People owe a lot of money on their credit cards, about $930 billion.
This number keeps going up.
Credit cards are not all bad, but they have high-interest rates.
This means you might have to pay a lot of money every month if you owe a lot.
There are ways to combine your debts, like with a personal loan or a line of credit.
These can give you a lower interest rate than your credit cards.
Happy Money, which used to be called Payoff, offers a loan to help with this.
Since there are many scams out there, you might wonder if this is a real option.
Is Payoff Loans Legit?
Looking for honest information about Payoff Loans?
Find out if Payoff Loans are legitimate and if they’re the right choice for you.
Learn about the legitimacy of Payoff Loans and whether they can help you with your financial needs.
What is Payoff?
The Payoff Loan from Happy Money is a personal loan for combining debts.
It can be from $5,000 to $40,000 and has a 2- to 5-year period to pay it back.
The interest rate starts at 5.99% but can go up to 24.99%.
In New Mexico, the smallest loan is $5,100, and in Maryland, it’s $6,100.
Is Payoff legit?
Happy Money, previously called Payoff, is a well-respected company with lots of good reviews.
Forbes even named it the best personal loan in February 2022, and it has an A+ rating from the Better Business Bureau (BBB).
In simple terms, Payoff is a real company that helps people with their money problems.
How Does Payoff Work?
Is Payoff Loans Legit?
To see if you qualify for a Payoff Loan, fill out your information on their website.
You’ll need to enter details like your name, address, income, and how much you pay for rent or mortgage.
Then, you’ll get to see how much credit card debt you have based on this information.
You can then choose how much money you want to borrow and see what options they offer you.
These options will have different payment plans and interest rates.
Once you pick the plan you like, you’ll need to provide details about your job and Social Security number to verify who you are.
After that, you can choose which credit cards you want to pay off and confirm their numbers.
Any extra money from the loan will be put into your bank account. It usually takes about three to five days to pay off your credit cards and another five to seven days for the extra money to reach your account.
Once you’ve finished all these steps, you’ll need to start making monthly payments to Payoff until you’ve paid back the loan.
Is Payoff a Lender?
Payoff doesn’t lend money itself, even though it looks like a lender.
Instead, it partners with other companies like Alliant, GreenState Credit Union, Teachers Federal Credit Union, USALLIANCE Financial, and others to provide loans.
Does Payoff Charge Fees?
After discussing if Payoff is trustworthy, you might be curious about its fees.
According to Happy Money, the company behind the Payoff Loan, they only charge an origination fee ranging from 0% to 5%.
They don’t have any other fees, like application fees, payment fees, prepayment penalties, late fees, check processing fees, returned check fees, or annual fees.
What are the Steps to Qualify for the Payoff Loan?
To qualify for the Payoff Loan from Happy Money, you need a minimum credit score of 600 (considered fair credit), but having a better score can get you better loan terms.
You must also not have any current late payments.
It’s recommended to settle any late payments before applying.
Additionally, Happy Money might look at your debt compared to your income, how long you’ve had credit, the types of credit you have, and how much of your available credit you’re using.
Does the Payoff Loan Affect my Credit Score?
When you apply for the Payoff Loan, they first do a soft check on your credit, which doesn’t affect your score.
But before finalizing the loan, they do a hard credit check, which can lower your score by up to five points.
This hard check will show up on your credit report.
Is Getting a Payoff Loan a Good Idea?
Paying off high-interest credit card debt, which can have APRs over 30%, with a lower-interest debt consolidation loan like the Payoff Loan (with APRs from 5.99% to 24.99%), can save you money.
To decide if it’s a good idea, compare the Payoff Loan’s APR with your credit cards’.
If the Payoff Loan has a lower APR and you can afford the monthly payments, it could be a helpful way to pay off your debt and save on interest.
However, it’s smart to look at other options too.
You might find loans from other lenders with lower rates or fees, different types of loans that suit you better, or other ways to pay off your debt without taking on new loans, like using a balance transfer credit card or following a debt repayment plan.
Payoff is Legit and May be Worthwhile
Yes, Payoff is a real company that can help you combine your credit card debts through other lenders.
It might help if the interest rate on the loan (which can be between 5.99% and 24.99%) is lower than what you’re paying on your credit cards, and if you can afford the monthly payments.
If you’re finding it hard to handle your credit card bills, you can try the Tally app.
It helps with managing payments and gives you a lower-interest line of credit to pay off your high-interest credit cards.
Conclusion
Is Payoff Loans Legit?
Payoff, previously called Happy Money, can help you combine your high-interest credit card debts with a loan from their partners.
It’s important to compare their loan terms with other options and make sure you can afford the monthly payments.
Payoff mainly charges an origination fee, making it clear and easy to understand.
Overall, it can be a good way to manage and reduce your credit card debt.
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