Who Is Happy Money Best For?
Happy Money is best for borrowers with fair to good credit who want to pay off existing credit card debt. Because Happy Money loans are only available for credit card consolidation, the platform is not a viable option for consumers who need to finance large purchases or otherwise cover unanticipated expenses.
That said, the platform does offer a number of credit score improvement tools, making it a good option if your credit score doesn’t qualify you for a more flexible loan and your focus is on building your credit profile. Plus, consolidating multiple credit card debts streamlines monthly payments and may reduce overall interest payments.
Happy Money loans are not currently offered in Massachusetts or Nevada, so residents of those states should look elsewhere for debt consolidation loans.
Happy Money Personal Loan Purposes
| Permitted uses | Prohibited uses |
|---|---|
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Credit card consolidation
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Home improvements
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Large purchases
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Emergency expenses
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Happy Money Personal Loan Details
Loan Amounts & Terms
- Loan amounts. In most states, Happy Money credit card consolidation loans are available in amounts from $3,000 to $40,000. However, the minimum loan amounts vary in New Mexico ($5,100) and Maryland ($6,100).
- Loan terms. Qualified borrowers can choose from loan terms between two and five years—or 24 and 60 months.
Personal Loan Costs
- APR. Happy Money’s lending partners offer borrowers APRs between 11.72% to 17.99%. Rates are ultimately based on the applicant’s credit score, credit usage, credit history, state of residence and loan amount and term.
- Origination fees. Happy Money charges borrowers origination fees between 0% and 5% of the total loan amount. These fees help the platform cover the costs of processing applications, and are subtracted from the loan amount when funds are issued.
- Late fees. Happy Money does not charge borrowers any late fees.
- Returned check fees. Likewise, borrowers aren’t charged any check processing or returned check fees.
- Prepayment penalty fees. Borrowers can pay off their Happy Money loans early without incurring any prepayment penalties.
Perks & Features
- Flexible payment dates. Happy Money borrowers can change their payment due date once every 12 months by accessing their Member Account online.
- Increased FICO Score. On average, Happy Money borrowers who pay off at least $5,000 of their credit card balances see a 40+ point increase in their FICO Score.
- Free FICO Score updates. Happy Money borrowers receive free, monthly FICO Score updates.
- Member Experience Team. Current and prospective borrowers can contact Happy Money’s Member Experience Team via phone, seven days a week. Member Advocates are also available via email and through Happy Moneyy’s online chat tool. Keep in mind, however, that some customer reviews reflect issues with Happy Money‘s customer support.
How to Qualify for a Happy Money Personal Loan
Personal loan applications are approved or declined based on a number of factors. All lenders have their own unique underwriting requirements, but these typically include information from an applicant’s credit profile and other factors that demonstrate the ability to repay the loan, such as income.
Happy Money’s review process is more holistic than competitors and considers factors like behavior, liabilities, income, assets and psychology. That said, meeting the requirements below won’t guarantee approval, but they can help you decide if a personal loan is the right fit for you.
Credit Score Requirements
Applicants must have a FICO Score of at least 640 to qualify for a Happy Money personal loan. What’s more, borrowers must not have any current delinquencies on their credit reports to qualify. This means otherwise qualified borrowers with a fair credit score may be able to consolidate their credit card debt using a Happy Money loan.
Additional Credit Factors
In addition to looking at a prospective borrower’s credit score and income, Happy Money evaluates several other factors. These factors include:
- Age of credit history. Happy Money looks at how long each applicant has been using credit going all the way back to their first line of credit. Qualified borrowers must have at least three years of credit history.
- Utilization. Credit utilization is the ratio of a borrower’s outstanding credit balances to their overall credit limit; it may also be referred to as an applicant’s debt-to-credit ratio. While Happy Money looks at an applicant’s credit utilization rate, there is not a specific utilization requirement.
- Open and satisfactory trades. A borrower’s open and satisfactory trades are the number of credit lines they have that are currently open and being paid on time. Happy Money reviews these trades to evaluate the risk posed by each applicant.
Income Requirements
Happy Money looks at an applicant’s debt-to-income (DTI) ratio when evaluating their creditworthiness. However, the lending platform does not impose a maximum DTI requirement for approval. Instead, Happy Money looks at applicants more holistically based on other borrower characteristics.
Co-signers and Co-applicants
Happy Money does not offer joint applications. This means that a prospective borrower may only include their personal annual gross income when applying for a loan. What’s more, Happy Money loan funds may only be used to pay off credit card balances on the borrower’s personal credit report—not those belonging to others.
