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The Payoff Loan™ Personal Loans: 2024 Review

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Sulaiman Abdur-Rahman
Sulaiman Abdur-RahmanUpdated January 2, 2024

Overview of Payoff

The Payoff Loan™ is an unsecured personal loan that may help borrowers consolidate credit card debt balances. Powered by the fintech company Happy Money, Payoff Loans range from $5,000 to $40,000 and may include annual percentage rates between 11.72% and 24.67%. Terms can range from 24 to 60 months, but one drawback is that Payoff Loans may deduct an origination fee from your loan amount.The Takeaway: Payoff Loans may function as debt consolidation loans that can help borrowers pay off credit card balances. Payoff personal loans may be right for you if you’re burdened with thousands of dollars in high-interest credit card debt.

Pros and Cons of Payoff

• APRs can be lower than credit card interest rates• Checking your rate and prequalifying for a loan will not impact your credit score• No late fees, annual fees, or prepayment penalties• Charges origination fees of between 1.5% to 6.25% of the principal loan amount• Consumers with current delinquencies may not qualify• Loans are mainly designed for the repayment of credit card balances

Pros of Payoff

As highlighted in the Payoff reviews above, customers generally appreciate the pros of Payoff personal loans. The APR on a Payoff Loan can range from 11.72% to 24.67%, while the average rate on a credit card is 22.77%, according to Federal Reserve data on credit cards assessed interest in the third quarter of 2023.Checking your rate and seeing if you prequalify for a Payoff Loan generates a soft inquiry that doesn’t impact your credit score. These fixed-rate loans also don’t charge any late fees, annual fees, or prepayment penalties.

Cons of Payoff

Payoff personal loans may deduct an origination fee from your principal loan amount. A $10,000 Payoff Loan with a 5% origination fee, for example, would leave you with $9,500 of loan proceeds. Consumers with current delinquencies on their credit report may not qualify for a Payoff Loan.Serious delinquency rates for credit card account holders over 90 days past due stood at 2.45% as of November 2023, according to TransUnion®. Payoff Loans are mainly designed for the repayment of credit card balances, which may not help those who need to borrow for other reasons.

Payoff Personal Loan Terms, Rates, and Fees

Loan amounts: $5,000 to $40,000APR range: 11.72% to 24.67%Loan terms: 24 to 60 monthsPrepayment penalty: NoApplication fee: May charge an origination fee ranging from 1.5% to 6.25%Co-borrowers allowed: NoApproval speed: Several business days to get approved, several more days to receive fundingInformation accurate as of Jan. 2, 2024.

Who May a Payoff Personal Loan Be Right For?

A Payoff personal loan may be right for the following demographics:
  • Consumers with more than $5,000 of high-interest credit card debt
  • Credit card users who want to diversify their mix of credit with an installment loan
  • Consumers who prefer a legitimate lending platform over a loan shark
  • Borrowers who want unsecured funding rather than collateralized personal loans

Who Payoff May Not Be Right For

A Payoff personal loan may not be right for the following demographics:

What to Watch Out for With Payoff Personal Loans

Here are aspects to watch out for with Payoff personal loans:
  • The Payoff Loan does not charge late fees, but failing to pay and defaulting on a personal loan can have a major impact on your credit score
  • Happy Money reports its Payoff Loan customer account information to Equifax®, Experian®, and TransUnion on a monthly basis
  • The minimum loan amount in some states may be more than $5,000

Payoff Personal Loan Eligibility Requirements

Payoff personal loans may have the following loan eligibility requirements:
  • Be at least 18
  • Have a valid Social Security number
  • Have a valid checking account
  • Have a credit score of 640 or higher
  • Have no current delinquencies on your credit report
  • Reside in an eligible state (loans not offered in Massachusetts and Nevada)
  • Have at least three years of established credit history
Recommended: 5 Typical Personal Loan Requirements

Repayment Options for Payoff Personal Loans

Here are some Payoff Loan repayment options that may be available to customers:
  • Automatic payments
  • One-time manual payments online
  • Mailing a check payment

How to Apply for a Payoff Personal Loan

  1. Apply online. Get started by answering basic questions on a digital platform. Checking your rate and loan options won’t affect your credit score, but applying for one may trigger a hard inquiry that can cause your credit score to drop by several points.
  2. Verify information. Happy Money Inc., operator of the Payoff Loan platform, may request that you provide supporting documents for verification purposes, such as proof of identity. A driver’s license or passport may serve as proof of identity. Applicants may also need to provide proof of income and bank statements.
  3. Accept the loan. Approved applicants can sign and accept the loan offer at this stage. Borrowers may receive their personal loan proceeds within three to six business days. You can check your bank account to confirm receipt of the proceeds.

Alternatives to Payoff Personal Loans to Consider

Payoff personal loans have pros and cons, as discussed, so it can be smart to compare lenders when searching for online personal loans:
LenderLoan amountsAPR rangeMaximum term
Achieve (formerly FreedomPlus)$10,000 to $50,0008.99% to 35.99%60 months
Avant$2,000 to $35,0009.95% to 35.99%60 months
Best Egg$2,000 to $50,0007.99% to 35.99%60 months
LendingClub$1,000 to $40,0009.57% to 36%60 months
OneMain Financial$1,500 to $20,00018% to 35.99%60 months
Prosper$2,000 to $40,0007.95% to 35.99%60 months
Universal Credit$1,000 to $50,00011.69% to 35.99%60 months
Upgrade$1,000 to $50,0008.49% to 35.99%60 months
(The above information on APR range, loan amounts, and maximum term lengths will be updated weekly, every Monday.)Some other options you might want to consider include:With Lantern by SoFi, you can quickly and easily compare personal loan offers from multiple lenders all in one marketplace. Just fill out one simple form, explore your financing options, and apply for a personal loan that fits your needs.Lantern can help you find personal loan offers.

Frequently Asked Questions

Is it hard to get approved by Payoff for a loan?
What credit score do you need to get a loan from Payoff?
How long does Payoff take to approve you?

About the Author

Sulaiman Abdur-Rahman
Sulaiman Abdur-RahmanSulaiman Abdur-Rahman writes about personal loans, auto loans, student loans, and other personal finance topics for Lantern. He’s the recipient of more than 10 journalism awards and served as a New Jersey Society of Professional Journalists board member. An alumnus of the Philadelphia-based Temple University, Abdur-Rahman is a strong advocate of the First Amendment and freedom of speech.
Brand namesNo brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.