For borrowers looking to consolidate debt, Payoff is a great choice for a personal loan, provided you have good credit history. The lender looks for borrowers with credit scores of at least 660, debt-to-income ratios of 50% or less and a robust credit history. One downside is that a Payoff personal loan can only be used to consolidate debt, so if you need money for other reasons, you’ll need to shop elsewhere.
- Review: Should You Apply?
- Eligibility Criteria
- Personal Loan Rates and Terms
- Application Process
- How Does Payoff Compare to Other Lenders?
Payoff Personal Loan Review: Should You Apply?
Payoff offers competitive debt consolidation loans for borrowers with good to excellent credit. You can borrow up to $35,000 with rates between 8% and 25%. Terms range from two to five years.
|Good for...||Bad for...|
One thing we like about Payoff is the clear eligibility requirements. To be eligible for a Payoff loan, you will need a minimum FICO credit score of 660 and a debt-to-income ratio of 50% or less. You will need at least three years of credit history and two current credit accounts in good standing (i.e., credit cards, mortgages, installment loans, etc.). You cannot have any current delinquencies, and you cannot have had any delinquencies greater than 90 days in the last 12 months. If you meet these requirements, you will be eligible for a Payoff loan.
Payoff loans can only be used for debt consolidation, so you cannot use them for one-time expenses or other endeavors. If you want to take out a loan for home improvement or a coding bootcamp, you’ll need to look elsewhere.
However, this focus on debt consolidation does allow Payoff to offer some customized benefits to its borrowers. All borrowers will have access to Payoff’s Member Experience Advocates, who will set up welcome calls and quarterly check-ins to help you with any issues and to keep you on track with your monthly payments. Payoff also offers a variety of cash flow tools and personality assessments to help you better understand and manage your own finances. Finally, the lender offers a free monthly FICO score update so borrowers can see how the loan is impacting their credit score. The lender claims that borrowers who pay off at least $5,000 in credit card balances see an average increase of 40 points in their FICO score within two months of receiving a Payoff loan.
One downside to Payoff is that its lowest rates start at 8%. Some online lenders offer rates starting as low as 4% or 5%. If you have a particularly strong credit profile, you may be able to qualify for a rate lower than 8% at another lender. At the very least, it's worth checking your rate at another lender to see what you can qualify for. Payoff is also not available in every state, so you'll need to shop elsewhere if you are in one of the following states: Massachusetts, Mississippi, Nebraska, Nevada, Ohio and West Virginia.
In order to be eligible for a Payoff loan, you must meet the following criteria:
- Credit score of 640 or higher
- Debt-to-income ratio under 51%
- 3 years of credit history with at least 2 current accounts in good standing
- No more than one installment loan in last 12 months
- No current delinquencies
- No delinquencies greater than 90 days in the last 12 months
Meeting these requirements does not guarantee that you will be approved for a loan, but these are the basic criteria that you need to meet to even be considered.
Payoff Personal Loan Rates and Terms
You can only use a Payoff personal loan for debt consolidation purposes. However, you can borrow up to $35,000 with rates starting at 8%.
|Loan Amount Range||$5,000 - $35,000|
|APR Range||8.00% - 25.00%|
|Loan Terms||2 to 5 years|
|Direct Payment to Creditors||No|
The maximum APR in NY is 16% and in CO is 21%.
You’ll be able to check your rate online without affecting your credit score. To check your rate, you’ll need to provide your name, date of birth, address, phone number, housing information (rent vs. own, monthly payment) and annual income. After entering this information, Payoff will conduct a soft credit inquiry and you’ll be able to see your outstanding credit card balances. Based on this information, Payoff may suggest a loan amount and term.
|Time to Get Funds||2-5 days|
How Does Payoff Compare to Other Lenders?
If you’re considering a loan from Payoff, it’s may still be worthwhile to shop around. Below, we compare Payoff to some of its top competitors.
Payoff vs. Discover
For borrowers who qualify for the lowest rates or who want to use a loan for reasons other than debt consolidation, Discover may be a better option than Payoff. Rates at Discover start at 6.99%. For example, on a $10,000 three-year loan, you could save a total of $167 if you had a rate of 6.99% rather than 8%. Discover also offers direct payment to creditors, which some borrowers may prefer if they are looking to consolidate debt. To qualify for a Discover personal loan, you’ll need good to excellent credit (typically any credit score above 660 to 680) and annual household income of $25,000 or more. You can borrow up to $35,000 through Discover with terms from two to seven years.
Payoff vs. Upstart
There are a few cases where Upstart is a better choice than Payoff: you want to use a loan for purposes other than debt consolidation, you want more than $35,000, you think you could qualify for the lowest rates offered or you don’t quite meet the credit requirements at Payoff. At Upstart, you can borrow up to $50,000 with rates starting at 4.96% and terms of three or five years. Unlike Payoff, you can use an Upstart loan for any purpose. You’ll need a minimum credit score of 620 to be eligible, so it may be a good choice if you cannot meet the 660 cutoff at Payoff.
Payoff vs. Prosper
Prosper offers similar terms and rates as Payoff. If you think you’d only qualify for a higher rate, Payoff wins as the highest APR it offers is 25%. Rates at Prosper, on the other hand, go up to 36%. Prosper does offer lower starting rates at 5.99%, so borrowers who qualify for the lowest rates might want to check their rate here. To be eligible for a Prosper loan, borrowers need credit scores of at least 640, verifiable annual income, a debt-to-income ratio under 50% and three current credit accounts in good standing. You also cannot have had any bankruptcies in the last 12 months or more than seven credit inquiries in the last six months. Prosper also offers medical financing personal loans up to $100,000, so it can be a good choice for covering any medical procedures.