Checking what rates and offers you qualify for doesn’t impact your credit since Happy Money performs a soft credit inquiry for this. If you choose to move forward with a loan offer, a hard inquiry will be performed when you submit an application, which can stay on your record for up to two years and could lower your score for a few months. If you agree to a loan, receive funds, and begin the repayment period, late payments or defaulting on the loan will have a negative impact on your credit. However, timely payments will have a positive effect. When you pay off your existing credit card balances with a Happy Money loan, your scores might go up, as the amount of revolving credit you use will have gone down significantly. Happy Money claims that when customers pay off $5,000 in credit card debt, their FICO scores could go up an average of 40 points.