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Payoff Review: Consolidate Credit Card Debt and Pay It Off

Are you ready to live debt free? Want to remove the credit card debt hold? Consolidating your credit cards into one loan may be the answer.

Payoff is designed to get you out of debt sooner. The financial services company offers personal loans specifically created to help you on the road to debt freedom. They offer some interesting financial tools and support to help you consolidate your credit cards and pay it off faster.

What is Payoff?

Payoff is a financial services company with a goal to eliminate credit card debt by offering fixed-rate credit card consolidation loans. Payoff’s financial wellness focus is rooted in helping consumers get rid of credit card debt as a necessary step in achieving wellbeing. They are partnered with credit unions and a bank to offer these loans.

How Payoff Credit Card Consolidation Works

Payoff offers fixed low rates and simple financing terms to help you consolidate your credit card debt. Payoff gives recommendations to keep you on track to achieving your financial goals but they focus first and foremost in helping you get rid of debt.

Experience. During our Payoff review, we learned the website is easy to navigate and the information is easily available. Payoff is transparent about what they offer, how their loans work, and what you need to qualify. Applying for a credit card refinance loan takes a few short minutes. Checking your rate does not impact your credit score.

The Payoff loan payments are deducted from the same bank account in which the loan funds were originally dispersed. Automatic payments are a plus and ensure you make on-time payments.

Additional borrower benefits – Payoff borrowers get access to customer support via chat to get helpful answers to questions or to talk about financial goals. Borrowers also get a member advocate for support and guidance as they pay back the consolidation loan. Missed a payment? Payoff advocates can help customize a plan to get you back on track whether it’s a payment deferral, a payment skip, or changing your due date. Additionally, you get free monthly access to your FICO credit scores.

Are you ready to check your rate with Payoff? Check it here.

Payoff Consolidation Loan Details

  • Amount Range: $5,000 – $35,000.
  • Fixed rates: 5.94% (8% APR) to 22.60% (25% APR).*
  • Loan terms available: 2, 3, 4, 5 years.
  • Origination fee: 2% – 5% charged when the loan is funded.
  • No other fees: application fees; early or extra payment fees; late fees; check processing fees; returned check fees; annual fees

*accurate as of November 2, 2017

Approval Requirements

Just like any financial institution offering credit, Payoff does their due diligence to ensure you can afford the loan. They clearly outline the areas they review for loan approvals such as your:

  • FICO score  Your FICO score should be 660 or higher but if you’re somewhere in the middle 600s you can still apply as checking your rate does not impact your credit.
  • Unsecured debt-to-income ratio – Payoff looks at the percentage of unsecured debt payments you make in relation to your income. For instance, if you make $250 in credit card payments per month and you make $1000 monthly income, you have a 25% unsecured debt-to-income ratio which is under their 50% max.
  • Credit history –You’ll need at least 3 years of credit history to qualify, at least 4 different open and satisfactory accounts, no more than 4 inquiries in your report (hard inquiries reported on your report shows you’ve been applying for credit), all accounts should be current, and no tax liens.

Loans are not available in the following states: Alabama, Arizona, Connecticut, Delaware, Iowa, Kansas, Louisiana, Massachusetts, Minnesota, New Hampshire, South Dakota, Vermont, West Virginia and Wyoming.

Jason Vitug’s Smile Summary

Payoff has its roots as a budgeting app helping people manage debt. Eventually, they realized consumers needed specific help paying off credit cards and began offering a consolidation loan. What I like about Payoff is that it focuses on credit card consolidation loans so they know the pains people experience when drowning in variable unsecured debt payments. They also offer additional benefits to help you achieve debt freedom.

Don’t just consolidate your credit card debt, you can have an advocate to help you eliminate them. The guidance and support offered by Payoff is a clear benefit for the borrower. You can check your rate without impacting your credit score in 60 seconds or less.

Payoff Review

Products & Services
Ease of Use
Customer Service
Fees & Commissions
Transparency

Payoff offers fixed low rates and simple financing terms to help you consolidate your credit card debt. Payoff is transparent and applying for a credit card refinance loan takes a few short minutes. Checking your rate does not impact your credit score.

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Jason Vitug

Jason Vitug is founder at phroogal, creator of the award-winning project the Road to Financial Wellness, and author of the bestseller and NY Times reviewed book, You Only Live Once: The Roadmap to Financial Wellness and a Purposeful Life.

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