Universal Credit Personal Loans: 2024 Review
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- 35+ personal loans reviewed and rated by our team of experts.
- 20+ years of combined experience covering personal loans and financial topics.
- Objective, comprehensive star rating system assessing 20+ categories and 70+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Our Take
4.0
A Universal Credit loan is a sound option for bad-credit borrowers looking to build credit, but rates are high compared to similar lenders.
Pros
- Direct payment to creditors with debt consolidation loans.
- Fast funding.
- Offers multiple rate discounts.
- Free credit score access.
Cons
- Origination fee.
- Two repayment term options.
Lender | Est. APR | Loan amount | Min. credit score | |
---|---|---|---|---|
9.99-
35.99% | $1,000-
$50,000 | 580 | Check Rateson NerdWallet on NerdWallet | |
7.80-
35.99% | $1,000-
$50,000 | None | Check Rateson NerdWallet on NerdWallet | |
9.95-
35.99% | $2,000-
$35,000 | 550 | Check Rateson NerdWallet on NerdWallet | |
11.69-
35.99% | $1,000-
$50,000 | 580 | Check Rateson NerdWallet on NerdWallet | |
7.99-
35.99% | $2,000-
$50,000 | 600 | Check Rateson NerdWallet on NerdWallet |
Full Review
Universal Credit personal loans are best for borrowers with low credit scores who want a loan with features that will help their scores. Universal Credit’s starting rates are high compared to other bad-credit lenders, so compare loan offers before you apply.
Universal Credit is operated by online lender Upgrade. The main difference between the two is that borrowers with bad credit scores (629 or lower) and more debt may more easily qualify for a Universal Credit loan. Upgrade offers a more flexible personal loan that’s particularly good for debt consolidation.
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.
» MORE: See your bad-credit loan options
Table of Contents
Universal Credit personal loans at a glance
Minimum credit score | 580. |
APR | 11.69% - 35.99%. |
Fees |
|
Loan amount | $1,000 to $50,000. |
Repayment terms | 3 or 5 years. |
Time to fund after approval | 1 day. |
Loan availability | Loans available in all 50 states and Washington, D.C. |
- Universal Credit disclosure
Your loan terms are not guaranteed and are subject to our verification and review process. You may be asked to provide additional documents to enable us to verify your income and your identity. You may be required to have some of your funds sent directly to pay off your credit cards. This rate includes an Autopay APR reduction of 0.5%. By enrolling in Autopay your payments will be automatically deducted from your bank account. Selecting Autopay is optional. Annual Percentage Rate is inclusive of a loan origination fee, which is deducted from the loan proceeds. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. Personal loans issued by Universal Credit's bank partners. Information on Universal Credit's bank partners can be found at Universal Credit | Bank Partners . Please refer to Universal Credit's Terms of Use and Borrower Agreement for all terms, conditions and requirements. Accept your loan offer and your funds will be sent to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds sent directly to you should be available within one (1) business day. Funds sent directly to pay off your creditors may take up to 2 weeks to clear, depending on the creditor.
Where Universal Credit personal loans stand out
Rate discounts:
Autopay discount: Universal Credit offers a 0.50 percentage point discount for setting up automatic payments. 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 other high-interest debts, the lender will directly pay off those debts (leaving you with one monthly loan payment) and discount your rate by 1 to 3 percentage points. Many lenders can directly pay other creditors, but few include a discount. To use this feature, at least half of the loan must go toward consolidating debt.
» MORE: Compare debt consolidation loans
Credit-building tools: Through Upgrade, Universal Credit borrowers have free access to their VantageScore, a credit score simulator, credit monitoring and customized credit-building recommendations. Many lenders offer credit score monitoring, but the simulator tools and recommendations are unique.
Fast funding: Universal Credit personal loans can be approved and funded as quickly as two days after you apply. The lender says approval can take one to a few days, and funds are usually available the day after approval. This process may be faster with other lenders — some approve you the day you apply and fund the loan the next day — but two or three days from application to funding is decent timing for a personal loan.
» MORE: Fast personal loans
Where Universal Credit personal loans fall 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, a higher loan amount or could improve your chances of qualifying. Many bad-credit lenders offer at least one of these options.
» MORE: Compare co-sign and joint loans
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 before it’s deposited into your account, reducing your loan amount by a few hundred dollars or more. 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.
Our expert take:
“The Universal Credit personal loan isn’t a top-tier product for all borrowers because of its limited repayment terms and lack of flexible features, but it may be the right option for you if you have a low credit score and qualify for an affordable rate. The good news with Universal Credit is that borrowers can qualify with less-than-perfect credit and use the lender’s credit-building features to boost their profile.
Universal Credit is worth considering for an emergency, household repair or possibly to consolidate debt, but because the starting APR is so high, it’s worth comparing your pre-qualified Universal Credit loan offer with others.”
— Annie Millerbernd, Personal Loans Assistant Assigning Editor
How to use Universal Credit personal loans
You can use a Universal Credit personal loan for:
Home improvement projects.
Debt consolidation.
Emergencies.
Medical bills.
Vacations.
Weddings.
Funerals.
Vehicle financing.
Universal Credit prohibits the use of its personal loans for:
College expenses.
Gambling.
Investments.
Business expenses.
Universal Credit personal loan customer reviews
As of August, 2024, Universal Credit Has 4.7 stars on Trustpilot, a website that collects consumer reviews. Customers mention the company’s fast and easy application process and quick funding. The lender’s mobile platform uses parent company Upgrade’s app, which received 4.7 stars across 23,500 reviews on Google Play and 4.9 stars across 50,800 reviews on the Apple App Store.
Do you qualify for a Universal Credit personal loan?
