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Payoff

September 5, 2017 by Leave a Comment

Payoff loans logo

Payoff

Payoff, Inc. is an online lender that offers loans to repayprimarily for the purpose of repaying credit card debt. It differentiates itself from the competition by offering interactive financial tools and an approach that focuses on their customers’ overall financial wellness.

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4.6
Our Score

  • The Good
  • The Bad
  • The Summary
  • Reviews

Home › Review › Loans › Personal Loans › Payoff

The Good

    • Competitive APR rates as low as 8%
    • Interactive tools to help improve financial wellness
    • Transparent fee structure
    • Free credit score update each month

     

 

Payoff stands apart from its competition in terms of its overall financial wellness approach. In addition to offering a loan to its customers, the online company focuses on providing financial guidance to its customers, with online quizzes to understand customers’ financial habits. Payoff offers personalized recommendations to the borrowers, and in case of a default, instead of charging a late fee, its financial advisors help borrowers get out of the default.

 

Talking about its financial product, Payoff offers affordable fixed rate loans, with an APR between 8% to 25%. In a step to promote transparency, the company has listed its fee structure online, allowing customers to understand the fee up front. It sends a free credit score update with the monthly report, allowing customers to maintain their financial health.

 

Origination Fees

The origination fee helps a lender cover the costs of servicing a loan. Payoff write, “In an effort to be transparent, we don’t hide our origination fee bundled inside your loan. It’s the only fee associated with the Payoff® Loan and is charged only once, when your loan is issued.”

They then go on to show the following table:

Payoff rate table

 

In addition, Payoff does not charge prepayment fees, late fees, annual fees or non-sufficient funds fees.

The Bad

  • Difficult to qualify if FICO score is less than 660
  • Only in 19 states

 

For starters, Payoff has strict eligibility requirement, including a credit score of 660 or higher, a debt-to-income ratio of 50% or lower, and at least three years of good credit history. Further, if you have a current credit delinquency or any in the last 12 months that lasted over 90 days, you are automatically disqualified. In short, borrowers with a poor credit record are unlikely to land a loan from Payoff.  Other credit requirements:  You need to have at least two financila accounts that are open, and where you have been paying on time (i.e. credit cards, phone bills, car payments).  Also, in the last year, you cannot have opened more than one personal / installment loan.  Payoff is looking for people who want to consolidate their debt at a lower rate and save money, and more than one personal / installment loan may indicate that you are looking to add more debt.

 

Debt-to-Income ratio is calculated by taking the monthly payments of all your debt (i.e. student loans, credit cards, mortgages, etc) and dividing it by the sum of your monthly pay checks.  So if you make $3,000 per month and pay $600 per month for student loans and $600 in credit card interest, you would have a debt-to-income ratio of 40%.  Note – only the interest you pay each month (not the principal) on credit cards is included in your ratio.

 

Payoff operates in the following 19 states:

  • District of Columbia
  • Delaware
  • Iowa
  • Louisiana
  • Massachusetts
  • Maryland
  • Michigan
  • Minnesota
  • Mississippi
  • North Carolina
  • Nebraska
  • Nevada
  • Ohio
  • Oklahoma
  • Virginia
  • Vermont
  • Washington
  • Wisconsin
  • West Virginia

The Summary

While Payoff does have strict lending criteria, it is among one of the most affordable lenders in the marketplace. Further, its overall financial wellness approach and a customer service back it up make Payoff a solid option for anyone with good or excellent credit.

 

If you have debt today, have been making payments, and have a 660 credit score or better, Payoff could be a good option to decrease your monthly debt payments.

Ratings Breakdown

Loan Amount5,000 - $35,000

Max Length5 years

Credit Score600 or higher

APR Range8-25% APR

Availability19 states

Year Founded2009

Review Last Updated: September 5, 2017

How We Rate

BrightRates provides unbiased reviews to help consumers make better financial decisions. We are serious about the editorial integrity of our reviews.

If you see a fact that is misprepresented, please contact us.

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THE OPERATOR OF THIS WEBSITE IS NOT A LENDER, does not make credit decisions, and does not charge any application fees. This Website does not constitute an offer or solicitation to lend. This Website provides a service wherein we submit the information you provide to one or more lending platforms and attempt to match you with a lending platform. This service is not available in all states, and the states serviced by this Website may change from time to time and without notice. Providing your information on this Website does not guarantee that you will be matched with a lending platform or approved for a loan. The lending platform may perform a credit check or otherwise verify the information you provide. Not all lending partners offer loans up to the advertised amount and not all lending platforms can provide you with the loan amount you requested. Loan amounts are determined by the lending platform based on individual creditworthiness. All financial terms of the loan will be provided to you by the lending platform. Loan terms, conditions, and policies vary by lending platform, state, and applicant qualifications. For details, questions, or concerns regarding your loan please contact your lending platform directly. In some situations, faxing or emailing of documents may be required. Cash transfer times may vary between lending platforms and may depend on your individual financial institution. Loan repayment periods could vary by lending platform and location. Not all applicants will meet the lending criteria to qualify for a loan. Borrow Responsibly – A short-term loan is ideally used for short-term financial needs only, not as a long-term financial solution. Late or missed loan payments may be subject to increased fees and interest rates. lending platforms may use collection services for nonpayment of loans. We recommend seeking credit counseling if you have financial difficulties.