Universal Credit Review – Quick And Easy Personal Loans

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June 13, 2024

Universal Credit Review – Quick And Easy Personal Loans

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Life has a way of surprising us when we least expect it. From sudden medical expenses to unexpected home repairs, curve balls can come in many forms, often leaving us scrambling to find solutions.

While having an emergency fund is ideal for handling such situations, the reality is that many individuals’ personal finance situations don’t allow them to have one readily available. In these moments of financial uncertainty, personal loans can serve as a lifeline, providing the necessary funds to navigate challenging times.

Universal Credit is one such player in the crowded space for personal loan providers. This article will delve into the details and discover how it can provide financial support to weather unpredictable storms. Our Universal Credit personal loans review will give you an insight into how it works and whether it suits your needs.

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What is Universal Credit?

Universal Credit provides easy access to credit for various needs. Whether you're looking to consolidate your debt, fix a leaky roof, pay for auto repairs, or cover any of life’s unexpected expenses, Universal Credit is there for you. Easy online access ensures you get the money you need quickly and without hassle.

A Universal Credit personal loan can help in many ways. You can treat it as a debt consolidation loan to consolidate debt and streamline your bills into a single, predictable monthly payment. If unexpected expenses arise, like a car repair or a home fix, credit borrowers via Universal don’t have to worry about them. Additionally, if you have high-interest credit card debt, you can take control with a fixed-rate loan and manage your payments more effectively.

So, how much are we talking about? You can take out personal loans of $1,000 to $50,000 via Universal Credit. There aren’t any prepayment fees, and the company offers fast funding. The loan term ranges from 36 to 60 months, and the Annual Percentage Rate (APR) is between 11.69% and 35.99%. Oh, and it does a soft credit inquiry, which doesn’t affect your credit score.

Powered by Upgrade Inc., Universal Credit is backed by a financial technology company that has helped over 2.5 million customers achieve their financial goals since 2017, with $27 billion in affordable credit.

Over on TrustPilot, Universal Credit boasts a 4.8-star rating based on thousands of reviews.

It’s important to note that Universal Credit doesn’t discuss prequalification, late fees, personal loan rate discounts (other than autopay), or whether or not you can have a co-signer on its website.

How does the loan process work?

Getting started with Universal Credit is a breeze. This is what the process looks like:

Check your rate. You start by answering a few quick questions online. In just minutes, you’ll be able to see your personalized rate with no impact on your credit score and no obligation to proceed. Universal Credit does a soft credit check. For reference, a hard credit pull of your credit report takes a toll on your score.
Choose your loan offer. Once you’ve seen your rate, you can review multiple loan options tailored to your needs. Each offer will provide details on the terms, rates, and payments, allowing you to choose the one that best aligns with your budget and timeline. This ensures you can find a loan that fits comfortably into your financial plan.
Fast funding. After selecting the best offer, accept your loan and complete the necessary verification steps. Once verified, you can expect to receive your loan funds quickly — typically within one business day. This fast funding process ensures that you get the money you need without delay so you can address your financial needs promptly.

Universal Credit features

Here are a few of Universal Credit’s top features:

Fixed rates and predictable payments. Universal Credit offers loans with fixed interest rates and predictable monthly payments, making it easy for borrowers to budget and plan their finances without any surprises.
A loan you can plan around. With clear terms and consistent payments, you can seamlessly integrate your loan into your financial plans, ensuring you can meet your obligations without stress.
Fast funding when you need it. Universal Credit understands that urgent financial needs require quick solutions. They provide rapid funding, typically within a day of completing necessary verifications, so you can promptly address your expenses.
Easy online process and mobile access. The loan application and management process is straightforward and convenient, thanks to Universal Credit's user-friendly online platform and mobile access. This keeps you in control and supported every step of the way.
Free credit monitoring. Universal Credit includes free credit monitoring services and regular updates on your credit status. This helps you stay informed about your financial health and make better financial decisions.

Universal Credit eligibility

Eligibility is based on factors like credit score, usage, and payment history. To qualify, you must be:

A U.S. citizen, permanent resident, or living in the U.S. with a valid visa
At least 18 years old (19 in Alabama)
Able to provide a valid email address
Able to provide a verifiable bank account

Universal Credit fees

Before you take out a personal loan, it’s important to be aware of the associated costs and how they can affect your loan amount and repayment terms.

Universal Credit charges an origination fee ranging from 5.25% to 9.99%. This fee is deducted from your loan proceeds upfront, meaning the amount you receive will be less than the total loan amount.

