Universal Credit Personal Loans Review

Our take on Universal Credit

Universal Credit has loans for fair credit, plus rate discounts, extended repayment terms, and good customer reviews. Interest rates can run high (unless you have very good or excellent credit). But Universal Credit's eligibility requirements make it worthy of consideration for borrowers with FICO scores below 670 and for those with modest incomes.

Who is Universal Credit best for? 

• Fair-credit borrowers in a hurry: Universal Credit considers borrowers with credit scores as low as 580, the bottom of FICO's fair-credit range. Plus, funds can be available as soon as the next business day after loan approval. 
• Borrowers looking for smaller loans: While some lenders have minimum loan amounts of $5,000 or more, Universal Credit lets you borrow as little as $1,000. The $1,000 minimum could offer an alternative to a high-cost, small-dollar loan, such as a payday loan (which often have fees that equate to triple-digit APRs). 

Who is Universal Credit not best for?

• Borrowers with good, very good, or excellent credit: Credible marketplace data shows that Universal Credit borrowers with credit scores of 670 and above received APRs that were about average (for their credit score tier). In other words, rates for these borrowers didn't stand out as either good or bad, overall. However, some lenders like LightStream and Happen Bank, delivered considerably lower rates, on average.   
• Borrowers looking for a personal loan of more than $50,000: Universal Credit’s personal loans max out at $50,000. If you need to borrow more, consider other fair-credit lenders like Happen Bank (up to $60,000) or Upstart (up to $75,000). If you have good or very good credit, try SoFi or Lightstream, both of which offer loans of up to $100,000.

Pros and cons

Details on the pros 

• Fair-credit borrowers may qualify: Many lenders require a minimum credit score of 640 or higher, but Universal Credit's minimum requirement is 580 when applying through Credible. FICO's fair-credit range is 580-669.
• Available rate discounts: Universal Credit offers interest rate discounts for setting up autopay or sending loan funds directly to your creditors (for debt consolidation loans). 
• Fast funding: Universal Credit can fund loans within 1 business day of verification. The average funding time for Universal Credit loans was 3 days, according to 12 months of Credible loans data.
• Small loans available: Universal Credit lets you borrow as little as $1,000 for smaller expenses. A small personal loan can help you avoid payday loans or other predatory loans.
• Funds can be sent directly to creditors: If you’re using a personal loan for debt consolidation, Universal Credit can save you a step and disburse the loan funds directly to your creditors. The direct-pay option also comes with a small rate discount.
• 7-year repayment terms available: A longer repayment term usually means a lower monthly payment. This could, in turn, increase the loan amount you’re approved for. Most lenders cap loan terms at 5 years. Keep in mind, though, that a longer term also means more interest and a more expensive loan in the long run.

Details on the cons 

• Origination fees: Universal Credit charges an origination fee between 5.25% and 9.99% of the loan amount, deducted upfront from your loan proceeds. While some competitors offer personal loans with no origination fees at all, you'll probably need a credit score of 680 or better to qualify for one. 
• High minimum APRs: Universal Credit APRs start above 11%, while several competitors offer rates starting below 10% or even below 7%. Borrowers with excellent credit are particularly likely to find lower rates with those lenders. 

How to qualify for a Universal Credit personal loan

Universal Credit considers your credit score, credit usage, and payment history when you apply for a loan. You'll need:

• A credit score of 580 or better: Though the lender doesn’t disclose a specific credit score minimum on its website, you need a score of at least 580 to apply through Credible. 
• An annual income of $25,000 or more: Universal Credit's minimum income requirement makes it an option for low-income personal loans.

Other requirements to apply for a Universal Credit personal loan include: 

• Be a U.S. citizen or permanent resident or live in the U.S. with a valid visa
• Be at least 18 years old (19 in Alabama)
• Have a valid email address
• Have a bank account

Universal Credit personal loan purposes

The purposes below are not all-inclusive. 

Though the lender doesn’t outline prohibited personal loan uses on its website, there are some common guidelines to be aware of. For instance, you generally can’t use a personal loan for college tuition, business expenses, or gambling.

Universal Credit fees and penalties

• Origination fees: Some lenders charge personal loan origination fees that are often deducted upfront from the loan amount. Universal Credit charges a fee of 5.25% to 9.99% of the loan amount. For example, if you borrow $10,000 and are charged an origination fee of 8%, you’d receive $9,200 in loan proceeds. You would still have to repay the full $10,000, plus interest.
• Late payment fees: If you miss a payment due date, Universal Credit may charge a fee. Check your loan agreement for the type, amount, and when fees are charged. 

Like most personal loan lenders, Universal Credit doesn’t charge prepayment penalties, so you’re free to repay your loan ahead of schedule to save money on interest. 

Universal Credit vs. other lenders

Universal Credit company details and history

Universal Credit is an online lender powered by the fintech company Upgrade, with headquarters in San Francisco. Neither Universal Credit nor Upgrade is a bank, but personal loans are provided through two partner banks: Cross River Bank and Blue Ridge Bank. Both partner banks are insured by the FDIC.

Contact information

You can contact customer support by:

• Phone: (877) 418-9765, 5 a.m. to 7 p.m. PT Monday through Friday and 6 a.m. to 5 p.m. PT Saturday and Sunday
• Email: [email protected]

Existing customers can log in to their accounts on the Universal Credit website. 

Methodology

Credible evaluated 32 lenders across 1,184 data points to choose the best lender overall plus top picks for different borrowers and use cases. Across lenders, we collected data on customer experience and service options, minimum and maximum fixed interest rates, minimum and maximum loan amounts, funding times, loan terms, fees, discounts, third-party reviews, and more.

We assigned a score to each attribute based on how that feature compared with the same feature for every other lender in the set. Scores were weighted according to their relative importance — for instance, maximum origination fee scores received a high weight since loan cost is among the most important factors in determining loan value. Individual attribute scores were then added to determine each lender's overall star rating. 

Attributes were grouped into categories; each category contributed to lender scores as follows: 

• Borrower cost (22.5%): Origination fee ranges and minimum and maximum APRs measure upfront and overall costs and lender accessibility across credit score groups.
• Flexibility (22.5%): Maximum loan terms, number of loan purposes, minimum and maximum loan amounts, and availability of joint and secured loans measure the range of options for loan size, repayment terms, and loan types.
• Eligibility and availability (22.5%): Minimum income requirements, funding speed, minimum credit score requirements, and state availability measure how easily and how quickly borrowers can access personal loans.
• Reputation (15%): Trustpilot, Better Business Bureau, and J.D. Power ratings measure customer satisfaction.
• Discounts, customer service, and account management (12.5%): Discounts for autopay and direct pay, plus availability of mobile apps and live customer support chat, measure borrower perks and ease of loan management.
• Partner lender data (5%): Data from loans closed by our partners, including average rates, loan amounts, funding time, and eligibility criteria, measure real-world performance and borrower outcomes.

Non-partner lenders were evaluated based on the same criteria but not assigned star ratings. Learn more about how Credible rates lenders by exploring our full personal loans lender rating methodology.