Our Thoughts on Happy Money Personal Loans
MarketWatch Guides Rating: 4.2 out of 5 stars
Happy Money’s payoff loan is geared toward applicants with fair credit or lower. While you can use the loan to pay off high-interest credit cards, Happy Money may not be your best option for a number of reasons.
Happy Money’s lowest annual percentage rate (APR) is higher, at 12.45% as of this writing, than other lenders that serve borrowers with similar credit profiles such as Upgrade and Upstart. And although Happy Money is not the only lender that charges an origination fee, when you consider this fee on top of higher rates and a lower maximum loan amount, it can feel like you’re paying more for less. Lenders including LightStream, SoFi and PenFed don’t charge an origination fee at all.
Getting approved by Happy Money and receiving your loan funds also takes longer than many other lenders: up to seven business days for approval and an additional three to six business days for funding. Wait times like that hardly compare to lenders offering funding within one to two business days — or even the same day — of approval. Happy Money told MarketWatch Guides that several initiatives are underway to speed things up.
On the plus side: Happy Money recently introduced a “Payment Guard Insurance” program aimed at helping people manage financial setbacks. This policy allows you to file a claim if you lose your job or become disabled, potentially covering up to three monthly payments. Few lenders offer anything simliar to this. SoFi’s unemployment protection comes close, but it’s not nearly as generous. SoFi’s program can defer your payments if you lose your job.
Pros and Cons of Happy Money Personal Loans
Consider these benefits and drawbacks of a personal loan from Happy Money when assessing its fit for your unique situation.
Who Are Happy Money Personal Loans Best For?
A personal loan from Happy Money may be best for borrowers with fair credit looking to consolidate debt. You will need a 640 minimum credit score to qualify for The Payoff Loan, which can go directly to your credit card or sent to your bank account.
If you need to pay off anything other than credit cards — or want to borrow more than Happy Money’s maximum loan amount of $40,000 — consider other lenders who serve fair- or bad-credit borrowers. You’ll likely find lower rates, higher loan amounts and faster funding with other lenders.
How To Get a Happy Money Personal Loan
Happy Money’s application process is straightforward, though it takes longer than many other online lenders to process your application and distribute funds upon approval.
Application Process
Applying for a Happy Money personal loan starts with checking your rate online without impacting your credit score. Prequalifying could take as little as two minutes. To move forward with a loan offer, select the loan terms and complete the application for final approval.
Throughout the process, you may need to submit several required documents. In general, you’ll need proof of identity, proof of income and a valid bank account. Examples for each could include the following:
Proof of identity
- Driver’s license
- State-issued ID
- Passport
- Social Security card
- Visa or green card
Proof of income
- Most recent pay stub
- Most recent tax return
- Award letter for Social Security income
- Retirement award letter
Verified bank account
- Most recent bank statement
- ACH letter
- Voided checks
Approval and Funding
It can take three to seven business days for Happy Money to review and process your application. After you electronically sign the loan agreement, Happy Money could take an additional three to six business days to deposit the loan into your checking account. Paying creditors directly, such as with a debt consolidation loan, takes even longer — up to 30 days.
Happy Money told MarketWatch Guides that funding speed is a key focus area for the company. Currently, 75% of loan applications are reviewed within 72 hours, the company said, and 55% are approved within 24 hours.
“We have multiple initiatives in flight to increase the speed and simplicity of our originations and servicing, while maintaining a diligent review process for our lending partners,” the company said in as statement.
To get your loan funds as quickly as possible, do the following:
- Gather all required documents before starting the process
- Fill out the application as completely and accurately as possible
- Keep an eye on your inbox for follow-ups from Happy Money
Happy Money Personal Loans Reviews
Some Happy Money customer reviews highlight how quick and easy it was to receive funds, especially when working with its customer service team.
“This was a quick and hassle-free experience. The application process was quick and easy as well. This opportunity has boosted my credit score and I highly recommend this company.”