You may be able to qualify for a Universal Credit with fair or bad credit. The lender also says qualified borrowers can have debt-to-income ratios up to 75%, including your mortgage payment.
To apply for a Universal Credit personal loan, you must be:
A U.S. citizen or permanent resident, or living in the U.S. on a valid visa.
At least 18 years old in most states.
Able to provide a verifiable bank account.
Able to provide a valid email address.
Universal Credit's borrowing requirements
Here are Universal Credit’s minimum requirements to qualify for a loan. (Meeting these requirements doesn't guarantee approval.)
Minimum credit score: 580. Universal Credit uses FICO score version 9 from TransUnion.
Minimum credit history: 1 account and 2 years.
Maximum debt-to-income ratio: 75%, including mortgage payments.
Minimum income requirement: None. This lender accepts income from alimony, retirement, child support, Social Security and other sources.
- Universal Credit average borrower snapshot
Average credit score: 655.
Average annual income: $90,000.
Average loan amount: $8,950.
Average loan term: 5 years.
Most common loan purpose: Credit card refinancing and debt consolidation.
Before you apply
Check your credit. You can get your free credit report on NerdWallet or at AnnualCreditReport.com. Doing so will help you spot and fix any errors before you apply.
Calculate your monthly payments. Use a personal loan calculator to determine what APR and repayment term you’d need to get a loan with affordable monthly payments.
Make a plan to repay the loan. Review your budget to see how the loan’s monthly payments impact your cash flow. If you have to cut other expenses in order to repay the loan, it’s better to know that before you borrow.
Gather your documents. Most lenders require proof of income, which can be a W-2 or paystub, as well as proof of address and a Social Security number. Having these documents handy can speed the application process.
» MORE: How to apply for a personal loan
How to apply for a Universal Credit personal loan
Here are the steps to apply for a Universal Credit loan, based on information from the lender and our experience completing the pre-qualification process.
Pre-qualify on Universal Credit’s website. You’ll be asked how much you want to borrow and what the funds are for, as well as some personal information like your name, birthdate and address. The lender will ask for your individual income and additional income, which can include a partner’s income, alimony, child support and other sources. You’ll then create an account with an email address and password. There’s no hard credit pull at this stage.
Preview loan offers and accept the one that fits your budget. If you qualify, you’ll preview multiple Universal Credit loan offers with different amounts, rates and repayment terms. Once you accept an offer, you’ll submit a formal personal loan application. This may require more documents, like W-2s, pay stubs and tax documents to confirm the information you gave during pre-qualification. Universal Credit will do a hard credit check when the loan is funded, which may cause a temporary dip to your score.
Receive your funds within a business day or two. The lender says it may take up to a few days to approve an application. Universal Credit can send loan funds the day after approval. If you’re consolidating debt, it may take longer for the funds to reach other creditors. Continue making debt payments until you’re sure they are paid off.
Make a plan to repay the loan. Universal Credit reports payments to all three major credit bureaus, so on-time payments will help build your credit, but missed payments will hurt it. Setting up automatic payments and keeping an eye on your budget are two ways to manage your loan payments.
Compare Universal Credit to other lenders
Compare Universal Credit with other lenders to decide whether it offers the right personal loan for you. Lenders offer different rates, loan amounts and special features, so it pays to weigh your options. The best personal loan is the one with the lowest APR and most affordable monthly payments.
Upgrade and Upstart offer lower rates than Universal Credit, and both say they may approve fair- and bad-credit borrowers.
Upgrade
» MORE: Read our review of Upgrade
Minimum credit score | 580. |
APR | 9.99% - 35.99%. |
Fees |
|
Loan amount | $1,000 to $50,000. |
Repayment terms | 2 to 7 years. |
Time to fund after approval | 1 business day. |
Loan availability | Loans available in all 50 states and Washington, D.C. |
Upstart
» MORE: Read our review of Upstart
Minimum credit score | No minimum required. Upstart also accepts applicants with insufficient history to generate a credit score. |
APR | 7.80% - 35.99%. |
Fees |
|
Loan amount | $1,000 to $50,000. |
Repayment terms | 3, 5 or 7 years. |
Time to fund after approval | 1 business day. |
Loan availability | Loans available in all 50 states and Washington, D.C. |
How we rate Universal Credit personal loans
NerdWallet experts rate lenders against a rubric that changes each year based on how personal loan products evolve. Here’s what we prioritized this year:
Category | Star rating |
---|---|
Affordability | |
Customer experience | |
Underwriting and eligibility | |
Loan flexibility | |
Application process | |
Overall |
- Category definitions
Affordability (25%)
An affordable loan has low rates and fees compared to other similar loans and may offer rate discounts.
Customer experience (20%)
A good customer experience includes allowing borrowers to choose and change their repayment date, a fully online application process, a mobile app to manage the loan and a customer service team with wide availability.
Underwriting and eligibility (20%)
The lender reviews borrowers’ credit reports and credit history and tries to understand their ability to repay a loan. It offers loans in most states and doesn’t restrict eligibility by requiring a pre-existing relationship.
Application process (20%)
Borrowers can pre-qualify to check their potential rate, loan amount, repayment term and APR without affecting their credit score. They can easily find answers to questions about the personal loan on the lender’s website. The application process is fast enough to allow funding within a couple of days or less.
Loan flexibility (15%)
A flexible loan is one that offers a wide range of loan amounts and repayment term options. It includes common features like additional loan types and direct payment to creditors on debt consolidation loans.
Discretionary
A lender’s star rating can be reduced if the lender is sued by a state or federal regulator for unfair consumer practices or has been accused by a reputable source of suspicious business practices.
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Find the Best Personal Loan
NerdWallet’s review process evaluates and rates personal loan products from more than 35 financial technology companies and financial institutions. We collect over 50 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. 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. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. 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.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.