Payoff is an online lender with headquarters in Costa Mesa, California, that specializes in offering loans to people who want to pay off their credit cards. Payoff's loans have competitive rates, easy to understand fees and a transparent application process.
How Does Payoff Work?
Payoff is designed for people with at least $5,000 in credit card debt who want to save money by paying it off faster. The application is done online and it takes only minutes to know whether you're approved. The money is deposited electronically to the designated bank account at which point the borrower can use it to pay off credit card balances.
Applicants who don't qualify for a Payoff loan receive free access to Lift: a program that provides tools, training, and tips to repay debt faster and repair your credit score.
What Are Payoff's Interest Rates?
Interest rates range from 8% to 22% APR. The average variable interest rate for credit cards in February 2015 was 15.7% APR, but some credit cards can have interest rates as high as 40% APR.
How Much Money Can I Borrow from Payoff?
Payoff provides loans of $5,000 to $35,000. To illustrate, a 3-year loan of $10,000 with an 8% APR will cost $327.9 in monthly payments for a total cost of $11,804. The same loan with a 22% APR will cost $381.9 a month, or a total of $13,748.
Which States Does Payoff Operate In?
The Payoff Loan™ is currently available to people living in Alaska, Arkansas, California, Florida, Georgia, Hawaii, Idaho, Kentucky, Maryland, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Carolina, Tennessee, Utah, Virginia, Washington, and West Virginia
What Is Payoff's Application Process Like?
The loan application process is fast and entirely online. Payoff will perform an initial soft credit check so you can know what rate you qualify for without it hurting your credit score. If you qualify and accept the terms, you could receive your money within a business day.
Payoff loans are designed for people who want to pay off their credit cards so only people with at least three years credit history qualify. You must have a credit score of at least 660, a net disposable income of at least $1000 per month, a debt-to-income ratio of less than or equal to 50%, and no late payments of more than 90 days within the last 12 months.
If you qualify, accept the terms, and submit the necessary documents, you could receive your money within 3-5 business days.
How Is Payoff Better Than Other Lenders?
Payoff offers a fast and easy way to repay credit card debt for people with good credit. Some banks and peer-to-peer loans may have lower interest rates, but the eligibility requirements are more stringent and it can take weeks before you can access your cash.
There are no prepayment penalties and Payoff will report your financial activity to all three credit bureaus. Checking your rate will not hurt your credit because Payoff only performs a soft pull on your credit to determine your eligibility. A particularly welcome feature of Payoff is how transparent its fee schedule and eligibility requirements are. This allows applicants to know exactly what they are paying for, how much they can save, and what they need to do to improve their chances of approval.