Personal Loans

Payoff Personal Loan Review 2021–Pros and Cons, Fees

If you're looking for a personal loan to help you handle debt, Payoff is a company to consider. Here's our in-depth review of the services Payoff provides.
A person is using a laptop computer to apply for a personal loan.
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By Shannon Lee
Updated on: September 30th, 2021
Editor's Rating

When bills become overwhelming and creditors start calling, it’s time to find a way to get relief from that debt. You can go about it the old-fashioned way, by paying each bill separately, but that allows interest rates to soar and late fees to pile up. Consider a Payoff personal loan instead.

Personal loans can allow you to consolidate all your bills, including medical bills and credit card payments, into one loan that you pay off with one payment per month.

While personal loans can help make life easier, they are not all created equal. To help make finding the right loan easier, we evaluated several of the personal loan options out there to help you determine which one might be best for you. Learn more with this Payoff personal loan review.

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Pros and Cons of a Payoff Personal Loan

Payoff, powered by Happy Money, offers personal loans for those who need to consolidate what they owe. Here are the highlights:

Pros Cons
No prepayment fees Discounts for autopay not offered
No late fees Charges origination fees
Allows a change in due date Doesn’t offer joint or secured loans
Pays creditors directly (if desired) Only for credit card consolidation
Loans of up to $40,000 Borrower must provide a social security number
Offers competitive rates for good credit

Who Is Payoff For?

Payoff works well for those who have a solid credit history for the past three years, want to consolidate their high-interest credit card debt, and have a good credit score of 629 or above (according to FICO).

With a low APR, those who qualify can see a significant savings in their interest payments over the much higher credit card rates. Since Payoff reports to all three reporting bureaus, it’s a great way to quickly build or repair your credit history.

Top Features of Payoff

Payoff provides several features that make it attractive to those who need a personal loan. Here are a few of the reasons why it might be a good choice.

  • Soft credit pull. Determining how much you qualify for and what the terms are is only a soft hit on your credit report. This can be advantageous for those who are worried about their credit in the first place.
  • Good customer service. Help is available seven days a week through several channels, and the company is known for being quite responsive.
  • Very competitive APR. Though the highest rate offered by Payoff does rival or exceed that of some credit cards, those with excellent credit might enjoy an APR that is lower than many credit cards.
  • Direct payments to creditors. You can choose to have money deposited into a bank account, but those who are dealing with creditors calling can opt to have the money sent directly to them.
  • High loan amounts. Loan amounts of up to $40,000 are possible, which is higher than several competing personal loan companies.
  • Free credit score. Each month you get a look at your FICO credit score, which can help you track the improvement in credit over time.
  • Financial education. Payoff provides psychology-based insights into budgeting, spending and how it relates to stress, and other information to help them manage their finances. Even those without Payoff loans can subscribe to a newsletter that helps them understand and manage financial stress.

How to Apply for a Payoff Personal Loan

The entire application process happens online. Those who qualify must have a credit score of at least 629 (based on FICO) and three years of solid credit history.

Applicants must be 18 years of age, hold a checking account, and be able to provide social security number. Therefore, Payoff loans are available only to U.S. citizens, permanent residents, or immigration visa holders.

Though there is no specific income requirement, the company works only with those who have a 50% or less debt-to-income ratio before the loan is factored in.

The personal loans through Payoff are available in all states except Massachusetts and Nevada. Additionally, only individual borrowers are eligible for loans with Payoff. The company does not offer joint loans or co-signers.

Testing the waters as to the amount you might get and your potential APR is done with a soft credit pull, so there is no change to your credit score until you commit to the loan.

Rating the Features

Let’s look at the features of a Payoff personal loan and how well they hold up for those who qualify.

  • User experience. Applying for prequalification is quite easy, with just a few steps on the website to determine your potential borrowing power and what your rate might be. Going further with the application takes a bit more time, as approval takes up to seven days. Once you’re approved, however, expect to see the money hit your bank account (or go to your creditors, if you chose that route) within two or three business days.
  • Fees and Rates. As mentioned earlier, the rates for Payoff can be low for the best-qualified borrowers. That puts most credit card companies to shame. There are no late fees, however, there are also no discounts for autopay. Payoff does charge an origination fee of up to five percent. There is a slight discount of between 0.25% and 1% if you choose to pay off your creditors directly.
  • Transparency. Payoff is very good on this point, spelling out exactly what you can expect during the prequalification process. There are no nasty surprises to pop up during the approval process; the company charges and offers what it claims for your personal loan. Credit reporting is to all three agencies on a monthly basis, which helps build credit fast. Customer support is highly responsive if there are questions beyond what the website can answer.
  • Flexibility. Loans of up to $40,000 for debt consolidation are possible, but they can’t be joint, co-signed, or secured. This may prevent worthy borrowers from getting the best rates, as Payoff relies heavily on credit score and credit history. The due date can be changed, but only once per year. Loans are offered in every state except Nevada and Massachusetts.
  • Customer Support. Payoff has a top rating with the Better Business Bureau, as well as many reviews from customers raving about the straightforward and fast customer support over phone, chat, or email. Customer support is available seven days per week. Also, debt management help is readily available, with newsletters for even those who don’t take out loans and “classes” for those who do, all free of charge. Unfortunately, there is no app for Payoff as of this writing.

Bottom Line

High credit card debt or medical bills can keep you awake at night with worry. A personal loan can help you consolidate those bills and get out from under that crushing weight. A payoff personal loan is one of the good options for consolidating your debt.

The addition of psychology-based tools to help you remold your spending habits is a fantastic way to ensure you move forward with better financial health. Figure out how much you owe and then start with the preapproval process – and get ready to breathe easier.