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Getting Approved

We know how important it is to trust the company you choose to take out a personal loan with. That’s why we’re committed to being transparent about our loan requirements and inner workings of the lending process.

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Finance terminology can be complicated. Here are some simple explanations of the factors considered in your loan application.

Credit Score -> 640 or higher

Your credit score is a summary of your entire credit history. With a Happy Money Personal Loan, we also provide you free monthly FICO® Score updates so you can track your progress.

Current delinquencies -> Zero

Credit delinquencies are reflective of payments you owe and have not currently paid. If you happen to have any, we recommend that you resolve these delinquencies prior to applying for a personal loan.

OTHER FACTORS WE MAY CONSIDER FOR YOUR APPROVAL

Debt-to-income ratio

A favorite formula of the personal lending world, your debt-to-income ratio (DTI) compares how much you owe each month to how much you earn. To be more specific, it is the percentage of your gross monthly income (before taxes) that goes towards your monthly payments for housing, credit cards, and other debts you may carry.

Age of credit history

Like a timeline, your age of credit history is the total length of time you’ve been using credit, from your first line of credit to your most recent.

Open and satisfactory trades

Your open and satisfactory trades are the lines of credit (think: mortgage, auto loan, etc.) that you’ve opened and made payments for on time.

Utilization

Your utilization is the ratio between your available credit and the current balances you carry on your credit cards. In other words, it measures how much of your available credit you’re using.

Frequently Asked Questions

Applications are often strongest with a FICO Score around 640 or higher, no active delinquencies, a manageable debt-to-income ratio, a record of on-time payments, and lower credit utilization. Approval is determined based on individual applicant and credit information.

Active delinquencies can reduce approval odds. Resolving past-due accounts before applying can help.

There may be a small, temporary dip from applying. Consistent on-time payments over time can help your score.

Pay bills on time, reduce credit card balances to lower utilization, and review your debt-to-income ratio before applying.

A lower ratio usually signals more room in your budget for a new payment, which can support eligibility.

Active delinquencies can reduce approval odds. Resolving past-due accounts before applying can help.

Pay bills on time, keep your accounts in good standing, and check your debt-to-income ratio to see how a personal loan could help you simplify your payments.

A lower ratio usually signals more room in your budget for a new payment, which can support eligibility.