Review
Updated
Fact Checked
Eric McWhinnie
Universal Credit Personal Loans are designed to provide access to credit for borrowers who need it, even if their credit history isn't flawless. In this review, we'll discuss Universal Credit Personal Loans's platform, the pros and cons of getting a personal loan through Universal Credit Personal Loans, and some alternatives that could be more appealing to certain borrowers.
Universal Credit Personal Loans
Rating image, 3.5 out of 5 stars.
3.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Minimum Credit Score
560
Loan Amounts
$1,000 - $50,000
APR Range
11.69% - 35.99%
Term Length
36 - 60 months
Universal Credit Personal Loan is a good fit for borrowers who may have some negative information in their credit file, but who need a personal loan to consolidate debts or cover a large expense.
- Flexible repayment terms
- Loans for borrowers without stellar credit
- Fast funding
- No prepayment penalties
- Highly rated mobile app
- High APR range
- Origination fees are higher than most competitors'
Compare the best personal loans
Get the best rates and terms to fit your needs. Here are a few loans we'd like to highlight, including our award winners.
| Lender | APR Range | Loan Amount | Min. Credit Score | Next Steps |
|---|---|---|---|---|
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Fixed: 8.99%-29.99% APR (with all discounts)
|
$5,000 - $100,000
|
680
|
|
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
5.20% - 35.99%
|
$1,000 - $50,000
|
None
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Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
10.49% to 19.49%
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$2,000 - $30,000
|
720
|
Full Universal Credit Personal Loans Review
This personal loan is a good fit for: Borrowers who have below-average credit histories with debts to consolidate or large expenses to pay for.
Top perks
There's no such thing as a perfect lender, but if you're in the market for a personal loan, there are some features of Universal Credit Personal Loans's personal loans that you may find appealing:
Loans for subprime borrowers: Universal Credit Personal Loans specializes in loans for borrowers with below-average FICO® Scores. It can be difficult for borrowers in the lower credit tiers to find loans, and Universal Credit Personal Loans aims to help this underserved demographic.
36 - 60 months loan repayment terms: Universal Credit Personal Loans makes fixed-rate personal loans with terms ranging from three to five years, although not every borrower will be offered loans with all possible term lengths. Longer repayment terms have lower monthly payments, while shorter repayment terms typically result in less interest paid over the life of the loan.
Loans of up to $50,000: Universal Credit Personal Loans offers a wide range of loan amounts, with borrowers able to access loans from $1,000 - $50,000. On the lower end especially, Universal Credit Personal Loans stands out, as many competitors have much higher minimum loan amounts.
Direct payments to creditors: If you're borrowing money to consolidate debts, Universal Credit Personal Loans can send loan proceeds directly to your creditors within one business day of your loan clearing verifications. This can save significant time in the debt consolidation process, compared with having the money sent to you and then manually paying off your debts with it.
No prepayment penalties: If you want to pay your loan off faster than you're required to, it won't cost you anything. Universal Credit Personal Loans doesn't charge any prepayment penalties, even if you pay off your loan in just a few months.
Next day funding: Once you accept a loan offer from Universal Credit Personal Loans, the money will be sent to your bank account within one business day of clearing verifications. It's worth mentioning that it can take longer than a day for your bank to process the funds and make them available (especially if you have proceeds sent directly to creditors), but the transfer happens quickly on Universal Credit Personal Loans's end.
Easy to check your loan offers: Like most personal lenders, Universal Credit Personal Loans allows prospective borrowers to check their rate offers quickly and easily online and to get pre-approval for a loan, and with no impact to their credit score. Universal Credit Personal Loans only does a soft credit check when determining loan eligibility, so simply checking your rate doesn't show up as a credit inquiry on your credit report.
Mobile app: It's worth pointing out that Universal Credit Personal Loans is a part of personal financial services platform Upgrade, which also offers its own branded Upgrade personal loans. Both platforms' loans are managed through Upgrade's mobile app (or through Universal Credit Personal Loans's website). Upgrade has a highly rated mobile app, with ratings of 4.6 and 4.8 out of five stars on Google Play and the Apple App Store, respectively. In addition to personal loans, Upgrade offers cash-back credit cards, a rewards checking account, and more.
What could be improved
As mentioned earlier, there's no such thing as a perfect lender for everyone, so here are some of the potential drawbacks of Universal Credit Personal Loans.
APR range is a little high: Universal Credit Personal Loans's APRs are on the higher end when compared to other lenders. To be fair, this makes sense as Universal Credit Personal Loans's loans are targeted at borrowers without stellar credit histories, but in many cases, Universal Credit Personal Loans loans may not be any more cost-effective than simply using a credit card. It's also worth pointing out that Universal Credit Personal Loans offers a 0.50% rate discount for automatic payments.
Origination fees can cost thousands: There are some personal lenders who don't charge origination fees, and others that only charge origination fees for certain borrowers. However, Universal Credit Personal Loans charges origination fees for all personal loans, and these can range from 4.25% - 8.00% of the loan amount. These origination fees are included in the APR range (one of the reasons it's on the high end), and it's important for borrowers to realize these are deducted from the loan proceeds before they are distributed. In other words, if you borrow $20,000 and receive an 8% origination fee, only $18,400 will be deposited into your bank account.
