Happy Money personal loan review — good loans to dig out of debt

When you're deep in credit card debt, sky-high interest rates can make it tough to dig yourself out. But the right personal loan can give you a lower interest rate and fixed monthly payments to help get you back into the black.

Happy Money offers a quick, easy application process for qualified borrowers looking to consolidate their debt. Happy Money also gives users access to free tools to improve their FICO scores, and it offers free personality tests and stress assessments so borrowers can better understand how their financial and lifestyle choices are truly impacting their wallets.

Happy Money lets qualified borrowers take out loans between $5,000 and $40,000. It generally takes three to seven business days to get approved. After you're approved, you'll receive the funds as a direct deposit to the checking account you provided in your application.

Happy Money's Payoff Loan™ helps borrowers consolidate (and hopefully eliminate) their existing debt. With a debt consolidation loan, you'll apply for a loan that's equivalent to the total amount of debt you're trying to pay off across multiple creditors.

Usually, the lender of the debt consolidation loan directly pays your creditors, leaving you responsible for paying just a single loan. This not only simplifies your financial life, but if the interest rate on the debt consolidation loan is lower than the rates you were paying on your other debts, you'll also save some money.

Term lengths

Happy Money loan terms range from 24 to 60 months.

APR

Happy Money APRs range from 8.95% - 29.99%. Interest rates are determined based on factors including your credit score and income. The total amount borrowed and term length also affect the APR you're offered.

Pros

• Offers Free FICO^® Score updates every month so you can see your progress and monitor any changes
• Doesn't charge application fees or prepayment penalties
• Doesn't charge returned check fees, check processing fees or an annual fee
• You can check what rate you'll receive without hurting your credit score

Cons

• Charges an origination fee
• The origination fee is based on your loan amount, terms and credit so it isn't the same for every borrower

Interest rates on a Happy Money loan range from 8.95% - 29.99%. However, you will receive a minimum rate of 12.45% if you apply for a loan of $15,000 or more.

Happy Money charges an origination fee that ranges from 1.5% to 5.5%, depending on your loan amount, loan term and credit and a $25-$35 late fee.

Other than that, Happy Money doesn't charge any application fees or prepayment penalties.

Here's how Happy Money stacks up against two other major personal loan lenders on the market.

Happy Money vs. LightStream

Happy Money and LightStream both offer debt consolidation loans to help borrowers get out of debt faster. Happy Money has a funding limit of just $40,000 whereas LightStream lets borrowers apply for as much as $100,000.

Additionally, LightStream has loan terms that range from 24 to 240 months, depending on the loan purpose — some of the longest repayment terms available. Happy Money's loan repayment terms last up to 60 months.

LightStream also doesn't charge an origination fee, unlike Happy Money.

Happy Money vs. Upstart

Upstart has a slightly higher funding limit compared to Happy Money — Upstart borrowers can apply for as much as $50,000. Upstart also caters to borrowers with lower credit scores and even those with insufficient credit history. Happy Money, though, requires a minimum credit score of at least 640.

On the flip side, though, Upstart's loan origination fee can potentially be much higher than Happy Money's. Upstart's origination fee ranges from 0% to 12% while Happy Money's ranges from 1.5% to 5.5%.

Also, Upstart charges a late payment fee (5% of last amount due or $15, whichever is greater)

As with any other form of credit, applying for a Happy Money personal loan may temporarily lower your credit score since lenders perform a hard inquiry on your credit.

However, as you continue to make on-time payments toward the loan each month, your credit score should recover since payment history makes up 35% of your credit score.

To apply for a Happy Money personal loan, you can go onto their website and submit an online application. You'll need to provide some basic information like your name, address and contact information and submit your information for a credit check.

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To determine which personal loans are the best for refinancing debt, Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks, including large credit unions. When possible we chose loans with no origination or sign-up fees, but loans for debt payoff and/or debt consolidation might charge fees typically ranging from 0% to 12% APR.

When narrowing down and ranking the best personal loans, we focused on the following features:

• Fixed-rate APR: Variable rates can go up and down over the lifetime of your loan. With a fixed rate APR, you lock in an interest rate for the duration of the loan's term, which means your monthly payment won't vary, making your budget easier to plan.
• Flexible minimum and maximum loan amounts/terms: Each lender provides more than one financing option that you can customize based on your monthly budget and how long you need to pay back your loan.
• No early payoff penalties: The lenders on our list do not charge borrowers for paying off loans early.
• Streamlined application process: We considered whether lenders offered same-day approval decisions and a fast online application process. 
• Customer support: Every loan on our list provides customer service available via telephone, email or secure online messaging. We also opted for lenders with an online resource hub or advice center to help you educate yourself about the personal loan process and your finances.
• Fund disbursement: The loans on our list deliver funds promptly through either electronic wire transfer to your checking account or in the form of a paper check. Some lenders (which we noted) offer the ability to pay your creditors directly.
• Autopay discounts: We noted the lenders that reward you for enrolling in autopay by lowering your APR by 0.25% to 0.5%.
• Creditor payment limits and loan sizes: The above lenders provide loans in an array of sizes, from $1,000 to $100,000. Each lender advertises its respective payment limits and loan sizes, and completing a preapproval process can give you an idea of what your interest rate and monthly payment would be for such an amount.

Note that the rates and fee structures advertised for personal loans are subject to fluctuate in accordance with the Fed rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness. To take out a loan, lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.