Can Loan Consolidations really help you save and is it worth it? Like many people, you probably have many types of debts with different lenders. This can make it quite tricky to keep track of your monthly expenses, especially the interest you pay over the long term. There are many methods you can use to pay down many debts, like the snowball method, or paying down the smallest balance, which creates momentum to pay off larger balances. Some debt consolidation companies can scam borrowers while other such as Payoff, have helped paid $100 million total debts. Let’s take a look at the benefits of this program, requirements and application process.
Best for Borrowers with good credit and want to consolidate:
Payoff specializes its service to borrowers that only carry credit card debt. Payoff offers fixed rate loans to borrowers that typically carry $15,000 in credit card debt. Other debts, like student loans don’t apply.
What is the Payoff Personal Loan?
Many lenders have various products, which can confuse borrowers. Payoff’s mission is to focus on financial wellbeing and help you conquer debt. Payoff focuses on financial wellness, and aims to overhaul your finances by helping you pay off your debts. One of the ways they do this is by having only one product, the Payoff personal loan. They want to keep things as simple as possible and this comes with stellar benefits to help you master your financial life. Payoff is known for its stellar customer service and this can be seen through an average 4.5-star rating on Google.
With Payoff personal loans, you can consolidate between $5,000 and $35,000 in debt with a term ranging from two to five years. Payoff partners with First Electronic bank, which is FDIC insured, to provide loans. This helps Payoff focus on security by protecting borrowers’ sensitive information like account numbers and social security numbers. Thus, Payoff strives to follow the highest possible industry standards.”
Some other benefits include credit benefits such as credit score increases and free credit score updates. In fact, borrowers who use this service and have a credit card balance of $5,000 could realize a 40-point credit score increase.
Other Benefits and Conditions
Life is unpredictable and certain events such as job loss, enforce this. Payoff recognizes this and will help you recover with flexible payments and counseling.
Payoff could be right for you if:
- You need assistance with self-discipline. It’s “member advocates” group helps support and guide you through every stage of repayment. This helps you stay on course, thus improving your financial life.
- You don’t know the fundamentals of personal finance. Payoff strives to include education as part of its package.
Payoff isn’t right for you if:
- You live in a state where it’s available. Payoff is a great company, but unfortunately it isn’t offered in all states. Currently, Payoff isn’t available in: Alabama, Arizona, Connecticut, Delaware, Iowa, Kansas, Louisiana, Massachusetts, Minnesota, New Hampshire, South Dakota, Vermont, West Virginia and Wyoming.
- Are organized and have above average knowledge of personal finance.
As mentioned above, Payoff has a member advocates group. While many lenders have bare bones customer support divisions, Payoff goes above and beyond the minimum. They do this by having tailored recommendations to keep you on your plan, and quizzes that asses your financial personality along with your financial health. Payoff uses the results from these assessments to offer tools, like loan amortization schedules and budgets. Luckily, borrowers can talk with customer support and member advocates during business hours which are 8-5 pm PST.
Per Scott Sanders, the CEO of Payoff, “Having this personal insight into your habits is huge.” He believes that Payoff will give you the tolls to make better financial decisions.
Flexibility and Understanding
Many banks and lenders can charge high fees for slight repayment tardiness, but not Payoff. Payoff won’t charge you a late fee if you miss a payment, but allows you to work with your counselor to implement a plan that will help you catch up. Payoff could offer you payment deferrals or changing the payment date depending on your situation.
Payoff’s Application Process
It’s easy to apply for a loan and get a free quote via Payoff’s website. First, you can start by entering your personal information like your name, date, income, debt levels, and other miscellaneous questions. Some of the questions include if you rent or own your residence and if you have any tax liens. Also, the company does a high-level credit check through credit bureau, TransUnion. You’ll be able to see all of your credit card debts and a representative could contact you to give you tailored counseling. If you’re lucky, the representative could suggest a loan with better terms that you’d expect!
Requirements, Rates and Fees
Payoff minimum requirements
- Credit Score: 660
- No minimum income requirements
- Credit history: 3 years of above average credit, with 2 non-delinquent accounts.
- Be free of tax liens
- Debt-to-income ratio: 50% or lower
Rates and Loan Terms
- APR can range from 8.00% – 25.00%
- Qualifying loan balances: $5,000 – $35,000
- Duration: 2 to 5 years
Payoff fees and penalties
- Origination fees range from 2.00% – 5.00%
- There are no prepayment fees
- No late fees nor returned check fees
- Funding occurs in 1-7 business days
Debt can be a tricky to conquer, but the right tools can you help you prevail. There are many strategies to help pay off debt from the snowball technique to consolidation. Payoff stands out as a leader among the consolidation companies and has been featured in popular publications like Forbes. Click here for a free, no hassle, no credit card consultation with a representative!