Happy Money
- Best for: Borrowers with a FICO score of 620 or higher paying off $5,000 or more in credit card debt
- What Sets It Apart: Can send the loan straight to your card issuers; loans come from partner credit unions and banks
- Cost: 8.95% to 35.99% fixed APR (the yearly rate, fee included) with autopay, from 11.09% on loans over $15,000; 2% to 12% origination fee; $0 application, annual, and prepayment fees
- Features: $5,000 to $50,000; two- to seven-year terms; fixed rate and payment; possible hardship programs if you can’t make a payment
- Pros: Direct card payments; up to 0.5% autopay discount; due-date change once every 12 months for eligible borrowers
- Cons: Fee up to 12%; credit card and certain installment debt only; no joint applications; not offered in Iowa
If you have $5,000 or more in credit card debt and a FICO score of at least 620, check your rate with Happy Money, which can send the loan straight to your cards. Its origination fee runs as high as 12%, so compare its annual percentage rate with other lenders’ offers for the same amount and term before you sign.
Happy Money, formerly Payoff, doesn’t issue loans itself. It arranges fixed-rate loans from partner credit unions and banks, and its one loan, the Payoff Loan, is built for people paying off credit card balances.
Key Features
- Fixed annual percentage rates (APRs) of 8.95% to 35.99% with autopay, starting at 11.09% on loans over $15,000
- Loans of $5,000 to $50,000 with terms of two to seven years
- Origination fee of 2% to 12%, counted in the APR and deducted from the amount you receive
- Open to borrowers with a FICO score of 620 or higher and verifiable income, outside Iowa
- Made by a partner lender, such as Alliant Credit Union, First Tech Federal Credit Union, or Cross River Bank, which opens a savings account for you that you don’t have to use
Pros
- Can send the loan straight to your card issuers if you qualify
- No application, annual, or prepayment fees
- Autopay discount of up to 0.5% off your APR for as long as you keep autopay
- Possible hardship programs if you can’t make a payment, and one due-date change every 12 months for eligible borrowers
Cons
- At the 12% top fee, clearing $20,000 of card debt takes a loan of about $22,700
- Only for paying off credit cards and certain unsecured installment loans
- No joint applications or co-borrowers
- Up to 10 business days for funding after you sign, and up to 30 days for direct card payments to post
- Phone and chat support only on weekdays, 9 a.m. to 5:30 p.m. Eastern
If your credit earns a rate near the low end of its range, Happy Money is a good way to turn several card bills into one fixed payment. Look elsewhere if you need a co-borrower, a smaller loan, or next-day cash, and if you can clear your balance during a 0% intro period, a balance transfer card may cost less than this loan, transfer fee included.
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