April 11, 2021 4:00 PM PT

Payoff Personal Loan Review

This article contains references to products from our partners. We may receive compensation if you apply or shop through links in our content. You help support CreditDonkey by reading our website and using our links. (read more)

Payoff offers personal loans for credit consolidation, but are the APRs worth your time? Find out if you qualify and how they work with credit bureaus.

Payoff Promotions
Personal Loans

Overall Score

3.7

Eligibility

2.5

Fees

4.5

Interest Rates

4.0
5-point scale (the higher, the better)

Pros and Cons

  • Low APR for excellent credit
  • No late fees
  • Can help boost credit score
  • Only for credit card debt
  • No cosigners allowed
  • Slow funding process

Bottom Line

Credit card consolidation loans for borrowers with good credit

If you're saddled with credit card debt, it can feel overwhelming.

A Payoff personal loan aims to help.

Created specifically for credit debt consolidation, Payoff offers competitive APRs and an easy application process. Find out if it's the right choice to control your credit debt with this review.

What Is Payoff?

Payoff is an online lender that provides personal loans only for credit card consolidation. Meant for borrowers with average-to-high credit, it rolls multiple credit card bills into one loan. This gives you only one payment to worry about.

Payoff offers personal loans from $5,000 to $40,000 with 2 to 5-year terms. The loans are charged at a fixed rate between 5.99% APR and 24.99% APR.

Payoff reports payments to all three credit bureaus. This makes it a great tool to build up your credit if your score fell because of debt.

How Payoff Works

Payoff is a loan to pay off credit cards. Here's how it works in four simple steps.

  1. Check Your Rate
    Provide your personal info, including your credit card debt. Payoff will give you several rates and terms to choose from.

    It doesn't hurt your credit score to do this. They only do a soft credit pull at this point.

  2. Choose Your Terms
    Once you receive your rate and term options, choose the option that's right for you. Make sure you select the term that is most affordable rather than focusing only on the interest rate.

  3. Verify Your Information
    Once you choose your terms, you'll confirm your information and sign your loan documents.

  4. Get Your Funds
    The final step is to receive your funds. Payoff electronically transfers the funds directly to your bank account for you to pay off your credit cards.

Who Is Payoff Good For?

Payoff is good for consumers in credit card debt but who have good (or decent) credit. While it's a suitable personal loan for credit card debt consolidation, Payoff only approves borrowers with a maximum 50% debt-to-income ratio. If your DTI is higher, they won't approve you.

This means your total debts can't take up more than 50% of your gross monthly income (income before taxes).

A Payoff Personal Loan is best for consumers who want to get out of credit card debt and stay there. If your goal is to eliminate debt and improve your credit score, Payoff is the loan for you.

Who isn't Payoff good for?
Payoff isn't the best choice for anyone with 'bad' credit. Payoff requires a credit score of at least 640 to qualify. They also won't approve an applicant with any credit card delinquencies.

How to Apply for a Payoff Personal Loan

After you check your rate and choose your rate/term, you'll formally apply for the loan. The process is fairly easy and done entirely online. Here's how it works:

  1. You'll provide basic information, such as your name, address, and income information.

    You'll also provide information about your current debts, including your house payment and whether you rent or own.

  2. Payoff then runs your credit and provides you with offers.

    In the offer, they'll suggest the amount you need to pay off your credit card debt. You'll receive your offers as a list, which you can sort by rate and/or term.

  3. Once you choose an offer, you'll complete the application process, including your Social Security number and employment information.

    You'll also provide your bank account information for Payoff to deposit the money.

  4. The final step is for Payoff to do a hard credit pull. This will go on your credit report as an inquiry and will affect your credit score slightly.

  5. If you're approved, Payoff will deposit the funds in your account in about a week.

Who Is Eligible for a Payoff Personal Loan?

Payoff offers its personal loans to consumers with average to great credit. Payoff considers many factors when determining your eligibility for a loan, but the two most important factors are:

  • A minimum 640 credit score
  • You cannot have delinquencies on your credit cards.

Payoff may also consider your debt-to-income ratio (the lower, the better), your credit history (the longer, the better), your current debts (credit cards or otherwise) and payment history.

