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Happy Money Personal Loans Review: Ideal for Consolidating High-Interest Debt

Review Updated
Dana George
Dana George
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Steven Porrello
Steven Porrello
Nathan Alderman
Fact Checked: Nathan Alderman
Nathan Alderman
Nathan Alderman
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Nathan Alderman has been a full-time Motley Fool employee since 2005, making errors his arch-enemies in a variety of roles including a six-year stint as the dedicated fact-checker for The Motley Fool's premium newsletter services. As Motley Fool Money's Compliance Lead, he makes sure that all the site's information is accurate and up to date, which ensures we always steer readers right and keeps various financial partners happy. A graduate of Northwestern University's Medill School of Journalism, Nathan spends his spare time volunteering for civic causes, writing and podcasting for fun, adoring his wife, and wrangling his two very large young children.

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A Happy Money personal loan might be for you if you have fair to good credit and would benefit by paying off high-interest credit card debt. In our complete Happy Money review, we'll explore the great things about a Happy Money loan and features that could be improved.

Happy Money
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Happy Money

Great for: Reducing high-interest credit card debt

Check Rates for Happy Money

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Rating image, 4.5 out of 5 stars.
4.5/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Check Rates for Happy Money

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Minimum Credit Score
640
Loan Amounts
$5,000 - $40,000
APR Range
11.72% - 17.99%; 12.45% min. APR for loans over $15,000
Term Length
24 - 60 months

Happy Money provides loans to help pay off costly debt while improving your FICO® Score. Qualified borrowers can enjoy competitive rates and flexible payoff options with terms of up to five years. Although funding may take longer than with some competitors and origination fees may apply, we appreciate that there are no application, early payment, late, or check-processing fees.

  • Low APRs
  • Long loan terms
  • No hidden fees
  • Access to free credit scores
  • High minimum loan amount
  • Loans not available in Iowa, Massachusetts, or Nevada

Compare the best personal loans

Get the best rates and terms to fit your needs. Here are a few loans we'd like to highlight, including our award winners.

Lender APR Range Loan Amount Min. Credit Score Next Steps
Fixed: 8.99%-29.99% APR (with all discounts)
$5,000 - $100,000
680
7.99% - 24.99%
$2,500 - $40,000
660
6.70% - 35.99%³
$1,000 - $50,000¹
300

Full Happy Money review

At 17.99%, Happy Money's highest interest rate is lower than the average credit card interest rate, making it possible to save money.

Borrowers must pay an origination fee based on the loan amount, term, and credit score.

A Happy Money loan could be good for anyone with a fair to good credit score who needs to get out from under more expensive debt. Meanwhile, borrowers with excellent scores could snag a lower interest rate on a personal loan through another lender.

Opinions from across the web

Here's what actual borrowers of Happy Money have to say about their experience.

What social media says

Borrowers report being happy with the process, giving the lender 4.3 stars out of 5.

They mentioned how easy the application process was, the thrill of being on track to becoming debt-free, and excellent customer service. Most borrowers appear to have used their loans to consolidate higher-interest debt.

In terms of complaints, one borrower complained that it took too long to fund the loan and that they paid an excessive origination fee. However, it's possible the slow funding time one borrower complained about was the exception, as other borrowers say they received their money relatively fast.

What other review websites say

Average review site rating: 4.1 / 5.0 stars

We looked at five top review sites to learn more about what they think of Happy Money. Overall, other reviewers liked Happy Money, but we found some complaints in common. All reviews saw the origination fee as a negative and wished loans were available in all states. Other review sites commended Happy Money for letting borrowers complete the entire loan process online and for paying their current creditors directly to save borrowers the hassle.

Other review sites differed from our assessment in a few ways. One reviewer complained that Happy Money loans are only for credit card payoffs. We consider debt consolidation a good use of a personal loan. Another did not appreciate that loan proceeds can take three to six days to receive. Unlike a flooded basement or broken-down car, we think loan payout timing is less crucial for credit card payoffs.

