Payoff Debt Consolidation Loans: 2020 Review

Payoff focuses on debt consolidation loans with low rates, flexible payments and ongoing support and financial guidance.

Amrita JayakumarAugust 21, 2020

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Our Take


NerdWallet rating 

The bottom line: Payoff's personal loans include ongoing support to help good- and fair-credit borrowers pay off credit card debt.


on Payoff's website

on Payoff's website

Min. Credit Score


Est. APR

5.99 - 24.99%

Loan Amount

$5,000 - $40,000

Pros & Cons


  • Competitive rates among similar lenders.

  • Offers online educational resources.

  • Offers direct payment to creditors with debt consolidation loans.


  • No co-sign or secured loan option.

  • Charges origination fee.

Compare to Other Lenders

Marcus by Goldman Sachs
Est. APR

5.99 - 24.99%

Est. APR

6.99 - 19.99%

Loan Term

2 to 5 years

Loan Term

3 to 6 years

Loan Amount

$5,000 - $40,000

Loan Amount

$3,500 - $40,000

Min. Credit Score


Min. Credit Score


Compare estimated rates from multiple lenders

Compare Rates

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Full 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.

Payoff provides fixed-rate debt consolidation loans to borrowers with fair or good credit (630-689 and 690-719 FICO scores, respectively) solely for the purpose of paying off credit card debt.

Borrowers can choose a repayment term between two and five years. According to the company, the average amount of debt borrowers pay off is $18,000.

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 Payoff's parent company, Happy Money. “It empowers you to make better financial decisions in the future.”

Payoff partners with Alliant Credit Union, First Electronic Bank, First Tech Federal Credit Union, Teachers Federal Credit Union and Technology Credit Union — all federally insured financial institutions — to issue loans. It doesn't offer loans in Massachusetts, Mississippi, Nebraska or Nevada.

Payment flexibility: Payoff is one of a handful of lenders that doesn't charge a late fee. Instead, you can work with your representative to create a plan to catch up. Payoff may let you defer your payment, skip a payment or change your payment date.

Free monthly FICO scores: Payoff gives you a free FICO score — a rare feature among lenders — so that you can see what happens to your score as you pay off debt.

Payoff Peace: In August 2020, Happy Money launched a program designed to help borrowers navigate financial stress. The program assesses a person's financial concerns with a quiz and then sends weekly newsletters with steps to help them understand and reduce the stress. The program is available to Payoff borrowers and customers of Happy Money's partners.

Direct payment to creditors: Borrowers can opt-in for Direct Card Payoff and have the lender pay their other debts, meaning they'll only have to make payments to Payoff. Those who do not choose that option will have the funds deposited directly into their checking accounts.

Customer support: Borrowers can access customer support via online chat for basic questions. They can also contact a Payoff member advocate for financial guidance.


How to qualify:

  • Minimum credit score: 640.

  • Minimum credit history: Three years.

  • Minimum annual income: $40,000.

  • Debt-to-income ratio: less than 50%.

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 $587, according to NerdWallet’s personal loan calculator.

Before you shop for a personal loan

Pre-qualify on NerdWallet

NerdWallet recommends comparing loans to find the best rate for you. Pre-qualifying may get you personalized rates from multiple lenders that partner with us, including Payoff. Pre-qualifying will not impact your credit.

Apply with Payoff

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 — and that total could be lower than what you asked for.

on Payoff's website

Personal Loans Rating Methodology

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.