— M. Lopez, U.S., Oct. 5, 2023, Trustpilot
“I needed cash to pay down a loan and researched and found Happy Money. It took 2 weeks from my initial day of applying to get the money in my bank account with only a few simple steps. Amazing customer service with clear and concise documentation of what plans and terms agreed to. Online portal to follow payments. Amazing service.”
— Ockrass, Bronx, NY, March 1, 2023, ConsumerAffairs
For several customers, however, the application process was grueling. Borrowers cited challenges uploading required documents and delays in Happy Money reviewing and accepting their applications. In some cases, the approval process took so long that the loan offer expired, and customers had to restart the application process.
In addition to a challenging application process, multiple borrowers had trouble managing their accounts, including simple changes, such as updating bank account information or an email address.
“I was prequalified for a loan, applied, and was told it would take 3 to 7 days for approval. My credit rating is excellent (over 800) with steady income. After a week and I did not hear from them I called and they said they were behind due to the volume of customers … The initial rate is good for thirty days. One day before the 30-day pre-approval rate was to expire they asked for more documents. I submitted those documents that day. The next day was the 30-day deadline. When I went to my account online my information was gone. I called them and they said I missed the 30-day deadline and therefore I was disqualified.”
— David H., Sept. 12, 2022, Better Business Bureau
In response, Happy Money representatives did not comment directly on the customer complaints, but said the lender is always working to make the service better.
“At Happy Money, we are always working to make the borrowing process easier and simpler for our customers,” the company said in a statement to MarketWatch Guides. “From our mobile app to our back-end systems, we will continue to make our customer experience as seamless and intuitive as possible.”
Eligibility Requirements for Happy Money Personal Loans
If you have at least fair credit and a history of repaying loans on time, you will have a better chance of approval with Happy Money. Here are the lender’s specific loan eligibility requirements.
Credit Score and Financial History
Happy Money looks for borrowers with a credit score of 640 or higher — and no current delinquencies. In addition to your credit score, Happy Money may look at the length of your credit history, your number of accounts in good standing and how much of your available credit you’ve used.
Income and Employment
There are no hard income or employment requirements on Happy Money’s website. But lenders generally want to know that you earn a consistent enough income to cover your expenses, including monthly payments for a new personal loan. Happy Money may look at your debt-to-income (DTI) ratio to ensure you’re not taking on more debt than you can afford. The lower your DTI ratio, which measures your monthly debt obligations versus your monthly income, the better. So anything you can do to pay down existing debt balances and boost your income could help your approval odds.
Happy Money Personal Loans Usage Rules
You can use Happy Money’s so-called payoff loan to consolidate your high-interest credit card debt. Happy Money may have other options if you need funds outside of consolidating debt, but you’ll have to contact its customer service to know what’s available.
Happy Money Personal Loans Fees and Penalties
Happy Money has an origination fee that is charged by its lending partners. Other than that, there are no additional fees — including no prepayment penalties or late fees.
Loan Origination Fees
Happy Money works with lenders who may charge an origination fee of up to 5% of your loan, depending on what loan term you choose. This one-time charge is deducted from your loan before it’s issued. For example, a 3.5% origination fee on a $20,000 loan is $700. So instead of depositing $20,000 into your checking account, Happy Money would fund $19,300.
The higher the origination fee, the less money you have available to pay down your credit card debt. You can opt for a shorter loan term to keep your origination fee low or explore personal loan lenders who do not charge origination fees.
However, Happy Money pointed out that it does not charge any other fees.
“It helps cover the cost of matching a borrower with a great lending partner to fund their loan, and continuing to service their loan once it has been funded,” the company told MarketWatch Guides.
Early Repayment Penalties
Other than an origination fee, Happy Money has no other fees — including no prepayment penalties. Some lenders may charge a prepayment penalty if you pay off your personal loan earlier than the agreed-upon term. Depending on the loan amount, the early payoff fee can take a hefty bite out of your finances. Fortunately, Happy Money and many other lenders do not charge you for paying off your loan early.