How to qualify for a Universal Credit Personal Loans loan
In order to qualify for a personal or debt consolidation loan through Universal Credit Personal Loans, you'll need to meet a few basic qualifications. You'll need to be at least 18 years old, have a valid email address and bank account, and be a U.S. citizen or permanent resident. You'll also need to pass a soft credit check and have current income to justify the loan. Here's the full list of qualifications:
- U.S. citizen or permanent resident, or living in the U.S. with a valid visa
- At least 18 years old (in Alabama, the minimum age is 19)
- A valid email address
- A verifiable bank account
- Enough income to justify the loan
While Universal Credit Personal Loans specializes in loans for borrowers with lower credit scores, you'll still need a reasonably strong credit history to get a loan. If you have some late payments and older charge-offs on your credit file, you'll probably be ok. But if your credit file has lots of bad information and very little good, you may have a tough time qualifying. Universal Credit Personal Loans doesn't disclose its minimum credit score on its website, but several reports indicate that a 560 is the minimum score the platform will accept.
Application process
Like most personal lenders, Universal Credit Personal Loans allows prospective borrowers to check their personalized loan offers without any impact to their credit score. In many cases, multiple loan options are provided.
The next step is to choose the specific loan offer that works best for your budget and desired repayment timeline. You'll accept the loan offer online, and the money will be sent within one business day of clearing verifications.
Universal Credit Personal Loans are right for you if:
To sum it up, Universal Credit Personal Loans Personal Loans can be a great fit for borrowers with large expenses to finance, or who are in need of debt consolidation, but whose credit histories might prevent them from getting approved at other lenders. There are some drawbacks for sure, especially when it comes to fees, but for borrowers who need credit and are having trouble getting it elsewhere, Universal Credit Personal Loans can be a solid option.
FAQs
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Universal Credit Personal Loans sends money to your bank (or creditors) within one business day of you accepting a loan offer and clearing all of the verification processes. It may take longer for the funds to post to your bank account.
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When you check your rate offers with Universal Credit Personal Loans, a soft credit check is performed, which is only visible to you and won't impact your credit score. However, once you accept and finalize a loan, a hard inquiry will be performed, which is standard practice for most, if not all, personal lenders.
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Universal Credit Personal Loans offers personal loans and debt consolidation loans. The only main difference between the two is that personal loan proceeds are paid to you, while debt consolidation loan proceeds can be paid directly to your existing creditors.
Our Loans Experts
Matt is a Certified Financial Planner™ and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for The Ascent and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column ("Ask a Fool") that is syndicated in USA Today, and his work has been regularly featured on CNBC, Fox Business, MSN Money, and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.
Fact Checked
Eric McWhinnie
Eric McWhinnie has been writing and editing digital content since 2010. He specializes in personal finance and investing. He also holds a bachelor’s degree in Finance.
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Matthew Frankel, CFP® has positions in Upstart. The Motley Fool has positions in and recommends Alphabet, Apple, Target, Upstart, and Visa. The Motley Fool has a disclosure policy.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
Citigroup is an advertising partner of The Ascent, a Motley Fool company. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Matthew Frankel, CFP® has positions in Upstart. The Motley Fool has positions in and recommends Alphabet, Apple, Target, Upstart, and Visa. The Motley Fool has a disclosure policy.
Citi Personal Loan disclaimer:
**Rates as of 10-06-2023 . Your APR may be as low as 10.49% or as high as 19.49% for the term of your loan. The lowest rate quoted assumes excellent credit, and a loan term of 36 months or shorter. Otherwise, a higher rate will apply. For example, if you borrow $10,000 for 36 months at 15.99% APR, to repay your loan you will have to make 36 monthly payments of approximately $351.52.
There is a 0.5% APR discount if you enroll in automatic payments at loan origination. Additionally, existing Citigold and Citi Priority customers will receive a 0.25% discount to the interest rate. If you are in default, your APR may increase by 2.00%. No down payment is required. Rates subject to change without notice.
You must be at least 18 years of age (21 years of age in Puerto Rico). Co-applicants are not permitted. Loan proceeds cannot be used for post-secondary educational or business purposes.
If you apply online, you must agree to receive the loan note and all other account disclosures provided at loan origination in an electronic format and provide your signature electronically.
Credit cards issued by Citibank, N.A. or its affiliates, as well as Checking Plus and Ready Credit accounts, are not eligible for debt consolidation, and Citibank will not issue payoff checks for these accounts. If you are unsure of the issuer on the account, please visit https://www.citi.com/affiliatesproducts for a list of Citi products and affiliates.
*SoFi Personal Loan Disclaimer
Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.
Loan amounts range from $5,000–$100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive.
Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.
Impact to credit score: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
*Upstart Loan Disclaimer
The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646 including a $626 origination fee. APR is calculated based on 3-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.