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The Payoff Loan Review: Is This the Debt Consolidation Option for You?

By Joe

Payoff loan review

“How can I pay off $5,000 (or more) in debt fast?” 

“How can I raise my credit score 50 points fast?”

“What can I do to get out of credit card debt and take control of my finances?” 

If you’re asking these questions, you may have found your way down the rabbit hole to the doors of debt consolidation lenders. One of these doors, naturally, leads to The Payoff™ Loan. So, should you open it?

Here, we’ll look at everything you need to know to decide if Payoff by Happy Money is the right option for you to pay off your debt. This is what’s in store:

  • What is Debt Payoff?
    • How Does a Payoff Loan Work?
    • What are the Disadvantages of Debt Consolidation?
    • How to Calculate Debt Payoff
  • What is The Payoff™ Loan?
    • What to Expect When You Apply for a Payoff™ Loan
      • Payoff™ Loan Requirements
      • Payoff™ Loan Terms and Fees
      • Payoff™ Customer Service
      • Frequently Asked Questions
  • Payoff vs Upstart vs SoFi: Competitor Overview
  • Final Takeaway

Is Payoff™ any good? Read the full review to be 100% certain you’re making the right financial decision before you sign on.    

What is Debt Payoff?

The Happy Money brand, Payoff, got their name from the financial term. A debt or loan payoff is the act of paying off the full amount of a debt (in this case, several credit card debts). Keep in mind that the balance owed on a loan or line of credit is not always the same as the payoff amount. 

At the end of each payment period, interest is often added to the outstanding balance of a loan. So, typically, the longer it takes to pay a loan off, the more you pay. A payoff ensures that the account is paid in full. You must always carefully read terms and conditions to understand what you will pay over the lifetime of funding. 

Payoff meaning in finance

How Does a Payoff Loan Work? 

A payoff loan works by consolidating multiple debts into a single new loan. Once the payoff loan is obtained, other debts will be paid in full and the borrower will then have only one monthly payment. In a good scenario, a payoff loan carries a lower interest rate than the borrower’s original debts, which can mean less money owed in the long term.

If you’re still in a 0% introductory rate on credit cards, it’s not a good idea to obtain a payoff loan to consolidate them because the interest paid will be higher. However, if you can move balances to a new loan with lower rates, this type of funding can be beneficial. 

You might also like: Torro Business Funding Review: Is This “Zero Hassle” Offer Legit?

What are the Disadvantages of Debt Consolidation? 

Every financial decision you make will come with a unique set of pros and cons. The trick is to make sure the benefits outweigh the drawbacks. So, here’s the quick and dirty on the disadvantages of debt consolidation (Keep in mind, payoff loans/consolidation are not synonymous with debt relief). 

  • You may not always save money
  • Sometimes it accomplishes a mere shift of your debt to a new account
  • It has the potential to put you in debt longer than paying off your accounts
  • Origination fees can incur upfront costs

The advantages are that you’ll owe one monthly payment instead of a payment for each debt owed. And, ideally, you’ll pay less interest over time. 

Q: Why did my credit score drop when I paid off debt? A: Sometimes paying off revolving debt can temporarily decrease your credit score if the paid-in-full account is closed. This happens when closing an account leads to an increased credit utilization ratio.

Lenders prefer a utilization ration of 30% or less. It is always a good idea to pay off debt as soon a possible. Some borrowers opt to leave credit cards open, even after they are paid off. By doing so, their credit utilization ration is not negatively impacted when debt is paid off.    

How to Calculate Debt Payoff

When considering debt consolidation, before exploring your options, you need to fully understand your unique financial situation. A lack of understanding is part of what got you into debt in the first place. 

So, before you sign anything, make sure you’re clear on each of your debts. For each credit card, gather the following information: 

  • What is your total balance owed? 
  • What is the interest rate on the card? 
  • What is the minimum monthly payment? 
  • What is the maximum payment you can afford? 

