Check your eligibility for a credit card consolidation loan
Take control of multiple credit card payments with a credit card consolidation loan. Credit card debt hit $1.027 trillion in early 2018, according to the Federal Reserve.
Reduce high-interest credit card payments into one low-rate monthly payment. Dealing with multiple creditors can be stressful. Credit card consolidation can save you money on interest payments and help you pay off credit card debt sooner.
Simplify your financial life and make it easier to plan your budget with a credit card consolidation loan from Payoff.
Read our review to learn about the pros and cons of a credit card consolidation loan from Payoff as well as what you need to qualify.
The application process is simple and secure. Get cash deposited directly into your account the next business day once approved. Check your eligibility without affecting your FICO score.
With a credit card consolidation loan from Payoff, you’ll get a personalized recommendation and tools to help keep you on track. Payoff loans can also be used for other needs. Payoff does not force you to pay off your credit card debt. Loans can be used for other needs.
How does a credit card consolidation loan from Payoff work?
Payoff is a direct lender catering to borrowers who wish to consolidate credit card debt. Payoff offers personal loans with terms ranging from 24 to 60 months. Application, loan documents and funding are completely processed online within 1 to 7 business days.
Once funded you can manage your account anytime online. Review your balance and make payments online at your convenience. Borrowers have access to a Payoff member advocate for support as the loan is repaid. Borrowers can also discuss their financial goals and get advice on how to achieve them as a Payoff borrower.
Who is Payoff?
Boost your FICO® score by 40 points.
Payoff borrowers who paid off at least $5,000 in credit card balances, saw an average increase in their FICO® Score of 40 points within four months of receiving the Payoff® Loan according to a study of Payoff borrowers between August 2017 and February 2018. You don’t have to cut up your cards or close accounts.
How Payoff helps increase FICO® scores
With credit cards, using a large percentage of your available credit creates high utilization rates which can have a major negative impact on your credit scores. With an installment loan you can consolidate several credit card payments into one low payment.
If you are paying the accounts on time every month and managing the debt well, an installment loan will likely have a positive effect on your credit scores. As you begin to make payments on-time and show that you are responsible with the debt, your scores will increase.
What are the APRs offered via Payoff?
Payoff offers a fixed APR personal loan product that ranges from 5.99% up to 24.99%.
Does Payoff charge an origination fee?
Yes, Payoff charges a loan origination fee of 0% to 5% of the loan amount. Payoff deducts the fee directly from your loan amount before depositing your money, so make sure you take this fee into account when deciding how much you need to borrow.
Why get a credit consolidation loan.
Making the minimum payment on credit cards on-time is the most important factor in your credit score. However, making only the minimum payment can keep you in debt for years. Taking out a personal loan and using it to pay off credit card balances in full is a good financial move.
If you qualify for a loan with a low interest rate, not only could it mean lower payments but it may also mean you’ll have more money left over to put towards the loan balance in order to pay the loan off more quickly. Another benefit from paying off credit cards is a possible boost to your credit scores.
Payoff helps borrowers stay on track if you experience a financial hiccup. If you miss a payment, you won’t be charged a late fee. Borrowers have the option to work with a Payoff representative to create a plan to catch up a late payment. Payoff may offer you the options of payment deferral, skipping a payment or changing your payment date.
Monthly free credit score from Payoff.
Stay on top of yourFICO® credit scores as a Payoff borrower. You’ll have free access to yourFICO® scores monthly without impacting your credit score. Stay on top of your credit and avoid surprises plus, it will be more convenient to track your progress toward better financial health.
Repay your loan early.
There is no penalty for repaying your loan early. Pay off the loan anytime without additional charges. Pay only the number of days you keep your loan, for example, if you pay off your loan in a month, you would only pay the finance charges accrued during the one-month period.
Payoff loan details.
- Minimum credit score: 660
- Minimum credit history: 3 years of good credit, including 2 credit accounts with no delinquencies
- No minimum income required
- Debt-to-income ratio: 50% or lower
- APR range: 8.00% – 25.00%
- Loan amount: $5,000 – $35,000
- Loan duration: 2 – 5 years
- Origination fee: 2.00% – 5.00%
- No prepayment fee
- No late fee
Check your rate with no affect to your credit score.
What is the estimated funding time for a Payoff credit card consolidation loan
After loan approval and document validation, funds can be sent to your bank account as soon as the next business day.
Pros of using Payoff
- Quick application process. If you’re in a hurry, Payoff’s application only takes a few minutes to complete, and you’ll know if you’ve been approved shortly after.
- No prepayment penalty. Pay off your loan early, Payoff doesn’t have a prepayment penalty. This means you can pay back your full loan amount at any time, which will reduce the total cost of interest you’ll pay.
- Apply with fair credit. The people at Payoff know everyone does not have good credit. But emergencies happen to everyone, even people with fair credit. Payoff looks at more than just credit scores to approve loans.
- Use your loan as you see fit. If you’ve been approved, use your loan funds for just about any purpose, whether you need a car repair or pay down debt.
Cons of using Payoff
- Origination fees. Payoff might charge you an origination fee of 0% to 6% depending on your state of residence and loan amount.
- Slightly higher rates. Any loan you qualify for with a less-than-stellar credit score is going to have higher rates, and Payoff’s loans are no exception. Expect an interest rate around 15.49%–35.99%%.