Universal Credit 2025 Personal Loan Review

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

Universal Credit personal loans at a glance

• Universal Credit disclosureUniversal Credit disclosure

  Personal loans made through Universal Credit feature Annual Percentage Rates (APRs) of 11.69%-35.99% and a 5.25%-9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Repayment terms from 36 to 60 months. For example, if you receive a $10,000 loan with a 36-month term and a 28.47% APR (which includes a 22.99% yearly interest rate and a 7% one-time origination fee), you would receive $9,300 and would have a required monthly payment of $387.05. Over the life of the loan, your payments would total $13,933.62. The APR and other terms of your loan may vary and you may not be presented with multiple offers. If offered, your loan terms, including your rate, will depend on credit score, credit usage history, loan amount, and other factors. Late payments or other fees, as noted in your Borrower Agreement, may increase the cost of your fixed rate loan. Certain loan offers may not be available in all states.

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.

» MORE: Compare debt consolidation loans

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.

» MORE: Best loans with no origination fee

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.

» MORE: Compare co-sign and joint loans

How to use Universal Credit personal loans

Do you qualify for a Universal Credit personal loan?

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.

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.

Universal Credit’s average borrower snapshot

• Average borrower’s credit score: 640.

• Average annual income: $94,000.

• Average loan amount: $7,800.

• Most common loan term: 36 months. 

• Most common loan purposes: Debt consolidation.

» MORE: How to get a personal loan

How we rate Universal Credit

NerdWallet writers and editors rate lenders against a rubric that changes each year based on how personal loan products evolve. Here’s how we scored Universal Credit this year: