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Payoff Debt Consolidation Loans: 2018 Review

April 25, 2018
Loans, Personal Loans, Personal Loans Reviews
NerdWallet adheres to strict standards of editorial integrity to help you make decisions with confidence. Some of the products we feature are from partners. Here’s how we make money.
We adhere to strict standards of editorial integrity. Some of the products we feature are from our partners. Here’s how we make money.

4 stars out of 5

NerdWallet rating: 4.0 / 5.0
Good for: Good credit, debt consolidation

Payoff provides fixed-rate debt consolidation loans to borrowers solely for the purpose of paying off credit card debt. According to the company, the average amount of debt borrowers pay off is $18,000.

Payoff is good for borrowers who:

  • Have a credit score of 640 or higher
  • Have a debt-to-income ratio of 50% or less
  • Have at least three years of good credit history and at least two accounts with no delinquencies
  • Need help staying disciplined. Payoff’s “member advocates” provide ongoing support and financial guidance as you pay back your loan, keeping you on track and helping you improve your financial health.
  • Don’t live in one of these states where Payoff loans aren’t offered: Massachusetts, Mississippi, Nebraska, Nevada, Ohio, and West Virginia

Payoff at a glance

Loan amounts$5,000 - $35,000
Typical APR5.99% - 24.99%
Origination fee0% - 5%
Time to fundingTwo to seven business days
RepaymentsMonthly fixed-payments over 24 to 60 months, with options to defer, skip or change payment date
Soft credit check?Yes
How to qualify
  • Minimum credit score of 640
  • No annual income requirement
  • Debt-to-income ratio of less than 50%
Best forDebt consolidation
Click "Check rates" to apply on Payoff.

» MORE4 ways to consolidate your credit card debt

Payoff personal loan review

To review Payoff, NerdWallet collected more than 30 data points from the lender, interviewed company executives, completed the online loan application process with sample data, and compared the lender with others that seek the same type of customer or offer a similar personal loan product. Loan terms and fees may vary by state.

While Payoff doesn’t force you to pay off your credit cards, it makes personalized recommendations to keep you on track, using quizzes that assess your financial personality, your level of financial stress and how your wealth compares to others’. Based on your results, Payoff will serve up tools and resources to help you stick to your goal.

“Having this personal insight into your habits is huge,” says Scott Saunders, CEO of Happy Money, Payoff’s parent company.  “It empowers you to make better financial decisions in the future.”

Payoff also offers:

  • Customer support: Borrowers can access customer support via online chat for basic questions. They also have access to a Payoff member advocate to talk about financial goals and get guidance for paying back the loan.
  • Payment flexibility: If you miss a payment you won’t be charged a late fee; rather you can work with your representative to create a plan to catch up. Payoff may offer you the options of payment deferral, skipping a payment or changing your payment date.
  • Access to free monthly FICO scores.

Payoff partners with Alliant Credit Union, First Tech Federal Credit Union and Technology Credit Union — all federally insured financial institutions — to issue loans.

How much would it cost?

Use our personal loan calculator to see estimated rates and monthly payments for a personal loan.


How Payoff compares






APR

5.99% - 24.99%





Min credit credit score

640





Best for

Debt consolidation



APR

6.99% - 24.99%





Min credit score

660





Best for

Flexible loan terms



APR

6.99% - 24.99%





Min credit score

660





Best for

Borrowers with good credit



Compare rates on NerdWallet. Click to see estimated rates from multiple lenders.

How to apply for a Payoff loan

You can check your estimated rate for a Payoff loan on the company’s site by entering your name, date of birth, salary and other details, and answering questions such as whether you rent or own your home. The company conducts a soft credit check, which won’t affect your credit score. You’ll see your credit card balances, and a representative may contact you to suggest a loan amount based on your financial picture (which may be lower than what you asked for).

NerdWallet recommends comparing loans to find the best rate for you. Click the button below to see estimated rates from multiple lenders on NerdWallet.

 

Before you shop for a personal loan:

Updated April 25, 2018.

Personal Loans Ratings Methodology

NerdWallet’s ratings for personal loans awards points to lenders that offer consumer-friendly features, including: soft credit checks, no origination fees, payment options, short time to funding, interest rate caps of 36%, and absence of prepayment penalties. Features are considered for their positive impact on consumers’ credit history and financial health. We only review lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews. Read our editorial guidelines.

5 stars out of 5— Among the very best for consumer-friendly features

4.5 stars out of 5— Excellent; offers most consumer-friendly features

4 stars out of 5— Very good; offers many consumer-friendly features

3.5 stars out of 5— Good; may not offer something important to you

3 stars out of 5— Fair; missing important consumer-friendly features

2.5 stars out of 5— Poor; proceed with great caution

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