Payoff Personal Loans Review 2022

Payoff offers personal loans designed to consolidate credit card debt. It operates in all but two states and provides loans of up to $40,000.

Payoff is not a bank and instead works with lending partners who originate the loans. The California-based financial wellness company reports to a parent company called Happy Money, which takes a psychological approach to money matters.

Best Features

  • Borrowers do not face prepayment or late payment charges.
  • Applicants can be pre-approved without a credit check.
  • Some borrowers with fair credit may qualify.

Disadvantages

  • Personal loans are only available for credit card debt consolidation.
  • The borrower can pay an origination fee of up to 5% of the loan amount.
  • Repayment loans are not available in all states.

How can a Payoff personal loan be used?

Payoff provides personal loans for credit card debt consolidation only.

How it works

Applying for a Payoff personal loan is a four-step process. First, you’ll answer a few questions online to prequalify, which doesn’t affect your credit score. Then you will select the loan terms that suit you best and complete your application. Then you’ll review your terms, verify your information and electronically sign your loan documents, and Payoff will perform a rigorous credit check just before your loan is finalized. Approved loans are funded within three to six business days.

Payoff works with lending partners to create your loan. Its lending partners are Alliant Credit Union, Blue Federal Credit Union, Cross River Bank, First Tech Federal Credit Union, GreenState Credit Union, Teachers Federal Credit Union, Technology Credit Union, USAlliance Financial, and Veridian Credit Union.

What are the terms, fees and conditions of the product?

Payoff only offers fixed rate personal loans, with annual percentage rates between 5.99% and 24.99%. Loans range from $5,000 to $40,000 and loan repayment terms are 24 to 60 months. The minimum APR is 6.99% for loans over $15,000, and the minimum loan amount and APR may vary in some states.

The company does not charge any application, check processing, returned check, annual, prepayment or late payment fees, but borrowers pay an origination fee of up to 5% of the loan amount.

How can you qualify?

Payoff requires a FICO credit score of at least 600, and borrowers must have no current payment defaults. The company lists other factors it may consider for loan approval, including debt-to-equity ratio, length of credit history, credit utilization ratio and payment history. on other lines of credit.

Borrowers can receive pre-approval and get quotes, but co-signers are not accepted.

What credit score do you need?

Payoff requires a minimum FICO credit score of 600.

Where does the lender operate?

Payoff operates nationwide except for Massachusetts and Nevada.

Is the lender trustworthy?

Payoff has an A+ rating with the Better Business Bureau and is a BBB accredited company. Payoff’s parent company, Happy Money, filed 18 personal loan complaints in 2021 with the Consumer Financial Protection Bureau. Common complaints were about obtaining the loan and problems with loan payments and repayment. All complaints received timely responses; 17 complaints were closed with explanation and one is ongoing.

Payoff has an overall rating of 4.3 out of 5 stars from US News, with 4.3 stars for affordability, 3.9 stars for eligibility, and 4.8 stars for customer service.

How is Payoff’s customer service?

Contact Payoff by phone at 800-878-0901 from 6 a.m. to 6 p.m. Pacific Time, Monday through Friday and 6 a.m. to 3 p.m., Saturday and Sunday. If you call outside opening hours, you can leave a message and someone will answer you as soon as possible.

You may also email [email protected] or send correspondence to 1700 Flight Way, Tustin, CA 92782.

What are some of Payoff’s online features?

The Payoff personal loan process is completely online. Borrowers can get pre-approved, then apply, close, and manage loans through Payoff’s website. Funds can be deposited directly into your checking account within three to six business days of electronically signing the loan documents.

personal loan search

Select your desired loan amount and purpose, your credit score range, and your state to see estimated annual percentage rates and loan terms.

Pay-as-you-go personal loans are best for:

  • People who need to consolidate high interest credit card debt.
  • People who have at least a FICO credit score of 600.
  • People who want to complete the entire loan process online.

Stephen V. Lee