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When you have a lot of credit card debt, sky-high interest rates can make it hard to find yourself. A personal loan can sometimes be useful if you want to lower your interest rate and fixed monthly payments.
Pay offers a quick and easy application process for qualified borrowers looking to consolidate credit card debt and pay off over time at a lower interest rate. While each application is different, eligible borrowers can usually receive rates ranging from 5.99% to 24.99% per annum, which can be life-saving if you are in too much debt to see a clear path forward.
To choose recommends Payoff on our best list of loans for debt consolidation in part because of the helpful ways that Payoff’s online portal uses the Science of Empowerment to motivate borrowers to settle their debts. In fact, the name of the Payoff company stems from the fact that the lender has built its offering around helping consumers get rid of credit card debt once and for all, compared to other banks that specialize in general personal loans for home renovations, large purchases, education, etc. Etc. etc.
Payoff gives users access to free tools to improve their FICO scores, and also offers free personality tests and stress assessments so that borrowers can better understand how their financial choices and lifestyle really affect their wallet.
Ahead is Select’s full Payoff review, which looks at benefits, fees, loan amounts, and maturities.
Annual Percentage Rate (APR)
Purpose of the loan
Debt Consolidation / Refinancing
From 0% to 5% (depending on credit history and application)
Early payment penalty
5% of the monthly payment or USD 15, whichever is greater (with a 15-day grace period)
The annual interest rate for payments ranges from 5.99 to 24.99%. Interest rates are determined based on factors including your credit rating and income. The total loan amount and the length of the term also affect the annual interest rate that is offered to you.
Perhaps the biggest benefit you will get from getting a Payoff loan is access to financial literacy tools. Acceptance of a loan to repay is associated with membership in an online portal with the following resources:
- Free FICO® Result Updates every month so you can see your progress and track any changes.
- Dedicated team based on member experience which actively supports borrowers with welcome calls and quarterly checks during the first year.
- The Science of Empowerment to help participants better understand themselves and improve their relationship with money through Payoff’s scientific personality, stress and cash flow assessment.
Repayment loans do come with 0% to 5% loan origination fees depending on your credit rating and application.
If you choose to pay off your debt faster than you expected, there will be no late fees or prepayment penalties.
Qualified borrowers can borrow from $ 5,000 to $ 40,000. It usually takes three to seven business days for approval. Once approved, you will receive funds in the form of a direct deposit to the checking account that you specified on your application.
The loan has a maturity of two to five years.
The payment is calculated taking into account the motivated debtor. If you’re ready to deal with your credit card debt once and for all, Payoff offers a suite of tools, low interest rates for qualified borrowers, and FICO Score monitoring to keep you on track.
The average Payoff borrower sees a 40-point increase in FICO rating based on a 2020 study by Payoff members who used a Payoff loan to pay off at least $ 5,000 of credit card balances.
Of course, results vary and are not guaranteed. This is why it is so important to compare sentences with personal loan comparison toolso that you can make the best decision for your financial future.
Learn more about what to ask yourself before taking a personal loan…
To determine which loans to individuals are best suited to refinance debt, To choose analyzed dozens of personal loans in the United States, offered both online and by conventional banks, including large credit unions. Whenever possible, we opt for loans without issuing or registration fees, but debt repayment and / or debt consolidation loans may charge fees, typically in the range of 0% to 10% per annum.
When narrowing down and ranking the best personal loans, we focused on the following features:
- Annual interest rate: Variable rates can go up and down over the life of the loan. With a fixed annual interest rate, you fix the interest rate for the entire term of the loan, which means that your monthly payment will not change, making budgeting easier.
- Flexible minimum and maximum loan amounts / conditions: Each lender provides more than one financing option that you can customize based on your monthly budget and loan repayment duration.
- No penalties for early payment: The lenders on our list do not charge borrowers for early repayment of loans.
- Streamlined application process: We looked at whether lenders offer same day approval decisions and a fast online application process.
- Support: Each loan on our list provides customer service by phone, email or secure online messaging. We have also selected lenders with an online resource center or advisory center to help you learn more about the personal loan process and your finances.
- Payment of funds: The loans on our list deliver funds quickly, either by wire transfer to your checking account or in the form of a paper check. Some lenders (which we have noted) offer the option to pay your creditors directly.
- Auto payment discounts: We’ve tagged lenders that reward you for participating in the auto payment system by reducing your annual interest rate by 0.25% to 0.5%.
- Limits on payments to lenders and loan amounts: The aforementioned lenders provide loans in various sizes, from $ 1,000 to $ 100,000. Each lender announces their respective payment limits and loan amounts, and completing the pre-approval process can give you an idea of what your interest rate and monthly payment will be for that amount.
Note that the rates and commission structure advertised for personal loans may fluctuate in line with the Fed’s rate. However, once you accept your loan agreement, the fixed annual interest rate will guarantee the interest rate and the monthly payment will remain the same throughout the loan term. Your annual interest rate, monthly payment and loan amount depend on your credit history and creditworthiness. To take out a loan, lenders will make a serious loan request and ask for a complete application, which may require proof of income, proof of identity, proof of address, and more.
Editorial note: The opinions, analyzes, reviews or recommendations expressed in this article are solely owned by the Select editors and have not been reviewed, endorsed or otherwise endorsed by any third party.