Happy Money Review - Simplify Debt with Easy Consolidation
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With free credit monitoring and scientific assessments of you spending behaviors, Happy Money offers solutions to help you improve your financial situation.
9/10
Cost
9/10
Features
9/10
Ease of use
8.5/10
Services
9/10
One of the first “lessons” I learned in the world of personal finance is that debt is bad. This has to do with both having a strong defense and offense. For example, when it comes to defense, having little to no credit card debt means that if a major unforeseen expense pops up that you can’t cover with your emergency fund, you can lean on your credit card instead of draining your bank account overnight.
As far as offense is concerned, having a solid debt-to-income ratio and FICO score means you’ll qualify for better interest rates when shopping for auto or home loans, saving you thousands of dollars in interest throughout your life just because you have a good credit score.
Of course, when I took an interest in personal finance, I carried some credit card debt. Thankfully, my credit card balances weren’t so overwhelming that I needed to take drastic action. However, one strategy I read about online was debt consolidation, which would have been a valuable pathway to paying off my debts if I had high-interest credit card debt or student loans.
In a nutshell, a debt consolidation loan allows you to bundle all your separate payments into one loan amount with one lender and a single set of loan terms. This generally lets you save on a few interest points and simplifies everything by requiring you only to make one monthly payment and worry about one lender’s repayment terms.
One online lender offering borrowers debt consolidation loans is named Happy Money, previously known as Payoff. In addition to helping you consolidate your debts, Happy Money provides a few other bells and whistles that aim to keep you debt-free and improve your relationship with money. Learn all about the ins and outs of Happy Money's services and solutions in this Happy Money personal loans review.
In this article
What is Happy Money?
You can probably already tell that Happy Money offers competitive personal loan rates for credit card debt consolidation. The loan offers range anywhere from $5,000 to $40,000. In addition to taking out the minimum loan amount, you’ll need fair credit or good credit (a minimum credit score of 640) to qualify for a loan from Happy Money.
Thanks to lower annual percentage rates, Happy Money can help consumers stretch their money further and really tackle debt. Their behavioral focus is also part and parcel of their loan purpose: they will report your payments to the major credit bureaus to help boost your credit report and credit history. All of this combines to make Happy Money well worth considering if you want to get out of debt and really understand how you personally can stay out of debt.
Pay off credit card debt and fund your happiness
- Personal loans between $5,000-$40,000.
- Checking your rate is free and won’t impact your credit score.
How does Happy Money work?
To start the Happy Money application process, you’ll want to click on the pink “Check My Rate” button in the top right corner of Happy Money's homepage. It’s important to note that your credit score will not be impacted just because you look at different plans through Happy Money. Happy Money will conduct a soft credit inquiry to see if you prequalify and estimate an origination fee and payment fees.
You’ll start the application process by entering your legal first and last name. Then, you’ll enter your birthdate, zip code, and current address. Next, you’ll be asked to provide your mobile phone number or landline. Then, you’ll enter your annual income. Happy Money makes sure that you know to “Enter your individual gross income before taxes.” Additionally, you shouldn’t report your total household income, nor should you report child support or alimony.
Then, you’ll enter your monthly housing payment. This is to help determine your debt-to-income ratio or DTI. Keep in mind that just like when you report your personal annual income, you’ll want only to include your portion of your housing costs. Don't include their number in your calculation if you rent a home with a partner or roommate.
Once you’ve input this information, Happy Money allows you to save your progress. By creating an account with your email address and a password, you can quickly jump back into your application at a later time.
Once you’ve created an account, you’ll be asked how much you want to borrow. After you complete this step, you’ll get your personalized rates and be able to decide whether or not the terms and loan purpose are right for you.
How much does Happy Money cost?
While every borrower is different, there are some costs to be aware of when using Happy Money. For example, your APR will depend on your current credit score, and you’ll have a more competitive interest rate if your score is higher. Happy Money borrowers usually wind up between 11.72% APR and 17.99% APR. Additionally, you may be charged an origination fee of up to 5% of the total loan value, which will be subtracted from the loan amount.