The easiest way to find your answer is to then use a loan payoff calculator. For this, check out CreditKarma (just ignore their ads for new loans and lines of credit). You can use the calculator to determine the total payoff amount (full balance), estimated payoff time, and what you can expect to pay in interest and toward the principal. 

Once you have all of this information, shopping for loans, you can determine whether a loan is even right for you. In some cases another debt repayment method like snowballing might be a better fit. 

You’ll know if the cost and duration of any loan you might qualify for is higher and longer than what you can make happen on your own that debt consolidation isn’t the smartest move. 

What is the Payoff™ Loan?

The Payoff™ Loan is one of many debt consolidation loans in today’s financial marketplace. They have a quick application process and prequalification with a soft pull of your credit. The offer is from Happy Money, a company with a mission to “turn borrowers into savers,” not a traditional lender.  

Payoff login

In fact, Payoff is not a lender at all. Instead, they offer loans from partner institutions. Happy Money, Inc. earns a commission from their partner lenders for each loan obtained through their platform(s). 

What to Expect When You Apply for a Payoff™ Loan

Checking your rate on the Payoff website will not affect your credit score. However, during the process you will consent to receive phone calls and emails from Payoff. So, even if you don’t follow through with your application or you can’t qualify for any reason, the company will likely contact you in the future, which can get annoying. 

Does Payoff hurt your credit score?

So, to be safe, find out whether or not you’re likely to qualify and if you even like the options they might extend. Learn more in the following sections. 

  • Payoff™  Loan Requirements
  • Payoff™  Loan Terms and Fees
  • Payoff™ Customer Service
  • Frequently Asked Questions

Or, skip ahead: Payoff vs Upstart vs SoFi: Competitor Overview

Payoff™ Loan Requirements

One of the best features of Payoff™ is their transparency. It’s super easy to find anything you need to know about approval on their Getting Approved page. In a nutshell, here’s what you need:

  1. ≥ 640 FICO score (via Transunion) 
  2. No current delinquencies 
  3. ≤ 50% debt-to-income ratio (See Payoff’s™ Guide to Documents and Verification)
  4. ≤ 30% credit utilization ratio

Some reviewers have said that you also need an annual income of $40K.

Payoff™ Loan Terms and Fees 

First of all, with this offer, you won’t pay for an application, early payoff, late payments, check processing, returned checks or annual fees. But, the loan won’t be free. Instead you can expect origination fees of up to 5% (On a $10K loan, you might expect to pay up to $500) and APR between 5.99% and 24.99%. 

Payoff reviews CreditKarma

Terms for Payoff™ loans range from two to five years. So, that’s how long you’ll have to pay off your loan between $5K and $40K. In New Mexico and Maryland, loans must be at least $5.1 and $6.1K respectively.

Payoff™ Customer Service

Theres something to be said for the power of the customer experience. As humans, we’re often prone to spend more for better service, which doesn’t disclude our financial lives. So, will Payoff’s™ support meet your needs?

Most people seem to love the customer service. They have a live chat feature as well as publicly-displayed contact phone number, email address, and physical location, which indicates that their team is accessible. 

Payoff reviews Trustpilot

Of course, not everyone will have a great experience, for varying reasons. Technical problems, system overload (It seems to me like most lenders has had a rough go with this surrounding the pandemic and PPP), and other problems with customer service exist with all funding providers. 

In the case of Payoff, borrowers have cited problems with the website and contacting a representative in the recent past. We can hope that the company will address these issues moving forward. 

Payoff reviews BBB

Frequently Asked Questions

Now, let’s address some of the most common questions that are still unanswered. 

