When looking for a personal loan, it is crucial to decide which lenders and their products are a better fit for your particular needs. If you are facing a difficult choice between a personal loan from Best Egg and a loan from Payoff, the present article will help you evaluate which of the lenders should be considered first in each case.
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Payoff vs Best Egg: a Comparative Chart
| Payoff | Best Egg | |
|---|---|---|
| APR Range | 8.99 - 29.99% | 7.99 - 35.99% |
| Term | 24 - 60 months | 36 - 60 months |
| Loan amount | $5,000 - $40,000 | $2,000 - $50,000 |
| Min Score | Good (670-739) | Good (670-739) |
| Pros |
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| Cons |
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How to Choose between Happy Money (ex. Payoff) & Best Egg
General terms
First, consider the following: Best Egg is a general purpose lender, whereas Happy Money (ex. Payoff) is aimed specifically at consolidating credit card debts. In general, the conditions offered by the subjects of today’s article are rather more similar than different. At first, the longest loan term that can be approved is 5 years in both cases, though the minimum term lengths differ slightly. In the case of Best Egg, the possible loan term length starts from 3 years, while Payoff loans can be granted for as little as 2 years.
Let’s turn to Payoff, whose loan amounts fall within the $5,000 - $40,000 range for most states. However, the lowest available amount is set at $5,100 for borrowers from New Mexico and $6,100 for those living in Maryland. Best Egg’s loan amount range looks more appealing, starting from $2,000. In specific states, the upper limit can reach $50,000. The amount can be doubled by taking a second Best Egg loan: the total sum of current Best Egg loan balances is limited to $100,000.
Both lenders offer fixed APR rates that range from 8.99 - 29.99% for Payoff and 7.99 - 35.99% for Best Egg. Although at first glance the minimum Payoff rate of 7.99% per year seems like a tempting offer, it is worth remembering that it can only be applied to loans below $15000. In case of larger loans ($15,000 and more), the minimum rate starts from 9.24%.
For example, Best Egg provides its best APR exclusively to clients who can demonstrate both a FICO score of no less than 700 and $100,000 or more in annual income.
Finally, the loan origination fee is also one of the key factors to consider when picking a lender. Unlike some others, both Best Egg and Payoff may charge origination fees. The percentage varies between 0.99 - 8.99% and 5% for the former and the latter, respectively. It follows that sometimes it is possible that there is no origination fee charged by Payoff. So this lender is definitely a winner in this respect.
Availability
The most uncomfortable limitation on accessibility is the territorial restrictions. For example, Best Egg won’t grant its loans to those who live in Iowa, Vermont, West Virginia, the District of Columbia, or U.S. Territories. In turn, borrowers from Massachusetts and Nevada don’t get a chance to try their luck with Payoff. Regardless, you must be an adult American citizen/permanent resident. You will also need a checking account in your name, unless the entire sum is reserved for direct payments to creditors when doing debt consolidation.
Payment flexibility
Loan payments can be made from your checking account (manually or automatically) or by mailing a check to the lender’s physical address.
For late payments, Best Egg charges a $15 penalty unless paid within a 3-day grace period. Happy Money, by contrast, charges no such fee. In any case, you will, of course, pay interest for the missed duration.
The due date itself can be shifted around once a year with Happy Money, and twice in general for Best Egg.
You can furthermore make penalty-free extra payments at any time; these are accepted by both lenders. This allows borrowers to repay their loans ahead of time, which will ultimately save them money.
Application process
Getting a loan from Best Egg is completely online and begins with filling out several forms using your personal data and financial conditions. At this point, you can also reserve a part of the loan for the Direct Pay feature. If it gets approved, you should shortly see a number of offers (pay attention to the details of their terms). Once you stop at one of them and your info gets verified, you (or your creditors) will receive the principal and your payment obligations will come into force. For the most part, this should take no longer than 5 days, and often happens within one business day.
Happy Money works similarly. You begin by visiting the official website. First, you must check your credit rates (unless you have a pre-approved invitation link). This only requires some very basic information about yourself and your finances. Then, should you qualify, pick your option, validate identity (if needed), and wait for the money to drop into your account.
Until you take the offer, your credit history is free of any penalties.
Sharing responsibilities
If you need to share your responsibilities with another person, we hasten to upset you: neither Best Egg nor Payoff allows adding joint applicants, as well as cosigners. In this case, you will need to seek your future loan elsewhere.
Which lender is better for debt consolidation: Payoff or Best Egg?
The debt consolidation procedure means rolling multiple payments into a single one. This is a sure way to save some money and gradually enhance your credit score with timely payments. When it comes to debt consolidation, you should strive to ensure that the interest rate is lower than that on your existing debt.
Being designed for this kind of loan, Payoff offers a number of great options, including non-chargeable monthly FICO score updates. Moreover, reports on your loan payments are sent to several major credit bureaus, so repaying your debt on time can significantly increase your credit score in the long run. On average, borrowing from Payoff gives you a lower APR compared to Best Egg. For the detailed percentage, see the “General terms’ section above.
At the same time, Best Egg also provides debt consolidation loans, enhanced with a Direct Pay option. With this setting enabled, the money is sent to the creditors directly, instead of being credited to your bank account. As of now, only credit card debt consolidation is supported by both lenders.
In case of Payoff, the lower and the upper limit are equal to $5,000 and $40,000, respectively. For Best Egg, the sums available for debt consolidation lie in the range of $2,000 – $50,000.
Thanks to this fact, Best Egg is much more suitable for consolidating large current debts. Less fortunate Payoff borrowers may only have one loan at a certain time.
Reputation
Happy money (ex. Payoff) and Best Egg have proven themselves as time-honored lenders. Best Egg was founded in 2014, and Payoff was established in 2009. The lenders’ financing is actually done by their credible lending partners.
The Better Business Bureau assesses both lenders as highly trustworthy, giving them the highest possible mark A+. The relevant pages on its website also contain numerous glowing customer reviews.
Our Recommendations
To recap, we are giving the following highlights on which of the two lenders best suits your case.
When is Payoff Better?
- You want to pay off multiple credit cards (with the total sum of not more than $40,000).
- You are going to apply for a short-term (< 3 years) debt consolidation loan.
- You are from Iowa, Vermont, West Virginia, the District of Columbia, or the U.S. Territories.
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When to choose Best Egg?
- You need a small amount (less than $5,000) for personal needs.
- You want to consolidate a debt amounting above $40,000.
- You are looking for a personal loan for reasons other than debt consolidation.
- You live in Nevada or Massachusetts.
Check Best Egg personal loan rates