Universal Credit Personal Loans Review (December 2024)

Who are Universal Credit personal loans best for?

Personal loans from Universal Credit are best for borrowers with subpar credit who want a seamless application and quick funding. While this online lending platform is legitimate and backed by FDIC-insured banks, borrowers with good credit may find lower rates elsewhere.

Best debt consolidation loans for bad credit

Universal Credit’s interest rates may be high, but if they’re lower than those on your existing debts, consolidating with a Universal Credit loan could save you money. Plus, Universal Credit offers to pay your lenders directly, and may discount your rate if you elect to do so. This feature can be especially helpful if you're managing several credit cards or loans. While debt consolidation won’t eliminate debt, it can make it more manageable by lowering monthly payments and potentially reducing your interest rate. 

Universal Credit doesn't have a minimum credit score requirement if you apply directly on its website, so you could be approved with fair or bad credit. If you apply through Credible, you'll need at least a 560 credit score. 

Great for small loans

Universal credit offers $1,000 loans, which is a lower loan amount than what is offered by many of its competitors. A small personal loan can be a great alternative to cash advance apps and payday loans since repayment terms are much longer and fees are substantially lower. 

Repayment terms start at three years for a Universal Credit loan, whereas cash app and payday loans are often due in two weeks. This means lower payments for you over the course of the loan. Plus, payday loans have triple-digit APRs in most states, making them the most expensive small-loan option. APRs on Universal Credit personal loans top out at 35.99%.

Pros and cons of Universal Credit personal loans

There’s a lot to like about Universal Credit’s personal loans, but there are also points that are less attractive. Here’s a breakdown of the pros and cons of this lender:

Pros

• Quick funding: You can receive loan funds as soon as one business day after you’re approved and complete all verifying documents. 
• Small loans available: While Universal Credit offers loans up to $50,000, it also offers loans as low as $1,000. Many competitors do not. 
• Bad credit borrowers may be eligible: Universal Credit is more likely than most lenders to approve your application if you have bad credit. This can result in fewer hard credit pulls on your report, and could quickly improve your score if you’re using the loan to consolidate credit card debt.
• Long loan terms available: Universal Credit offers repayment terms as long as seven years (if you apply through Credible), which can significantly reduce monthly payment amounts.
• Debt consolidation money can be sent directly to creditors: This makes paying off debts quick and easy; it also keeps you from using loan funds for other purposes.

Cons

• High origination fees: All loans are charged an origination fee, which can be as high as 9.99%. This is higher than what many other personal loan lenders charge, and will reduce the amount you have available to spend or pay off creditors.
• High APRs: Even on the low end, Universal Credit’s APRs are higher than many other competitors. (If you have bad credit, expect to pay a rate around 30%, regardless of the lender you choose.)

How to qualify for a Universal Credit personal loan

To qualify for a personal loan with Universal Credit, here are the minimum requirements:

• Be at least 18 years old (or 19 if you live in Alabama)
• Be a U.S. citizen, permanent resident, or possess a valid visa
• Have a valid email address
• Provide a verifiable bank account

Additionally, Universal Credit may check the items below to assess your financial suitability for a personal loan.

Credit score and financial history

Universal Credit performs a soft credit check when you apply for a personal loan. This means checking your rate will not affect your credit score. However, if you accept the loan, the lender will perform a hard inquiry which could ding your score for up to one year. 

Universal Credit does not publish a minimum credit score requirement on its website, but you should have a FICO score of at least 560 to qualify through Credible. The company does take your creditworthiness into account when determining your eligibility and loan terms.

Income and employment

Universal Credits requires a minimum annual income of $25,000. During the final review of your loan, Universal Credit may request documents to verify your income and employment. This will prove you have the ability to repay the loan.

Universal Credit personal loan purposes

Universal Credit personal loans can be used for many purposes, including:

• Debt consolidation
• Home improvements
• Wedding planning 
• Emergency medical bills 

While you can use Universal Credit personal loans for a wide variety of purposes, there are a few prohibited uses to be aware of. These include anything related to post-secondary education (tuition, room, board, books, etc.), criminal activity, investments, or gambling. When applying for a personal loan, you must state the purpose of your loan in the application.

(Note that while the “no criminal activity” element may seem like a no-brainer, be aware that cannabis-related businesses may fall in this category as marijuana is still a controlled substance at a federal level, even if it’s legal in certain states.)

Universal Credit personal loan fees and penalties

Loan origination fees

Universal Credit charges an origination fee for underwriting their personal loans. This ranges between 5.25% and 9.99% of the loan amount and is deducted from loan proceeds. So if you have a $10,000 loan and your origination fee is 7%, you would receive $9,300 when your loan funded.

These origination fees are on the high side. Moreover, some competitors offer personal loans with no origination fees at all. To get a loan with no origination fee, you should have good credit or better (a 670 FICO score or higher).

No early repayment penalties

Universal Credit does not charge any early repayment penalties. If you can repay your loan early, they encourage you to do so.

Late fees

You have a 10-day grace period when paying on your Universal Credit personal loan. But if you’re late, you’ll be charged a $10 fee. (This amount may vary by state.)

How Universal Credit compares to other lenders

How to contact Universal Credit

You can reach a customer service representative by calling 877-418-9765. Help is available Monday through Friday between 5 a.m. and 7 p.m. PT. Weekend hours are 6 a.m. to 5 p.m. PT. To get assistance via email, contact [email protected] at any time.

About Universal Credit personal loans

Universal Credit is powered by Upgrade, an online lending platform that issues loans through its partners, Cross River Bank and Blue Ridge Bank. Both banks are FDIC-insured.

Universal Credit gives customers online and mobile access to their loan accounts. Customers use Upgrade’s app for mobile access.

Rating Universal Credit personal loans

Credible evaluated 30 personal loan lenders across 27 unique criteria, based on factors such as customer experience, minimum and maximum fixed rates, minimum and maximum loan amounts, funding times, loan terms, discounts, and fees. 

Credible's team of experts gathered information from each lender's website, customer service department, in-house resources, and considered that lender’s history of making personal loans through the Credible loan marketplace. Each data point was verified by a senior editor to ensure accuracy.

Learn more about how Credible rates lenders by exploring our Personal Loans Lender Rating Methodology.