  • What bank does Payoff™  use? – As of November 2020, Happy Money,™ Payoff’s parent company, currently works with six partner lenders: Alliant, FirstTech Federal Credit Union, Technology Credit Union, Teachers Federal Credit Union, GreenState Credit Union, and First Electronic Bank.  
  • Does Payoff™ verify income? – Yes, most people will be asked to provide their two most recent paystubs. Self-employed individuals may submit their most recent tax Form 1040. 
  • Can you pay off a Payoff™ loan early? – Yes, you may. There will be no penalty for early repayment on a Payoff™ loan.  
  • Can I refinance my Payoff™  loan? – Yes, personal loans can be refinanced. 
  • How long does it take Payoff™ to review application? – The review process will typically take between three and seven business days. 

Payoff vs Upstart vs SoFi: Competitor Overview

Payoff vs Upstart vs SoFi

At the bottom of the debt consolidation loan rabbit hole, you’ll find an array of options. The closest comparisons to The Payoff™ Loan by Happy Money are Upstart and SoFi’s offers. 

Payoff, Upstart, and SoFi have some commonalities: 

  • Competitive interest rates & fees
  • Simple application process
  • Cater to borrowers with fair to good credit
  • Transparent terms and conditions

Then, they have some key differences. So, let’s look at how these three lenders stack up side-by-side.

Payoff Competitors

Of the three, Upstart caters to borrowers with the lowest (fair) credit scores and SoFi has the largest personal loans, mortgages, and student loan consolidation offers. Payoff is still in the game with a decent offer for credit card debt with high or predatory interest rates. 

Final Takeaway

Is The Payoff™ Loan a good idea? If you need a loan of less than $5K or more than $40K, your personal credit score is lower than 640, or you need money to pay off more than just credit cards, you should look elsewhere for financing. Otherwise, this credit card debt consolidation offer is legit. So, there’s no harm in checking your rate to find out what you might qualify for. 

If you’re interested in learning how to obtain up to $100K in business credit in as few as 30 days, start here.

How to Interpret Lendio Reviews: Is This Funding Company Legit?

By Joe

Lendio Business Funding

Business owners across the world, now more than ever, turn to online lenders to keep their cash flowing and their doors open. One of the significant names in the business finance game today is Lendio. But, is Lendio a legit company? You want an honest answer, so here it is. 

Let’s examine actual Lendio reviews from some of the most trustworthy consumer sites and thoroughly examine the brand’s offer. Here’s what we’ll cover. 

  • What is Lendio?
    • Who is Lendio and Where is the Company Based?
  • How does Lendio Work?
    • What Type of Funding Can You Get Through Lendio?
      • Credit cards
      • Lines of credit
      • Term loans
      • Startup loans
      • Accounts receivable financing
    • What is Sunrise by Lendio?
  • Is Lendio an SBA-Backed Lender?
    • So, Has Lendio Funded any PPP Loans?
    • And, If They’re Not Funding, How Does Lendio Make Money?
  • Now, How to Decrypt Mixed Lendio Customer Reviews
  • +Bonus: A Quick Look at Lendio’s Franchise Offer
  • Final Answer: Is Lendio Legitimate?

Read on to piece together the puzzle. 

What is Lendio?

Lendio is a simple small business loan marketplace. The platform connects business owners with the lenders that they are most likely to obtain funding from. The platform offers connections with lenders who offer all types of cash flow increasing options like credit, loans, equipment financing, mortgages, accounts receivable financing, and more.

Who is Lendio and Where is the Company Based? 

Lendio, Inc. was founded by Brock Blake, the current CEO, in 2011 and the company extended their first loan in Q4 2013, according to Wikipedia. The CFO is Chad Iverson. Company headquarters are located in Lehi, Utah. 

How does Lendio Work? 

If you’re a small business seeking funding, here’s what you might expect from Lendio. The application should take about 15 minuted to complete and will connect you with 75+ lenders. In many cases, you could get the funds you seek in as little as a day. 

First, Lendio looks at your self-reported credit score range. Then, they find out how long you’ve been in business and how much money your company has generated over the last 90 days. After that, they ask what you need funding for. 

Terms and conditions vary for business acquisition vs expansion or payroll, for example. So, by determining why you need funds, they filter out various lenders who aren’t likely to approve you. 

