Payoff Personal Loan Review
Payoff is a loan brokering firm. This means that Payoff will not issue the loan themselves. Instead, they work with many different lenders. Even so, payments and communications are handled by Payoff, and their name is what will show on your credit report.
The company advertises itself as a financial wellness company. Their team includes data scientists, neuroscientists, clinical psychologists, and service professionals – all working hard to help their customers achieve financial wellness.
If you’re looking at applying for a payoff loan, make sure you continue reading our Payoff review to know what to expect when applying for a personal loan from this company.
About Payoff Personal Loans
A Payoff personal loan comes with many different features that can help you decide if it’s the right product for you.
Right off the bat, as we stated earlier, Payoff does not loan money. Instead, it works like a broker, with their lending partners being the ones to actually originate the loans. Payoff works with five different lending partners:
- First Tech
- First Electronic Bank
All lending partners, with the exception of First Electronic Bank, are federally insured by the NCUA. First Electronic Bank, on the other hand, is FDIC insured.
Payoff Personal Loan Details
|Loan Amounts||$5,000 to $35,000|
|Loan Terms||24–60 months|
|APR||5.99 – 24.99%|
|Fees||0 – 5% origination fees|
|Funding Time||2 – 5 business days|
|Recommended Credit Score||640|
One other thing to keep in mind is that Payoff personal loans can only be used to pay-off credit card debt. While this means that you can only use the loan for this specific activity, it also means that you need to set some time aside to work out if you will pay less by taking out a loan.
Some criteria need to be fulfilled by loan applicants to be considered as eligible. These are as follows;
- Credit score must be 640 or higher
- Debt-to-income ratio must be 50% or lower
- Good credit history for the past 3 years
- On-time payments on two open credit lines
- No delinquencies currently
- No delinquencies in the last 12 months which are greater than 90 days
Payoff loans are not available in the following states
- West Virginia
There are no fees with the exception of an origination fee, which typically varies between 0% and 5%.
An origination fee is a special kind of fee which is charged depending on many factors. It is important to note that any origination fees charged are taken out from the loan amount. This means that if you apply for a $10,000 loan and you are charged a 5% origination fee, you will receive $9,500.
$10,000 (loan amount) – 5% origination fee ($500) = $9,500
Payoff Personal Loan Rates
Several factors are taken into consideration when working out your loan rate. In fact, Payoff lists the following factors as having an effect on what kind of loan will be offered to you:
- Credit score
- Loan amount
- Loan term
- Credit usage
- Credit history
- State of residence
With no other fees involved, the APR is the most important aspect of a Payoff loan. APR, which stands for Annual Percentage Rate, is the percentage of your loan that you will have to pay back. This is over and above the loan amount. APR takes two things into consideration – the loan amount and the duration of the loan term.
As discussed earlier, the APR that will be offered to you will depend on several factors that are unique to you. The rates start ar 5.99% and go all the way up to 24.99%.
At 5.99%, the starting APR is one of the lowest around, which is great if you can get it. Most applicants will likely see a higher rate than this, but even so, the maximum APR of 24.99% is still lower than what some competing lenders offer.
Getting started with Payoff is easy. They even have a pre-qualification form that allows you to check the rate that you will get on application. This process triggers a soft credit check, which does not affect your credit score.
To pre-qualify, you will need to provide some information including;
- Date of Borth
- Telephone number
- Housing details
Based on the information you provide, Payoff may or may not provide you with a suggested loan amount and repayment term.
If you choose to go ahead with the loan application, then you can proceed with an online application. Here, you will be asked for more information, and Payoff will also run a hard credit check. Keep in mind that this might affect your credit score.
Unfortunately, Payoff does not allow co-signers. This means that only individual applications can be accepted. You can expect to wait between 2 to 5 days to get the funds.
When it comes to security, Payoff takes things extra seriously, with many mechanisms in place to ensure your data is as safe as possible. This should come as no surprise, with financial data being one of the most sensitive kinds of data requiring extra security. Here Payoff uses bank-level security by McAfee secure, which promises daily certification against identity theft and several other online threats.
They also make use of data encryption, strong password policies, and session time-outs to help you stay safe when using their website. Payoff also carries out periodic assessments to make sure everything is safe and sound.
The company has an A+ score from the BBB (Better Business Bureau), which makes it very safe. They have been accredited since 2015.
When it comes to customer service and support, Payoff has quite a few options available. You can start from the Support page, which features answers to many different questions. Questions are sectioned, which makes them easy to find, depending on what information you are looking for. If you don’t find what you’re looking for, you can also submit a request, and they will get back to you.
You can also speak to one of their support people. You can reach them via live chat, email, telephone, or the good old mail. They are available from Monday through to Sunday with operating hours listed aa 6 AM to 7 PM on weekdays and 6 AM to 4 PM on weekends. Times are in PST.
Pros and Cons
Like everything else in life, a Payoff personal loan comes with its own set of pros and cons. The important thing here is to understand your requirements as well as your financial situation. These can have a big impact on which pros and cons apply to you.
- Low starting APR. If you are in good financial standing, you might be eligible for a lower APR rate which is a good thing
- Few fees. Excluding the origination fee, Payoff does not charge any fees including no late or early payment fees
- Financial wellbeing. Payoff offers several assessments that can help you achieve better financial wellbeing
- Origination fee. With an origination fee that can go as much as 5% of the loan amount, this can be quite a negative
- Higher-end APR. The APR can go as high as 24.99% which is higher than what some of the competition offers
- Slow funding. While 5 days is not a lot of time to wait, some competitors can have funds in your account within 1 day
Alternatives to a Payoff Personal Loan
When it comes to taking out a personal loan, you might be glad to know that there are quite a few different companies and options to choose from. There is no one best company for everyone. Most of the time, the best company will be the one that best matches your financial needs and requirements.
This can vary depending on a number of different things. Do you want to pay off your loan as fast as possible, or do you want to spread the payment options over a longer period? How much money are you looking to borrow, and what kind of service would you like to receive?
Answering these questions can help you decide which company best fits your needs. To help you get started, we have compared Payoff’s terms with their competitors so that you can choose the best option for you.
|Min. Loan Amount||$5,000||$2,500||$2,000|
|Max. Loan Amount||$35,000||$35,000||$40,000|
|Min. Term||2 years||3 years||3 years|
|Max. Term||5 years||7 years||5 years|
Is a Payoff Personal Loan for You?
If you’re looking to consolidate your credit card debt and meet all of the requirements, Payoff might very well be the best option for you. You can even increase your FICO score by some 40 points by taking out a Payoff personal loan, which is always a good thing.
Be sure to check your rate before applying as this will give you a better idea of whether this type of loan is what you need. Also, remember to get a few quotes and compare the rates and the terms to make sure you are comfortable with them.
Many payoff reviews have nothing but praise for this company. Their approach to financial wellbeing certainly helps with how they are viewed. Financial wellbeing is something we all strive for, and in this regard, a Payoff personal loan can be one step forward in that direction.
Payoff Personal Loan
If you are looking to consolidate your credit card debt, getting started with Payoff is easy. They have a pre-qualification form that allows you to check the rate that you will get on application. This process triggers a soft credit check which does not affect your credit score.
- Great Customer Service
- Large Loan Amounts
- Flexible Payment Options
- APR Can Be High
- Origination Fee