2021 Personal Loan Repayment Review


Benefits explained

  • Competitive APR: Paid offers annual percentage rates (APR) between 5.99% and 24.99%, which includes origination fees. Rates are competitive among online lenders, although the average rate borrowers receive is higher than the lowest APR.
  • Prequalify with a soft credit: You can consult the rates online in a few minutes without serious investigation impacting your credit rating. Sweet requests does not affect your score.
  • No prepayment or late payment fees: Payment does not charge a early repayment penalty, or late payment fees and returned checks.
  • Accessible customer service: Customer service is available by phone, live chat, or email for any questions or concerns. Borrowers also receive a welcome call and quarterly registration calls during the first year of the loan.


Disadvantages Explained

  • Limited uses of funds: Repayment loans are designed to be used for credit cards debt consolidation. Loans for other purposes, like home improvement, are not available from this lender.
  • Difficult to qualify for: Payment requires a minimum credit score of 640, a debt to income ratio 50% or less, and three years of established credit.
  • No co-applicants: Payment does not authorize co-applicants or co-signers. It offers debt consolidation services for individuals only.
  • Slow funding process: The complete subscription process can take up to seven business days. After signing the documents, it may take another two to five business days to receive the money.


Types of personal loans offered by Payoff

Payoff offers one fixed interest rate personal loan for credit card debt consolidation.


Time to receive funds

After submitting an application and all the necessary documents, it may take 3-7 business days to subscribe.


Repayment of the characteristics and advantages of the personal loan

  • Transparent on how to qualify
  • Prequalification available
  • Possibility to change the payment date once every 12 months
  • Loan amounts of $ 5,000 to $ 40,000
  • Two to five year terms
  • To free FICO access to credit score
  • Not available in Massachusetts, Mississippi, Nebraska, or Nevada


Apply for a free personal loan

Payoff has a fast online application process. The app provides the ability to check rates with a slight pull on your credit. This part of the application will not affect your credit score. You can check your rate by entering the following information:

  • Your name
  • Date of Birth
  • Address
  • Phone number
  • Annual individual income before taxes
  • How much you contribute each month for rent or mortgage

You cannot include the income of other members of your household. The payment will not allow alimony, child support or separate maintenance payments to qualify. He also wants to know if your income is commission only.

The last step before checking your rate is to create an account with an email address and password. You will need to read and agree to Payoff’s terms of service and permissions.

Once you’ve accepted an offer and applied, Payoff will perform a thorough credit investigation, which will temporarily lower your credit score. During the subscription process, Payoff may request more information, including:

  • Proof of identification: Valid driver’s license, state issued ID or passport
  • Proof of income: Your last two pay stubs or, for independent candidates, your last tax return
  • Bank statements: Bank account (s), mortgage statement (s), canceled check if you checkout

You can upload each of these documents to your account. You must be at least 18 years old and have a valid social security number and checking account to be eligible.


Can you refinance a personal loan with repayment?

If you are looking to lower your APR, you will need to apply for another personal loan elsewhere. Payoff does not offer the option of refinancing.

Verdict

Repayment can be a good option if your credit is good to excellent and you are eager to pay off high interest credit card debt. The company offers competitive APRs, which include origination fees, and do not charge any other fees. It also provides proactive customer support during the first year of the loan. Plus, applicants can find out what rates they are entitled to without affecting their credit score.

However, if you are looking for a personal loan for reasons other than debt consolidation (or if you live in one of the states where Payoff is not available), this lender is not for you. Plus, the high minimum loan amount ($ 5,000) can be a drag for some.

Even if Payoff is right for you, you should always shop around before applying for a personal loan. With good to excellent credit, you may be eligible for several other personal loan options. The difference in APR and fees from one lender to another could have a big impact on your bottom line.


Methodology

Investopedia is committed to providing consumers with unbiased and comprehensive reviews of personal lenders. We’ve collected over 25 data points from over 50 lenders, including interest rates, fees, loan amounts, and repayment terms, to make sure our content helps users get it right. borrowing decision for their needs.



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