Universal Credit operates as an online lending platform that provides personal loans between $1,000 and $50,000 with repayment terms spanning three to five years. Instead of providing funds directly, Universal Credit collaborates with Cross River Bank and Blue Ridge Bank to finance these loans. Additionally, individuals with fair credit ranging between 580 and 669, Universal Credit extends its services, accepting credit scores as low as 620.
However, these loans associates a low APR, an origination fee, and charges for tardy or bounced payments. Moreover, those with good to excellent credit might discover more favorable options elsewhere. Despite its comparatively elevated rates, Universal Credit garners favorable reviews on platforms like the Better Business Bureau (BBB) and Trustpilot. Lastly, positive feedback highlights the efficacy of Universal Credit’s customer support and an easy loan application process.
Universal Credit Personal Loans Requirements
Universal Credit doesn’t offer many details regarding the requirements for qualifying for a personal loan, aside from requiring fair credit or better. However, here are the minimum requirements individuals must fulfill:
- Applicant must be 18 years or older, or 19 years or older in Alabama.
- Must be a U.S. citizen, permanent resident, or non-permanent resident holding a valid visa.
- A credit score of 620 or higher must be available
- Applicant must hold a valid bank account.
- Must possess a valid email address.
Universal Credit evaluates applicants’ income and debt-to-income (DTI) ratio as part of the loan evaluation process similar to other lenders. Moreover, individuals facing challenges in securing approval independently can apply with a joint applicant to enhance their chance of approval. However, a joint applicant shares equal responsibility for the repayment throughout the loan term unlike a co-signer who assumes liability for the loan if the primary borrower defaults on payments.
Advantages and Disadvantages of Universal Credit Personal Loans
Before securing a Universal Credit personal loan, consumers should thoroughly consider the range of advantages and disadvantages associated with these financial products.
Advantages
Next-Day Funding
Universal Credit begins the transfer process on the business day following acceptance of the loan offer. However, it may take several days before the funds reflect in your account
FICO Score
Universal Credit provides customers with complimentary access to the Credit Health credit reviewing service, by its parent company, Upgrade. While this service offers a VantageScore credit score, which may not be as great as a FICO score, it still provides valuable idea into one’s credit score status.
Direct Payment To Creditors
If you’re utilizing your loan funds for debt consolidation purposes, this service helps the process by settling your previous debts on your behalf. However, it’s important to note that this procedure may take up to two weeks to complete.
Apply With A Joint Applicant Or Collateral
While co-signers aren’t accepted, joint applicants share equal obligations and rights for loan repayment. Additionally, individuals may explore the option of using a vehicle as collateral to support their application.
Disadvantages
No Mobile App
While Upgrade provides the convenience of a mobile app for easier account management, this feature is not available with Universal Credit. Instead, users must access their account details through a web browser.
High Interest Rates
Borrowers who are eligible for the minimum interest rate will spend more at Universal Credit compared to Upgrade, which offers lower initial interest rates. However, both lenders have the same maximum interest rate.
Origination Fees
High qualified borrowers may spend higher origination fees with Universal Credit compared to Upgrade. However, it’s important to know that both lenders have the same maximum origination fee.
Restricted Customer Service Hours
Universal Credit maintains a customer service phone line accessible seven days a week. However, it’s important to note that the operating hours are restricted, concluding at 6 p.m. PT on weekdays. This schedule may pose challenges for borrowers with late shifts who require assistance over the phone. Universal Credit offers fund disbursement, typically within one business day after ending your loan agreement.
Additionally, enrolling in auto-pay for your monthly installments may qualify you for an APR reduction. Furthermore, for individuals consolidating debt, Universal Credit can directly transfer loan funds to existing lenders. Generally, individuals with poor credit may face a high APR of up to 35.99% with Universal Credit. Moreover, an origination fee ranging from 5.25% to 9.99% is reduced from the loan amount. Late payment fees are applied for payments exceeding 15 days past the due date.
How To Apply For A Universal Credit Personal Loan
Universal Credit provides an easy loan application process accessible through its website. If you’re prepared to apply, follow to these steps:
Compare Lenders
Before proceeding with an application, it’s essential to dedicate time to researching and comparing various personal loan lenders. By comparing and researching, you can discover the best loan for your requirements. Moreover, it also offer prequalification which enable you to view personalized rates via a soft credit check that doesn’t affect your credit score. Additionally, it’s crucial to ensures factors such as repayment terms, associated fees, and eligibility criteria.
Choose a Loan Offer
Once done comparing lenders, choose the loan offer that suits your needs and financial circumstances. For instance, you may choose for a shorter loan term to minimize interest expenses, despite the likelihood of higher monthly payments. Additionally, choosing a longer loan term could get more cheap monthly payments, if you don’t intend in paying a higher amount in interest over the loan’s duration.
Submit Full Application
If you proceed with a loan offer, you will be required to fill out a full application and submit relevant documentation, such as tax returns or pay stubs. Furthermore, the lender will conduct a hard credit check to finalize approval, which might result in a minor decrease in your credit score, typically five points or less.
Finish Your Loan and Get Your Funds
Upon approval, Universal Credit will request your signature for the loan agreement. In addition, you may receive your funds within one day of completing any required verifications.
If you utilize the loan for debt consolidation, you can authorize Universal Credit to transmit the funds directly to your creditors for settling your accounts. However, this process might take up to two weeks to complete.
Major Benefit of Universal Credit Personal Loans
Universal Credit functions as a financial technology (fintech) company rather than a bank. It’s designed by Upgrade, Inc., it collaborates with various financial institutions to provide its range of loan products.
