Pros & Cons
- Offers rate discount with direct payment to creditors on debt consolidation loans.
- Option to change your payment date.
- Offers free credit score access.
- Offers a 0.5 percentage point rate discount for setting up autopay.
- Charges origination fee.
- No co-sign, joint or secured loan option.
Compare to Other Lenders
3 to 5 years
2 to 5 years
2 to 7 years
Min. credit score
Min. credit score
Min. credit score
Compare estimated rates from multiple lenders
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Full Review of Universal Credit
Universal Credit offers personal loans to borrowers with fair and bad credit scores (689 or lower FICO). This lender is an offshoot of online lender Upgrade, which services Universal Credit loans.
The main difference between Universal Credit and Upgrade is that borrowers with lower credit scores and more debt may qualify more easily for a Universal Credit loan. Once approved, Universal Credit customers can access features offered by Upgrade, including credit building tools, a mobile app and a discount for directly paying off creditors on debt consolidation loans.
» COMPARE: See your bad-credit loan options
Universal Credit is best for borrowers who:
Have fair or bad credit and a high debt-to-income ratio.
Are consolidating other high-interest debts.
Don’t want to add a co-signer or secure the loan with a vehicle.
Universal Credit at a glance
Key terms to know about personal loans
Where Universal Credit stands out
Rate discount for direct payment to creditors: If you’re using a Universal Credit loan to consolidate other high-interest debts, the lender will directly pay off those debts, leaving you with one monthly loan payment. You may also receive a rate discount of 1 to 2 percentage points for doing this. Many lenders offer direct payment to other creditors, but few include a discount.
» MORE: Compare debt consolidation loans
Reports payments to credit bureaus: Universal Credit reports loan payments to all three major credit bureaus, which means on-time payments can help your credit, while late or missed payments could hurt it. Building credit can put you in a position to borrow at a lower rate next time.
Credit-building tools: Through Upgrade, Universal Credit borrowers have free access to their credit score, credit monitoring and a credit score simulator tool. It’s not uncommon for lenders to give you access to your credit score, but the simulator tool and tips are rare. Keeping a close eye on your credit score can help you understand which behaviors help or hurt it.
Existing customer discount: Because Universal Credit is owned by Upgrade, customers who maintain an active Upgrade rewards checking account may be eligible for a discounted rate on a Universal Credit loan — up to 20% off the annual percentage rate of their approved loan. So, a loan with a 30% APR could drop as low as 24%.
Change your payment date: When you get a Universal Credit loan, you won’t initially be able to choose your payment date; however, the company says you can later change it at any time. That means you can move your payment date to better fit with your payday and expenses.
Where Universal Credit falls short
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, higher loan amount or improve your chances of qualifying. Many bad-credit lenders offer at least one of these options.
Funding time: Some lenders can fund your loan the same or next day after you apply. Universal Credit says it can fund a loan the day after you’re approved, but approval may take a few days. Funds for debt consolidation loans that are sent directly to pay off creditors can take up to two weeks, according to the lender.
» MORE: Fast personal loans
How to qualify for a Universal Credit loan
Minimum credit score: 560; borrower average is 638.
Minimum income: None; average is $60,000.
Minimum number of accounts on credit report: 2 accounts.
Maximum debt-to-income ratio: 75%, including mortgage and the loan you’re applying for.
Loan example: A three-year, $10,000 loan with a 20.5% APR would cost $374 in monthly payments. You’d pay $3,471 in total interest on that loan.
How to get a Universal Credit loan
Pre-qualify on NerdWallet
NerdWallet recommends comparing loans to find the best rate for you. Pre-qualifying may get you personalized rates from multiple lenders that partner with us, including Universal Credit. Pre-qualifying will not impact your credit.
Apply on Universal Credit
You can apply on Universal Credit’s website by entering a loan amount and purpose on the homepage. You’ll be asked for more information and to make an account, and then you’ll be pre-qualified. If you’re shown any offers, you can accept one to continue the loan application process.
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial institutions. We collect over 45 data points from each lender, interview company representatives and compare the lender with others that seek the same customer or offer a similar personal loan product. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
This methodology applies only to lenders that cap interest rates at 36%, the maximum rate most financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.