Payoff Loan Review | Loans Like Payoff Loan | Credit Raters us-lenders
Last updated: 28th Feb 2020

Payoff Loan

Taking a loan is exciting until the repayment process starts. It’s in this stage that you’ll realize that the APR charged on your loan was too high. But what is done is done, and when the time to repay a debt comes, the only thing you can do is to take responsibility. 

One service provider willing to help you repay your debts is Payoff. Inc. Payoff, founded in 2009, is a financial institution based in Costa Mesa, California. Its founders, Eden Warner and Scott Saunders, created Payoff as a way to help customers to manage and pay off their due debts. 

Unlike other online personal loan lenders, Payoff doesn’t focus solely on making profits; instead, it aims at helping you to manage your debts. Their low interest rates prove that. However, for you to qualify for a loan with Payoff, you must have a good credit score. 

Here is a comprehensive guide on what Payoff is all about. 

How much do Payoff Loans cost?

The interest rate is the foremost factor that you should consider when identifying a suitable lender. While many online lenders will charge unrealistically high rates, some as high as 800%, Payoff rates are reasonable and affordable. Here is a breakdown of what to expect from Payoff. 

  • Origination fee – 0 to 5 % upfront ( lenders matching services) 
  • Loan amount – $5,000 to $35,000 
  • APR range – 6% to 25 %
  • Minimum credit score – 640
  • Processing duration – 1 to 7 business days 
  • Loan terms – 2 to 5 years 
  • Late fees – No 
  • Prepayment fee – No 

It’s worth noting that when your loan is approved by Payoff, you will not get the funding from Payoff. On the contrary, Payoff acts as a broker that matches you up with low-interest financial institutions. Payoff partners include the FDIC-insured First Electronic Bank which is based in Sandy, Utah. 

Key features of Payoff Loans 

Payoff aims at helping you to consolidate your debts. As for the requirements, they are reasonable and easy to meet. Although the loan processing time is slower, taking up to 7 days, the repayment terms and interest rates are favorable. 

If you choose to apply for a Payoff loan, here are some of the advantages and disadvantages to expect. 

Pros 

  • Low-interest rates – 6% to 25%
  • The widespread reach of states 
  • Friendly repayment terms 
  • Quick application process 
  • No late fee penalties 
  • No prepayment fees 

Cons

  • Charges origination fees 
  • Not accessible in all states 
  • Strict qualifications requirements 

FAQs 

Do I qualify for Payoff loan? 

A Payoff loan is an excellent option for you if you are looking for a debt consolidation program. However, to qualify for a loan with Payoff, you must meet the specified minimum requirements. For instance, to be eligible for a loan, you must have a good credit score of 640 or higher. If your score is lower, then you can try your luck with other lenders. 

How long does it take to receive the funds after approval? 

Unlike many online short-term lenders that process your loan within 1 to 2 business days, the process with Payoff is a little slower. Once your loan application is accepted, you’ll receive a letter offer from Payoff. The money will then be deposited in your bank within the next 3 to 7 business days. 

What is the best way to repay my Payoff loan? 

Payoff encourages auto-pay payments. Here you authorize automatic payments from your bank account when the due date for the installation is reached. You can also make manual payments. The decision is up to you to decide what option works for you best. 

What is the minimum credit score on Payoff? 

To qualify for a loan with Payoff, you must have a credit score of 640 and above. 

Eligibility Criteria

To be eligible for a loan with Payoff, there are a few minimum requirements that you must fulfill. They include;

  • Credit score – 640 or higher 
  • No current delinquencies 
  • No delinquencies more than 3 months (90) days in the last 1 year
  • The debt-to-income ratio should be 51% or less 
  • At least 3 years of good credit history 
  • At least 2 open lines of credit with consistent on-time payments 

You should also understand that meeting these requirements isn’t a guarantee that your loan application will be approved. However, if you meet this basic requirement, there is a higher chance of qualifying for a loan. 

State Availability

Even if you fulfill the above requirements, you may not qualify for a loan with Payoff if you live in the following states;

  • Mississippi 
  • Nevada 
  • West Virginia 
  • Massachusetts 
  • Nebraska 

Customer support

Unlike many online platforms that take days or weeks to respond to your queries, the Payoff customer support team will respond and assist you timely. 

Besides, they are friendly and dedicated to helping you obtain the financial aid that you need. 

Application process

The Payoff loan application procedure is fast and straightforward. Just visit the Payoff platform and select “Apply Now.” 

Here you’ll be required to enter basic personal information such as your name, email address, residential address, and your monthly housing costs, among other details. 

Once you select the type of loan you want to apply, you’ll be requested to provide additional information such as;

  • Social Security Number 
  • Employment information 
  • Bank account information 
  • A copy of your ID 
  • A recent bank statement 

Payoff will also conduct a soft credit check but you have nothing to worry as it won’t have an impact on your credit rating. However, before finalizing your loan, Payoff does a hard credit check which could impact your overall credit score. 

If your loan is approved, you will be notified and provided a loan offer. However, you may not get the exact amount you were applying for. They may suggest the amount you qualify for. 

Conclusion

For Borrowers seeking to consolidate their debts, Payoff is an excellent choice to go for. However, you must have a good and consistent credit rating for you to qualify. 

Friendly repayment terms, reasonable interest rates, and a straightforward application process are some of the advantages that you’ll enjoy with Payoff. 

The only disadvantage with Payoff is that if you need loans for other purposes rather than consolidating debts, you won’t find that help with Payoff.