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Repayment of 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 with the lender.
Payoff’s minimum APR of 5.99% is slightly lower than that of similar lenders. For example, SoFi’s lowest rate is 6.11% and Marcus by Goldman Sachs 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%.
Payoff offers unsecured personal loans through one of its seven lending partners. You don’t need to provide 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 variety of purposes, but Payoff Personal Loans are specifically 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 you would 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 prepayment or late fees with Payoff.
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 6:00 p.m. PT, or on weekends from 6:00 a.m. to 3:00 p.m. , Pacific Time. If neither of these options works for you, you can also send your inquiries to Payoff’s California address.
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
The app is available online or by phone and can be completed in a matter of 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 address
- 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 official ID
- Your last two pay stubs or your last tax return if you are self-employed
After you apply and approve your loan, you will likely receive your money 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 that of other personal lenders who 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 at annualcreditreport.com from one of the three major credit bureaus once a week during the coronavirus pandemic.
When you check your rates with Payoff, the lender generates a flexible credit application, which will not affect your credit score. However, right before you finalize your loan, Payoff will do a serious credit investigation, which will likely affect your credit score. Thorough investigation gives the lender an overview 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 increase 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 lower your score. If so, contact the credit bureau to discuss correcting the errors.
- Keep credit card balances low. 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 for paying bills on time. Your payment history is a large percentage of your credit score, and lenders prefer to see past payments stable and reliable. Set up calendar reminders or automatic payments to make sure you don’t miss any of your obligations.
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 a stellar 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 business.
Payoff has no recent scandals. Due to its clean history and top-notch BBB rating, you might feel comfortable choosing Payoff as your personal loan lender.
Although the rates depend on your particular situation, Payoff’s interest rates are comparable to those offered by similar lenders. Here’s how Upgrade 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 great credit, you may be able to get a slightly lower APR with Payoff than SoFi, but the difference is marginal.
You will pay an origination fee of between 0% and 5% of your total loan amount with Payoff, while you will pay no origination fees with SoFi. The repayment creation fee will be deducted from the overall proceeds of your loan.
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 want to spread your payments over more time, SoFi might be the best choice for you.
Payoff Review vs Marcus Review by Goldman Sachs
Payoff 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, and your final payment will be larger as a result. You’ll pay setup fees with Payoff, but no prepayment or late fees.
Marcus is offering an âon-time payment rewardâ. 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.
Repayable personal loans are designed to help borrowers pay off their 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 reviewer at Personal Finance Insider, which reports on mortgages, refinancing, bank accounts, bank reviews, and loans. As part of his past personal finance writing experience, he has written on credit scores, financial literacy, and property.