If you’ve been thinking about taking out a personal loan to pay off credit card balances or other high-interest debt, Payoff is an option worth checking out.
Payoff works with several credit unions to offer loans that the company says are specifically designed to consolidate and pay down other existing debt.
Here’s an overview of Payoff’s personal loans for debt consolidation.
Payoff personal loans overview
Payoff provides personal loans to borrowers to help them pay off credit cards or other high-interest debt at lower interest rates. The company says borrowers who pay off at least $5,000 in credit card debt boost their FICO score by 40 points on average.
If you decide to take out a personal loan with Payoff, here’s what you should know:
|Types of rates (APR)||Fixed|
|Loan size||$5,000 to $35,000|
|Loan terms||2 to 5 years|
|Loan use||Debt consolidation and credit card consolidation only|
|Key benefits||- Free FICO score updates
- If you lose your job, they’ll work with you on payments
- Offers scientific personality, stress, and cash flow assessments to help you get a better understanding of your personal finances
|Residency||Can't reside in DC, DE, IA, LA, MA, MD, MI, MN, MS, NC, NE, NV, OH, OK, VA, VT, WA, WI, and WV|
|Loan servicer||Contact lender for more information|
|Loan originator||Contact lender for more information|
How to take out a personal loan with Payoff
Payoff could be good choice for many borrowers who are interested in debt consolidation. Although the Payoff Loan was designed to tackle credit card debt, in some cases it can also be used to consolidate other debt. Remember that lenders each have their own criteria for evaluating borrowers, so requesting rates from multiple lenders can help you find the loan that’s right for your needs.
You can use Credible to request prequalified rates from Payoff and other lenders who offer personal loans. Credible can help you compare rates in about 2 minutes using a soft credit inquiry that does not impact your credit score.
The company above is one of Credible’s approved partner lenders. Because they compete for your business through Credible, you can request prequalified rates from them by filling out a single form. Then, you can compare your available options side-by-side. Requesting prequalified rates is free and doesn’t affect your credit score. Credible receives compensation if you close a loan with one of our partner lenders. The rates you receive and the fees you pay (if any) are not impacted by this compensation.