Personal loans are a great solution if you are looking to refinance your current debt or borrow money for large expenses. In this article, we will review a popular personal loan website – Payoff.
Happy Money is the parent company of Payoff®, and they function on a business model that takes a psychological approach to cash management.
Payoff® allows you to go through a quick and easy application process to qualify for a fixed-rate credit card debt consolidation loan.
One way this loan helps you is by rolling all the multiple high-interest credit card payments into one monthly payment at a possibly lower interest rate. If you have good credit, you can get a loan for up to $40,000 at very competitive rates.
Payoff® Loan types
Payoff® gives out personal loans with a fixed interest rate only for the purpose of consolidating and paying off your credit card debt.
|APR||5.99 - 24.99% |
|Amount||$5,000 - $40,000 |
|Term||2 - 5 years |
|Origination fee||5% |
As you can see from the table the maximum loan amount is $40,000, and the APR starts at 5.99% for the best graded borrowers. The loan period varies from 2 to 5 years.
Payoff®: pros and cons
|Pros: ||Cons: |
|Competitive APR: Payoff® offers APRs that fall between 5.99 - 24.99%. ||Credit Card Debt Consolidation Loans Only: Payoff® offers loans only for credit card debt consolidation |
|Pre-qualification: Payoff® offers pre-qualification, meaning you can check potential loan terms without affecting your credit score. Once you decide to proceed with the loan, a hard inquiry will be performed. ||No direct transfer to creditors: Payoff® does not transfer funds to creditors when you get a loan. |
|No extra fees: Except for the origination fee, Payoff® doesn’t charge any other fees (late payment, application, early payment, return check, etc.). ||Origination fee: Payoff® charges an origination fee of up to 5% of the loan amount. |
|Accessible customer service: You can talk to their customer service by phone for any concerns. They also give you a welcome call and a quarterly check-in call for the first year after getting the loan. ||No co-signers allowed: You can only apply as an individual without a co-signer backing you up. |
|Slow funding process: It takes 3-7 days to get the loan approved and 3-6 days to receive the funds once approved and all final documents are signed. |
Applying for a Payoff® loan
Payoff® borrowers must be at least 18 years old, have a valid social security number and a checking account. While requirements might seem hard to qualify for some applicants, they are clear and straightforward: you need a credit score of at least 600 and 0 current delinquencies. In addition, the age of your credit history, utilization ratio, and debt-to-income ratio are also considered by Payoff® during the application.
You can choose a loan amount between $5,000 - $40,000 and loan terms between 2 - 5 years. Payoff® will charge an origination fee of up to 5%.
Minimum APR is very competitive at 5.99%; however, for loans above $15,000, minimum APR starts at 6.99%.
Payoff® loans are not available in states of Massachusetts and Nevada.
How to apply for a Payoff® loan
You apply for a Payoff® loan online. Through the application process, you can check the rates with a soft pull so your score doesn’t get impacted. To check your rate, you must provide these details:
- Full name
- Date of Birth
- Phone number
- Individual annual income before taxes
- Rent or mortgage monthly payment
Income information must include only you as an individual. Payoff® doesn't accept child support or income of your family members as proof of income. As a result, you will receive an invite code, which means you are pre-approved for the Payoff® loan. Using an invite code, you can create an account and check multiple pre-approved offers to choose from.
Once you agree on an offer and apply, Payoff® does a hard pull on your credit. During this process, Payoff® will ask for more information such as:
- Identity proof: such as an ID, passport, or a valid driver’s license
- Income proof: your most recent tax return or two of your recent paystubs.
- Bank statements: most recent full bank statement.
These documents can be easily uploaded to your account.
Payoff® is amongst the top online lenders if you want to consolidate your credit card debt and have a credit score of 600 or higher. The company offers competitive APRs, pre-qualification without effect on your credit score, and a simple online application process. On the downside, Payoff® may charge an origination fee of up to 5% and doesn’t allow co-signed or joint applications.
What is the Payoff® customer service phone number?
Payoff® customer service can be reached at 800-878-0901
. The representatives will answer the phone from Monday to Friday from 6 a.m. to 6 p.m. Pacific Time and Saturday and Sunday from 6 a.m. to 3 p.m. PT.
Is Payoff® legit?
Better Business Bureau rates Payoff® with an A+, making it a BBB-accredited business. So Payoff® is definitely not a scam!
Is Payoff® Entirely Online?
Yes, Payoff® offers its personal loan
services entirely online. You can apply for a loan, get pre-approved, manage, or close a loan through the lender's website
Is Payoff® safe?
In 2020, nine personal loan complaints were filed with the Consumer Financial ProtectionBureau against Happy Money which is Payoff’s parent company. Eight out of nine were closed and cleared with a timed response, proving the safety of their business practices.
What’s the Credit Score required to apply for a Payoff® loan?
The minimum credit score to apply for a Payoff® loan is 600.