Payoff, Inc. makes promises to those who are struggling with their high debt balances. Credit cards that were once a source of help can become a disaster to one’s finances. Payoff, Inc. makes itself available to such stressed borrowers. The company is in the business of issuing consolidation loans. A review of the company is a bit of prose the financially-strapped may read with careful attention.

Credit Debt Creates Problems

Credit card debt is not exactly fun to deal with. Acquiring three of more credit cards with significant amounts of available credit leave many with images of charging all sorts of things in their heads. Not all purchases may be leisure-oriented. Some may use their credit cards to cover important and necessary things a weekly paycheck cannot afford. Regardless of how the debt was run up, the debt has to be paid off. Those in need of a debt payoff may look towards the appropriately-named Payoff, Inc. for assistance.

The Business of Payoff, Inc.

Founded in 2009, Payoff, Inc. is a financial services company located in Costa Mesa, CA. The company specializes in fixed-rates loans. The money issued in the form of these loans comes from investors. Venture capital and private lender funding has been funneled into the firm. A number of the investors are considered high-profile figures. Their profiles have garnered media attention and publicity for the company. Investors hope to make a profit on their investment by way of the interest generated from the loans.

The business model is commonly referred to as peer-to-peer lending. This type of lending is normally deemed high risk for those who back the loans. The borrowers are usually overlooked by banks and credit unions for a variety of reasons. Usually, the would-be borrower has poor credit making them a risk. The success of many peer-to-peer lending companies does indicate the borrowers seem to be good, overall, with repayments.

Borrowers do want to look towards filling out a loan application with an established peer-to-peer lender. Payoff, Inc. has been in business for enough years to establish a verifiable reputation. Potential borrowers who read reviews about the company can then make a decision about whether or not to work with the lender.

The Basics of Payoff, Inc.

Payoff, Inc. is a unique online lender in the sense it does not target those with “average” or “poor” credit. Borrowers must have a minimum of “good” credit. The actual numerical score for this category of borrower is between 660 and 719. The average interest rate this borrower is likely to be offered is around 14.5%.

Payoff, Inc. also focuses its energies on high-income borrowers. Applicants need a minimum income of $77,000. The combination of decent credit and above-average income makes loans less risky for the company.

The Unique Approach of Payoff, Inc.

Payoff, Inc. is in competition with a host of different peer-to-peer lenders. Creating a personal touch in the company’s approach to customer service absolutely aids in setting the firm apart from other lenders. Payoff, Inc. does not follow a cold-hearted approach to dealing with clients. Newly approved borrowers are treated to a courtesy call with a company representative. During the call, a discussion takes place in regards to the best approach to pay off debt. The debt, on average, is around $15,000 per client.

Missing a payment is certainly not encouraged, but the company is seemingly more understanding than the average lender. A representative will lend advice to those who are in need a little bit of financial direction.

Rejected applicants do receive advice as well. A company representative discusses the reasons for the denial and, more importantly, mentions steps that can be taken to improve their chances of being approved. Maybe paying off a small amount of the current debt balance would assist approval chances greatly.

The Current Payment Structure

Payoff, Inc. issues an approved loan to the borrower. Once the funds are in the borrower’s account, it is up to him or her to use that money to pay off — consolidate — the credit card debt. The company is working at developing a direct payment approach in which the funds would be directly issued to various credit card companies. Right now, the borrower has to use the necessary discipline to pay all credit card debt with the approved loan funds.

Borrowers who take out loan funds for the purpose of consolidating debt would be making a huge mistake using the funds for other purposes. Again, discipline is very important here.

Applying with Payoff, Inc.

Visiting the company’s website and filling out an application is the simple way to get the process of acquiring a loan moving. The application steps are rather basic. No one should end up with any troubles filling out the online form. Note: even if a loan is approved, the amount may be lower than what was requested.