2023 Happy Money Personal Loan Review
NMLS#1136
Read more about how we rated Happy Money.Happy Money offers personal loans to consumers who are looking to refinance credit card debt. This lender’s personal loans are funded by their partners on their lending network and are available to borrowers with credit scores above 640.
- Low maximum APR: While some companies charge loan annual percentage rates (APRs) as high as 36%, Happy Money’s maximum APR is well below that mark, at 24.67%.
- Pays creditors directly: To streamline the debt consolidation process, Happy Money will repay your current creditors directly using your loan funds. If you’d rather repay your debts yourself, the lender can also deposit funds into your bank account.
- Free monthly credit score updates: Happy Money customers get access to their free monthly FICO Score, so you can work on building your credit while you pay down your debt.
- Limited loan use: While many lenders are flexible with personal loan use, Happy Money limits consumers to just consolidating credit card debt.
- Charges an origination fee: Happy Money customers may have to pay an origination fee, ranging from 1.50% - 6.25%. This is a one-time administrative fee that will be taken out of your loan funds at disbursal.
- No cosigner or joint loans: Unfortunately, Happy Money doesn’t offer joint loans or allow cosigners. This means that you’ll have to qualify for a Happy Money loan on the strength of your credit alone.
- Best for credit card consolidation: Qualifying for a lower rate on your high interest credit card debt with a Happy Money loan may save you money in interest payments. This lender may also be a good fit for consumers looking to improve their credit.
Happy Money personal loan pros and cons
Happy Money offers many benefits to credit card borrowers who want to consolidate their debt. However, it’s not a good fit for everyone, particularly those with bad credit.
| Pros | Cons |
|---|---|
Direct payment to creditors Free access to your credit score Low maximum APR Reports to all three credit bureaus | Limited loan use May charge an origination fee No option for co-borrowers or cosigners Doesn’t offer any interest rate discounts |
Happy Money can send your personal loan funds directly to your creditors, simplifying the consolidation process. Plus, as a Happy Money customer, you can access your free monthly FICO Score to track how your loan is impacting your credit. You can also prequalify with Happy Money, meaning you can check your potential rates without impacting your credit.
However, unlike many other personal loan companies, Happy Money loans can only be used to pay off credit cards. The lending platform also doesn’t offer any rate discounts and you may have to pay a 1.50% - 6.25% origination fee.
Happy Money personal loan requirements
Unlike many lenders, Happy Money offers clear eligibility requirements for potential borrowers.
| Minimum credit score | 640 |
| Payment history | Zero current delinquencies |
| Debt-to-income ratio | Less than 50% |
| Length of credit history | At least four years |
| Minimum income | None |
| Residential requirements | Loans not offered in Massachusetts or Nevada |
| Required documents |
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If Happy Money’s loan options won’t work for your borrowing needs, be sure to shop around for a lender that helps you meet your financial goals and can offer you the best-fitting rates, terms and amounts.
How to get a Happy Money personal loan
Getting a personal loan from Happy Money is a straightforward process, similar to other lenders.
Check your credit
Check your credit score and credit reports before applying for a Happy Money personal loan. This can help you determine whether you meet Happy Money’s basic loan requirements and if you have any incorrect information on your credit reports that could be holding your credit score back.
During this time, be sure to crunch the numbers to understand how you can afford to borrow by using a personal loan calculator to estimate your monthly payments.
Prequalify for a loan
Once you determine how much you need to borrow, submit some preliminary information and prequalify for a loan. This process involves a soft credit pull, which won’t impact your credit score. If you prequalify for a Happy Money loan, you’ll be able to see the rates, terms and amounts you may receive. Keep in mind that this offer isn’t guaranteed.
Accept an offer
If you want to proceed with a Happy Money loan, your next step will be to fill out a formal application. You’ll need to provide any required documents, such as bank statements, W-2s and a government-issued form of ID. Happy Money will run a hard credit pull, which can cause your credit score to temporarily drop by a few points.
Close on your loan
Happy Money will review your application and credit profile. If your loan request is approved, you’ll sign your loan agreement and make a plan to repay your new personal loan. It can take three to six business days before you receive your loan funds. Happy Money can also send your money directly to your credit card issuers.
If your application is denied, it may be time to boost your chances of loan approval. You may need to improve your credit score, cut down on the amount of debt you have and check your credit reports for errors.
How Happy Money compares to other personal loan companies
Even if you believe Happy Money aligns with what you’re looking for in a personal loan, it never hurts to shop around and compare other lenders. Here’s how Happy Money stacks up against similar personal loan lenders.
| Lender | Happy Money | Achieve | LendingPoint |
|---|---|---|---|
| LendingTree’s rating | 4.1/5 | 4.2/5 (Read review) | 4.5/5 (Read review) |
| Minimum credit score | 640 | 620 | 660 |
| APRs | 11.72%-24.67% | 8.99% to 35.99% | 7.99%-35.99% |
| Loan amount | $5,000-$40,000 | $5,000 to $50,000 | $2,000-$36,500 |
| Repayment term | 24 to 60 months | 24 to 60 months | 24 to 72 months |
| Origination fee | 1.50% - 6.25% | 1.99% - 6.99% | Up to 10.00% |
| Funding timeline | Receive funds within three to six business days | Receive funds as soon as one to three business days | Receive funds as soon as one business day |
| Bottom line | Happy Money charges borrowers lower origination fees, but its minimum APR is higher than Achieve and LendingPoint and it has a longer funding timeline. | Achieve offers a lower minimum APR than Happy Money and quicker funding, though you may have to pay a slightly higher origination fee. Achieve also allows joint applications, making it easier for bad-credit borrowers to qualify. | LendingPoint offers smaller loan amounts and a higher origination fee. However, consumers can access lower rates and longer terms. |
How we rated Happy Money personal loans
To come up with our star rating for personal loan companies, LendingTree considered 22 data points across three categories:
- Accessibility: We paid attention to whether lenders offered loans to nontraditional borrowers, as well as those without excellent credit scores. We also checked if lenders offered soft credit pulls, and whether they were transparent about eligibility criteria other than credit scores.
- Rates and terms: We wanted to know if lender rates, terms, amounts and fees were not only transparent, but also competitive.
- Repayment experience: We based this category on lenders’ reputations, customer support availability and unique benefits.
The data points reflect every step of the process to shop and apply for, borrow and repay personal loans. A five-star lender, for instance, has flexible eligibility requirements, offers you the chance to prequalify without commitment and supports you in zeroing your balance.
The 22 data points, culled from the lenders themselves, determine the overall rating. We score lenders consistently, sometimes awarding partial points, so that you can make apples-to-apples comparisons when shopping around.
LendingTree isn’t paid for conducting these reviews, and lenders don’t have control over their content. With our reviews and ratings, we aim to give our users the objective and exhaustive information they need to make the best possible decisions.
Frequently asked questions
You may qualify for a Happy Money loan as long as you have a fair credit score. However, you’ll also need to meet its other requirements, like having no current delinquencies, a maximum debt-to-income ratio of 50% and at least four years of credit history.
Happy Money’s personal loan funding timeline is three to six business days after you’ve signed your loan agreement. Other lenders may offer quicker funding.
Happy Money doesn’t have a minimum income requirement consumers will need to meet in order to qualify for a loan. However, you will have to meet its other personal loan requirements and provide information like bank statements and W-2s to confirm you can repay the loan.