Happy Money personal loans review: A good option for debt consolidation, no late fees and more

If you have high-interest credit card debt, consolidating it with a personal loan can give you a simpler, more structured repayment plan and potentially help you save some money along the way.

Happy Money offers a personal loan specifically for this purpose. If you have decent credit, a Payoff loan with Happy Money can help you achieve your goal to become debt-free.

Happy Money overview

Happy Money, formerly Payoff, was launched in 2009. Unlike other personal loan companies, which offer financing for a variety of purposes, Happy Money specializes in credit card consolidation. In fact, that’s the only approved purpose of the loan.

The company doesn’t originate loans, rather it works with 10 partner financial institutions, primarily credit unions, to offer its loans.

How to qualify for a Happy Money personal loan

Happy Money offers consolidation loans in 48 states, excluding Massachusetts and Nevada. The company doesn’t provide a comprehensive set of eligibility criteria, but it does list a minimum credit score of 640. It also specifies that you can’t have any current delinquencies on your credit reports.

Other factors partner lenders consider include:

  • Debt-to-income ratio.
  • Age of credit history.
  • Open and satisfactory tradelines (other credit accounts).
  • Credit utilization.

Unfortunately, the lender does not allow co-signers, so if you can’t get approved or qualify for a low interest rate on your own, you may have better luck with a lender that allows co-signers.

How to apply for a Happy Money personal loan

Before you apply, Happy Money allows you to get a rate quote with a soft credit check, which won’t impact your credit score. You’ll start by providing your

  • Name.
  • Date of birth.
  • Address.
  • Phone number.
  • Annual income.
  • Housing payment.
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You’ll be asked to create an account using your email address and a password. Happy Money will use your credit reports to estimate how much you need to borrow based on current balances. Enter your desired loan amount, and you’ll be able to view your offers.

If you select an offer, you’ll provide more information to verify your employment and income and other details before you submit your official application. Note that you may need to provide additional documentation.

If you’re approved, you’ll be asked to log in to your account and e-sign the loan documents. Once you’ve completed the process, the loan proceeds will be deposited into your bank account within three to six business days. Alternatively, you can ask the company to pay off your balances directly.

If you can pay off your debt before your term is up, it could save you money. Find out if paying off a personal loan early makes sense for you.

Pros of a Happy Money personal loan

  • Offers direct payoff: While you can request to get the loan funds in your bank account, Happy Money also offers direct payoffs, making the consolidation process go more smoothly.
  • Transparent eligibility requirements: Not all personal loan companies are clear about minimum requirements to qualify, and while Happy Money doesn’t give specifics about everything, the information it provides can give you a good idea of whether you’ll get approved. You can get pre-qualified without a hard credit check if you’re still unsure.
  • No late fee: None of Happy Money’s partner lenders charges a late fee or a returned payment fee. If you do miss a payment, though, just make sure to get caught up before the 30-day mark to avoid damage to your credit score.
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Cons of a Happy Money personal loan

  • Charges an origination fee: You may be charged an origination fee of up to 5%, which the company will deduct from your loan amount. This may require you to borrow more money to cover the fee and your credit card balances. If your credit is in great shape, you may be able to qualify for a loan with a lender that doesn’t charge an origination fee.
  • Limited use: If you want a personal loan for another reason, you’ll need to seek financing elsewhere.
  • No co-signers allowed: If your credit score is less than stellar, you may still be able to get approved for a loan. But if you can’t get a lower interest rate than what you’re currently paying, or your application gets denied, you may be able to apply with a co-signer with a different lender.

Happy Money perks and special features

As you consider your options for consolidation, here are some other features Happy Money offers.

Savings and discounts

Happy Money doesn’t offer any discounts, but depending on your current credit card interest rates, you could earn big savings with a lower-rate Payoff loan.

Terms and repayment plans

Happy Money offers loans ranging from $5,000 to $40,000, though minimums can vary by state.

Depending on how much you borrow and your desired monthly payment, you may be able to choose a repayment term between two and five years.

Change payment due date

Every 12 months, you can change your monthly due date, allowing you to align your payment with your budget priorities.

How Happy Money could improve

No lender is perfect, and Happy Money is not an exception. The company offers consumers an opportunity to pay down high-interest debt, but there are some areas where it can better serve its customers.

Decide on a loan? Estimate how much you’ll pay each month with this personal loan calculator.

Allow co-signers

Many people who are struggling with credit card debt may have trouble qualifying for a consolidation loan due to high balances and possibly even missed payments. Not having the option to apply with a creditworthy co-signer limits opportunities to help people improve their financial situation.

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Offer more uses

Happy Money could appeal to more consumers by allowing them to use its personal loan for more than just debt consolidation.

Drop the origination fee

It’s unclear who gets charged an origination fee and who doesn’t, but plenty of lenders, even with similar eligibility requirements, don’t charge an upfront origination fee. If someone has good credit, they should avoid lenders that do charge one.

Happy Money customer service and reviews

If you have questions about the Payoff loan, you can peruse the company’s online help center for answers. Alternatively, you can call or email the customer support team.

The team is available Monday through Friday from 6:00 a.m. to 6:00 p.m. PT and on Saturday from 6:00 a.m. to 2:30 p.m. PT.

The company has an A+ rating with the Better Business Bureau (BBB) and a rating of 4.2 out of 5 stars across more than 357 reviews on Trustpilot.

The Consumer Financial Protection Bureau (CFPB) received just 27 complaints about Happy Money in 2022, mostly involving incorrect information on credit reports and problems with making payments. The company gave a timely response in 25 cases and has closed 26 of them with an explanation.

Happy Money alternatives: Happy Money vs. Upstart vs. Best Egg

It’s crucial to compare personal loans before you settle on a personal loan. Upstart and Best Egg are two other online personal loan lenders that may offer lower interest rates, faster loan funding and more flexibility with how you use your funds.