Like many Americans, you may be struggling to make ends meet. And if you’re looking for a way to get out of debt, you may be considering a personal loan. But is Payoff the best personal loan company for you? In this article, we’ll look at Payoff loan reviews to see if it’s the right choice for you.
What Is Payoff?
Happy Money, previously known as Payoff, is a debt consolidation and refinancing company that helps people improve their relationship with money. It offers personal loans to help fair- and good-credit borrowers consolidate credit card debt at competitive rates.
The company was founded in 2009 and is headquartered in Costa Mesa, California. Happy Money has raised over $50 million in funding from investors, including Anthemis Group and CMFG Ventures. As of 2015, the company has maintained a BBB rating of A+.
They’re one of the most popular personal loan companies on the market, and for a good reason. They offer low-interest rates and flexible repayment terms. They also don’t charge late fees or prepayment penalties.
Happy Money’s mission is to help people “feel good about their money.” To that end, the company donates a portion of its profits to charity and offers its customers financial education resources.
How Does Happy Money Work?
Happy Money works by consolidating your credit card debt into one personal loan. This can help you save money on interest and get out of debt faster. To qualify for a loan, you must have a minimum credit score of 640 and a maximum debt-to-income ratio of 50%.
The company offers borrowers Annual Percentage Rates (APRs) as low as 5.99% and 24.99% for terms of 24 to 60 months. The rates are based on your credit score, loan amount, income, term, and credit history. The minimum loan amount is $5000, and the maximum loan amount is $40,000.
To apply for a loan, you’ll need to provide basic personal information, including your name, address, date of birth, Social Security number, and annual income. You must also be a US citizen or permanent resident and have a verifiable source of income. You’ll also need to create an account with Happy Money. Once approved for a loan, you can choose your repayment terms and schedule.
One of the great things about Happy Money is that they offer free financial education resources on their website. These resources can help you learn how to manage your money and get out of debt.
Where Happy Money Stands Out
Happy Money offers several features that make it an excellent choice for debt consolidation. Here are some of the things that set Happy Money apart from other personal loan companies:
- Free monthly credit score tracking: Happy Money offers free monthly FICO credit score tracking to all customers. This can help you monitor your progress as you make payments on your loan and work to improve your credit score.
- Soft credit pull: Applying for a Happy Money loan won’t impact your credit score. That’s because the company does a “soft” credit pull when you apply. This type of credit inquiry doesn’t show up on your credit report and won’t affect your credit score.
- Direct payment to lenders: When approved for a loan, the company will send the money directly to your creditors. This simplifies the process of consolidating your debt since you don’t have to worry about making payments to multiple lenders.
- Annual percentage rates are very competitive: The annual percentage rates on Happy Money loans are very competitive. For example, the APR on a $15,000 loan with a 36-month term could be as low as 12%.
- Borrower qualifications are clearly defined: Happy Money is upfront about the qualifications you need to meet to be approved for a loan. For example, you’ll need a credit score of 640 or higher to qualify. This can help you understand your chances of being approved for a loan before you apply.
- Borrowers don’t have to pay any late fees or prepayment penalties: One of the great things about Happy Money is that they don’t charge any late fees or prepayment penalties. This can save you money if you can make early or extra payments on your loan.
Where Happy Money Falls Short
While Happy Money is a great choice for debt consolidation, there are a few things to keep in mind before you apply:
- The company doesn’t offer loans to people with bad credit. So if your credit score is below 640, you’ll need to look elsewhere for a personal loan.
- Happy Money doesn’t have a physical branch network. This can make it difficult to get help if you have questions about your loan or run into problems with your account.
- The company doesn’t offer loans for business purposes. If you’re looking for a loan to start or grow a business, you’ll need to look elsewhere.
- You may need to pay an origination fee. You might have to pay an origination fee of up to 5% if you’re approved for a loan. Although this is the only fee the company charges, it can add to the cost of your loan.
What Are Some of Happy Money’s Online Features?
Happy Money offers several online features to help you manage your loan and stay on track with your payments. Here are some of the things you can do online:
- Access your account: You can log in to your Happy Money account to view your balance, make a payment, or update your personal information.
- View your payment history: You can view a history of your payments, including the date each payment was made and the amount.
- Plan for major life events: These events, such as buying a house or having a baby, can impact your ability to repay your loan. Happy Money offers resources to help you plan for these events and make changes to your account if necessary.
There are a lot of personal loan companies out there, so it can be tough to choose the right one. But if you’re looking for a company that offers great rates and flexible repayment terms, Happy Money may be the best choice for you. So why not give it a try? You may just find that it’s the best personal loan company for you. Just be sure to compare your options and understand your loan terms before applying.
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