- Paying off high-interest credit card debt
- Boosting your credit score
- Good credit borrowers
Payoff provides personal loans to borrowers to help them pay off 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.
In this post:
- Payoff personal loan details
- Payoff personal loans review
- How Payoff compares to other lenders
- How to take out a personal loan with Payoff
Payoff loan details
Payoff offers personal loans from $1,000 to $40,000 with fixed interest rates and repayment terms of two to five years. To qualify, you’ll need a credit score of at least 640, a debt-to-income ratio of 50% or less, and three years of good credit. You can’t use Payoff loans for other purposes, like home improvement projects or trips.
|Fixed rates||5.99% - 24.99% APR|
|Loan amount||$5,000 to $40,000|
|Loan terms||2 to 5 years|
|Min. credit score||640|
|Time to get funds||As soon as 2 - 5 business days after verification|
|Residency||Not available in MA, MS, NE, NV, or OH|
|Loan use||Consolidate credit card debt|
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Payoff personal loans review
Payoff could be a good option for you if you’ve got good credit, but are paying higher rates than you’d like on your credit cards or other installment loans.
Consolidating high-interest debt can help your credit score in three ways: By reducing the overall amount of debt you owe, lowering your credit utilization ratio, and improving your credit mix.
Check Out: 3 Ways Debt Consolidation Helps Your Credit
Not only does Payoff offer some of the lowest personal loan rates to qualified borrowers, but there’s no penalty for “prepaying” your entire loan balance ahead of schedule.
Like many lenders, Payoff charges an origination fee which can range from 0% to 5% of the loan balance. This will be reflected in your annual percentage rate (APR). But that’s the only fee Payoff assesses — and you only pay it once, when you take out your loan.
How to qualify
Payoff provides detailed information on exactly what it’s looking for in order to approve your loan request. There are five boxes you have to check with Payoff in order to qualify for a personal loan.
- Credit score: Payoff won’t make loans to borrowers who have credit scores of less than 640.
- Debt-to-income ratio: The percentage of your pre-tax monthly income that’s needed to make monthly payments for housing, credit cards, and other debts can’t exceed 50%.
- Age of credit history: You need at least three years of good credit history to qualify with Payoff.
- Open tradelines: Payoff wants to see you’ve got at least two lines of credit (such as credit card accounts) and no more than one installment loan (like a car loan), and that you’re making payments on them on time.
- No delinquencies: You can’t have any current delinquencies or any delinquencies that were longer than 90 days overdue within the last year.
Fast loan approval
Once you accept your loan, Payoff says it can put the money right in your bank account within three to six days. That’s not lightning fast by the standards of online lenders, but Payoff loans are intended for debt consolidation, not paying for emergency expenses.
Payoff prefers that you authorize automatic withdrawals from a bank account, but you can also arrange to make payments manually.
How Payoff compares to other lenders
Here’s how Payoff compares to other lenders who specialize in debt consolidation.
|Fixed rates||5.99% - 24.99% APR||7.99% - 29.99% APR||5.94% - 35.97% APR|
|Loan amounts||$5,000 up to $40,000||$10,000 up to $40,000||$1,000 up to 50,000|
How Payoff can improve
While Payoff can be a great option for consolidating credit card debt, one area where the company could improve is by expanding its eligibility requirements. You can’t get a loan from Payoff if:
- Your credit score is less than 640
- You live in Massachusetts, Mississippi, Nebraska, Nevada, or Ohio
- You have less than three years of good credit
How to take out a personal loan with Payoff
When looking for the best personal loans for debt consolidation, comparing rates from multiple lenders can maximize your savings. Don’t forget to factor in any fees, and remember that the repayment term will also affect your monthly payment. Shorter repayment terms will usually get you a better interest rate, but be prepared to make bigger monthly payments.
Credible allows you to compare prequalified personal loan rates, repayment terms and monthly payments available to you from multiple lenders including Payoff.
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.
About Rates and Terms: Rates for personal loans provided by lenders on the Credible platform range between 4.99-35.99% APR with terms from 12 to 84 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 8%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of March 12, 2019, none of the lenders on our platform require a down payment nor do they charge any prepayment penalties.