A review of Universal Credit personal loans as a suitable option for individuals with poor credit history.
Universal Credit is not as widely recognized as other personal loan lenders, but it provides a robust product for individuals with lower credit scores. To discover more about Universal Credit's personal loan, continue reading.
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Universal Credit pros and cons
How does Universal Credit work?
Personal loans are a type of installment credit offered by Universal Credit, where you borrow a lump sum and repay it in fixed, equal increments (including interest) over a specified period.
To determine your estimated interest rate for Universal Credit, you will need to provide some details, such as the amount you are borrowing, the purpose of the loan, your contact information, and more. This service is free and will not negatively impact your credit score.
To obtain the best loan terms, it is recommended to evaluate multiple offers from personal loan lenders after determining your Universal Credit qualification rate.
If you choose to apply for Universal Credit, you can receive funding within one business day after approval.
How much does Universal Credit cost?
The origination fee for Universal Credit loans can be between 5.25% and 9.99%, which is deducted from the loan funding amount. The lender's website states that late payments may result in additional charges that increase your loan payment, but it does not specify the exact late fee amount.
You'll be pleased to know that Universal Credit does not impose a penalty for paying off your loan early.
How does Universal Credit compare?
Here's how Universal Credit compares to other well-known personal loan lenders.
Universal Credit vs. LightStream
While LightStream provides loan amounts of up to $100,000, Universal Credit offers funding of only up to $50,000.
While Universal Credit may accept credit scores as low as 560, LightStream requires good or excellent credit to qualify for funding.
If you require more borrowing than what Universal Credit offers, LightStream may be an appealing choice; however, you will still need to apply with a higher credit score.
Universal Credit vs. PenFed
If you need to borrow less than $1,000, PenFed may be the better option as they offer loan funding amounts as low as $600.
PenFed offers personal loans with good or excellent credit requirements and no origination fee, while Universal Credit does not require a good credit score and charges an origination fee. If you have a lower credit score, Universal Credit may be a better fit, but if an origination fee is a dealbreaker for you, you may want to consider PenFed.
Is Universal Credit legit?
Upgrade, a well-known personal loan lender, owns Universal Credit, which has an A+ rating from the Better Business Bureau (BBB).
How to apply for a Universal Credit personal loan
Potential borrowers can apply for a personal loan through Universal Credit's website.
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