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When you are deeply in debt on your credit card, extremely high interest rates can make it difficult to find it on your own. Sometimes a personal loan can be useful if you want a lower interest rate and fixed monthly payments.
Pay offers a quick and easy application process for qualified borrowers looking to consolidate their credit card debt and pay it off over time at a lower interest rate. While every application is different, eligible borrowers can typically get rates between 5.99% -24.99% APR, which can save your life if you have too much debt to see a clear path forward.
Select recommends Payoff on our best list of debt consolidation loans in part because of the helpful ways the online Payoff portal uses “Empowerment Science” to keep borrowers motivated as they tackle their debt. In fact, the name of the company, Payoff, is precisely because the lender has built its offerings around helping consumers get out of their credit card debt once and for all, compared to others. banks specializing in general personal loans for home renovations, major purchases, education, etc. etc.
Payoff gives users access to free tools to improve their FICO scores, and offers free personality tests and stress assessments so borrowers can better understand how their financial and lifestyle choices really impact their wallets. .
Up front, here’s the full Payoff review by Select, looking at the benefits, fees, loan amounts, and length of terms.
Annual percentage rate (APR)
Purpose of the loan
Debt consolidation / refinancing
0% to 5% (depending on credit rating and demand)
5% of monthly payment amount or $ 15, whichever is greater (with a 15 day grace period)
The APRs of earnings range from 5.99% to 24.99%. Interest rates are determined based on factors such as your credit score and income. The total amount borrowed and the length of the term also affect the APR offered to you.
Perhaps the biggest benefit you get from taking out a Payoff loan is access to financial literacy tools. Acceptance of a Payoff loan is accompanied by membership in an online portal with the following resources:
- Free FICO® Scores updates every month so you can see your progress and track changes.
- Team dedicated to the member experience which proactively supports borrowers with welcome calls and quarterly registrations during the first year.
- Empowerment science to help members better understand each other and improve their relationship with money through Payoff’s Scientific Personality, Stress and Cash Flow Assessments.
Repayable loans come with a set-up fee, ranging from 0% to 5% depending on your credit score and your application.
There are no late fees or prepayment penalties if you decide to pay off your debt faster than expected.
Qualified borrowers can take out loans between $ 5,000 and $ 40,000. It usually takes three to seven business days to get approved. After being approved, you will receive the funds as a direct deposit to the checking account you provided in your application.
Loan repayment terms vary from two to five years.
Payoff is designed with the motivated debtor in mind. If you’re ready to tackle your credit card debt once and for all, Payoff offers a suite of tools, low interest rates for qualified borrowers, and FICO score tracking to keep you on track. .
The average Payoff borrower sees a 40-point FICO score increase, based on a 2020 study of Payoff members who used a Payoff loan to eliminate at least $ 5,000 in credit card balances.
Of course, results vary and are not guaranteed. That is why it is important to compare the offers with a personal loan comparison tool, so you can make the best decision for your financial future.
Find out what you need to ask yourself before taking out a personal loan.
To determine which personal loans are best for debt refinancing, Select has analyzed dozens of US personal loans offered by online and physical banks, including major credit unions. Where possible, we have chosen loans with no set-up or enrollment fee, but loans for debt repayment and / or debt consolidation may charge fees typically ranging from 0% to 10% APR.
When selecting and ranking the best personal loans, we focused on the following features:
- Fixed rate APR: Variable rates can go up and down over the life of your loan. With a fixed rate APR, you lock in an interest rate for the life of the loan, which means your monthly payment stays the same, making it easier to plan your budget.
- Flexible minimum and maximum loan amounts / conditions: Each lender offers several financing options that you can customize based on your monthly budget and the time you need to pay off your loan.
- No prepayment penalty: The lenders on our list do not charge borrowers for prepayment of loans.
- Simplified application process: We looked at whether lenders offer same-day approval decisions and a fast online application process.
- Customer service: Each loan on our list offers customer service available by phone, email or secure online messaging. We have also opted for lenders with an online resource center or advice center to help educate you about the personal loan process and your finances.
- Disbursement of funds: The loans on our list deliver the funds quickly by wire transfer to your checking account or in the form of a paper check. Some lenders (which we have noted) offer the option of paying your creditors directly.
- Autopay discounts: We have noted lenders who reward you for signing up for automatic payment by lowering your APR from 0.25% to 0.5%.
- Creditors payment limits and loan amounts: The above lenders provide loans in a range of sizes, from $ 1,000 to $ 100,000. Each lender advertises their respective payment limits and loan size, and a pre-approval process can give you an idea of your interest rate and monthly payment for that amount.
Note that the advertised rates and fee structures for personal loans are subject to fluctuation based on the Fed rate. However, once you accept your loan agreement, a fixed rate APR will secure the interest rate and the monthly payment will remain constant for the life of the loan. Your APR, monthly payment, and loan amount depend on your credit history and creditworthiness. To take out a loan, lenders will conduct a rigorous credit investigation and request a complete application, which may require proof of income, identity verification, proof of address and more.
Editorial note: The opinions, analyzes, criticisms or recommendations expressed in this article are those of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.