How Happy Money Compares to Other Lenders
Each lender can have different personal loan rates, loan amounts and other features, so it’s important to compare and shop around for the best deal.
Like Happy Money, LightStream offers personal loans for credit card debt consolidation. But you can borrow much more from LightStream — up to $100,000 — and use loan funds for many reasons, such as remodeling your home, medical expenses, a wedding and more. LightStream also offers much lower interest rates. While Happy Money serves borrowers with fair credit, you’ll likely need good to excellent credit to qualify for a LightStream loan.
Happy Money and SoFi provide personal loans to help you pay off high-interest credit card debt. You can likely get lower rates with SoFi (which ranges from 8.99% to 25.81%), especially with good credit. If you don’t have good credit, SoFi lets you apply with a co-borrower who can help you qualify for better loan terms. And while Happy Money charges an origination fee, SoFi has no fees and offers multiple discounts and perks for its clients.
You can prequalify with Happy Money and PenFed Credit Union without a hard credit check. PenFed offers lower rates with no origination fees for debt consolidation and many other expenses. You can also get your money much faster with PenFed — one to two business days after approval. You must be a member of the PenFed Credit Union to accept the loan.
The Bottom Line
A personal loan from Happy Money could be a sound option if you have fair credit and want to pay off credit card debt. Happy Money’s payoff loan can go directly to your credit card or bank account. However, its interest rates are higher than many other lenders, and several customers have shared their challenging experiences applying for a loan and managing their accounts.
To find the best personal loan, look for lenders with low interest rates and few or no fees. Flexible loan terms and a highly rated customer service team also go a long way toward making your repayment journey much smoother. If you can’t qualify for an affordable loan on your own, look for lenders who allow co-signers or co-borrowers to help strengthen your application.
How We Rate Happy Money Personal Loans
Our team put together a comprehensive 100-point rating system to evaluate personal loan companies. We gathered data points from 28 of the most prominent lenders in the U.S. and analyzed disclosures, licensing documents, sample loan agreements, marketing materials and websites. Our rating system takes into account four broad categories.
- Affordability (35%): How expensive each company’s loans are to pay back.
- Loan features (35%): The breadth of loan terms and features available to prospective customers.
- Customer experience (20%): Ease of application, prequalification and customer service interactions.
- Company reputation (10%): An exploration of lenders’ Better Business Bureau files, customer reviews and outstanding regulatory actions.
| Affordability | 30/35 |
| Loan features | 19/35 |
| Customer experience | 16/20 |
| Company reputation | 10/10 |
| Total | 75/100 |
Our top-rated lenders may not be the best fit for all borrowers. To learn more, read our full personal loans methodology.
Frequently Asked Questions About Happy Money Personal Loans
Happy Money looks for a minimum credit score of 640, but it also considers other factors such as your DTI ratio, the age of your oldest account and how much of your available credit you use. You can check your credit score with any of the three major credit bureaus, Transunion, Experian and Equifax, to see where you stand and correct any credit report errors if necessary.
Happy Money, like other personal loan lenders, will look at your FICO score, income and other factors to see how likely you are to repay the loan to determine your eligibility. Happy Money requires a credit score of 640 or higher. If you only have fair credit, it may be easier to meet Happy Money’s loan terms compared to a lender with a higher credit score requirement — although final approval is not guaranteed on this factor alone.
Happy Money does not list a required income on its website but will likely review your DTI ratio, which compares how much you pay in debt payments to how much you earn. The idea is to make sure you’re not taking on more than you can afford if you add a personal loan.
Happy Money can take three to seven business days to review and approve your loan application. The time it takes to get a decision can depend on how quickly and accurately you complete the application and how soon you respond to any follow-ups. However, some customers cite delays even after responding quickly to the lender’s requests.
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
If you have questions about this page, please reach out to our editors at editors@marketwatchguides.com.