Two fees you don’t need to worry about with Happy Money are application fees and prepayment fees. Especially if you’re paid bi-weekly, being able to take your extra “third” paycheck and put that money toward your loan without worrying about a prepayment penalty can super-charge your debt paydown.
You also won’t be charged late fees in case of a late payment with Happy Money. However, it’s essential to pay your loan on time if you want to make sure that everything is being appropriately reported to the credit bureaus in a way that will improve your credit score.
Pay off credit card debt and fund your happiness
- Personal loans between $5,000-$40,000.
- Checking your rate is free and won’t impact your credit score.
Happy Money features
Every personal loan company has its own perks, and Happy Money certainly comes with some distinguishing features that make it worth considering. Here’s an overview of Happy Money personal loans.
Soft credit inquiry for prequalification
Especially when you’re just shopping around, you don’t want to ding your credit until you know you’re interested in a specific loan product. When you go through the application process, your personal information will be used to verify some of your information with TransUnion, but this is just a soft credit pull. As such, you won’t impact your credit until you apply for a loan funded through Happy Money.
Behavioral assessments
The scientific recommendations that Happy Money offers borrowers based on their personal spending habits can be incredibly beneficial for getting out of a paycheck-to-paycheck cycle and really tackling your debt once and for all. Happy Money really doesn’t want you to stay in debt, and these features can be eye-opening, even helping you understand how various stressors impact your spending habits.
Credit monitoring for free
Happy Money will also give you access to free tools to monitor your credit as you work to repay your loan. These can be an encouraging way to track your progress and help you stay committed to raising your credit score by making on-time payments.
Who is Happy Money best for?
Consumers with high-interest credit card debt. Thanks to a maximum loan amount of $40,000, if you have student loans or an auto loan that you want to pay off, it’s not likely that you’ll be able to lump all of your debts into one personal loan from Happy Money. Even so, Happy Money is a great fit if you have high-interest credit card debt spread across two or three cards.
People who want to improve their credit. Combined with a debt consolidation loan, the scientific assessments and free credit monitoring tools make Happy Money an ideal path to raising your credit score. If you plan on purchasing a home in a few years and want to clean up your debts and credit before that time, Happy Money can be a great way to keep you focused and achieve your goal. According to their website, many people’s credit scores rise by 40 points within four months of receiving a Happy Money loan.
Who shouldn’t use Happy Money?
While Happy Money is a great option for various consumers, some groups may not be able to take full advantage of everything the lender offers. Here are two types of people who might want to consider other options.
Co-signers. Currently, Happy Money doesn’t let two parties co-sign on loans. As such, you must meet the credit requirements and other minimums to get a loan with Happy Money.
Consumers with major debt. Since a Happy Money loan maxes out at $40,000, if you’re someone with a substantial amount of debt, you may want to investigate other options for debt consolidation.
Pros and cons
Pros
- Get your rates with a soft credit check. If your whole purpose in taking out a personal loan and consolidating your debts is to improve your credit, you’ll appreciate that you don’t need to be concerned with hard credit pulls during the prequalification phase.
- Creditors paid directly. Happy Money will handle paying off your other debts if you don’t want the funds deposited directly into your account. In addition to ensuring that your creditors get paid this way, you can save up to a percentage point on your rate when you opt to let Happy Money pay your credit cards off.
- Assessments. It’s been mentioned multiple times already, but it bears repeating: the scientific evaluations of your stressors and spending behaviors can be a great way to really reign in your out-of-control spending and become financially responsible for the rest of your life.
Cons
- No overnight funding. Some debt consolidation companies offer rapid fund deposits so you can pay off your debts immediately. Happy Money typically takes between two to five business days to process and fund your loan.
