Payoff members receive other benefits, including:
- Free FICO score updates each month
- Job loss support
- Quarterly check-in calls from Payoff’s member experience team during your first year
- Tools that assess your personality, stress and cash flow to help you better understand yourself and your financial habits
Eligibility requirements
- Minimum credit score: 640
- Minimum credit history: 3 years of good credit
- Maximum debt-to-income ratio: 50%
Payoff requires that you have at least two open and satisfactory tradelines on your credit report (i.e. open lines of credit on which you’ve made on-time payments). Any delinquencies (past due payments) must be resolved before applying for a Payoff loan. You must also have not opened a personal installment loan within the past 12 months.
Payoff loans are not yet available in Massachusetts, Mississippi, Nebraska, Nevada, and West Virginia. Additionally, candidates must apply as individuals — there are no joint applications for spouses.
Payoff loans are intended to help eliminate credit card debt. Contact Payoff to discuss your personal debt situation.
Applying for a personal loan from Payoff
To begin the Payoff loan application process, you can visit the website and enter some initial personal financial information to get a feel for the types of rates you may be eligible for. You can also review the terms of different loan packages and select one that best meets your needs.
If you’ve decided to move forward with a Payoff loan, you will be asked to complete the online application process and upload multiple documents. The documents required will differ based on the individual. They generally include:
- Proof of identification, such as a current driver’s license or passport
- Proof of income, usually your two most recent pay stubs. (If you are self-employed or can’t provide pay stubs, you may be asked to provide tax documents like Form 1040, Schedule C and/or K-1.)
- Other financial documentation, including your most recent monthly bank statement and mortgage statement
Payoff recommends assembling all of your documents in advance of your online application, because a partial submission will slow the process. Once you’ve uploaded your documents and attached them to your application online, you may log in anytime to check the status. If Payoff needs further documentation or clarification, someone from the company will contact you. Though the application process is done completely online, there is a toll-free number you can call with questions along the way.
It typically takes three to seven business days after your completed application has been received for it to be reviewed. A Member Advocate will reach out either way to let you know if your application is accepted or declined. If you are declined, you can apply elsewhere or try again after 30 days. If you are accepted, your loan will fund within two to five business days. Payoff does a hard credit check just before your loan is finalized.
Pros: | Cons: |
|---|---|
|
|
Who’s the best fit for a Payoff personal loan
Payoff is a great option for people with a good credit history who are paying a lot of interest on credit card debt. Consolidating credit card debt with a personal loan can often result in lower overall interest payments. Payoff can also be helpful for individuals who have multiple credit card payments each month, as consolidating these debts will result in a single, easy-to-track monthly payment.
Payoff’s quarterly check-in calls during the first year may be especially helpful for individuals who need help staying on track as they start paying off debt.
Payoff consumer reviews
Payoff has an A+ rating with the Better Business Bureau (BBB). LendingTree, which owns MagnifyMoney, has reviews from consumers who used Payoff. They had great things to say about the lender, with many commenting on the excellent customer service and friendly, knowledgeable staff.
“From start to finish so easy to deal with!” wrote Dale from Hazlet, N.J. “Love that they follow up with you by telephone. I didn’t have to keep calling they called me first to introduce themselves and explain process!! Should have done this years ago! Will be referring friends! Thank you!”
TaMicah from Frisco, Texas said, “The whole process was easy, uploading online, customer advocates were prompt and easy to talk to, and the funds were transferred within a couple business days!”
Payoff FAQ
Payoff is not a bank. The lender works with lending partners to originate loans.
The Payoff loan is designed to eliminate or lower your credit card balances. It can give you the chance to pay off your debt faster and take control of your finances.
Yes! In fact, Payoff encourages it. By making additional payments you can end your debt quickly while reducing the amount you pay in interest.
Every month, your payments will be drawn from your checking account. You can change your payment due date every 12 months.
Payoff understands that life happens. If you have difficulty making a payment, contact them so that your individual situation can be discussed.
Payoff uses state-of-the-art security technology, certified by McAfee. All sensitive financial data, such as Social Security numbers and bank account numbers is stored in a highly secure environment via 256-bit encryption.
Alternative personal loan options
Lending Club
APR
6.95%
To
35.89%
Credit Req.
Not specified
Terms
36 or 60
months
Origination Fee
1.00% - 6.00%
on LendingTree’s secure website
LendingClub is a great tool for borrowers that can offer competitive interest rates.... Read More
LendingClub is an online peer-to-peer lending marketplace for personal loans, auto refinancing, and business loans. Though Lendingclub’s offerings are generally competitive, its funding time is longer than most lenders in the space (can take a week) and its origination fee is a bit higher.
Earnest
Earnest is an alternative lender that offers personal loans, student loan refinancing and home loans. The company boasts that it gives customers lower rates by using nontraditional financial data such as savings patterns, investments and career trajectory when considering applications. Earnest loans have no fees and are ideal for young professionals with a degree and steady employment who have not yet built a robust credit history.
Upstart
APR
6.53%
To
35.99%
Credit Req.
620
Minimum Credit Score
Terms
36 & 60
months
Origination Fee
Up to 8.00%
on LendingTree’s secure website
Upstart is an online lender created by ex-Googlers.... Read More
In addition to traditional qualifiers like a FICO Score, Upstart also considers your education, area of study and job history when reviewing your loan application. The company says once you are approved, your loan can be funded the next day. Upstart loans are subject to a number of fees, including an origination fee, late fees and check processing fees. The lender is a good fit for young adults with a good credit score and a short credit history who want to pay off debt.
