May 19, 2022

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Payoff Personal Loans Review 2021

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Payoff loan amounts and interest rates

At Payoff, personal loan amounts range from $5,000 to $40,000 and can be repaid over two to five years, depending on the payment plan you agree to with the lender.

Payoff’s minimum APR of 5.99{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} is slightly lower than similar lenders. For instance, SoFi’s lowest rate is 6.11{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb}, and Marcus by Goldman Sachs has a minimum APR of 6.99{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb}. Keep in mind, you’ll need good credit to qualify for these low rates.

If you take out a loan of $15,000 or more, you’ll pay a minimum APR of 6.99{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} with Payoff.

However, Payoff is less competitive when it comes to the higher end of its APR range. Payoff’s maximum APR is 24.99{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb}, while SoFi’s is 18.85{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} and Marcus by Goldman Sachs’ top rate is 19.99{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb}. 

Payoff offers unsecured personal loans through one of its seven lending partners. You don’t need to put up any collateral, like a house or a car, to get an unsecured personal loan. Most lenders allow you to take out a personal loan for a number of purposes, but Payoff personal loans are specifically designed to help you eliminate high-interest credit card debt.

Currently, Payoff doesn’t serve borrowers in Maine, Massachusetts, Nebraska, or Nevada, so you can’t get a personal loan in these states.

You won’t receive your money as quickly with Payoff as you would with other lenders, as it takes at least two business days to have money deposited in your account. The lender will charge an origination fee ranging from 0{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} to 5{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb}, which will depend on your loan’s terms. You won’t pay any prepayment or late fees with Payoff, though.

The company has a variety of options for customer support. You can email the company’s customer support account, or call Monday through Friday, 6:00 a.m. to 6 p.m. PT, or on weekends from 6:00 a.m. to 3:00 p.m. PT. If none of those options work for you, you can also mail inquiries to Payoff’s California address. 

You’ll need to meet the following requirements to apply:

  • Be at least 18 years old (19 years old in Alabama)
  • Have a valid checking account
  • Have a valid social security number
  • Have three years of established credit

The pros and cons of Payoff personal loans 

The application is available online or over the phone and can be completed in several minutes. You can’t file a joint application with Payoff. You’ll need basic information for the initial application, including:

  • Name
  • Date of birth
  • Contact information including your address, phone number, and email
  • Personal annual income
  • Monthly housing payment
  • Social Security number 

Payoff may require several documents to verify your information, including:

  • A bank statement or bank credentials
  • A driver’s license, passport, or state-issued ID
  • Your two most recent pay stubs or most recent tax return if self-employed

After you apply and have your loan approved, you will likely get your cash within two to five business days.

With Payoff, you need a minimum credit score of 640 to qualify for a loan. This minimum is lower than other personal loan lenders that have similar interest rates and loan term ranges. For example, the lowest credit score SoFi will accept is 680, and Lightstream’s minimum is 660. 

If you don’t know your credit score, you can get it for free on annualcreditreport.com from any of the three major credit bureaus once per week during the coronavirus pandemic.

When you check your rates with Payoff, the lender will generate a soft credit inquiry, which will not impact your credit score. However, right before you finalize your loan, Payoff will perform a hard credit inquiry, which will probably affect your credit score. A hard inquiry gives a lender a comprehensive view of your credit history, but it may negatively impact your credit score as a result.

If you are interested in getting a personal loan from Payoff but need to boost your credit score to do so, here are some tips that may help you improve your score: 

  • Ask for and look over a copy of your credit report. Search for any mistakes on your report that could be tanking your score. If so, reach out to the credit bureau to discuss fixing the errors.
  • Maintain low credit card balances. Keeping a credit utilization rate — the percentage of your total credit you’re using — of 30{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} or less will show lenders that you can handle your credit well.
  • Design a system for paying bills on time. Your payment history makes up a significant percentage of your credit score, and lenders prefer to see steady and reliable past payments. Set up calendar reminders or automatic payments to make sure you don’t miss out on any of your obligations.

Payoff is a Better Business Bureau-accredited company, and the BBB gives Payoff an A+ in trustworthiness. The BBB evaluates trustworthiness by looking over business’ replies to customer complaints, truthfulness in advertising, and transparency about business practices. 

Keep in mind that a stellar BBB rating doesn’t guarantee an excellent relationship with Payoff, so make sure you read customer reviews and ask friends and family about their experiences with the company.

Payoff does not have any recent scandals. Due to its clean history and top-notch BBB rating, you might feel comfortable choosing Payoff as your personal loan lender.  

Although rates will depend on your unique situation, Payoff’s interest rates are comparable to those offered by similar lenders. Here’s how Upgrade compares to the competition:

Payoff review vs. SoFi review

Payoff has a lower credit score requirement than SoFi, but if your credit isn’t in the best of shape, Payoff may charge you a higher maximum APR. If you have excellent credit, you may be able to get a slightly lower APR with Payoff than SoFi, but the difference is marginal. 

You’ll pay an origination fee between 0{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} and 5{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} of your total loan amount with Payoff, while you won’t pay any origination fee with SoFi. The Payoff origination fee will be deducted from your overall loan proceeds.

Both companies will give you your money in roughly the same amount of time, about a few business days after approval.

Payoff has a maximum loan term of five years, while SoFi has a maximum loan term of seven years If you’re looking to divide out your payments over more time, SoFi might be the better choice for you. 

Payoff review vs. Marcus by Goldman Sachs review

Payoff and Marcus have relatively similar APR ranges, though Marcus’ maximum APR is 5{de3fc13d4eb210e6ea91a63b91641ad51ecf4a1f1306988bf846a537e7024eeb} lower than Payoff’s highest rate. 

You won’t pay any fees with Marcus, including late fees. Instead, you’ll rack up more interest if you pay late, and your final payment will be bigger as a result. You’ll pay an origination fee with Payoff, but no prepayment or late fees.

Marcus offers an “on-time payment reward.” If you pay your loan on time and in full every month for 12 months, you can forgo a month of payments, and interest will not accrue during that period. Your loan will then be extended by one month. 

Payoff personal loans are aimed to help borrowers pay down high-interest credit card debt. This means you are limited in your loan’s purpose — you may want to go with Marcus if you aren’t aiming to consolidate credit card debt. 

Ryan Wangman is a reviews fellow at Personal Finance Insider reporting on mortgages, refinancing, bank accounts, bank reviews, and loans. In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership.