Founded in 2009, Payoff is a California-based lender market that helps match qualified borrowers with lenders specializing in personal loans for debt consolidation. Payoff does not grant loans directly to borrowers, but their services can help you find and get the best loan on the most favorable terms.
The company says its services have helped thousands of borrowers get out of debt and improve their credit scores by an average of 40 points. In our opinion, this makes them one of the best credit card debt consolidation companies out there. The company is accredited by the BBB, which gives it an A + rating.
Types of funding
The first thing you should know is that Payoff is not a direct lender. Payoff works with First Electronic Bank, First Tech Federal Credit Union, Alliant Credit Union, Teachers Federal Credit Union, and Technology Credit Union. These are the companies that fund your loan.
However, the money will be transferred from Payoff to your account, so the loan you get is a Payoff loan.
Unlike other lenders, Payoff offers loans only for credit card debt consolidation. These loans are unsecured which means that you do not need to provide any collateral to qualify.
Obtaining a personal loan for credit card debt from Payoff begins with an online form on the company’s website. It requires personal information such as your name, address, and social security number. The company will also check your credit score, but don’t worry. At this point in the request, Payoff is only making a “soft” request that will not affect your credit score.
Payoff is well known for its low credit score requirements. You can get a Payoff debt consolidation loan with a minimum credit score of 640.
In addition to checking your credit score, the company will also ask you questions about your monthly income. To qualify for credit card consolidation loans, Payoff requires a debt to income ratio of 50% or less. This means that your total monthly debt payments must be less than half of your monthly gross income.
Payback credit card consolidation loans are available to US citizens except residents of Massachusetts, Mississippi, Nevada, and Nebraska.
Payoff is a great solution for borrowers who need a large amount of money to cover their debts. The repayment of personal loans ranges from $ 5,000 to $ 40,000. If your credit score is good enough, you can avail of the most competitive debt consolidation loan rates in the business.
The APR can be as low as 5.99% which is a better deal than what you’ll find at most of Payoff’s competitors. The maximum APR is 24.99%.
To cover administrative costs, many lenders charge a origination fee, which is usually built into the loan. For example, if you need to borrow $ 10,000 to pay off your credit debt, the lender may give you a loan of $ 10,200 and deduct a 2% origination fee. The earnings setup fee ranges from 0% to 5% depending on your credit score, loan amount, and other factors.
Credit card debt consolidation loans can have long or short repayment schedules. At Payoff, the minimum term is two years and the maximum term is five years.
Payoff does not charge administration fees, monthly administration fees, or even late payment fees. However, you still need to make your payments on time. Late payments are reported to the credit bureaus and can lower your credit score.
If you have a good credit rating and high credit card debt, you will likely find that Payoff offers the best personal debt consolidation loans on the market. The company has a competitive APR, and although they do charge origination fees, there are no other fees to worry about. Customers praise the lender’s prequalification process, where you can check your rates without affecting your credit score.
Reasons to apply:
- No administration fees
- Increase your credit score up to 40 points
- No late payment fees
- Long repayment terms