Best Egg vs. Payoff Personal Loans: Everything You Need to Know

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Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.

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Personal loans can be used for many things, from paying for a wedding to consolidating credit card debt. While there are many ways to use the money, there are just as many choices when it comes to possible lenders.

Two popular companies you might come across in your search are Best Egg and Payoff. But which one is best for your financial situation and goals? Consider some important factors in this thorough breakdown of Best Egg vs. Payoff loans.

Best Egg personal loans

Best Egg offers unsecured loans via an online platform, allowing you to borrow money to make home improvements, refinance your credit cards, go on vacation, and more. All the loans are originated by Cross River Bank in New Jersey, but you don’t have to be a New Jersey resident to apply.

When considering borrowing from this lender, you’ll want to keep some pros and cons in mind.

Pros of Best Egg personal loans

The company promises its application process is fast and easy, but that’s not the only benefit it touts. Here are some more:

  • You’ll have a fixed monthly payment.

  • Funds can be deposited into your account in as little as a day.

  • Browsing rates won’t affect your credit score.

  • APRs are as low as 5.99% as of April 19, 2018.

  • Self-service tools are available 24/7.

  • You can use the loan for a variety of reasons.

  • There are no hidden fees or prepayment penalties.

  • No collateral is required.

  • No minimum credit score or debt-to-income (DTI) ratio is listed.

Cons of Best Egg personal loans

Although there are many benefits, consider these drawbacks:

  • Repayment terms are only three or five years.

  • Since your interest rate is based on your credit score and determined at origination, you could get stuck with an APR of nearly 30.00%.

  • Origination fees range from 0.99% to 5.99%.

Payoff personal loans

While Payoff also issues personal loans, its main focus is to help you get out of debt rather than pay for a vacation.

Pros of Payoff personal loans

The biggest benefit is that the company’s goal is to stand by its name and help you pay off your high-interest debt. But here are some other positives:

  • Browsing rates won’t affect your credit score.

  • You’ll have a monthly payment at a fixed rate and term.

  • Securing a loan could boost your credit score by an average of 40 points.

  • The loans have lower interest rates than most credit cards.

  • The application process can take as little as three minutes.

  • There are no common fees, including for applications, late payments, or returned checks.

  • You get free monthly credit score updates.

  • Job-loss support is offered.

Cons of Payoff personal loans

Although there are many benefits, consider these drawbacks:

  • You could have a high interest rate — up to 25.00% APR — depending on your financial profile.

  • Origination fees range from 2.00% to 5.00%.

  • The loan can only be used to refinance high-interest debt.

  • You need a credit score of 640 or higher.

  • Your DTI ratio has to be 50% or less.

  • You have to have at least three years of good credit.

  • If you have a current delinquency or had one in the past year that lasted more than 90 days, you’ll be disqualified.

Best Egg vs. Payoff: Interest rates, terms, and fees

It’s important to understand the details of personal loans because the interest rate, terms, and fees will affect your current and future financial status. Here’s a handy chart to compare these critical factors.

Loan amount Interest rates Fees Terms
Best Egg loan $2,000 to $35,000 5.99% to 29.99% APR There is an origination fee of 0.99% to 5.99%, late fee of $15, and insufficient-funds fee of $15. A $7 fee can be added for all payments not using Automated Clearing House. 3 or 5 years
Payoff loan $5,000 to $35,000 8.00% to 25.00% APR There is an origination fee of 2.00% to 5.00%. Ranges from 2 to 5 years

Best Egg vs. Payoff: Which personal loan is right for you?

Both of these companies offer personal loans with similar loan amounts, APRs, and fee structures. But the major difference is that a Best Egg loan can be used for a variety of reasons, while a Payoff loan is strictly for paying off high-interest debt.

If you’re taking out a personal loan to refinance your high-interest credit card debt, Payoff is likely the better solution.

There are fewer fees, more flexible payment terms, and similar interest rates. Also, the company’s purpose is to help you pay off your debt faster and increase your credit score.

But Payoff’s eligibility requirements seem to be stricter than that of Best Egg’s since you need a certain credit score and DTI ratio. Best Egg could help if you fall short of those standards, but you might end up with a higher interest rate.

Also, if you need a personal loan for something other than high-interest debt, Best Egg is the way to go. But this is only in comparison to Payoff.

Research other personal loan options if you plan to use the money for a home improvement, wedding, or other major purchase. You might be able to find better terms and rates.

Note: Student Loan Hero has independently collected the above information related to these personal loans. Best Egg and Payoff have neither provided nor reviewed the information shared in this article. Visit Best Egg for its latest available rates.

Interested in a personal loan?

Here are the top personal loan lenders of 2018!
LenderRates (APR)Loan Amount 
1 Includes AutoPay discount. Important Disclosures for SoFi.

SoFi Disclosures

  1. Personal LoansFixed rates from 6.58% APR to 14.87% APR (with AutoPay). Variable rates from 6.275% APR to 12.575% APR (with AutoPay). SoFi rate ranges are current as of July 16, 2018 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 6.275% APR assumes current 1-month LIBOR rate of 2.10% plus 4.175% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
  2. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

2 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  • Personal Loan Rate DisclosureFixed interest rates from 6.49% – 19.49% (6.49% – 19.49% APR) based on applicable terms. Lowest rates range from 5.99%-18.99% (5.99%-18.99% APR), are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment Discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
  1. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with us at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  2. Automatic Payment Discount: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their Citizens Bank Personal Loan during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account two or more times within any 12-month period, the borrower will no longer be eligible for this discount.

* Important Disclosures for Upgrade Bank.

Upgrade Bank Disclosures

  • Personal Loan Rate DisclosureFixed interest rates from 6.49% – 19.49% (6.49% – 19.49% APR) based on applicable terms. Lowest rates range from 5.99%-18.99% (5.99%-18.99% APR), are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment Discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
  1. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with us at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  2. Automatic Payment Discount: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their Citizens Bank Personal Loan during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account two or more times within any 12-month period, the borrower will no longer be eligible for this discount.
7.73% – 29.99%$1,000 - $50,000
Check rate nowon SLH's secure site
6.28% – 14.87%1$5,000 - $100,000
Check rate nowon SLH's secure site
6.87% – 35.97%*$1,000 - $50,000Visit Upgrade
8.00% – 25.00%$5,000 - $35,000
Check rate nowon SLH's secure site
4.99% – 29.99%$10,000 - $35,000Visit FreedomPlus
5.99% – 18.99%2$5,000 - $50,000Visit Citizens
15.49% – 34.49%$2,000 - $25,000Visit LendingPoint
5.99% – 35.89%$1,000 - $40,000Visit LendingClub
5.49% – 18.24%$5,000 - $75,000Visit Earnest
9.95% – 35.99%$2,000 - $35,000Visit Avant
Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.