Payoff Debt Consolidation Loans: 2017 Review

Loans, Personal Loan Reviews, Personal Loans
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4 stars out of 5

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

Payoff_Logo

Payoff provides fixed-rate loans to borrowers solely for the purpose of paying off credit card debt. Borrowers have an average debt of $15,000 they want to consolidate.

Payoff may be a good fit if:

  • Your credit score is 660 or higher
  • Your debt-to-income ratio is 50% or less
  • You have at least three years of good credit history
  • You 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.
  • You don’t live in one of these states, or the District of Columbia, where Payoff loans aren’t offered: Delaware, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, Nevada, Ohio, Oklahoma, Virginia, Vermont, Washington, West Virginia and Wisconsin

Payoff at a glance

Typical APR8.00% – 25.00%
Loan amounts$5,000 - $35,000
Time to funding1 - 7 business days
Origination fee2.00% – 5.00%
Soft credit check with application?Yes

Clicking the button below will take you to a pre-qualification form on NerdWallet. You’ll find out whether you qualify for a Payoff loan and at what rate.

 

» MORE: See estimated rates for debt consolidation loans

Detailed 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, chief executive officer of the Costa Mesa, California, company. “It empowers you to make better financial decisions in the future.”

Borrowers can get customer support via chat during business hours if they want quick answers to questions. They can also call a Payoff member advocate for support and guidance as they pay back the loan, or to talk about their financial goals and how to achieve them.

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

Steps toward financial health

Payoff allows some 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.

Payoff borrowers also have free access to their FICO credit scores monthly, a feature that few online lenders offer. This makes it easier to track your progress toward better financial health.

» MORE: How to build your credit score

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, with credit bureau TransUnion. 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).

If you want to compare an offer from Payoff with those from other lenders, click the button below to fill out a pre-qualification form. NerdWallet will check its lender marketplace and display the loans and rates for which you qualify. Pre-qualifying won’t affect your credit score.

More about Payoff

Payoff loan requirements

  • Minimum credit score: 660
  • Minimum income: None
  • Minimum credit history: 3 years of good credit, including 2 credit accounts with no delinquencies
  • Debt-to-income ratio: 50% or lower

Payoff terms

  • APR range: 8.00% – 25.00%
  • Loan amount: $5,000 – $35,000
  • Loan duration: 2 – 5 years

Payoff fees and penalties

  • Origination fee: 2.00% – 5.00%
  • Prepayment fee: None
  • Late fee: None
  • Returned check fee: None
Before you shop for a personal loan

Updated Oct. 6, 2017.

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. To ensure accuracy and consistency, our ratings are reviewed by multiple people on the NerdWallet Personal Loans team.

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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