Review of Payoff Personal Loans

A Solid Option For Debt Consolidation Loans

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Happy Money’s online lender Payoff offers personal loans to help you repay your credit cards. These loans are basically debt consolidation loans. They can lower your monthly debt payments and lock in a fixed, lower rate of interest. This will help you improve your financial health. Payoff, a credit card debt consolidation company based in Tustin (Calif.) was founded in 2009. Payoff is not a bank, but a lending partner who originates the loans. A debt consolidation loan up to 40,000.01 can be obtained if you have good or fair credit.

Payoff focuses a lot on improving credit and debt consolidation. It also offers benefits that are centered around this theme such as monthly FICO score updates, which help borrowers monitor and track their credit. Although Payoff’s APRs fall within the average range for this category, it charges an origination fee up to 5% on the loan amount. Payoff’s relatively low credit requirements and lack of hard income requirements make it an attractive option. However, Payoff loans can only be used for debt consolidation purposes so they might not be the best choice for borrowers who require a personal loan for any other purpose. Payoff is not available in Nevada or Massachusetts so residents there will have to find other options.

How to Get a Personal Loan

For a few reasons, personal loans are a good option for financing. These loans are flexible and can be used to finance anything, from home improvements to debt consolidation to paying off medical bills. They can also be used for increasing cash flow.

Personal loans are also unsecured. This means that you don’t need to provide collateral such as your home or vehicle. Secured loans require you to provide a valuable asset. Personal loans have a fixed interest rate, which means that the interest you pay is constant over time. Credit cards have variable interest rates, which can change monthly.

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There are some drawbacks to this option. Unsecured personal loans are generally more expensive than secured loans. For example, the interest rate on an unsecured personal loan may be lower than credit cards’, but they can still have a higher rate than secured loans like a home equity line-of-credit (HELOC). They are considered a higher risk because they don’t have collateral backing them. Additionally, income and credit requirements may be higher.

Alternatives to Personal Loans

If you are looking to consolidate your debt, a credit card that balances can be an alternative to a personal loans. For a limited time, balance transfer credit cards offer 0% APR. This can be for any length of time. It can range from 6-18months. Balance transfer cards offer 0% APR for a limited time. Otherwise, you will be charged a high interest rate. A balance transfer card usually charges a fee of a percentage of the amount that you are transferring. These cards are generally only available to people with good credit.

Credit counseling: Non-profit organizations often offer low-cost or free credit counseling to help improve your finances. Although credit counseling services don’t provide loans or money they can offer expert guidance and help you to create a plan that works for you.

How do I qualify for a Payoff loan?

You will need the following information to apply for a personal loan:

  • At least 18 years old
  • A valid checking account is required
  • A valid social security number
  • In Massachusetts and Nevada, no payday loans are available.

FICO credit scores of at least 600 are required to qualify for a loan. Credit bureau Experian considers this “fair”. Your credit score will be one of the criteria Payoff’s partners will consider to determine your APR. A minimum of three years credit history is required. You will also need at least 3 years of credit history.

Payoff does not require income, but Payoff might consider your debt-to–income ratio in evaluating your application.

Who should get a payoff loan?

Payoff loans can be used for debt consolidation. Payoff loans could work well for you if you are looking to consolidate your credit card debt, lower your monthly payments and lock in a lower rate of interest. Payoff may not be the best lender if you are looking to borrow personal money for other reasons, such as home improvement, financing a large purchase or for emergency funds.

Payoff does not require a credit score above 600. Instead, it will look at your credit history and credit use. A Payoff loan is available to those with low credit scores or a poor credit history, although the interest rates may be high.

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How to apply for a payoff loan?

  1. Find the right loan amount and terms for you

To determine the loan amounts and terms that will work best for you, first consider how much credit card debt and when you plan to pay it off. To calculate your monthly payments and total costs for different loan terms and interest rates, you can use a loan calculator.

  1. Pre-approve your application

Payoff’s website allows you to check your rate and get preapproved online. You can get a rate in minutes if you have all the information you need. You will need basic information and your Social Security number to be preapproved for a personal loans. This will give you a soft credit pull that won’t affect your credit score.

  1. Send your application officially

Once you have decided to consolidate your credit card debts through Payoff, it is time to submit your application. Your credit profile will be checked, which could lower your credit score.

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  1. Wait for approval

Payoff partners are third-party lenders who originated the loan. You might be required to provide additional documents or information before the loan is approved. These could include bank details to link your Payoff loan with a checking account or a government-issued ID. Two recent paystubs are required to verify your income. For self-employed applicants, you will need to provide tax returns.