For example, if you are approved for a $10,000 loan with a 5.25% origination fee, $525 will be deducted, and you will receive $9,475. If your origination fee is 9.99%, $999 will be deducted, and you will receive $9,001.

Additionally, the lowest interest rates are available to borrowers who opt for autopay and commit to using a portion of the loan to pay off existing debt directly. Autopay ensures that your payments are made on time automatically, which can help you secure a lower rate by reducing the risk of late payments.

Who is Universal Credit good for?

Universal Credit is suitable for individuals who:

Need access to personal loans with fixed rates and affordable monthly payments.
Want to consolidate debt or cover unexpected expenses.
Have a good to excellent credit score, credit usage, and payment history.
Prefer a straightforward online application process and mobile access.
Value free credit monitoring services to stay informed about their financial health.

Who shouldn’t use Universal Credit?

Universal Credit may not be suitable for individuals who:

Have poor credit history or credit scores, as they may not qualify for favorable loan terms.
Prefer not to pay origination fees or are uncomfortable with fees deducted from their loan proceeds.
Cannot commit to autopay or using a portion of the loan to pay off existing debt directly, which may affect their ability to secure the lowest interest rates.
Require loan options beyond personal loans, such as secured loans or specialized financing solutions.

Pros and cons

Pros

Easy access to credit. Universal Credit provides easy access to personal loans for various needs.
Fixed rates and predictable payments. With fixed interest rates and predictable monthly payments, borrowers can budget and plan their finances without worrying about fluctuations in interest rates.
Fast funding. Universal Credit offers rapid funding, typically on the next day of completing necessary verifications.
Free credit monitoring. Universal Credit includes free credit monitoring services, providing regular updates on your credit status.

Cons

Origination fees. Universal Credit loans come with origination fees ranging from 5.25% to 9.99%, which are deducted from the loan proceeds upfront, reducing the amount received by the borrower.
Limited loan options. Universal Credit primarily offers personal loans, so individuals seeking alternative loan options such as secured loans or specialized financing solutions may need to explore other lenders.
Autopay requirement for lower rates. To secure the lowest interest rates, borrowers must commit to autopay and use a portion of the loan to pay off existing debt directly, which may not be feasible for everyone.

Universal Credit vs. competitors

Here’s how Universal Credit fairs against two of its competitors:

Upstart

Both Universal Credit and Upstart provide personal loans ranging from $1,000 to $50,000. Universal Credit assesses eligibility based on credit score, usage, and payment history. In contrast, Upstart employs a powerful AI platform that looks beyond traditional credit scores to determine loan eligibility, resulting in better approval odds for borrowers with bad credit.

Universal Credit imposes an origination fee ranging from 5.25% to 9.99% on all personal loans, deducted from the loan proceeds. Upstart charges an origination fee ranging from 0% to 12% of the total loan amount. Both lenders offer fast funding options.

Read a full review on Upstart.

LendingClub

LendingClub offers personal loans of up to $40,000 to borrowers with minimum credit scores of 660 or higher. On the other hand, Universal Credit provides personal loans ranging from $1,000 to $50,000, catering to a wider range of borrowing needs.

Depending on the borrower's financial profile, LendingClub's personal loan interest rates range from 8.98% to 35.99% APR. Universal Credit's APR ranges between 11.69% and 35.99%.

Both do not charge any prepayment penalties.

Read a full review on LendingClub.

FAQs

What is Universal Credit?

Universal Credit is a personal loan provider that offers easy access to credit for various needs, including debt consolidation, home repairs, auto expenses, and unexpected emergencies.

How much can I borrow from Universal Credit?

You can borrow personal loans ranging from $1,000 to $50,000 via Universal Credit, depending on your financial needs and eligibility.

What are the fees associated with Universal Credit loans?

Universal Credit loans come with an origination fee ranging from 5.25% to 9.99%, deducted from the loan proceeds upfront. Additionally, there are no prepayment fees.

How fast can I receive funds from Universal Credit?

Once your loan is approved and verified, you can expect to receive your funds quickly, typically within a day of completing necessary verifications.

The bottom line

Universal Credit is a reputable personal loan provider that offers easy access to credit for various needs. With its straightforward online application process, fixed rates, and fast funding options, it provides a lifeline for individuals navigating financial uncertainty.

Universal Credit can be a valuable resource for individuals with good credit history and a clear financial plan in times of need. However, those with poor credit or an aversion to fees may need to explore alternative options.

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Jasir Jawaid is Joy Wallet's Assistant Editor. He has more than 13 years of experience as a journalist covering Wall Street, equities, financial policy and regulation, and cryptocurrency and blockchain.

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