Payoff specializes in providing borrowers competitive mid-range personal loans intended to be used to consolidate debt from multiple credit cards. Borrowers who have $5,000 to $35,000 worth of credit card debt may be able to avoid paying unnecessary interest by consolidating their accounts into a personal loan with Payoff. Further, Payoff acts as an accountability partner by providing support and encouragement throughout your loan repayment term. However, its eligibility requirements can make it tough to qualify if your credit is not in good shape.
Payoff by the numbers
- APR range: 5.99%-24.99%
- Min-max loan range: $5,000-$35,000
- Repayment term range: 24 to 60 months
- Minimum credit score: 640
- Minimum gross income: NA
- Better Business Bureau grade: A-
- Origination fee: 0%-5%
- Late payment fee: $0
- The loans are designed for debt consolidation.
- Not available for residents of Massachusetts, Mississippi, Nebraska, Nevada, and West Virginia.
- Funds can’t be used to pay off spouse’s outstanding balances.
Who should consider Payoff personal loans?
Payoff is a great option for borrowers with high-interest consumer debt and a credit score of at least 640. If you can get a loan high enough to pay off your other debts with a lower interest rate than you are cumulatively paying now, you can potentially pay down your credit card debt faster while saving on the interest costs.
As an added benefit, Payoff says its members who paid off at least $5,000 in credit card balances saw a credit score increase of 40 points within four months of receiving their Payoff personal loan.
If you’re someone who needs an extra push to stay on track, Payoff also has a member experience team dedicated to providing support before there’s a payment issue. You can expect to receive a welcome calls and periodic check-ins to help cheer you on during repayment.
Who should avoid Payoff personal loans?
A Payoff personal loan might not be the right fit if you aren’t planning on using the loan to pay off your credit cards. Even though Payoff doesn’t enforce how you spend your new funds, this lender is geared toward debt consolidation. Another lender more open to other types of spending may be a better fit.
Additionally, if you need more or less than the available loan amounts, then avoid Payoff and search for a lender with bigger limits. Depending on your outstanding credit card balances, you may only need a smaller loan with a lower interest rate to get you out of debt. On the opposite side, you may need a larger loan if your balances are over $35,000.
Payoff is designed to be a solution for reducing credit card debt, but that doesn’t mean it’s the answer for everyone. Check with multiple lenders to ensure you’re receiving the best rate and terms for your personal needs.
How to apply for a Payoff personal loan
Here’s what you need to do to submit a personal loan application with Payoff.
- Determine if you meet the minimum eligibility requirements. Payoff requires a credit score of 640 or higher, a debt-to-income ratio of 50% or less, at least three years of good credit and no current delinquencies.
- Address any issues that may prevent you from being approved. Review your credit reports to resolve errors and take steps to increase your credit score.
- Check your rate on the company’s website. You’ll need to provide your name, date of birth, salary and other financial details. Payoff will perform a soft credit pull to determine your estimated rate, so it won’t affect your credit score.
- Submit supporting documents to complete your loan application. Be prepared to provide a color copy of your driver’s license or another form of identification, proof of income and recent bank statements.
- Wait for a final loan approval decision. Expect for it to take three to seven business days to review your additional documents and receive a loan decision.
Alternatives to Payoff personal loans
While Payoff offers competitive rates and works with its borrowers to stay on track with their payments, it isn’t the answer for everyone. Depending on your financial needs and goals, you may benefit from exploring these alternative lenders.
Upstart uses additional data to determine your rate and loan approval. It weighs your credit score, credit history, education, area of study and job history to better predict your future potential for paying back the loan. This may help you get approved if you don’t meet Payoff’s credit score requirement of 640.
Additionally, Upstart provides loans starting at $1,000 and going up to $50,000, a broader range than Payoff’s $5,000 to $35,000. You can also use Upstart personal loans for a wider range of purposes like home improvement costs, medical expenses or debt consolidation.
LendingClub is a peer-to-peer platform that connects lenders with borrowers for loans up to $40,000, which may be more appealing if you need a slightly higher loan amount than Payoff’s $35,000 max. Furthermore, LendingClub loans can be used for a variety of major expenses, but you may be looking at a higher APR than with Payoff. Current LendingClub rates range from 6.95% to 35.89%, while Payoff’s ranges from 5.99% to 24.99%.
Lastly, Earnest uses traditional financial data alongside other factors — like your savings habits, education and earning potential — to offer you the lowest rate possible. It also offers loans up to $75,000 versus Payoff’s $35,000 maximum. However, it requires a credit score of at least 680 and doesn’t serve residents of Alabama, Delaware, Kentucky, Nevada, or Rhode Island. If you meet the credit requirement and live in an eligible area, applying with Earnest may get you a larger loan with a lower APR.