Happen Bank Personal Loans Review

Our take on Happen Bank

We rated Happen Bank, formerly LendingClub, 4.5 out of 5 stars largely because of its low personal loan rates, not just for borrowers with good or excellent credit but for those with fair credit, as well. The lender also approved relatively large loan amounts compared with all other Credible lending partners and offers repayment terms of up to seven years. 

However, borrowers without good credit might find it difficult to qualify, and Happen Bank charges origination fees. This review covers the advantages that make Happen Bank one of our more highly rated lenders, as well as the drawbacks.

What is Happen Bank best for?

• Best for low rates for most 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. In fact, Happen Bank's average rates were the second-lowest for borrowers with fair, good, very good, and excellent credit. 
• 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: Credible personal loans data also show that Happen Bank's average approved loan amount for borrowers with fair to excellent credit was nearly $23,000. That average compares favorably with loan amounts from most partner lenders, with exceptions including large-loan specialist BHG Financial, which offers loans of up to $250,000.

Who (or what) is Happen Bank not best for?

• Borrowers who don't have good credit: Happen Bank's minimum 660 credit score through Credible is within FICO's fair credit range (580-669), but it's also near the top. The average credit score of borrowers approved for a Happen Bank loan was 712, according to Credible personal loans data, although some fair-credit borrowers did qualify (and at competitive rates, on average). However, Happen Bank's joint personal loan option means that you could use a co-applicant with a higher credit score to improve your chances of qualifying.
• Origination fees: Happen Bank's loan origination fees can range from 0% to 8%. Although that range is typical for many Credible lending partners that charge origination fees, it still means you could see your loan amount reduced when the fee is deducted upfront.

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, only two other partner lenders had lower average rates. 
• Loan amounts up to $60,000: 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 requirement: Happen Bank does not have a minimum income requirement, other than that you earn some income annually. But you’ll need to have enough income to afford loan payments. 

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. 
• May be hard to qualify without good credit: Happen Bank doesn’t disclose a specific minimum credit score, but you may have difficulty getting approved with a poor credit score (below 580) or a limited credit history unless you apply with a co-applicant. The minimum credit score requirement when applying through Credible is 660.

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 660
• 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 1,216 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 numerical value to each attribute based on how that feature compared with the same feature for every other lender in the set. Attributes were grouped into categories, scores were compiled, and categories were weighted according to their relative importance — for instance, rates and fees were weighted highest since loan cost is among the most important factors in determining loan value.

• Rates and fees: 18.75%
• Eligibility and options for bad and no credit: 17.5%
• Availability: 12.5%
• Loan amounts and terms: 10%
• Customer satisfaction: 10%
• Customer service: 10%
• Efficiency and fund delivery: 10%
• Discounts: 7.5%
• Credible proprietary data: 3.75%

We also considered each of our partner lenders' statistics over a 12-month period — including average funding times, average credit scores for approved applicants, and average rates. Learn more about how Credible rates lenders by exploring our full personal loans lender rating methodology.