What we love about Happy Money Personal Loans

While no lender is right for everyone, here's why Happy Money could be the right choice for many.

Low APRs

Happy Money's APRs are among the lowest personal loan rates for borrowers with fair to good credit scores. The APR is likely to be much lower than the interest rate on your credit card. Happy Money is able to keep its interest rates low by accepting highly qualified borrowers and thus minimizing risk to itself.

Happy Money requires borrowers to have a higher FICO® Score than many other lenders, as well as a lower debt-to-income ratio than other lenders. Still, highly qualified borrowers are likely to find a lower interest rate from another lender.

Long loan terms

Happy Money's loan terms range from 24 to 60 months. Borrowers can pick a repayment term long enough to give them some breathing room in their budgets. The longer the loan term, the lower the monthly payment but the more interest is paid overall. The shorter the loan term, the less interest a consumer ends up paying.

No hidden fees

Happy Money only charges one fee: an origination fee of between 0% and 5% of the loan amount. In fact, it's eliminated fees that some other lenders cling to, like late fees, prepayment fees, and returned-check fees.

Free FICO® Scores

If you accept a loan from Happy Money, you'll get access to a free FICO® Score that updates once per month. Access to your FICO® Score is valuable, as it allows you to keep track of the three-digit number used by lenders to determine your creditworthiness.

As you pay down credit card debt, you'll likely see an improvement in your score since you'll lower your credit utilization ratio. Many free credit scores you find online are just simulations or approximations of your true credit score.

What Happy Money could improve

Here are two Happy Money features that could be improved.

Minimum loan amount

With a minimum loan amount of $5,000, a Happy Money loan is not the right fit for someone looking to borrow a smaller amount.

Not available in every state

Borrowers in Iowa, Massachusetts, and Nevada will have to look elsewhere for a loan.

How to qualify for a Happy Money loan

Happy Money is very clear about the types of borrowers likely to get approved for one of its loans. Here are the basic Happy Money requirements:

  • Credit score of at least 640
  • Healthy debt-to-income (DTI) ratio (under 50%)
  • Three years or more of good credit history
  • No more than one outstanding installment loan
  • No current delinquencies and no delinquencies greater than 90 days in the past 12 months

Application process

The personal loan application process with Happy Money is simple. It works like this:

  1. Fill out an online form to find out your interest rate. Because it's a soft credit check, it doesn't impact your credit score.
  2. If you're happy with the interest rate, select the offer that works best for you, including how long you want to repay the loan, and finish your application.
  3. Review the terms, verify your information, and sign the loan documents electronically.
  4. Funds are electronically deposited into your account.

Is a Happy Money Personal Loan right for you?

Deciding whether to take out a personal loan is highly personal, depending on your specific needs. However, it may be right for you if:

  • You want to pay off credit card debt. Happy Money is solely interested in borrowers who want to use their loans for debt consolidation.
  • You need more time to pay off your balances. Happy Money personal loans are designed for people who need more than two years to pay off high-interest debt. If you have a modest amount of debt that you can repay over the course of a year, a balance transfer card may be a better solution. The best balance transfer cards offer a 0% intro APR for 12 to 18 months.
  • You have a relatively high credit score and a reasonable DTI. Happy Money generally requires a FICO® Score of 640 or higher and a debt-to-income ratio of 50% or less. It isn't designed for people who have a lot of late payments or other major negative marks on their credit reports.

FAQs

  • Yes, Happy Money is a legitimate company that's headquartered in California. It offers personal loans to people with good credit.

  • When you apply for a loan, Happy Money performs a hard credit check. When you're getting a quote, however, Happy Money performs a soft inquiry, which will not hurt your credit.

  • In part, your credit score helps determine how much you'll pay in interest and origination fees. The higher your credit score, the less you're likely to pay for the loan.