- Origination fee. While not everyone will be charged an origination fee, other online debt consolidation lenders don’t charge origination fees at all. Five percent of a $40,000 loan is $2,000, which is certainly an amount you’ll need to keep in mind if you’re budgeting for when you’ll be done paying off your loan.
- No co-signing. You won’t be able to be a joint borrower with Happy Money, which can be a particular drag if you and your spouse have incurred debt together and want to leverage both of your incomes to qualify for a better rate.
Happy Money vs. competitors
Service provider | APR | Origination fee | Loan amount |
Happy Money | 11.72% to 17.99% | Up to 5% | $5,000 to $40,000 |
Upstart | 7.8% to 35.99% | Up to 10% | $1,000 to $50,000 |
SoFi | 8.99% to 29.49% | None | $5,000 to $100,000 |
Upstart
Upstart is another popular online lender whose ads you’ve likely seen on television. Their APR tends to skew much higher than Happy Money and SoFi’s, and their origination fees can be almost considerably higher on the high end. Even so, if you need a smaller loan amount, Upstart may be worth considering.
SoFi
SoFi is the most comparable to Happy Money since it offers a similar APR and minimum loan amount. However, where SoFi really shines is its $0 origination fees and higher loan amount. If you’re not planning on taking advantage of Happy Money's credit monitoring tools or scientific assessments of your spending habits and personality, then SoFi might be a good choice to consider. This is especially true if you want to consolidate more debts since SoFi’s maximum loan amount is $100,000. However, it has a high credit score requirement.
Pay off credit card debt and fund your happiness
- Personal loans between $5,000-$40,000.
- Checking your rate is free and won’t impact your credit score.
FAQs
How old do you need to be to apply for a loan with Happy Money?
During the application process, Happy Money notes that you must be at least 18 years old to apply for a loan, or 19 years old if you reside in the state of Alabama.
How long do transfers take?
Once your application has been approved, your Happy Money loan will fund within five business days. That money can either be sent to your bank account or sent directly to your creditors as part of check processing. You can see it on your bank statement.
Will taking out a loan with Happy Money hurt my credit?
While a soft pull is conducted during the prequalification phase of the application process, when it’s actually time to sign off on receiving your Happy Money debt consolidation loan, your credit will be impacted. Typically speaking, the dip in credit from a hard pull only lasts a year to two years before it falls off. It’s also worth noting that since Happy Money helps you improve your credit, you may see your score rebound much sooner than a year.
Is Happy Money legit?
If you’re tired of having the minimum payments on multiple high-interest credit cards keeping your spending in a stranglehold, a debt consolidation loan can be a worthwhile option to explore. Debt consolidation loans allow you to take your credit cards and pay them all off in one fell swoop, replacing them with a single personal loan. Often, your personal loan’s APR is much lower than the interest rates on your credit card, which helps save you even more money in interest while you’re paying things down and improving your credit.
As a debt consolidation loan option, Happy Money has a few key perks worth considering. With free credit monitoring features and scientific assessments that delve into your spending behaviors, Happy Money is full of solutions to help you improve your financial situation for life. This makes it an attractive online lender, even with origination fees of up to 5% of your borrowing.
While there are certainly some big perks to Happy Money, fee-conscious consumers or those interested in a bigger loan than $40,000 may want to shop around for other options. Other online lenders have more competitive fees and rates, although they don’t offer some of the insights and tools Happy Money does. Ultimately, which lender to use is a personal decision, and you should factor in your current income and interest rates along with other financial preferences before you make a decision.
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Writer
Brent Ervin-Eickhoff is a Chicago-based writer, stage director, and filmmaker with a background in digital marketing and content creation. In addition to Joy Wallet, Brent has written for Complex, Volkswagen, HowlRound, Picture this Post, and Third Coast Review, among others. He currently serves as the Associate Director of Marketing for Content Creation at Court Theatre at the University of Chicago. Brent graduated from Ball State University with Academic Honors in Writing.
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