Universal Credit Personal Loans Review 2024 (2024)

Universal Credit isn’t the best personal loan option for many borrowers, but there are some circ*mstances where it may make sense. Borrowers should consider Universal Credit if they:

• Need to consolidate higher-interest loans
• Have a low credit score and/or a high DTI ratio
• Don’t mind paying higher interest rates
• Only need to borrow a small amount

Borrowers may want to consider an alternative to Universal Credit if they:

• Need to borrow more than $50,000
• Don’t want origination fees to come out of their loan proceeds
• Will qualify for more competitive rates and fees elsewhere

Universal Credit’s personal loans are flexible and can be used to pay off high-interest debt like credit cards, as well as to cover the costs of large purchases, home renovations and other personal expenses. Loan amounts vary, but annual percentage rates (APRs) are high and the company charges origination fees up to 8% of the loan amount.

Universal Credit personal loans are unavailable in Iowa, West Virginia or Washington, D.C.

Loan Amounts and Terms

• Loan amounts. Consumers can borrow between $1,000 and $50,000.
• Loan terms. Repayment terms range from 36 to 84 months.

Personal Loan Costs

• APR. Universal Credit personal loan rates range from 11.69% to 35.99%. However, the actual rate a borrower qualifies for depends on credit score, credit usage history, loan term and other factors.
• Origination fees. Universal Credit charges a 5.25% to 9.99% origination fee that comes out of the loan proceeds.
• Late fees. Consumers also may be charged late payment fees or other fees that increase the overall cost of borrowing.
• Prepayment penalty. Universal Credit borrowers are not charged any prepayment fees if they choose to pay off their loan early.

Perks and Features

Prospective Universal Credit borrowers can prequalify for a personal loan without impacting their credit score. Borrowers also benefit from one-day funding and 24/7 mobile access that simplifies account management. In addition to disbursing loan proceeds to client accounts, Universal Credit offers direct creditor pay-off.

Customer Support

Current and potential clients can contact Universal Credit’s support team via phone or email. Representatives are available by phone Monday to Friday, from 5 a.m. to 7 p.m. PST, and Saturday to Sunday, from 6 a.m. to 5 p.m. PST. Universal Credit also provides access to an online help center, but it provides more limited resources than available through other lenders.

Personal loan applications are approved or declined based on a number of factors. All lenders have their own unique underwriting requirements, but these typically include information from an applicant’s credit profile and other factors that demonstrate the ability to repay the loan, such as income. Meeting the requirements below won’t guarantee approval, but they can help you decide if Universal Credit is right for you.

Credit Score Requirements

Universal Credit requires a minimum credit score of 580 for its personal loans. This is the slightly lower than the minimum score required to qualify for a personal loan through Upgrade, which owns Universal Credit.

Income Requirements

Universal Credit may request documentation to verify a borrower’s income during the application process. However, the lender does not disclose its minimum income requirements or maximum DTI ratio.

The average income of Universal Credit borrowers is reportedly $60,000; the maximum debt-to-income ratio is reportedly 75%, including mortgages and the loan they are applying for, according to third-party sources.

Co-signers and Co-applicants

Universal Credit does not allow borrowers to apply with a co-signer or co-applicant.

Universal Credit’s loan application is streamlined compared to some lenders, and borrowers report that it is easy. Follow these steps to apply for a personal loan through Universal Credit:

1. See what rate you’ll qualify for. Universal Credit lets consumers prequalify for a personal loan with just a soft inquiry. Simply follow the online application wizard to provide details like how much you need to borrow, the purpose of the loan and contact information.
2. Choose a loan offer. After you enter basic information, Universal Credit provides offers that align with your borrowing needs and qualifications. Once you select an offer, submit your bank account information for loan funding, and Universal Credit will conduct a separate soft inquiry.
3. Await verification and approval. As with other lenders, a representative of Universal Credit may request additional documentation to verify your identity and income. Monitor the status of your application online and via email in case you need to provide any additional information.
4. Receive loan funds. Universal Credit conducts a hard credit inquiry when the loan is funded. Loan proceeds are typically sent to your designated account within a day of verification. Ultimately, however, the amount of time it takes to receive funds will depend on your financial institution. If you requested to have funds sent directly to a creditor, it may take up to two weeks for the payment to clear.

Online reviews for Universal Credit are overwhelmingly positive. As of July 11, 2022, the lender has earned a 4.82-star rating from the Better Business Bureau (BBB) based on 147 customer reviews, and a 4.8-star rating from Trustpilot based on 1,706 reviews.

Borrowers report that the application process is fast and easy and that lending decisions are delivered quickly. That said, other customers share that Universal Credit has poor customer service, approval times are lengthy and it’s difficult to reach a representative to cancel a loan application.

The best personal loans offer competitive rates, flexible loan amounts and a wide range of terms. Here’s how Universal Credit personal loans stack up against other popular lenders:

Universal Credit vs. Upstart

Upstart is an AI lending platform that connects consumers with personal loans based on nontraditional eligibility requirements. The minimum credit score necessary to qualify is 600, which is slightly higher than for Universal Credit, and loan amounts are the same ($1,000 to $50,000). For borrowers who qualify, the lowest interest rates start around 5.5%—just lower than Universal Credit—and rates extend up to around 36%.

Related: Upstart Personal Loans Review

Universal Credit vs. Avant

Avant also imposes a low minimum credit score requirement—just 580. Available loan amounts are lower than those offered by Universal Credit, however, and borrowers are limited to $2,000 to $35,000. Repayment terms range from 24 to 60 months, and APRs range from around 10% to 36%. Avant also charges an administration fee of 4.75%.

Related: Avant Personal Loans Review

Universal Credit vs. Upgrade

Upgrade powers Universal Credit and both are fintech companies that connect borrowers with loans through partner banks. The two companies offer identical personal loan products, with loan terms ranging from 24 to 84 months, loan amounts from $1,000 to $50,000 and the same APRs. Upgrade’s origination fees may be slightly lower than Universal’s, ranging from 1.85% to 9.99%.

Related: Upgrade Personal Loans Review

We reviewed Universal Credit based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We rated Universal Credit based on the weighting assigned to each category:

• Loan cost: 35%
• Loan details: 20%
• Eligibility and accessibility: 20%
• Customer experience: 15%
• Application process: 10%

Within each category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges and applicable fees. We also looked at credit score requirements, whether the lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated Universal Credit’s support tools, borrower perks and features that simplify the borrowing process—like prequalification options and mobile apps.