Couple excited about accepting their Happy Money personal loan.

Happy Money Personal Loans Review [2024]: Pros and Cons

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You’re driving to work, and suddenly your car comes to a grinding halt. You take it to the mechanic and call your boss to explain the situation.

The mechanic says that repairs will cost a few thousand dollars. But, like most Americans, you may only have around 2% of your income in savings.

You need a car to get to work and make money. So, what are you going to do? 

Let me introduce Happy Money personal loans.

Happy Money allows members to borrow up to $40,000! 

Keep reading for my Happy Money personal loans review. I’ll cover everything you need to know about this trusted online lender. 

What You Need to Know About Happy Money Personal Loans 

Illustration of Happy Money personal loans review online dashboard
Happy Money offers The Payoff Loan which was created to help people consolidate credit card debt.
Source: Happy Money

Happy Money is an online personal loan lender specializing in what they refer to as ‘The Payoff Loan,’ which is focused on credit card debt consolidation. 

Users can borrow between $5,000 and $40,000 at an interest rate of 7.99% to 29.99%.

Happy Money recently did a study and found that “Members, who paid off at least $5,000 in credit card balances, saw an average increase in their credit score of 40 points within four months of receiving a Payoff Loan.” 

So, if you want to use a personal loan to consolidate debt and increase your credit score, Happy Money is an excellent option! 

But remember, Happy Money isn’t currently available in Massachusetts or Nevada.

How to Qualify for a Happy Money Personal Loan

When I was doing research to create this ​​Happy Money personal loans review, I found the exact criteria they use to approve or deny applicants.

In other words, if your application is denied, it’s likely because you’re not meeting one of these six requirements:

  1. A minimum credit score of 640 
  2. No credit delinquencies
  3. A low debt-to-income ratio
  4. A lengthy credit history
  5. Existing loans in good standing
  6. Low credit utilization 

1 – A Minimum Credit Score of 640

Happy Money requires a credit score of at least 640 before approving your personal loan.

You can create a Happy Money account to check your credit score, and they’ll even provide free credit score updates. 

If you have bad credit, focus on paying off your credit cards or any loans you currently have. 

If you need help fixing your credit, check out our comparison of Credit Saint vs Lexington Law, or see if working with the best tradeline companies could be the right credit repair solution for you. 

Meanwhile, learn how to budget for non recurring expenses so you can be prepared for unexpected costs going forward. 

2 – No Credit Delinquencies

Another thing to watch out for is any credit delinquencies. Delinquencies show up on your credit history report when you have payments that are past due. 

This will count against you in the application process, so Happy Money suggests solving any delinquencies prior to applying to give yourself the best chance of success.

3 – A Low Debt-To-Income Ratio

Your debt-to-income ratio, as it’s a reliable measurement of how much you can realistically afford every month.

So if you have a lot of debt, say a car loan, credit cards, personal loans, and payday loans, try settling a few of them before applying. 

This will free up a portion of your monthly income, which shows Happy Money that you can take on more debt.

4 – A Lengthy Credit History

Generally, longer credit history looks best on loan applications. 

The age of your credit history takes into account both the first time you accessed a line of credit and your most recently opened line of credit. 

5 – Existing Loans In Good Standing

Having a few lines of credit open and in good standing can increase your approval rate. 

This demonstrates to potential lenders that you’re able to handle loans responsibly. 

6 – Low Credit Utilization 

Credit utilization refers to the available credit you have compared to your current balances. 

For example, if you qualify for $10,000 and use $1,000, your credit utilization is 10%.

It’s best to keep your credit utilization below 30% because it’ll show Happy Money and other lenders that you don’t rely on credit or spend beyond your means. 

How to Apply for a Happy Money Personal Loan

Happy Money personal loans aim at helping consumers stress less and consolidate their debt.
Happy Money personal loans focus on helping people pay off existing credit card debt
Source: Happy Money

I’ve included my three-step guide in this Happy Money personal loans review to help you qualify for a Happy Money loan in no time:

  1. See what you prequalify for
  2. Choose the loan that suits you
  3. Repay your loan

Step 1 – See What You Prequalify For

To sign up for a Happy Money personal loan, head to the Happy Money homepage and click on the “Check My Rate” button. 

You’ll have to enter your full name, date of birth, and the amount of money you’re looking to borrow. 

Happy Money will run a soft credit check and then give you potential loan options. Then, you can review interest rates, possible fees, and terms and conditions.

If you don’t qualify or the loans have high-interest rates, I recommend taking a step back and reevaluating your current situation. 

Maybe your credit card balance is overdue, or your credit score recently took a hit. Find out what the problem is, focus on improving, and apply again.

Step 2 – Choose The Loan That Suits You

Once you’ve reviewed your loan options and picked one that suits your lifestyle best, you can submit a formal loan application.

Happy Money conducts a hard credit check during the approval process. This process takes around seven business days to verify your identity, income, and credit score. 

If more information is needed, the Happy Money team will contact you. So, be sure to check your email inbox and spam folders regularly. The sooner they can verify your information, the sooner you can get your loan!