How to Apply for a Happy Money Personal Loan
Applying for a personal loan typically involves prequalifying for a rate, submitting a formal application and awaiting loan approval. Follow these steps to apply for a Happy Money personal loan:
- See what rate you’re likely to qualify for. Happy Money makes it easy to see what rate you’re likely to qualify for with its rate checking tool. Just click on “Check My Rate” on the Happy Money homepage—or choose “I Have an Invite Code” if you already received a prequalification letter. This rate check does not require a hard credit inquiry and you won’t be charged any application fees.
- Choose loan terms. Once you provide basic information, select a loan offer based on your preferred terms between two and five years.
- Provide additional information for verification. Beyond the information you provide as part of the loan application, you may be required to provide a copy of your driver’s license, passport or other state-issued ID. It may also be necessary to verify your income with your two most recent pay stubs and your most recent full bank statement.
- Await loan approval. Once you provide the necessary documentation, it takes between three and seven business days for Happy Money to verify all of the relevant information. Keep in mind, however, that this process can take more or less time depending on your unique circumstances.
- Receive loan funds. If you intend to use loan funds to pay off credit card balances yourself, the proceeds are typically deposited into the designated account within two to five business days. Alternatively, you can have the loan funds directly applied to your credit balances.
- Start making payments. Payments are automatically withdrawn from the checking account you designate during the application process. Funds are withdrawn once a month based on the date identified on your promissory note. This document can be reviewed online in your account, and you may change the date once every 12 months.
Time to Receive Funds
Most approved loans are funded within two to five business days after the verification process is completed.
Customer Reviews
There are roughly 175 reviews of Happy Money available on Trustpilot, giving the platform an overall 4.5-star rating. Many reviews mention its excellent customer service and hassle-free application process.
How Happy Money Personal Loans Stack Up
The best personal loans offer competitive rates, flexible loan amounts and a wide range of terms. Here’s how Happy Money personal loans stack up against other popular lenders:
Happy Money Vs. SoFi®
The most significant difference between Happy Money and SoFi is that SoFi loans can be used for a wide range of personal uses whereas Happy Money loans are limited to credit card consolidation. And, while Happy Money and SoFi offer the same minimum loan amount, SoFi offers loans up to $100,000—twice what’s available through Happy Money.
APRs through SoFi range from 8.99% to 29.99% (with autopay), while Happy Money rates reach almost 18%. What’s more, SoFi does not require origination fees and Happy Money’s origination fees may be up to 5% of the total loan amount.
Related: SoFi Personal Loans Review
Happy Money Vs. LightStream
LightStream personal loans are extremely flexible because they can be used for numerous purposes and are available from $5,000 to $100,000, depending on the loan purpose. In contrast, Happy Money loans are limited to credit card consolidation and only go up to $40,000.
LightStream’s APRs are also more competitive than those offered through Happy Money, (for some loan purposes) 6.99% to 25.49%. Prospective borrowers can also choose from a more extensive range of loan terms between two and 12 years, depending on the loan purpose.
That said, LightStream has more stringent qualification requirements, whereas Happy Money may be available to borrowers with a FICO Score of just 640. Qualified LightStream borrowers, however, don’t have to pay origination fees like those levied on Happy Money loans.
Related: LightStream Personal Loans Review
Happy Money Vs. Upgrade
Upgrade offers a slightly expanded loan range compared to Happy Money with personal loans available from $1,000 to $50,000. However, while Upgrade’s base APRs are similar to Happy Money’s, the APR is 8.49% to 35.99% versus the rate imposed by Happy Money of 11.72% to 17.99% APR.
Even so, borrowers can access a much more extensive range of loan terms (two to seven years) than what’s available through Happy Money, and the minimum credit score requirement is slightly lower at 580.
Related: Upgrade Personal Loans Review
1
Happy Money Personal Loans
$5,000 to $40,000
11.72% to 17.99%
640
2
SoFi®
$5,000 to $100,000
8.99% to 29.99% with autopay
650
3
LightStream Personal Loans
$5,000 to $100,000
7.49% to 25.49% with autopay
660
4
Upgrade Personal Loans
580
8.49% to 35.99%
$1,000 to $50,000
Methodology
We reviewed Happy Money based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We rated Happy Money based on the weighting assigned to each category:
- Loan cost: 35%
- Loan details: 20%
- Eligibility and accessibility: 20%
- Customer experience: 15%
- Application process: 10%
Within each category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges and applicable fees. We also looked at credit score requirements, whether the lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated Happy Money’s support tools, borrower perks and features that simplify the borrowing process—like prequalification options and mobile apps.
To learn more about how Forbes Advisor rates lenders, and our editorial process, check out our Loans Rating & Review Methodology.
