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Payoff was founded in 2009 and is based out of Costa Mesa, CA. Payoff was founded with a focus on helping the borrower pay off or down their credit card debt.
“Payoff is a financial wellness company that applies science, psychology and technology to help our Members reinvent their relationship with money and accelerate their journey toward financial well-being. We focus on the intersection of personality and financial behavior, developing products and services that help our Members achieve their goals.”
Payoff Personal Loan Specification
- Loan amount range$5,000 -$35,000
- Interest rate rageFixed, 5.99%-24.99%
- Terms24 or 60 months
- Origination fee0% to 5%
- Late payment fee $0
- Returned payment fee$0
- Check Processing fee$0
- Prepayment fee$0
- Minimum credit score640
- Debt to income ratio 50% or less
- Credit historyat least 3 years
- Funding2-5 days
- Pay stubs
- Bank statements
- Social security card/State ID
Free Credit Monitoring – You get a free credit summary report from Payoff. They will send you an updated FICO® score every month. This can be used to monitor your credit and as a resource to improve your credit
Soft Pull Inquiry – Payoff does an initial soft pull inquiry so the borrower can get an idea of the options for which they may qualify
Competitive Interest Rates – Payoff has very competitive rates for strong borrowers. Their rates are lower than the common credit card
Boost Your Credit Score – Payoff claims that the average customer who uses their product to pay off or down credit cards will see a boost in their FICO® score by 40 points within 4 months
Easy Application – The Payoff application is very simple and can be completed quickly
Job-Loss Support – Payoff states they will work with borrowers who lose their jobs by making adjustments to the payment
No Late Fees – Payoff has no late fees or fees for returned checks.
Flexible Payments – If you miss a payment you can work with your representative to create a plan to catch up. Payoff may offer the option of payment deferral or changing your payment date
“Empowerment Science” – “We’re dedicated to helping our Members better understand themselves and improve their relationship with money through our scientific personality, stress, and cash flow assessment.”
Origination Fee –Payoff deducts a one-time origination fee of 0% to 5% of your loan
amount directly from your loan funds. This should be considered in the pricing of your loan when you apply
Limited Use –Payoff has one loan purpose. If you need the money for other reasons, you will need to look for a different personal loan provider
Not Available in All States –Payoff does not operate in Mississippi, Nebraska, Nevada, West Virginia or Massachusetts
No Joint Applicants –The application is based on the applicant alone. Payoff does not allow for joint applicants
Higher Minimum Amount –The lowest personal loan amount you can get with Payoff is $5,000
Does Not Make Direct Payments to Creditors – Payoff does not actually pay anything off. That is up to you once you get the loan. Many other providers require direct payments to creditors because they want to see the debt actually paid down. Getting a large influx of cash could be tempting and some borrowers will not pay off their credit cards
What Can a Personal Loan Be Used For?
Payoff loans can be used for only one purpose and that is to pay down debt. The product is designed only to help people get out of debt. Payoff personal loans or The Payoff Loan® has borrowers transfer high interest credit cards into a personal loan.
This helps borrowers get out of debt sooner and save money on interest. The loan will be set for a fixed period of time so you know exactly when you will be out of debt.
Payoff has a simple and quick application process. You start the application by filling in some basic information about yourself such as your name, date of birth, address, phone number, etc. They will then do a soft credit pull. A soft pull does not affect your credit report.
At this point, you could be declined. Otherwise, Payoff will give you a list of options of rates and terms for which you can apply. If you find an option that will fit your needs, Payoff will do a hard credit check and you will then be asked to upload documents to verify information. You may need to provide pay stubs, bank statements, W-2s, social security card, or state ID.
After Payoff receives all the documents and the application is complete, it can take up to 3 day for them to review everything and issue a final approval. You can then sign documents online. You will typically receive funds in 2 to 5 days. Payoff does not actually pay off your credit cards but they deposit funds into your checking account.
Payoff Loan is Best for..
Payoff is best for those looking to consolidate debt and pay off or down credit cards. You will need good to excellent credit with an average cash flow to qualify for a loan. If you need the fund for anything else you will need to look to other providers. If you are looking to become debt free, Payoff could be a great tool and a good starting point.