Happen Bank Personal Loans Review

Our take on Happen Bank

Happen Bank, formerly LendingClub, delivers on low interest rates, high loan amounts, long repayment terms, and has low minimum income and credit score requirements. In particular, we found that fair credit borrowers received the lowest rates (for their credit score tier) compared to all Credible lending partners. Rates for borrowers with very good and excellent credit were among the lowest, and good credit borrowers received competitive rates. 

However, Happen Bank may charge an origination fee. This review covers the advantages that make Happen Bank one of our highest rated lenders, as well as the drawbacks.

What is Happen Bank best for?

• Very low rates across credit scores: According to 12 months of Credible personal loans data, borrowers with fair credit scores or better received very low rates, on average, relative to other Credible partner lenders. Fair credit borrowers received the lowest rates with Happen Bank compared to all other lenders. 
• Debt consolidation: Happen Bank offers debt consolidation loans with a direct pay option, which allows you to have the loan funds sent directly to up to 12 different creditors, with exceptions including mortgages, auto loans, student loans, and business loans. Choosing the Direct Pay option could also make you eligible for a rate discount. Additionally, Happen Bank's extended repayment terms options of up to 7 years could help you consolidate debt with a lower monthly payment.
• Sizable loan approvals: Happen Bank offers loans up to $75,000, which is higher than the standard $50,000 offered by most. But borrowers approved with fair credit may benefit most — Credible personal loans data show they were approved for over $24,000, on average. That average is higher than all partner lenders, excerpt large-loan specialist BHG Financial, which offers loans of up to $250,000.

What is Happen Bank not best for?

• Origination fees: Happen Bank's loan origination fees can range from 0% to 8%. Some lenders — like LightStream and Citi — don't charge any fees.

Pros and cons

Details on the pros

• Low rates: Happen Bank has a low minimum APR, making it a top option for borrowers with excellent credit. But rates were also low across most credit score tiers — according to 12 months of Credible marketplace data. 
• Loan amounts up to $75,000: Many competing lenders cap loan amounts at $50,000, although maximum loan amounts for lenders such as Upstart, SoFi, LightStream, and BHG Financial are even higher. 
• Allows joint applications: Happen Bank allows you to apply with a co-borrower. A co-borrower is someone who shares access to the loan funds and guarantees repayment. If you have bad credit and you apply jointly with someone who has good credit, it could help you get approved and/or qualify for a lower APR. 
• Repayment flexibility: You can choose a repayment term between 2 and 7 years, make extra payments or prepay your loan without penalty, and make a one-time change to your due date directly from the mobile app. 
• Low minimum income and credit requirements: Happen Bank does not have a minimum income requirement — you’ll need to have enough income to afford loan payments. It also offers loans to certain borrowers with FICO scores as low as 600.

Details on the cons

• Possible origination fee: Happen Bank may charge you an origination fee of up to 8% of the loan amount, depending on your credit score and other factors. This one-time fee comes out of your initial loan proceeds.

How to qualify for a Happen Bank personal loan

To be eligible for a Happen Bank personal loan through Credible, you’ll need:

• A minimum credit score of 600
• An annual income greater than $0

You'll also need to:

• Be a U.S. citizen or current resident
• Be at least 18 years old
• Have a verifiable bank account

Happen Bank reviews your credit report, debt-to-income ratio, and other financial information when making an application decision. 

Happen Bank personal loan purposes

Debt consolidation and credit card refinancing are the only Happen Bank loan purposes available when you apply through Credible. 

If you apply directly with Happen Bank, the approved loan purposes included those listed in the chart below. The chart also includes Happen Bank's prohibited loan purposes.

Happen Bank fees and penalties

• Origination fee: Between 0% and 8% of the loan amount
• Late fee: $15 or 5% of the outstanding payment, whichever is greater
• Insufficient funds fee: $15

Note: Happen Bank has a 15-day grace period for late payments. 

Happen Bank vs. other lenders

Happen Bank company details and history

Founded in 2007, Happen Bank is a digital marketplace bank with more than 5 million members. Happen Bank offers several financial products and services in addition to personal loans, including auto refinance loans, business loans, checking accounts, savings accounts, and certificates of deposit. Headquartered in San Francisco, California, Happen Bank serves customers nationwide. 

Contact information

You can manage your Happen Bank personal loan by logging into your online account or downloading the mobile app to access self-service options, or you can reach the customer service team using the contact information below. 

• Phone: 888-596-3157 Monday through Friday from 5 a.m. to 5 p.m. PT and Saturday from 8 a.m. to 5 p.m. PT.
• Email: [email protected] (comments and suggestions)

You can also mail Happen Bank at:

Happen Bank

595 Market Street, Suite 200

San Francisco, CA 94105

Methodology

Credible evaluated 32 lenders across 1,184 data points to choose the best lender overall plus top picks for different borrowers and use cases. Across lenders, we collected data on customer experience and service options, minimum and maximum fixed interest rates, minimum and maximum loan amounts, funding times, loan terms, fees, discounts, third-party reviews, and more.

We assigned a score to each attribute based on how that feature compared with the same feature for every other lender in the set. Scores were weighted according to their relative importance — for instance, maximum origination fee scores received a high weight since loan cost is among the most important factors in determining loan value. Individual attribute scores were then added to determine each lender's overall star rating. 

Attributes were grouped into categories; each category contributed to lender scores as follows: 

• Borrower cost (22.5%): Origination fee ranges and minimum and maximum APRs measure upfront and overall costs and lender accessibility across credit score groups.
• Flexibility (22.5%): Maximum loan terms, number of loan purposes, minimum and maximum loan amounts, and availability of joint and secured loans measure the range of options for loan size, repayment terms, and loan types.
• Eligibility and availability (22.5%): Minimum income requirements, funding speed, minimum credit score requirements, and state availability measure how easily and how quickly borrowers can access personal loans.
• Reputation (15%): Trustpilot, Better Business Bureau, and J.D. Power ratings measure customer satisfaction.
• Discounts, customer service, and account management (12.5%): Discounts for autopay and direct pay, plus availability of mobile apps and live customer support chat, measure borrower perks and ease of loan management.
• Partner lender data (5%): Data from loans closed by our partners, including average rates, loan amounts, funding time, and eligibility criteria, measure real-world performance and borrower outcomes.

Non-partner lenders were evaluated based on the same criteria but not assigned star ratings. Learn more about how Credible rates lenders by exploring our full personal loans lender rating methodology.