Our experts answer readers' personal loan questions and write unbiased product reviews (here's how we assess personal loans). In some cases, we receive a commission from our partners; however, our opinions are our own.
See Insider's picks for the best personal loans.
Who is Universal Credit Best For?
Universal Credit Personal Loans Details
Universal Credit offers personal loans ranging from $1,000 to $5,000. You can take as few as three years or as many as five years to pay off a Universal Credit personal loan.
You'll need a credit score of at least 560 to qualify for a personal loan from Universal Credit. Discounted rates are available if you use your loan to consolidate high-interest debts. You can also get a discount for setting up automated monthly payments.
If you're approved, you should receive your loan proceeds within one day. Loans are unavailable in Iowa, West Virginia, and Washington, DC.
Universal Credit Personal Loans Pros and Cons
How to Apply for a Universal Credit Personal Loan
1. Get prequalified for a loan at Universal Credit's website. You'll need to provide some basic details about yourself such as your name, address, date of birth and other personal information, along with how much money you want to borrow and your income. The lender will do what is known as a soft credit check at this point, which does not affect your credit score.
2. Choose from a loan with terms that are right for you. If you qualify for a Universal Credit personal loan, you will be presented with one or more offers with different amounts, rates, and repayment terms. Select the one that fits your needs.
3. Submit a full loan application. At this point in the process, you'll need to provide more documents verifying your income and other financial information, such as W-2 forms, bank statments, and pay stubs. The lender will do a hard credit inquiry, which is likely to reduce your credit score temporarily.
4. Receive your loan proceeds. If you're full loan application is approved, you should expect to receive the money in most cases within one day.
Universal Credit Personal Loans 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 could be a good choice if you have bad credit. Be careful — the lower your credit score, the more likely you'll be saddled with a high interest rate, which could cost you over the duration of your loan.
How long does it take to get a loan from Universal Credit?
After your loan application is approved and you accept its terms, you should receive your money within one business day. If you choose to have your funds sent directly to your creditors to pay them off, it may take up to two weeks for the transaction to clear.
Does Universal Credit do a hard inquiry?
When you check your rates with Universal Credit, the company will only perform a soft credit inquiry, which allows the lender to see your credit history but doesn't impact your score. After you accept your loan offer, Universal Credit will conduct a hard inquiry which may negatively impact your credit score.
Can you pay a Universal Credit loan back early?
Yes, you can repay a Universal Credit loan early with no penalty.
Universal Credit Personal Loans Competitors
Universal Credit vs. Avant Personal Loans
Both Universal Credit and
Universal Credit vs. OneMain Financial
You can get your funds either the same day you're approved for a loan or the next day with both Universal Credit and OneMain Financial. The minimum loan term for a OneMain Financial personal loan is two years, and the maximum term is five years. That compares with Universal Credit's term lengths ranging from three to five years.
How We Rated Universal Credit Personal Loans
We rate all personal loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths and loan amounts (15% of rating)
- Funding speed (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each category's weighting is based on its importance to your borrowing experience. Rates and fees have the most direct impact on the overall cost of your loan, so we weigh those the most heavily. Customer support and ethics are still very important parts of the borrowing experience, but do not directly tie to a personal loan's terms, so they have less of an impact on the overall rating.
Read more about how we rate personal loans