When that’s over, the platform looks at certain aspects of your business that may help or hurt your qualification odds like if you have a prior bankruptcy or if you operate as a non-profit. 

Lendio com reviews

Once you’ve shared the above, the platform looks at the location of your business, your annual personal income, and your percentage of ownership in the company. Finally, there is a differentiator between Lendio and competitors: they want to know what factors are most important to you whether it be amount, speed, or cost of funding you’re looking for. 

Once you agree to the terms and conditions (*which include the possibility that you’ll be contacted by auto-dialers and partners — probably why many people are asking “How do I get rid of Lendio emails?”), the platform will do a soft pull of your credit via Experian using your social security number. At this point, they don’t ask for your DUNS number. 

Lendio login

If the platform can’t make the connection automatically, Lendio will ask you to manually enter your business’ financial information. You’ll be asked for your entity type and annual profits. 

And, if you’re likely to be qualified through one of Lendio’s partners, they’ll let you know instantly and connect you to a possible funding channel. 

If not, the platform lets you know precisely what’s standing in your way of getting funded and tells you what to do next. 

Lendio business loans reviews

And, when this happens, the system will suggest the next steps you can take to get ready for funding, which may include applying for a credit card or connecting with a partner like LegalZoom or Credible. 

What Type of Funding Can You Get Through Lendio? 

Via Lendio, you can access several types of funding types from their network of banks and online lenders. Now, let’s examine a handful of them and, for each, see some of the top lenders in their network.

First, here’s a quick summary. 

Lendio Rates Chart

Credit cards

If you’re looking for plastic, they have it. Just determine how much you need and the Lendio platform will try to help you determine which credit card issuer is likely to help you get it and at what rate. In many cases, you could be looking at 0% introductory APR offers, but this is likely to increase later. And, if you’re not quite ready for larget credit lines, Lendio might connect you with credit building options. 

Some of the leading credit cards Lendio might match your business with could come from Chase, American Express, LenCred, Bank of America, Credit One, and Seek Business Capital. 

Lines of credit

Through Lendio, line of credit amounts can range from $1K to $500K with interest rates between 8 – 24% and terms between one and two years. If your company qualifies, you may be able to access funds as quickly as within a couple of weeks. 

For business lines of credit, Lendio might connect you with Kabbage, Blue Vine, Fundbox, Headway Capital, or Fundation among others. 

Term loans

Term loans that you can apply for through Lendio might range from $5K to $2M with have interest rates as low as 6%. And, the terms can range between one and five years. Access funds obtained through the platform in as little as 24 hours. 

Some of the term loan providers Lendio could link you with include OnDeck, Fundation, American Express, Funding Circle, Opportunity Fund, Credibility Capital, and Lending Club. 

Startup loans

In most cases, startup loans can be the most difficult to obtain because financial institutions are more eager to lend to an established business. But, if you meet the requirements, you can leverage loans of $500 to $750K at interest rates between 0 and 17% to start a business. Access funds in two to four weeks and pay off your loan over the course of 25 years. 

Startup loan offers that Lendio might match you with could come from Chase, American Express, or Bank of America. 

Accounts receivable financing

Have outstanding invoices? Then, you may be able to leverage them as collateral through accounts receivable financing throught the Lendio platform. Get cash in an amount up to 80% of your current accounts receivables and pay factor rates as low as 5%. Get this type of funding in as little as 72 hours and pay it off in a year or less. 

If you qualify for accounts receivable financing through Lendio, it might come from Eagle Business Credit, Internex Capital, BlueVine, FundBox, or ActionCapital. 

What is Sunrise by Lendio? 

Lendio bookkeeping software

In some cases, the next steps that the platform claims will set you on the journey to obtain working capital, loans, or credit via the platform will include signing up for Sunrise, the brand’s bookkeeping software. 

