2020 Payoff Review – Personal Loans
Quick Review: Payoff personal loans are only for people who want to consolidate credit card debt. Payoff does not offer loans for any other purpose. But they do offer very competitive rates, with APRs starting at 5.99%. Customers can consolidate up to $35,000 in credit card debt.
One important thing to note is that while Payoff processes loans, they do not directly fund them. They work with five different lenders to fund loans: Alliant Credit Union, First Electronic Bank, First Tech Federal Credit Union, Teachers Federal Credit Union and Technology Credit Union. But even though the funds come from one of these lenders, the loan shows up under the name “Payoff” on your credit report, and you make payments to and communicate with Payoff, Inc.
Aside from the fact that they only offer loans for one purpose, Payoff has one other big downside. They may charge an origination fee to process the loan. This fee can be between 0% and 5%, and depends on things like your credit history and the loan amount. Read on for a more detailed picture of Payoff personal loans plus a quick comparison to other major lenders.
Payoff Personal Loan Terms
|APRs||5.99% - 24.99%|
|Loan Amount||$5,000 - $35,000|
|Loan Terms||24 - 60 months|
|Origination Fee||0% - 5%|
|Minimum Credit Score||Fair*|
|Minimum Income||Not disclosed|
|Loan Purpose||Debt Consolidation, Big Purchase, Other|
|Time to Receive Loan Money||5 - 13 business days|
*According to multiple third-party sources
Payoff Personal Loan Rates, Fees & Other Terms
Category Rating: 4/5
Payoff personal loan interest rates may be as low as 5.99% or as high as 24.99%. That’s one of the lowest starting APRs available, and the maximum is higher than what some lenders offer but definitely not the most expensive around. Some competing lenders have maximum APRs of up to 36%. To raise your chances of getting Payoff’s lowest APR, you’ll want your credit score and income to be as high as possible.
The one major Payoff personal loan fee is an origination fee of 0% to 5% of the loan amount. This fee is subtracted from the amount you get at the beginning. For example, suppose you take out a $5,000 loan and have a 2% origination fee. You will receive $4,900 at the start. The exact origination fee you have will depend on the same factors that set your interest rate.
Payoff has no other fees. They don’t charge you for paying off your loan ahead of schedule, and they don’t charge a fee for late payments. But as late payments will damage your credit, it’s a good idea to always pay on time.
Payoff’s minimum loan size is rather large, at $5,000, and it’s possible to borrow up to $35,000. Payoff offers plenty of time to pay loans off, too, giving borrowers 24 to 60 months.
In this category, Payoff gets a high score for their competitive rates, substantial loan sizes and long payoff periods. Unfortunately, the fact that they have an origination fee holds them back.
Payoff Personal Loan Requirements & Application Info
Category Rating: 3.8/5
Payoff personal loans require a minimum credit score of 640, according to customer service representatives. Few major lenders have lower credit-score requirements than that, though there are some options, such as Avant and FreedomPlus. Additionally, you must have at least three years of credit history in order to be considered for a Payoff loan.
While Payoff does not have a specific minimum income requirement, they do require a debt-to income ratio of 50% or less (before taking out the loan). In other words, your monthly debt payments can’t make up more than half of your gross monthly income (your income before taxes).
There are a few more standards you’ll need to meet to get a Payoff personal loan. You’ll need to be at least 18 years old, and you must be a U.S. citizen, permanent resident or someone with an immigration visa. In all of those cases, you must have a Social Security number or a passport to apply.
Payoff lets you pre-qualify for a personal loan online and see what rates you’re eligible for. You will have to enter some personal information like your name, address and income. This process will not cause any change in your credit score. It is not an application, but rather a way to estimate your approval odds and the rates you might get if approved. If you’re interested in applying for a Payoff personal loan, you can fill out an application online. That’s the only way to apply. Payoff only accepts individual applications, not joint borrowers.
Payoff gets credit here for being available to a wide range of customers and for giving people a chance to estimate their rates before they apply. They lose points not allowing co-signers.
Payoff Personal Loan Reviews & Transparency
Category Rating: 4.1/5
- Better Business Bureau: Payoff, Inc.’s score is A+. They are BBB accredited and have been since 2015.
- Consumer Financial Protection Bureau: Payoff has 8 complaints against them in the CFPB’s archive. Some complaints include glitches when trying to pay and denial after receiving a preliminary offer.
- WalletHub: There is not enough user data to give a score to Payoff.
- Transparency: Payoff clearly discloses the rates, fees and other details of their personal loans. They also give potential customers an idea of what to expect since they offer pre-qualification. They are clear about what credit score they require and disclose the necessary debt-to-income ratio on top of that.
Payoff is more transparent than most other personal loan providers when it comes to requirements, and they have a pristine reputation from the BBB, along with a lack of CFPB complaints. Those factors mean they score very well in this category.
Payoff Personal Loans vs. Popular Competitors
|APRs||5.99% - 24.99%||5.99% - 29.99%||5.99% - 18.72%|
|Loan Amounts||$5,000 - $35,000||$2,000 - $35,000||$5,000 - $100,000|
|Loan Terms||24 - 60 months||Up to 60 months||24 - 84 months|
|Minimum Credit Score||Fair*||Fair*||Fair*|
In order to provide the most accurate review of Payoff, WalletHub used 17 key metrics grouped into three overall sections: Terms, Requirements & Application, and Reviews & Transparency. We rated each section on a scale of 0 to 5, with 5 being the best, and then averaged the scores of the three sections to produce an overall rating for the loan.
- The “Terms” section includes information about how expensive the loan is, including rates and fees. It also takes into consideration how much consumers can borrow and how quickly they must pay it back.
For companies where APR and fee ranges differ greatly by state, we used data from the most populous state serviced by the company. Payoff terms do not fluctuate significantly by state, however.
- The “Requirements & Application” section examines how easy it is to apply for a loan and how long it takes to receive the money. It also looks at exactly who is eligible to apply.
- The “Reviews & Transparency” section measures the loan provider’s reputation as well as how clearly the lender discloses its terms and requirements. This takes into account user reviews and information from watchdog organizations.
The average of these three scores reflects how close a loan offer is to WalletHub’s definition of a 5-star loan. For more information, please read WalletHub’s full methodology.
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