According to the company’s research, in instances where Payoff members paid off at least $5,000 in credit card balances, their credit scores improved by up to 40 points.
Other benefits of using this peer to peer marketplace are Payoff’s Member Experience Advocates and various personality assessments. All borrowers receive welcome calls and quarterly check-ins that are aimed at making their first year with Payoff a pleasant one. They can also take one of Payoff’s scientifically-based tests in order to better understand and manage their finances.
Reasons to Look Elsewhere
Although the requirements are clearly laid out, some potential customers may find them a bit too strict. To get approved for one of Payoff’s P2P personal loans, you need a credit score of at least 640 and a good debt-to-income ratio usually lenders prefer to see https://worldpaydayloans.com/payday-loans-mn/ it below 36%. Your credit reports shouldn’t contain any delinquencies, and the length of your credit history, current lines of credit, and utilization ratio will be examined as well.
Another piece of discouraging information is that, currently, Payoff services aren’t available in every state. If you live in Massachusetts, Mississippi, Nebraska, or Nevada, you’ll need to look for personal loans elsewhere. Also, you can’t use Payoff loans for anything other than repaying credit card debt.
The Bottom Line
Payoff is one of the best lending companies for those struggling with high-interest credit card debt thanks to its low fees and unique benefits for Payoff members. However, qualifying for one of those loans can be difficult, so you may want to look around for a few more options just in case.
Reasons to Apply:
- Personality assessments
- Credit-score improvements
- Transparent eligibility requirements
Fortunly’s Rating: Our editorial team determines the rating based on a set of evaluation criteria developed for each product and service category.
Launched in 2005, Prosper introduced peer-to-peer lending to the US market. Since its starting date, the company has managed to serve more than one million borrowers and facilitate over $17 billion worth of loans. Thanks to its long list of peer-to-peer lenders, Prosper is able to provide competitive rates and fast funding times on personal loans with three- or five-year repayment terms.
Reasons to Choose Prosper
As one of the best personal loan providers, Prosper lets its customers use the funding for a variety of purposes, such as home improvement, debt consolidation, purchasing a car or other vehicle, engagement ring financing, and small business financing. Through this lending marketplace, you can also take out a green loan or a military loan.
It’s the lightning-fast application process that makes Prosper really stand out from the competition. To join the platform as a prospective borrower, all you have to do is fill out a quick questionnaire.
Prosper also has relatively loose eligibility requirements. To qualify for peer-to-peer loans from this lending marketplace, you’ll need to be at least 18 years old and a US citizen or permanent resident. You’ll also need to have a minimum of two years of credit history, a credit score of at least 630, and a debt-to-income ratio that exceeds 50%.
Reasons to Look Elsewhere
Although Prosper is one of the best peer-to-peer lending platforms when it comes to fast applications, relaxed borrower requirements, and high loan amounts without collateral, there are still a few downsides to it. Monthly payments are the only repayment option, applicants with credit scores below 630 can’t qualify, and the costs can add up.
Before proceeding with a loan application through Prosper, we suggest you make sure that you are fully aware of all the fees the platform may charge you. In addition to the interest rates, there’s also a 2.4% to 5% origination fee, a $15 insufficient funds fee, and a late fee that can either be 5% of the unpaid amount or $15 (whichever is greater).