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Universal Credit Personal Loans Review (October 2024)

Universal Credit offers quickly funded personal loans with borrowing limits up to $50,000.

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By Lindsay Frankel
Lindsay Frankel

Written by

Lindsay Frankel

Writer

Lindsay Frankel has been in personal finance for over eight years. Her work has been featured by MSN, CNN, FinanceBuzz, and The Balance.

Updated October 7, 2024

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”

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Universal Credit offers personal loans up to $50,000 that can be used for a variety of purposes, including debt consolidation. The online lender can transfer the funds to your bank as soon as the next business day, or pay your creditors directly within two weeks. Universal Credit has higher rates and fees than some other lenders, so excellent-credit borrowers (a FICO score of 800 or higher) should look elsewhere. But if your credit needs work, Universal Credit may be a great option. We'll cover the pros and cons and walk you through how to apply.

Best debt consolidation loans for bad credit

You can use a personal loan from Universal Credit to pay off your credit cards or other high-interest debts. Known as debt consolidation, this strategy can help you potentially save money in interest over time or achieve a lower monthly payment.

You can tell the lender which debts you'd like to consolidate, and they'll pay off your creditors directly. You'll be left with just one monthly payment to Universal Credit instead of bills to multiple creditors. 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 (FICO scores between 300 and 669). If you apply through Credible, you'll need at least a 560 credit score. 

Just remember that you'll only save money if Universal Credit offers you a lower annual percentage rate (APR) than you're currently paying on your other debts. But if you need to lower monthly payments so they're affordable, it could be worth paying a higher APR to do so.

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Good to know

Your APR is the total cost of borrowing money over the course of a year, expressed as a percentage. It accounts for the interest rate and any upfront fees.

Best low-income loans

Universal Credit doesn't publish a minimum income requirement for applicants. The lender also doesn't mention income as one of the primary factors it uses when considering a borrower's loan application, but you'll need to provide proof of income during the application process. If you have a low-income job or rely on government benefits, you may still be eligible for a personal loan from Universal Credit, especially if you have a strong history of on-time payments.

Best debt consolidation loans for bad credit

Universal credit

Universal Credit

4.3

Credible Rating

Check Rates

on Credible’s website

Est. APR

11.69 - 35.99%

Loan Amount

$1,000 to $50,000

Min. Credit Score

560

Pros and cons

More details

What to consider before applying

  • Can you afford the minimum payments? You should never apply for a loan if the monthly payments won't fit your budget, because late or missed payments will negatively impact your credit score. However, you may be able to extend the loan's term to reduce monthly payments. Just make sure this makes sense in the long term as you could end up paying much more in interest.
  • Does Universal Credit offer the amount you need? Universal Credit offers loan amounts between $1,000 and $50,000. If you just need a few hundred dollars, consider a payday alternative loan (PAL) from a credit union. A PAL offers loan amounts up to $2,000 and repayment terms up to 1 year. Interest rates are capped at 28%.
  • Can you qualify for a lower rate elsewhere? Some lenders offer personal loans with low rates, no fees, and great perks to borrowers with good or excellent credit (a FICO score of 670 or higher). If that's you, check out lenders like SoFi, LightStream, or Discover before applying for a loan from Universal Credit.

How to qualify for a loan with Universal Credit

Universal Credit considers several eligibility factors when approving a loan and determining the APR for a loan offer. Though the lender doesn't publish minimum income or credit score requirements, it will review the information on your credit report, including your credit usage and payment history. At a bare minimum, you must also:

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

How to apply for a loan with Universal Credit

  1. Check your rate estimate: Universal Credit lets you prequalify before you apply. Prequalification provides an estimate of the APR you might qualify for. The APR accounts for the interest rate and upfront fees, and is expressed as an annual percentage of the loan amount. Universal Credit uses a soft credit check, so prequalifying won't impact your credit score, and it only takes a few minutes. During this step, you should also compare rates from a few other lenders. Prequalification is not a direct offer of credit and your rates may change once you formally apply.
  2. Select your term: Universal Credit offers you a choice between loan terms (3 to 5 years). The options may have different APRs, as well. Choose the offer that best fits your needs. You'll pay less interest with a shorter term, but it's also important to make sure you can afford the monthly payments.
  3. Formally apply: To continue with the application process, you'll need to authorize a hard credit check, which could cause a slight dip in your credit score. Universal Credit may also ask you to upload documents to verify your identity and income, which can include your Social Security number and pay stubs.
  4. Sign your loan documents: Review your final loan offer and sign the forms to accept your loan.
  5. Receive the funds: In most cases, the loan funds will reach your bank account within 1 business day. If you opt for Universal Credit to send the funds to your creditors, it could take up to 2 weeks.

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.

How Universal Credit compares

Universal Credit is a good option for some borrowers, particularly low-income, low-credit score applicants that need help getting rid of credit card debt. But the lender isn't the right choice for everyone. Here's how Universal Credit compares to other top personal loan lenders.

Credible rating

APR from11.69 - 35.99%
Loan Amount$1000 to $50000
Term Length3, 5, or 7
Min. Credit Score560

Credible rating

APR from9.95 - 35.99%
Loan Amount$2000 to $35000
Term Length2 - 5
Min. Credit Score550
Read Our Review

Credible rating

APR from18.00 - 35.99%
Loan Amount$1500 to $20000
Term Length2 - 5
Min. Credit ScoreNo minimum
Read Our Review

Methodology

Credible evaluated personal loan lenders based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, and fees. Credible's team of experts gathered information from each lender's website, customer service department, in-house resources, and via email support. Each data point was verified to make sure it was accurate at the time of publication.

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

FAQ

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Meet the expert:
Lindsay Frankel
Lindsay Frankel

Lindsay Frankel has been in personal finance for over eight years. Her work has been featured by MSN, CNN, FinanceBuzz, and The Balance.