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Universal Credit Personal Loans Review 2022

James J. Cordova

August 4, 2022

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Universal Credit Personal Loans

Costs

5.25% to 8% setup fee, undisclosed late fee

Regular APR

11.69% to 35.93%

Costs

5.25% to 8% setup fee, undisclosed late fee

Regular APR

11.69% to 35.93%

Advantages and Disadvantages of Universal Credit Personal Loans

Advantages

Quick funding. After accepting your loan offer, you will likely receive your money within a day of completing the verification process.
Low minimum credit score required. You only need a minimum credit score of 560 to get a loan from Universal Credit. However, the lower your score, the more likely you are to get a worse rate.
Wide range of loan amounts. You have the option of borrowing between $1,000 and $50,000 with Universal Credit, allowing many types of borrowers to take out a loan from the company.
Discounts on multiple fares available. You can get a rate reduction if you use one loan to consolidate high-interest debt, as well as another to set up AutoPay. The exact rate reduction depends on a company algorithm.

The inconvenients

High minimum and maximum interest rates. Universal Credit’s rates are particularly high, especially compared to some of the lenders in our best personal lenders guide.
High assembly costs. You will pay setup fees between 5.25% and 8%, which is very high. Some other lenders do not charge origination fees at all.
No co-signed loan available. If you are looking to add a co-borrower to increase your chances of loan approval or get a lower rate, you will need to choose another lender.
Not available everywhere. Universal Credit Personal Loans are not available in Iowa, West Virginia and Washington, DC.

Compare personal loan rates:

Who is Universal Credit for?

Universal Credit is ideal for borrowers with poor credit who are unlikely to qualify for a loan elsewhere. Borrowers with good credit will likely find lower rates with another lender because Universal Credit’s minimum APR is higher than many of its competitors.

Universal Credit can also be a good choice for borrowers who need a large sum of money, as you can withdraw up to $50,000 from the lender. Its minimum loan amount of $1,000 is quite accessible to borrowers on the other end of the spectrum who only need a little cash to tide them over.

Universal Credit Personal Loan Comparison

All three companies offer same-day or next-day financing.

The minimum loan term for Avant and OneMain Financial is two years and the maximum term is five years. Universal Credit has repayment terms of between three and five years. If you want a repayment term longer than five years, you’ll have to look elsewhere.

OneMain Financial has origination fees of up to 10%, while Universal Credit has origination fees of up to 8%. Avant charges an administration fee (that’s their name for an origination fee) of up to 4.75%. Depending on your credit score and other financial factors, this could eat up a significant portion of your loan proceeds – Avant may be the best choice as it has the lowest maximum fee.

Is Universal Credit Trustworthy?

Universal Credit has earned an A+ rating from the Better Business Bureau, a nonprofit organization focused on consumer protection and trust. The BBB determines its ratings by looking at a company’s response to customer complaints, its honesty in advertising, and its transparency about business practices.

Universal Credit hasn’t been involved in any recent controversies, so you can feel comfortable borrowing from the lender. Keep in mind that a clean track record and a top-notch BBB score don’t guarantee you’ll have a good relationship with the company, so reach out to others who’ve used Universal Credit before to hear their first-hand experiences as well. hand.

Frequently Asked Questions

What credit score do you need for Universal Credit?

You need a minimum credit score of 560 for Universal Credit. Many other lenders require a higher score, so this might be a good choice if you have bad credit. Be careful – the lower your credit score, the more likely you are to face a high interest rate, which could cost you dearly over the life of your loan.

How long does it take to get a loan from Universal Credit?

Once your loan application is approved and you agree to the terms, you should receive your money within one business day. If you choose to have your funds sent directly to your creditors for repayment, it can take up to two weeks for the transaction to clear.

Does Universal Credit do a thorough investigation?

When you check your rates with Universal Credit, the company only performs an indirect credit check, which allows the lender to see your credit history but does not impact your score. After accepting your loan offer, Universal Credit will conduct a thorough investigation that could negatively impact your credit score.

Can you repay a Universal Credit loan early?

Yes, you can prepay a Universal Credit loan without penalty.

Ryan Wangman, CEPF

Junior Loans Journalist

Ryan Wangman is a Junior Reporter at Personal Finance Insider and reports on personal loans, student loans, student loan refinance, debt consolidation, auto loans, RV loans, and boat loans. He is also a Certified Personal Finance Educator (CEPF).
In his past personal finance writing experience, he has written about credit scores, financial literacy, and home ownership. He is a graduate of Northwestern University and has previously written for the Boston Globe.
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