Payoff, now known as Happy Money, provides loans for credit card consolidation and works with partners. SoFi is one of the leading companies providing personal loans, as well as many other financial products and works directly with customers. Comparison of their features will allow you to make the best choice in favor of SoFi or Payoff.
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Payoff vs SoFi: a Comparative Chart
| Payoff | SoFi | |
|---|---|---|
| APR Range | 8.99 - 29.99% | 7.99 - 23.43% |
| Term | 24 - 60 months | 24 - 84 months |
| Loan amount | $5,000 - $40,000 | $5,000 - $100,000 |
| Min Score | Good (670-739) | Good (670-739) |
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How to choose between SoFi & Payoff
Terms
SoFi
A candidate for a personal loan needs to be aware of the main terms imposed by the SoFi online platform:
- the amount available for the loan is $5,000 - $100,000. At the same time, the minimum loan amount may exceed the specified value in some states due to legal requirements;
- the loan repayment period ranges from 24 - 84 months;
- the credit score is taken into account when making a decision regarding the approval of the client's application for a loan, but the requirements for its minimum indicator are not disclosed;
- fixed rates range from 7.99 - 23.43% APR, depending on the selected loan term. SoFi includes a preferential option involving a discount of 0.25%. To do this, the borrower must choose to set up automatic payments by automatic monthly deduction from a checking or savings account;
- there is no origination fee, prepayment penalties, closing costs, hidden fees. The company obliges the borrower solely to pay the loan amount itself and the interest accrued on the loan.
Payoff
Payoff, a financial services company, offers borrowers a personal loan with the following terms:
- the personal loan amount that a client may qualify for varies from $5,000 - $40,000. It should also be borne in mind that the available minimum loan amount differs from the specified indicator in some states. At the moment, it reaches $5,100 in New York and $6,100 in Maryland;
- loan repayment period from 24 - 60 months;
- the credit score must be at least 640. Its indicator plays an important role when considering a loan application;
- fixed rates (APR) are in the range of 8.99 - 29.99%. When the loan amount exceeds $15,000, the minimum rate (APR) is 9.24%;
- there are no any possible fees, including application fees, early repayment of the loan, late payments, processing and refund of checks, annual fees. The platform has a single fee – the origination fee. It takes the form of a one-time payment and is charged from the borrower when issuing a loan in the amount of 5%, depending on the established loan term.
The loan application process comparison
SoFi
The application process leads the borrower to follow a few simple steps:
- prequalification, when the applicant provides contact information and his email. At this stage, the preferred loan amount and its intended purpose are selected. If there is a desire to issue a joint application with a co-applicant, the relevant information is also indicated;
- revision of established credit terms. If the applicant is ready to agree with them, he confirms this by choosing a financial product and continues to submit the application;
- directly submitting an application, where it is required to provide information concerning the personal data of the borrower and his bank account;
- signing of final documents and preparation for financing, which is carried out within a few business days.
As a rule, the lender completes consideration of most applications within two business days. The process may cover a longer period of time if the applicant is self-employed or has an additional source of income that requires a separate check. In addition, the processing and reviewing of the application is automatically increased to 10 business days when a co-applicant is added.
Payoff
The process of applying for a personal loan from Payoff comes down to the following sequence of steps:
- at the initial stage, the applicant checks his rate;
- consideration of the proposed options after preliminary approval, when the client is familiarized with the terms of the loan and the choice of the offer corresponding to his request;
- filling out forms with information including the borrower's personal data and its subsequent confirmation;
- electronic signature of the necessary documents and preparation for financing, which includes a period of 3-6 business days, during which the funds are transferred to a personal settlement or savings account.
According to the available terms, the application must be completed within 30 days, otherwise the applicant will have to apply from the very beginning. This restriction is explained by the fact that the company checks the compliance of the rates with the information provided by the client by contacting the credit bureaus. In some cases, the verification may require documents certifying the identity of the borrower and confirming the level of his income, a social insurance card, a bank account statement and some others.
Which lender is better for debt consolidation: SoFi or Happy Money (ex. Payoff)?
Happy Money, formerly known as Payoff, is primarily focused on offering personal loans to customers who are seeking to pay off credit card debt. SoFi also has the possibility of consolidating credit cards as one of the permitted uses of credit. In this regard, when making a decision, it is important to focus on the loan terms offered by companies.
SoFi may be the right choice for those customers who want to get a higher variability of terms. This applies not only to the available repayment terms of the loan, but also its amount.
Payoff offers customers the opportunity to improve their credit score and create a good credit profile.
Which is better for the first loan - SoFi or Payoff?
Payoff does not provide loans if a potential borrower does not have them. Moreover, the term of the existing loan must be at least three years. This factor makes it impossible for the lender to obtain the first loan.
At the same time, SoFi is ready to offer a personal loan with a fairly wide variation in the amount and repayment terms compared to a competitor. The credit company has competitive rates with the possibility of obtaining discounts through autopayments and does not charge any fees or penalties. In addition, the financial services platform offers a special unemployment protection program that allows temporary suspension of loan payments in case of job loss. SoFi takes into account not only the credit score, but also income, debt-to-income ratio and other parameters. In order to qualify for a loan, a potential borrower must achieve as much compliance with these requirements as possible. If there is no good credit history, the company allows clients to submit joint applications with the involvement of co-borrowers who are jointly responsible with the main borrower for loan repayment. These aspects make SoFi a possible option for getting a first loan.
When is SoFi Better? / When to choose Payoff?
The comparison of Payoff vs SoFi indicates the advantages and features of both lending platforms, which is important to consider when making a final decision.
First of all, SoFi should be preferred if:
- the borrower plans to use the funds received to meet household, personal or family needs. It is important to understand that the personal loan provided by this company cannot be used for other purposes related to real estate, business organization and development, investments, etc.;
- the client is interested in obtaining a higher loan amount and longer loan repayment periods;
- there is a desire to get lower competitive interest rates;
- the borrower wants to gain a sense of security that the unemployment protection program provides;
- there is a desire to avoid paying various fees and penalties on the loan.
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Payoff is worth choosing when:
- credit card consolidation is required;
- the borrower feels the need to increase his credit score and improve his credit profile;
- the client considers good competitive rates (APR);
- there is an interest in providing payment flexibility, as platform customers can make changes to the set payment date once a year.
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