The Payoff Loan™ Personal Loans: 2025 Review
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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 8.95% and 17.48%. Terms can range from 24 to 60 months, but one drawback is that Payoff Loans may deduct an origination fee from your loan amount.
Keep reading to learn more on Payoff personal loans, pros and cons, and whether or not they’re the right lender for you.
Pros and Cons of Payoff
Pros | Cons |
• 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 5.50% 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 8.95% to 17.48%, while the average rate on a credit card is 24.26% as of January 2025.
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 2.43% as of Q3 2024, 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 $40,000
APR range: 8.95% to 17.48%
Loan terms: 24 to 60 months
Prepayment penalty: No
Application fee: May charge an origination fee ranging from 1.5% to 5.50%
Co-borrowers allowed: No
Approval speed: Several business days to get approved, several more days to receive funding
Information accurate as of Feb. 13, 2025.
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
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:
Consumers who need to borrow a $2,000 personal loan
Borrowers who don’t want to pay origination fees and daily simple interest on a personal loan
Consumers who prefer open-end credit vs. closed-end credit
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 Iowa, 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
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.
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.
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:
Lender | Loan amounts | APR range | Maximum term |
$15,000 to $50,000 | 8.99% to 29.99% | 60 months | |
$2,000 to $35,000 | 9.95% to 35.99% | 60 months | |
$2,000 to $50,000 | 6.99% to 35.99% | 60 months | |
$1,000 to $50,000 | 7.9% to 35.99% | 60 months | |
$1,500 to $20,000 | 18% to 35.99% | 60 months | |
$2,000 to $50,000 | 8.99% to 35.99% | 60 months | |
$1,000 to $50,000 | 11.69% to 35.99% | 60 months | |
$1,000 to $50,000 | 7.74% to 35.99% | 84 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:
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.
With Lantern by SoFi, you can quickly and easily compare personal loan options 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 options.
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