Once Happy Money approves your account, you’ll receive your funds within three to six business days. 

Step 3 – Repay Your Loan

Once you’ve received your personal loan, it’s time to make payments.

This is relatively easy since Happy Money utilizes autopay, so they’ll withdraw money from your account on the due date every month.

If you prefer to make payments manually, keep in mind that Happy Money doesn’t accept same-day payments. All payments are processed in one or two business days. So to play it safe and ensure you aren’t late, I recommend submitting your monthly payment at least two business days before it’s due.

Is Happy Money Legit?

Happy Money is a legit online personal loan lender. 

They have been featured in Harvard Business Review, The New York Times, and CNBC.

Happy Money has been in business since 2009 and provided over 285,000 people with over $5.2 billion in personal loans.

Is Happy Money Safe?

Happy Money is a safe and secure online lender. 

They utilize the same technology that large banks use to protect customers. This technology is certified by cybersecurity firms like McAfee and Norton.

Happy Money realizes that you provide them with sensitive information such as account details and Social Security numbers. So they implement 256-bit encryption to protect your data. 

You can rest assured that your private information is safe with Happy Money.

Pros and Cons of Happy Money Personal Loans

Pros Cons 
No late or hidden feesHappy Money doesn’t accept same-day payments
Users choose their monthly payment ‘payoff’ datesNot available in Massachusetts or Nevada
Free credit score checker Origination fees can go up to 5%

Happy Money Reviews

Most Happy Money reviews are positive, with customers complimenting the easy signup and lending process.

For instance, customer Hilary’s Happy Money personal loans review praised her personalized and streamlined customer experience.

Positive Happy Money personal loans review from customer who found the lending process to be seamless.
This Happy Money personal loans review says that the process of getting a loan is seamless.
Source: Trustpilot

Another Happy Money personal loans review by member Nadine mentioned a similar experience. She experienced zero hiccups during the application, processing, and funding process.

Happy Money personal loans review from user who found the process to be fast and painless.
Member Nadine likes that Happy Money offers quick and easy lending.
Source: Trustpilot

If you’re looking to consolidate debt, you’ll be glad to know that if you meet the minimum requirements, you should be able to reduce your interest rate. 

A good example of this is a Happy Money personal loans review by user Olanrewaju, who was able to reduce their interest rate from 23.99% to just 5.99%!

Happy Money personal loans review from member who was able to bring her interest rate down to 5.99%.
This Happy Money personal loans review by Olanrewaju shows it’s a handy option if you want to consolidate debt.
Source: Trustpilot

While some consumers love the low-interest rates, not everyone can qualify for them. Like most lenders, Happy Money uses your credit score and debt-to-income ratio, amongst other factors, to calculate your interest rate.

For example, Sue didn’t like that she had good credit but could only qualify for a 17.9% interest rate.

Happy Money personal loans review from customer who was unhappy with her proposed interest rates.
Happy Money doesn’t always offer the interest rates you might be looking for.
Source: Trustpilot

But it’s reassuring to see that Happy Money reached out to Sue and offered to chat.

Commonly Asked Questions About Happy Money Personal Loans

Alternatives to Happy Money Personal Loans?

Here are the top alternatives to Happy Money personal loans:

Does Happy Money Offer Medical Loans?

Happy Money doesn’t provide medical loans. Instead, they specialize in credit card debt consolidation, which helps consumers pay off their credit cards faster.

Does Happy Money Do a Hard Pull?

For prequalification, Happy Money conducts a soft credit inquiry. But when you submit a formal loan application, Happy Money will do a hard pull credit check to verify that all the information you provided is correct.

How Long Does Happy Money Take to Send Money?

Happy Money typically sends personal loan money within three to six business days. 

What Bank Does Happy Money Use?

Happy Money works with several credit unions (not banks) to provide members with personalized loan options. These credit unions include Alliant, Blue, Cross River, First Tech, and more!

Who is Happy Money Best For?

Happy Money is best for people looking to consolidate their credit card debt. They offer custom personal loans with interest rates usually below what you’d pay a credit card company. This way, you can streamline credit card payments and save money on interest.

Does Happy Money Affect My Credit?

Happy Money runs a hard credit check when approving your account, so it’ll temporarily lower your credit score. However, consistently making payments on time will show future lenders that you’re a responsible borrower and help build your credit.

What Credit Score Do You Need for Happy Money?

Happy Money requires a minimum credit score of 640. But it considers other factors, too, such as your debt-to-income (DTI) ratio, existing loans, credit utilization, and any delinquencies on your credit report.

How Long Does Happy Money Take to Approve Loan? 

It takes Happy Money around seven business days to approve an applicant. During this time, they’ll run a hard credit check and confirm that everything you provided in the pre-qualifying stage is correct.

Happy Money Loan Requirements?

To qualify for a Happy Money personal loan, you must be 18 years or older, hold a valid checking account, and have a Social Security number. Your credit score must also be higher than 640, and you can’t have any delinquencies on your credit report.