Pay off credit card debt without consolidating
The California-based company specializes in paying off credit card debt on behalf of their customers, which then transitions into a loan agreement between the debtor and Payoff.
The financial services company claims to have more than 11,000 customers, representing a total of 5million in settled credit card debt.
In terms of the APR, this starts from as little as 5.65% (5.99% APR), all the way through to 22.59% (24.99% APR).
The rate that you are offered will depend on a number of factors, such as your current FICO score, your debt-to-income ratio, the size of your outstanding credit card debts, and your annual income. These rates are even higher if you are in possession of a credit card that is tailored towards low-to-medium credit scores.
The debtor is then required to pay Payoff back, as per the terms of the agreement that was offered during the application process.
Payoff are not like other, more conventional lenders, insofar that they are not in the business of offering multiple loans.
The elimination of these common fees are great, not least because these are avenues that traditional lenders often utilize to hit borrowers with additional charges.
Fortunately for you, the platform allows you to check your rates in the form of a soft credit check.
It is important to remember that the origination fee will be deducted from the total loan amount you are approved for.
For example, if you take out a Payoff loan for ,000, and your origination fee is 5%, then you will only receive ,500 towards your credit card debt.
In terms of the length of the loan agreement, this will vary between two and five years.
Payoff note that you have the option of choosing the loan term duration, as long as it falls within the parameters of two-to-five years.We’ve covered everything from how Payoff works, what its fees are like, and whether or not you are likely to qualify.