If you create an account, you’ll be asked what your priority is. For example, are you looking to apply for PPP loan forgiveness, send and track invoices, or manage your banking? 

Sunrise bookkeeping app

When connecting your business banking information, Sunrise gives you the option to connect to major banks as well as smaller community banks and credit unions. From the dashboard, you can track income and expenses, send and receive invoices, and manage your business bank accounts. 

This platform isn’t as automated or feature-rich as leaders like Quickbooks, but it seems to have everything you need for simple accounting and invoicing. Plus, invoicing only costs 1% per transaction, which is low. 

Is Lendio an SBA-Backed Lender? 

Lendio was one of 19 finetch companies participating in PPP loan application processing as of May, 2020. Yet, Lendio is not a lender. Instead, they match you to the most appropriate lenders in the United States based on your needs. And, the SBA does approve of their legitimacy. 

Is Lendio legit for PPP?

So, Has Lendio Funded any PPP Loans? 

As of July 2020, Lendio reported to have facilitated $10BN in total funding for the PPP program. And, despite the fact that August 8, marked the end of the PPP application period this year, Lendio is still accepting PPP applications in hopes that congress will extend the small business relief program. Still, the company does not provide direct funding. 

Yet, according to many, Lendio is a good source for PPP application processing. 

Lendio reviews PPP

And, If They’re Not Funding, How Does Lendio Make Money? 

Lendio doesn’t charge a fee, so how do they make money? Well, they don’t charge the small business owner. Instead, the get their money as a sort of finder’s fee or a setup similar to affiliate marketing from the Lenders who fund their applicants. 

Think of Lendio as a broker who takes a cut from the big guy. Note that this typically means that the applicant may pay more than if they cut out the middle man and apply directly with a lender. But, the latter is a less convenient option. 

Now, How to Decrypt Mixed Lendio Customer Reviews

On one hand, you’ll see 5-star reviews like the one above. Then, on the other, you’ll come across the naysayers. Take the following, for example: 

Lendio reviews TrustPilot

Even if they make up a small portion of feedback, this caliber of review is enough to make you think twice about doing business with a financial company. 

If you check out forums like Reddit, you might read about wonky system glitches. 

Lendio reviews Reddit

Then, if you dig further, you may find that Lendio, Inc. is not BBB accredited and they have mediocre ratings on the platform.

Lendio reviews BBB

So, what should you make of this confusion?

First of all, I need to point out that 2020 has been a whirlwind. I don’t know of a single company who didn’t face unexpected challenges this year. Our proverb for the year should be, “Have patience and trust the process.” Now that we got that out of the way, let’s just say that it is what it is. 

Very few  brands have a 5-star rating across the board. And, this doesn’t mean that they aren’t helpful or legitimate. TrustPiolt and BBB are designed for consumers, and most people don’t run to them when they have a great experience. But, if you have a bad experience, you want people to know. 

Therefor, I recommend that you read the reviews, trust that you might expect similar results, but don’t judge too harshly based on the bad experiences. Many business owners have leveraged this platform and marketplace to grow their businesses. If the system is a good fit, you could be one of them. 

+Bonus: A Quick Look at Lendio’s Franchise Offer

Before we wrap up, I want to mention another feature of Lendio’s offer in case you were wondering. Since 2016, they’ve presented the option to Franchise their offer for your own gain (up to 70% commission to keep for yourself).

In most US states, excluding California, Utah, and North Dakota, franchise opportunities are open to the public. So, if you live in any other state, you have excellent business networking skills, and you’ve got $55-65K to invest, this might be worth looking into.

Final Answer: Is Lendio Legitimate? 

Yes, Lendio is an established, trustworthy company. They’ve helped many small business owners get financed. However, this is not the funding marketplace I recommend. Instead, I have more trust in Nav and feel that their offer provides more value while giving the business owner heightened control over the funding process. 

If you want to learn how to build business credit so you can obtain up to $100K in funding in 30 days, enroll in Business Credit Workshop today.

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