Universal Credit 2026 Personal Loan Review
A personal loan through Universal Credit is a smart choice if you have a lower credit score and want to consolidate high-interest debt.
- Want a debt consolidation loan.
- Plan to set up automatic loan payments.Â
- Need the money fast.
- Want to avoid origination fees.
- Prefer a secured loan.
- Plan to apply with someone else.
What to know about getting a personal loan through Universal Credit
Universal Credit is definitely worth considering if you have fair or bad credit, in part because it has one of the lowest credit score requirements of any lender we reviewed (560). The online lender also offers personal loans with a wide range of amounts and terms, as well as multiple rate discounts.
Universal Credit is an especially good option for consolidating high-interest debt, like credit cards. Not only does it send the loan funds directly to your creditors — saving you that step and removing the temptation to use the money for something else — but you get a rate discount for opting into this feature. Fewer than 10 of the 39 lenders we looked at offers this type of rate discount, and it makes Universal Credit one of our top picks for the best debt consolidation loans.
Universal Credit offers other perks, too, like one-day funding and an additional rate discount for setting up automatic payments. You can read more about these features lower down.
One thing to keep in mind, though: You can only apply for a single-applicant, unsecured loan with Universal Credit. So you’ll need to look elsewhere if you want a joint, co-signed or secured loan.
COMPARE: Best personal loan lenders
What we like most about Universal Credit
- Fast approval and funding: Universal Credit says it approves most loan applications instantly, and typically sends the loan funds the next 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 the loan to consolidate debt, Universal Credit discounts your rate by 1 to 4 percentage points.
- Wide range of loan amounts: Universal Credit offers loan amounts ranging from $1,000 to $50,000, meaning you can 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. Universal Credit also offers repayment terms from two to five years, which helps you customize your monthly payment amount to best fit your budget.
Why Universal Credit may not be right for you
- 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 common with 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. Many lenders offer co-signed and joint loan options, so it’s worth looking elsewhere if you’d like to apply with someone.
How much does a loan through Universal Credit cost?
The total cost of your loan depends on the amount borrowed, annual percentage rate and loan term. Here is an example of how different rates affect the costs of a $7,000 loan with a three-year term. The lender told NerdWallet its average borrower typically gets an APR from 20% to 24.99%.
APR | 20%. | 25%. |
Monthly payment | $260. | $278. |
Total interest cost | $2,365. | $3,020. |
Total loan cost | $9,365. | $10,020. |
» MORE: Use our personal loan calculator to estimate your costs
Do you qualify for a personal loan through Universal Credit?
Universal Credit says it looks for borrowers with excellent to fair credit (usually a 630 credit score or higher). But its minimum credit score requirement is 560, so if you have bad credit, you may still qualify.
Since it offers pre-qualification, you can see your potential loan amount, term, rate, monthly payment and total interest before applying and undergoing a hard credit check. Once you formally apply, Universal Credit conducts a hard credit pull, which temporarily knocks a few points off your credit score.
Personal loans through Universal Credit are available in all 50 states but not in Washington, D.C.
Universal Credit’s borrowing requirements
- Minimum credit score: 560.
- Minimum annual income: None.
- Maximum debt-to-income ratio: 75%, including housing.Â
- Minimum credit history: Two years and one account.
- Must be a U.S. citizen and provide a valid Social Security number, email address, proof of residency and U.S. bank account.
Profile of an average Universal Credit borrower
For an idea of where you would fit in among other borrowers and what to expect, we asked Universal Credit about its average borrower. Here’s what the lender told us.
- Average loan amount: $5,000 to $9,999.
- Average APR: 20% to 24.99%.
- Most common loan term: 3 years.
- Most common loan purposes: Debt consolidation.
- Average borrower’s credit score: 630 to 689.
- Average annual income: $75,000 to $99,999.
- Average borrower’s debt-to-income ratio: 31% to 50%.
» MORE: How to get a personal loan
Frequently asked questions
Q: What can I use this loan for?
A: A loan through Universal Credit can be used for almost any expense, including debt consolidation, home improvement projects, emergency expenses, vacations, moving costs, weddings and other large purchases. You can’t use this loan to pay for college tuition, investing, gambling or illegal activities.
Q: Can I choose my monthly payment date with Universal Credit?
A: Universal Credit doesn’t let you choose your due date when you apply for a loan, but you can adjust it after the loan is funded. This is especially convenient if you get a new job and your pay schedule changes.
Q: What happens if I can’t repay a loan through Universal Credit?
A: Universal Credit offers hardship options, including deferring your monthly loan payment or granting a temporary payment reduction. Make sure to contact the lender as soon as possible to discuss your situation.
How does Universal Credit compare?
 |  |  |  |  |
|---|---|---|---|---|
Est. APRFrom 11.69% to 35.99% | Est. APRFrom 6.99% to 35.49% | Est. APRFrom 5.96% to 35.99% | Est. APRFrom 7.24% to 24.89% | Est. APRFrom 7.74% to 35.99% |
Loan amountFrom $1,000 to $50,000 | Loan amountFrom $5,000 to $100,000 | Loan amountFrom $1,000 to $75,000 | Loan amountFrom $5,000 to $100,000 | Loan amountFrom $1,000 to $75,000 |
Min. credit score560 | Min. credit scoreNaN | Min. credit score600 | Min. credit score660 | Min. credit score600 |
How we rated this lender
NerdWallet’s editorial team rates lenders using a rubric with five weighted categories and 29 subcategories. Here are the factors we prioritized, plus why this lender received each score.
Personal loans through Universal Credit come with a standard APR range that includes an origination fee. But the lender also offers multiple opportunities for a rate discount.
Our Method: We review lenders’ rates and fees, plus any opportunities for rate discounts.
Universal Credit reports your payment history to the three main credit bureaus. And while you can’t choose your initial payment date, you can change it multiple times throughout the year.
Our Method: We look at factors such as customer service availability, monthly payment flexibility and whether the lender reports on-time payments to major credit bureaus.
Universal Credit offers small, medium and large personal loans. There are no options to add a co-borrower or secure the loan with collateral.
Our Method: We assess loan amount and term ranges and whether lenders offer multiple loan types or direct payment to creditors on debt consolidation loans.
Universal Credit lets you pre-qualify with a soft credit check before conducting a hard pull on your application. Its loans are also available in all 50 states.
Our Method: We consider how widely available and accessible the loans are and how lenders review applicants’ credit.
Universal Credit can approve applications instantly and send the loan funds the next day. But its website doesn’t clearly display some important loan details, like its overall APR range.
Our Method: We evaluate loan approval and funding times and the lender’s transparency throughout the application process.
Read more about our ratings methodologies for personal loans.
Learn more about personal loans
