Item: Universal Credit
Rating: 4.5
Author: Jackie Veling

4.5

NerdWallet Rating

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4.5

NerdWallet Rating

Est. APR

11.69 - 35.99%

Min. credit score

560

Time to fund

1 day

Loan amount

$1K - $50K

Loan term

3 to 5 years

Origination fee

5.25% to 9.99%

Disclosures from Universal Credit

Overview

Universal Credit personal loans come in a wide range of amounts and may be an especially good option for consolidating high-interest debt like credit cards.

Borrowers with fair to bad credit may find it easier to qualify with Universal Credit compared to other lenders.

» MORE: Compare the best personal loans

What Universal Credit is best for

Best Personal Installment Loans

Detailed breakdown

Affordability

(25%)

3.5/5

We review lenders’ annual percentage rate offerings and the competitiveness of each lenders’ APR range. We also assess whether a lender charges an origination fee and any opportunity for borrowers to receive a rate discount.

Customer experience

(20%)

4.5/5

We consider the experience of the consumer trying to manage a personal loan, which means accessibility of customer service representatives, whether borrowers can choose and change their payment due date, and the ability to track their loan on a mobile app.

Underwriting and eligibility

(20%)

4.5/5

We consider the rigorousness of each lender’s underwriting practices and how widely available their loans are. This category includes whether a lender does a hard credit check before providing a loan, the range of credit profiles they accept and how many states their loans are offered in.

Loan flexibility

(20%)

4.5/5

We assess how flexible lenders can be with borrowers, including whether they offer multiple loan types, personal loan amounts and repayment term options and whether they offer direct payment to creditors on debt consolidation loans.

Application process

(15%)

5/5

We consider the lender’s full application process, including a borrower’s ability to preview their loan offer via pre-qualification, whether basic loan information such as APR range and repayment terms are available and easy to find online and how quickly a loan can be funded after approval.

Overall

4.5/5

Read more about our ratings methodologies for personal loans.

Where Universal Credit personal loans stand out

Direct payment to creditors: For borrowers consolidating debt, Universal Credit will send the loan funds directly to their creditors. Though direct payment isn’t a must-have, it’s still a nice perk that can help simplify the debt consolidation process.
Fast funding: Universal Credit says it approves most loan applications in under five minutes, and the loan funds are typically available in one business day. This means you could go from application to funding in about 24 hours, which is fast even for an online lender.
Rate discounts: Universal Credit offers two rate discounts that can lower the cost of financing. Autopay discount: For setting up automatic payments, Universal Credit offers a 0.50 percentage point discount. This discount is common with personal loans, and setting up autopay ensures you’ll make payments on time. Direct pay discount: If you’re using a Universal Credit loan to consolidate debt, Universal Credit discounts your rate by 1 to 2 percentage points. To qualify, at least 50% of the loan proceeds must be used for direct payment to creditors.
Wide range of loan amounts: Universal Credit offers loan amounts ranging from $1,000 to $50,000, meaning borrowers can easily cover a wide range of small to large expenses. Though some lenders may offer personal loans as high as $100,000, they typically don’t offer small loans.

Where Universal Credit personal loans fall short

Charges an origination fee: Universal Credit charges an origination fee ranging from 5.25% to 9.99%. The lender takes this fee from the loan amount before it’s deposited into your account. This fee is somewhat common with bad-credit online loans. Be sure the loan amount is still enough to cover your expense once the origination fee is applied.
No joint, co-signed or secured loans: Universal Credit borrowers cannot add collateral, a co-signer or a co-borrower to a loan application. Adding collateral or a co-applicant with better credit or higher income can mean a lower rate, a higher loan amount or could improve your chances of qualifying.

How to qualify

Borrowers with bad credit may qualify for a Universal Credit personal loan. The lender offers pre-qualification, meaning borrowers can see their potential loan amount, loan term, rate, monthly payment and total interest before applying and undergoing a hard credit check.

Universal Credit personal loans are available in all 50 states and Washington, D.C.

» MORE: How to get a personal loan

Universal Credit's borrowing requirements

Minimum credit score: 560.
Minimum credit history: Two years and one account.
Maximum debt-to-income ratio: 75%, including mortgage.
Must be at least 18 (or the age of majority in AL, MS or NE).
Must be a U.S. citizen, have a Social Security number and provide proof of residency.
Must have a valid U.S. bank account and email address.

Ready to check rates? See what rate you can get by pre-qualifying.

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Profile of an average Universal Credit borrower

Credit score

640

Annual income

$94,000

Loan amount

$7,800

Loan purposes

Debt consolidation

Compare Universal Credit to the best lenders

Personal loan lenders offer different rates, loan amounts and special features, so it pays to weigh other options. The best personal loan is usually the one with the lowest APR.

4.5	4.5	5.0	5.0
EST. APR 11.69% - 35.99%	EST. APR 8.74% - 35.49%	EST. APR 7.9% - 35.99%	EST. APR 7.74% - 35.99%
LOAN AMOUNT $1K - $50K	LOAN AMOUNT $5K - $100K	LOAN AMOUNT $1K - $60K	LOAN AMOUNT $1K - $50K
MIN. CREDIT SCORE 560 Check Rates	MIN. CREDIT SCORE None Check Rates	MIN. CREDIT SCORE 600 Check Rates	MIN. CREDIT SCORE 600 Check Rates