Payoff Personal Loans Review 2021
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Redemption Amounts and Interest Rates
With Payoff, personal loan amounts range from $ 5,000 to $ 40,000 and can be repaid over two to five years depending on the payment schedule agreed with the lender.
Payoff’s minimum APR of 5.99% is slightly lower than similar lenders. The lowest SoFi rate is 6.11%, and Marcus from Goldman Sachs has a minimum APR of 6.99%. Remember, you need good credit to qualify for these low prizes.
When you take out a loan of $ 15,000 or more, Payoff is used to pay a minimum APR of 6.99%.
However, Payoff is less competitive when it comes to the high end of its APR range. Payoff’s maximum APR is 24.99% while SoFi is 18.85% and Marcus by Goldman Sachs’ top rate is 19.99%.
Payoff offers unsecured personal loans through one of its seven loan partners. You don’t need to provide collateral like a home or a car to get an unsecured personal loan. Most lenders allow you to take out a personal loan for a number 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 with other lenders because it takes at least two business days to get funds into your account. The lender charges an origination fee between 0% and 5% depending on the terms of your loan. However, you do not pay any prepayment or late fees with Payoff.
The company offers a wide variety of customer support options. You can email the company’s customer support account or call 6:00 a.m. to 6:00 p.m. Monday through Friday or 6:00 a.m. to 3:00 p.m. on weekends. If none of these options work for you, you can send inquiries to Payoff’s California address as well.
You must meet the following requirements to apply:
- Be at least 18 years old (19 years old in Alabama)
- Have a valid checking account
- Have a valid social security number
- Have three years of credit established
The pros and cons of payoff personal loans
The application is available online or by phone and can be completed in a few minutes. You cannot submit a joint application to Payoff. For the first time use, you will need basic information, including:
- Date of birth
- Contact information including your address, phone number, and email
- Annual personal income
- Monthly housing expenses
- Social security number
Withdrawal may require several documents to verify your information, including:
- A bank statement or bank ID
- A driver’s license, passport, or government-issued ID
- Your last two pay slips or your last tax return if you are self-employed
After you apply and approve your loan, you will likely receive your funds within two to five business days.
At payout, you need a minimum credit value of 640 to qualify for a loan. This minimum is lower than other lenders with similar interest rates and loan terms. For example, the lowest credit SoFi will accept is 680 and Lightstream’s is at least 660.
If you don’t know your credit history, you can get it for free once a week during the coronavirus pandemic on annualcreditreport.com from any of the three major credit bureaus.
When you check your interest rates with Payoff, the lender generates a soft loan request that doesn’t affect your credit score. However, just before you finalize your loan, Payoff runs a tough credit inquiry that is likely to affect your credit score. A hard query gives a lender a complete picture of your credit score, but it can have a negative impact on your credit score.
If you’re interested in getting a Payoff Personal Loan but need to improve your credit score to get it, here are some tips that can help you improve your score:
- Request and review a copy of your credit report. Check your report for any errors that could affect your score. If so, contact the credit bureau to discuss fixing the errors.
- Maintain low credit card balances. If you maintain a loan utilization of 30% or less – the percentage of your total loan that you are using – it will show lenders that you are fine with your loan.
- Design a system for paying bills on time. Your payment history is a significant percentage of your creditworthiness, and lenders prefer stable and reliable payments in the past. Set up calendar reminders or automatic payments to make sure you don’t miss any of your commitments.
Payoff is a Better Business Bureau accredited company, and the BBB gives Payoff an A + for trustworthiness. The BBB assesses trustworthiness by reviewing the company’s responses to customer complaints, the veracity of advertising, and the transparency of business practices.
Remember, a great BBB rating does not guarantee a great relationship with Payoff. Be sure to read customer reviews and ask friends and family about their experience with the company.
Payoff has no current scandals. Because of its clean history and top-notch BBB rating, you can choose Payoff as your personal lender.
Although the interest rates depend on your individual situation, Payoff’s interest rates are comparable to those offered by similar lenders. This is how Upgrade compares to the competition:
Payout Rating vs. SoFi Rating
Payoff has a lower credit score requirement than SoFi, but if your credit is not in the best shape, Payoff can charge you a higher maximum APR. If you have excellent bankroll, you might be able to get a slightly lower APR with Payoff than with SoFi, but the difference is small.
With Payoff you pay an origination fee between 0% and 5% of your total loan amount, while with SoFi you do not pay an origination fee. The withdrawal fee will be deducted from your total loan proceeds.
Both companies will give you your money in roughly the same amount of time, around a few business days after approval.
The payout has a maximum loan term of five years while SoFi has a maximum loan term of seven years. If you want to split your payments over a longer period of time, SoFi might be a better choice for you.
Payout Rating vs. Marcus by Goldman Sachs Rating
Payoff and Marcus have relatively similar APR ranges, although Marcus’ maximum APR is 5% below the highest payoff rate.
You will not pay any fees with Marcus, including late fees. Instead, if you pay late, you will get more interest and your final payment will be higher as a result. You pay a withdrawal origination fee, but no prepayment or late fees.
Marcus offers a “On-Time Payment Reward”. If you pay your loan on time and in full each month for 12 months, you can forego a month of payments and no interest will accrue during that period. Your loan will then be extended for a month.
Personal loan repayment is designed to help borrowers pay off high-interest credit card debt. This means that you have a limited purpose for your loan. You might want to reach out to Marcus if your aim is not to consolidate your credit card debt.
Ryan Wangman is a Review Fellow at Personal Finance Insider reporting on mortgages, refinances, bank accounts, bank reviews, and loans. In his previous experience writing about personal finance, he has written about credit scores, financial literacy, and home ownership.