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Happy Money Credit Card Consolidation Loans: 2022 Review

Happy Money, formerly known as Payoff, offers personal loans to borrowers solely for the purpose of repaying credit card debt. Its consolidation loans combine multiple high-interest credit card payments into one monthly payment with a lower annual percentage rate.

Happy Money helps borrowers focus on building credit through lending by reporting payments to the three major credit bureaus and offering free monthly FICO score updates.

Happy Money is best suited for borrowers who:

  • You want to consolidate high interest credit card debt.

  • Have fair to good credit (above 629 FICO) and three years of credit history.

  • You want help establishing their credit scores.

Happy Money at a Glance

  • APRs are high among lenders targeting similar borrowers.

  • May charge assembly fees.

  • No prepayment or late fees.

  • No rate reduction for automatic payments.

  • Complete a soft credit check to pre-qualify.

  • Reports on-time payments to three credit bureaus.

  • Discloses rates, fees and conditions on the website.

  • Offers a FAQ that answers the main questions of borrowers.

  • Only offers unsecured loans.

  • Allows you to change the payment due date only once every 12 months.

  • Funds loans within two days.

  • Offers direct payment to creditors for debt consolidation loans.

  • Not available in MA and NV.

  • Offers multiple customer contact channels and seven-day support.

  • Completely online loan application and approval process.

  • Does not offer a mobile application to manage the loan.

Key terms to know about personal loans

The annual percentage rate of charge is the interest rate on your loan plus all fees, calculated on an annual basis and expressed as a percentage. Use the APR to compare loan costs from multiple lenders.

A assembly costs These are one-time upfront fees that some lenders charge for processing a loan. Fees can range from 1% to 10% of the loan amount, and lenders typically deduct them from your loan proceeds.

the debt to income ratio Divide your total monthly debt payments by your gross monthly income, giving you a percentage. Lenders use DTI — along with credit history and other factors — to assess a borrower’s financial ability to repay a loan.

Lenders who offer prequalification generally do so using a soft credit check, which lets you see the rates and terms you qualify for without affecting your credit score. If you accept the loan offer, the lender will perform a thorough check to confirm your information. Serious checks cause your credit score to drop a few points.

Where Happy Money Stands Out

Free Monthly Credit Score: Happy Money lets borrowers see their FICO credit score for free every month, so you can track your progress as you make payments.

Direct payment to creditors: Although borrowers can get the loan funds deposited into their personal checking account, the lender will also pay off your credit cards directly and offer a rate reduction of between 0.25 and 1 percentage point. This means you don’t have to send the funds yourself, which simplifies the consolidation process.

Soft credit drawdown: Borrowers can go to Happy Money’s website and pre-qualify — check out potential rates and terms before committing to a loan — without affecting their credit score. Happy Money then proceeds to a strong demand for credit, which can lead to a temporary reduction in the credit rating, if the loan offer is accepted.

Scientific assessments: Happy Money combines financial services with psychological counseling. Happy Money members have access to scientific personality and stress assessments, as well as insight into their cash flow (how much money is left after paying expenses). This desire to help consumers better understand their financial well-being is unique among lenders.

Non-members can also sign up for a free six-week email series called Peace, which helps subscribers deal with financial stress.

Where Happy Money falls short

Moderate funding time: If same-day or next-day funding for a debt consolidation loan is a priority, there are other lenders to consider. However, Happy Money’s two-day funding time is still decent compared to some competitors.

May charge setup fee: Happy Money may charge an origination fee of up to 5%. These fees are taken from the total amount of the loan when the loan is issued. Although these are the only fees charged by Happy Money, some lenders do not charge any fees, including origination fees.

No rate reduction for automatic payment: Unlike other lenders, Happy Money does not offer a rate reduction for setting up automatic payments. This discount typically ranges from 0.25 to 0.5 percentage points and can lower the overall cost of your loan.

No co-signed, joint or guaranteed loan options: Happy Money only offers unsecured debt consolidation loans, which means borrowers don’t have the option to submit a joint application, add a co-signer, or secure the loan with collateral to qualify. a better rate or a larger loan.

How to Qualify for a Happy Money Loan

  • Minimum credit score: 600; the average borrower is 710.

  • Minimum credit history: Three years.

  • At least two open accounts on the credit report.

  • Minimum monthly free cash flow: $750; borrower’s average is $2,000.

  • No debt ratio requirement, but the average borrower is 40%.

  • Zero credit defaults.

  • Must be able to provide verification of income.

  • No bankruptcy filed in the past two years.

  • Must provide social security number.

Loan example: A loan of $10,000 over three years with an APR of 20.5% would cost $374 in monthly payments. You would pay $3,471 in total interest on this loan.

Pre-qualify on NerdWallet

NerdWallet recommends comparing loans to find the best rate for you. Click the button below to pre-qualify on NerdWallet. You can receive personalized rates from several lenders that partner with us, including Happy Money. Pre-qualification will not affect your credit.

Apply on Happy Money

You can fill out an application on the Happy Money website. After entering some personal information, you will be presented with loan options for which you are pre-qualified. Checking your rates does not affect your credit score.