REVIEW OF Universal Credit LOANS
Once approved, Universal Credit customers can access features offered by Upgrade, including credit building tools, a mobile app and a discount for directly paying off creditors on debt consolidation loans.
Universal Credit personal loans are best for borrowers with low credit scores who want a loan with features that will help their scores. Universal Credit’s rates are high compared to other bad-credit lenders, so compare loan offers before you apply.
Universal Credit is operated by online lender Upgrade. The main difference between the two is that borrowers with bad credit scores (689 or lower) and more debt may more easily qualify Universal Credit person for a Universal Credit loan. Upgrade offers a more flexible personal loan that’s particularly good for debt consolidation.
Universal Credit personal loans at a glance
| Minimum credit score | 560. |
| APR | 11.69% – 35.93%. |
| Fees | :Origination: 5.25% to 8.99%. :Late fee: $10. |
| Loan amount | $1,000 to $50,000. |
| Repayment terms | 3 or 5 years. |
| Time to fund after approval | 1 day. |
| Loan availability | Loans not available in Washington, D.C. |
Where Universal Credit personal loans stand out
Multiple rate discounts:
Autopay discount: Universal Credit offers a 0.5 percentage point discount for setting up automatic payments. This discount is common with personal loans, and setting up autopay ensures you make payments on time.
Direct pay discount: If you’re using Universal Credit to consolidate other high-interest debts, the lender will directly pay off those debts (leaving you with one monthly loan payment) and discount your rate by 1 to 5 percentage points. Many lenders can directly pay other creditors, but few include a discount. To use this feature, at least half of the loan must go toward consolidating debt.
Existing customer discount: Because Universal Credit is owned by Upgrade, customers who maintain an active Upgrade rewards checking account may be eligible for a discounted annual percentage rate on a Universal Credit loan — up to 20% off the approved rate. A loan with a 30% APR could drop as low as 24%.
Credit-building tools: Through Upgrade, Universal Credit borrowers have free access to their VantageScore, a credit score simulator, credit monitoring and educational resources about credit building. Many lenders offer credit score monitoring, but the simulator tools and other tips are unique and allow borrowers to monitor their score and see which behaviors help or hurt it.
Fast funding: Universal Credit personal loans can be approved and funded as quickly as two days after you apply. The lender says approval can take one to a few days, and funds are usually available the day after approval. This process may be faster with other lenders — some approve you the day you apply and fund the loan the next day — but two or three days from application to funding is decent timing for a personal loan.
PROS: AND CONS:
| Low borrowing minimum | Rates are high compared to some lenders |
| Funds available as soon as one day | Charges an origination fee |
| Minimum credit score of 560 | Loans max out at $50,000 |
Methodology
We reviewed Universal Credit based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We rated Universal Credit based on the weighting assigned to each category:
- Loan cost: 35%
- Loan details: 20%
- Eligibility and accessibility: 20%
- Customer experience: 15%
- Application process: 10%
Within each category, we also considered several characteristics, including available loan amounts, repayment terms, APR ranges and applicable fees. We also looked at credit score requirements, whether the lender accepts co-signers or joint applications and the geographic availability of the lender. Finally, we evaluated Universal Credit’s support tools, borrower perks and features that simplify the borrowing process—like prequalification options and mobile apps.