2021 Personal Loan Repayment Review

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Should I use 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.

The minimum APR of 5.99% of earnings is slightly lower than that of similar lenders. For example, SoFi’s lowest rate is 6.11% and Goldman Sachs’ Marcus has a minimum APR of 6.99%. Keep in mind that you will need good credit to qualify for these low rates.

If you take out a loan of $ 15,000 or more, you will pay a minimum APR of 6.99% with Payoff.

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

How the payment works

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

Currently, Payoff does not serve borrowers in Maine, Massachusetts, Nebraska, or Nevada, so you cannot get a personal loan in those states.

You won’t get your money as quickly with Payoff as with other lenders because it takes at least two business days for the money to be deposited into your account. The lender will charge a setup fee ranging from 0% to 5%, which will depend on the terms of your loan. However, you will not pay any prepayment or late fees with Payoff.

The company offers 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 6:00 p.m. PT, or weekends from 6:00 a.m. to 3:00 p.m. PT. If neither of these options works for you, you can also send requests by mail to Payoff’s address in California.

You will need to meet the following conditions to apply:

  • Be at least 18 years old (19 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

How to get a Payoff personal loan

The request is available online or by phone and can be completed within minutes. You cannot file a joint claim with Payoff. You will need basic information for the initial request, including:

  • Last name
  • Date of Birth
  • Contact details, including your address, phone number and email
  • Personal annual income
  • Monthly rent
  • Social Security number

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

  • A bank statement or bank details
  • Driver’s license, passport or government issued ID
  • Your last two pay stubs or your last tax return if you are self-employed

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

What credit score do you need to qualify for a Payoff loan?

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

To get your credit report from one of the three major credit bureaus, use annualcreditreport.com. You can get your report for free once a week until April 20, 2022. Although you will not receive your credit score on this report, you will get information about your credit and payment history. By examining your credit report, you can spot errors and determine where you can improve.

You can get your score free of charge on your credit card statement or online account. You can also buy it from a credit reporting agency.

When you check your rates with Payoff, the lender will generate a soft credit application, which will not impact your credit score. However, just before finalizing your loan, Payoff will make a firm credit check, which will likely affect your credit score. Thorough investigation gives the lender a full view of your credit history, but it can negatively impact your credit score.

If you want to get a personal loan from Payoff but need to improve your credit score to do so, here are some tips that can help you improve your score:

  • Request and view a copy of your credit report. Look for errors in your report that could affect your score. If so, contact the credit bureau to discuss correcting the errors.
  • Maintain low credit card balances. Maintaining a credit utilization rate (the percentage of your total credit that you use) of 30% or less will show lenders that you can manage your credit well.
  • Design a system to pay bills on time. Your payment history is a large percentage of your credit score, and lenders prefer to see stable and reliable past payments. Set up calendar reminders or automatic payments to make sure you don’t miss any of your obligations.

Is Payoff Trustworthy?

Payoff is a Better Business Bureau accredited company, and the BBB gives Payoff a A + in reliability. The BBB assesses reliability by examining companies’ responses to customer complaints, the veracity of advertising, and transparency of business practices.

Keep in mind that an exceptional BBB rating doesn’t guarantee a great relationship with Payoff, so be sure to read customer reviews and ask friends and family about their experiences with the company.

Payoff has no recent scandals. Due to its clean history and top-notch BBB rating, you might feel comfortable choosing Payoff as your personal lender.

How does Payoff compare to other personal lenders?

Although the rates depend on your particular situation, Payoff’s interest rates are comparable to those offered by similar lenders. Here’s how Payoff stacks up against the competition:

Review of earnings from the SoFi exam

Payoff has a lower credit score requirement than SoFi, but if your credit is not at its best, 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 with SoFi, but the difference is marginal.

You will pay an origination fee between 0% and 5% of your total loan amount with Payoff, while you will pay no origination fees with SoFi. The Payoff set-up fee will be deducted from the overall proceeds of your loan.

Both companies will give you your money in roughly the same timeframe, 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 are looking to spread your payments over more time, SoFi might be the best choice for you.

Goldman Sachs Gain Review vs. Marcus Review

Refund and Marcus have relatively similar APR ranges, although Marcus’ maximum APR is 5% lower than Payoff’s highest rate.

You will not pay any fees with Marcus, including late fees. Instead, you’ll earn more interest if you pay late, so your final payment will be bigger. You will pay origination fees with Payoff, but no prepayment or late fees.

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

Payoff personal loans are designed to help borrowers pay off high interest credit card debt. This means that you are limited in the purpose of your loan – you might want to go with Marcus if you don’t want to consolidate your credit card debt.

Ryan Wangman is a Review Officer at Personal Finance Insider and reports on mortgages, refinancing, bank accounts, bank reviews, and loans. In his past writing about personal finance, he wrote about credit scores, financial literacy, and homeownership.

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