There are many lenders that offer debt consolidation loans, and the program requirements, terms and other important details can vary substantially. Debt consolidation can potentially help you to lower your monthly payments, reduce your debt interest charges and pay your debt off more quickly. However, to accomplish the most superior benefits possible, you must set up the right loan for your needs and financial situation. This means that you must explore various loan terms available before you decide which loan to apply for. Payoff is a popular lender that specializes in debt consolidation loans, and this may be one of the lenders who you are thinking about applying with. By analyzing Payoff’s loan requirements and loan terms, you can better determine if this is the right lender to work with when you are consolidating your debts.
A Closer Look at Payoff’s Loan Requirements
Payoff specializes in helping a specific type of client with their financial situation through consolidation loans and personalized assistance. Generally, the ideal candidate to consolidate debt through Payoff will have a relatively high level of income and significant account balances on high interest credit cards, but they may have managed to maintain a high credit score despite their struggles with debt. This lender requires its borrowers to have at least $77,000 per year in provable income as well as a credit rating of at least 660. Most borrowers have a loan amount of $15,000 or more. You should be aware that Payoff strives to provide its clients with friendly customer service. For example, they send handwritten welcome notes to new customers. In the event you miss a payment, you will not incur a costly late fee. Instead, your Payoff loan representative will personally call you to discuss payment arrangements that you can afford.
Loan Terms You May Expect
The loan terms that you qualify for through Payoff may be a deciding factor regarding your decision to consolidate your debts. The interest rate that you receive will be based directly on your credit score. The average interest rate for those who have at least a 720 credit rating is 14 percent, and higher rates are available with lower credit scores. The loan amounts range from $5,000 to $35,000, and the loan terms available range from two to five years. These are fixed term loans, so the debt will be entirely paid off at the end of the loan term. This establishes your debt on a firm elimination plan. Payoff loans are typically processed and funded within approximately two to five business days, so you can rest assured that your problem with debt will soon be a thing of the past when you get your debt consolidation loan in place. There is a loan origination fee that is assessed at the time you open the loan, and this fee can range from two to five percent of the loan amount.
How to Apply for a Payoff Debt Consolidation Loan
After you have taken time to learn more about what Payoff’s loan program entails, you may have decided that this is the right lender for you to work with. Because the loan process is short now may be a great time to move forward with a loan application. Payoff has an online loan application that is available for applicants to complete at any time of day or night. The lender understands that you may be concerned about the impact that new credit pulls may have no your credit rating, so only a single soft pull will be made with TransUnion. A soft pull will not impact your credit rating. After you have completed the online loan application, you will be contacted by a loan representative with Payoff to discuss your loan options in detail.
There are numerous debt consolidation loan options that you can move forward with, including taking out a large home equity loan, a smaller auto loan or even an unsecured loan. Payoff is just one of many lenders that offer debt consolidation loans. You should take time to compare Payoff’s loan program against others that you may qualify for to determine which option is best for you. By taking this step today, you will be taking greater control over your finances.