Universal Credit Personal Loan Review
11.69% to 35.99%
36 to 60 months
$1,000 to $50,000
Not specified
LendingTree rating: 3.2/5
Accessibility: 3.4/5
Rates and terms: 3.0/5
Repayment experience: 3.0/5
Universal Credit is an online lending platform managed by Upgrade, a financial technology company. Universal Credit offers both small and large loans with affordable interest rates.
- Money sent directly to old creditors: If you get a debt consolidation loan, Universal Credit can pay off your former creditors directly.
- Quick funding: After you’re approved and close on your loan, Universal Credit might send you your money within one business day.
- Charges origination fees: Every Universal Credit loan comes with a 5.25% - 9.99% origination fee. These are one-time administrative fees that come out of your loan balance.
- Free credit monitoring: When you take out a personal loan, you can access Universal Credit’s free credit monitoring services to track changes to your credit report and score.
- Best for consolidating debt: Universal Credit’s ability to send funds directly to your current creditors makes it a good fit for consumers who want to manage their debts through consolidation.
Universal Credit pros and cons
Universal Credit personal loans come with a variety of benefits and downsides that consumers will need to weigh carefully before signing on the dotted line.
| Pros | Cons |
|---|---|
Funding within one business day is possible Direct funding to current creditors Free credit monitoring | Charges late payment fees Charges an origination fee High maximum rates |
If you need a quick loan, Universal Credit can send your funds within one business day after you’ve closed on your loan. And if you’re consolidating your debt, Universal Credit can send your loan funds directly to your current lenders.
On the other hand, if you have bad credit, you’ll likely get stuck with an APR as high as 35.99%, making your loan expensive. Plus, Universal Credit charges an origination fee from 5.25% - 9.99%, which will be taken out of your loan proceeds.
Universal Credit requirements
To get a Universal Credit loan, you’ll need to be at least 18 years old (19 in Alabama) and meet the following requirements:
| Residency | Must be a U.S. citizen, permanent resident or living in the U.S. with a valid visa |
| Administrative | Provide a valid email address and bank account number |
If Universal Credit’s loan options won’t work for your borrowing needs, be sure to shop around for a lender that helps you meet your financial goals and can offer you the best-fitting rates, terms and amounts.
How to get a personal loan with Universal Credit
To apply for a Universal Credit loan, you’ll need to take the following steps. Before beginning the application process, gather any necessary documents you may need and use a personal loan calculator to estimate how much you can afford to borrow.
Prequalify for a loan
Universal Credit lets you check whether you prequalify for a personal loan without impacting your credit score. During this part of the process, be sure to compare your rates, terms and borrowing limits by prequalifying with other lenders, too.
To prequalify, you’ll need to share your personal information, income, how much you want to borrow and how you plan to use the funds.
Verify your information
Next, Universal Credit will need to verify the information you provided in your personal loan application. You may be asked to submit recent pay stubs, W-2s, bank statements, an ID and your rental or mortgage agreement.
Universal Credit will also run a hard credit pull to check your credit background. This will cause your credit score to dip by a few points, though the effect will be temporary as long as you make your payments on time.
Sign your loan agreement
If Universal Credit officially approves your application, you’ll need to sign a personal loan agreement, confirming that you understand the terms and conditions of your loan and agree to repay it. When the paperwork is complete, Universal Credit can deposit your funds into your account within one business day.
If you don’t get a thumbs up from Universal Credit, you can boost your odds of getting approved for a personal loan by checking your credit report for errors and paying down any current debt you have.
How Universal Credit compares to other personal loan companies
Even if you believe Universal Credit aligns with what you’re looking for in a personal loan, it never hurts to shop around and compare other lenders. Here’s how Universal Credit stacks up against similar personal loan lenders.
| Lender | Universal Credit | Upgrade | Upstart |
|---|---|---|---|
| LendingTree’s rating | 3.2/5 | 4.6/5 | 4.5/5 |
| Minimum credit score | Not specified | 580 | 300 |
| APRs | 11.69% to 35.99% | 9.99% to 35.99% | 7.40% to 35.99% |
| Loan amounts | $1,000 to $50,000 | $1,000 to $50,000 | $1,000 to $50,000 |
| Repayment terms | 36 to 60 months | 24 to 84 months | 36 or 60 months |
| Origination fee | 5.25% - 9.99% | 1.85% - 9.99% | 0.00% - 12.00% |
| Funding timeline | May receive funds within one business day | May receive funds within one business day | May receive funds within one business day |
| Bottom line | Universal Credit is similar to Upgrade and Upstart, but borrowers with excellent credit will likely get better rates with these competitors. | Of the three, Upgrade offers the most flexibility when it comes to how long you have to pay back your loan. It also has a lower minimum origination fee than Universal Credit, meaning your loan could be less expensive upfront. | Upstart has the lowest starting APR at just 7.40%, making it ideal for borrowers with excellent credit. But borrowers with bad credit can still qualify – Upstart has one of the lowest credit score minimums on the market. |
How we rated Universal Credit
To come up with our star rating for personal loan companies, LendingTree considered 22 data points across three categories:
- Accessibility: We paid attention to whether lenders offered loans to nontraditional borrowers, as well as those without excellent credit scores. We also checked if lenders offered soft credit pulls, and whether they were transparent about eligibility criteria other than credit scores.
- Rates and terms: We wanted to know if lender rates, terms, amounts and fees were not only transparent, but also competitive.
- Repayment experience: We based this category on lenders’ reputations, customer support availability and unique benefits.
The data points reflect every step of the process to shop and apply for, borrow and repay personal loans. A five-star lender, for instance, has flexible eligibility requirements, offers you the chance to prequalify without commitment and supports you in zeroing your balance.
The 22 data points, culled from the lenders themselves, determine the overall rating. We score lenders consistently, sometimes awarding partial points, so that you can make apples-to-apples comparisons when shopping around.
LendingTree isn’t paid for conducting these reviews, and lenders don’t have control over their content. With our reviews and ratings, we aim to give our users the objective and exhaustive information they need to make the best possible decisions.
Frequently asked questions
After you’re approved for a loan and sign your loan agreement, Universal Credit can deposit your funds within one business day, depending on how quickly your bank processes the transaction. Typically, the funding timeline for a personal loan can range from one to five business days.
Whether Universal Credit is the right fit for you depends on factors like your credit score and what you’re looking for in a loan. For instance, if you have a good credit score, you may be able to find lower rates with other lenders and avoid paying an origination fee. But if your credit needs a little work and you want to consolidate your debt, Universal Credit could be a good option.
Yes, Universal Credit is a legitimate lender run by Upgrade, a financial technology company that offers online loans, credit cards and other bank products.