They'll also consider your credit utilization rate or the amount of outstanding credit to your credit lines (the lower, the better).

What Are the Fees and Penalties?

Payoff doesn't charge the common fees most personal loan lenders charge, including:

  • Application fees
  • Late fees
  • Annual fees

They also don't charge returned check fees, check processing fees or early repayment fees.

Payoff charges an origination fee of 0% - 5% depending on your loan amount and credit score. The less you borrow and/or the higher your credit score, the lower the origination fee you'll pay (if any).

Pros & Cons

Like any personal loan, Payoff has its pros and cons. Knowing both the good and bad can help you make the right decision.

Pros

  • APR as low as 5.65% (if you have excellent credit)
  • Fixed monthly payments instead of variable payments like credit cards charge
  • No late fees
  • Can boost your credit score by as much as 40 points (according to Payoff)

Cons

  • Funding schedule is slower than competitors; many competitors fund in one business day, and Payoff takes up to 6 business days.
  • You can only use the loan for credit card consolidation.
  • Payoff doesn't discount your rate if you set up autopay.
  • Payoff doesn't offer the option to use a co-signer.

How Does Payoff Compare to Other Personal Loans?

You have many options when looking for a personal loan. If you need a loan for something other than credit card consolidation, you may consider one of the following.

SoFi
SoFi offers personal loans for people with fair to good credit starting at $5,000 and up to $100,000. They have loan terms beginning at two years and up to 7 years and APRs from 5.99% - 21%.

SoFi has zero fees and allows co-signers on your loan. They discount your rate if you set up autopay and offer unemployment protection should you lose your job.

Upstart
Upstart is an excellent personal loan option for applicants with low to average credit scores but great earning potential. Upstart funds loans in as little as one day and in some cases, they'll pay your creditors directly.

You can borrow from $1,000 - $5,000 with Upstart on a three or 5-year term. Their APRs start at 8.27% and go up to 35.99%.

Lending Club
Lending Club is another good option if you have less than perfect credit. They allow credit scores as low as 600 but offer loan amounts from $1,000 - $40,000.

Borrowers have two term options - 3 or 5 years and APRs from 8.05% - 35.89%. You can have a co-signer on a Lending Club loan, and they'll pay your creditors directly if you ask.

Bottom Line

If you're in over your head in credit card debt, a Payoff Personal Loan may help. You'll have one loan to pay and may even save money on interest.

Plus - if you can avoid using credit cards while paying it off - the Payoff Personal Loan might even help you boost your credit score. You could be in a better financial position after consolidating your credit card debt.

Write to Sam Hawrylack at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

Read Next:

Best Personal Loans for Debt Consolidation

Best Personal Loans

SoFi Personal Loan Review

SoFi Personal Loan Review

Pay Student Loans With a Credit Card

Pay Student Loans With a Credit Card

Personal Loan Calculator

Personal Loan Calculator

Upstart Personal Loan Review

Upstart Personal Loan Review

LendingClub Review: Is It Good?

Lending Club Review


Leave a comment about Payoff Personal Loan Review?



Avant Personal Loan Review

Avant Personal Loan Review

Avant offers quick personal loans for those with average credit. Find out where they fall short, what documents they require and more before applying

About CreditDonkey
CreditDonkey is a credit card comparison website. We publish data-driven analysis to help you save money & make savvy decisions.

Editorial Note: Any opinions, analyses, reviews or recommendations expressed on this page are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

†Advertiser Disclosure: Many of the offers that appear on this site are from companies from which CreditDonkey receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). CreditDonkey does not include all companies or all offers that may be available in the marketplace.

*See the card issuer's online application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However, all information is presented without warranty. When you click on the "Apply Now" button you can review the terms and conditions on the card issuer's website.

CreditDonkey does not know your individual circumstances and provides information for general educational purposes only. CreditDonkey is not a substitute for, and should not be used as, professional legal, credit or financial advice. You should consult your own professional advisors for such advice.

About Us | Reviews | Deals | Tips | Privacy | Do Not Sell My Info | Terms | Contact Us
(888) 483-4925 | 680 East Colorado Blvd, 2nd Floor | Pasadena, CA 91101
© 2021 CreditDonkey Inc. All Rights Reserved.