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 and credit history of two years.
- Have a debt-to-income ratio of 50% or less and annual income of at least $40,000.
- 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 and West Virginia.
Payoff at a glance
|Loan amounts||$5,000 - $35,000|
|Typical APR||5.99% - 24.99%|
|Origination fee||0% - 5%|
|Time to funding||Two to seven business days|
|Repayments||Monthly fixed-payments over 24 to 60 months, with options to defer, skip or change payment date|
|Soft credit check?||Yes|
|How to qualify||
|Best for||Debt consolidation|
» MORE: Debt consolidation loans
Payoff personal loan review
To review Payoff, NerdWallet collected more than 30 data points from the lender, interviewed company executives 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.”
Best of 2019: NerdWallet recognized Payoff among our list of Best Personal Loans of 2019 in the category of debt consolidation.
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 gives you a free FICO score, which only a handful of lenders do, so that you can see what happens to your score as you pay off debt.
Payoff partners with Alliant Credit Union, First Tech Federal Credit Union and Technology Credit Union — all federally insured financial institutions — to issue loans.
Loan example: For a borrower with good credit, a $20,000 personal loan with a repayment term of 48 months at 18% APR would carry monthly payments of $557, according to NerdWallet’s personal loan calculator.
How Payoff compares
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 pre-qualify and receive a personalized rate from multiple lenders on NerdWallet.
Before you shop for a personal loan:
- Learn how personal loans work
- Boost your chances of getting approved
- 4 steps to pre-qualify for a personal loan
NerdWallet’s ratings for personal loans award points to lenders that offer consumer-friendly features, including: soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus, and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to 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.