Universal Credit is best for borrowers who:
- Have carnival or badly credit and a gamey debt-to-income ratio.
- Are consolidating other high-interest debts .
- Don ’ deoxythymidine monophosphate want to add a co-signer or secure the lend with a vehicle .
Universal Credit at a glance
| Loan tractability
| Customer experience
Key terms to know about personal loans
Annual percentage rate
annual share rate is the matter to rate on your loanword plus all fees, calculated on an annual basis and expressed as a percentage. Use the APR to compare lend costs from multiple lenders .
An initiation fee is a erstwhile, upfront fee that some lenders charge for processing a loanword. The tip can range from 1 % to 10 % of the loan come, and lenders typically deduct it from your loan proceeds .
The debt-to-income proportion divides your total monthly debt payments by your gross monthly income, giving you a percentage. Lenders use DTI — along with citation history and other factors — to evaluate a borrower ‘s fiscal ability to repay a loan .
Soft credit check
Lenders that offer pre-qualification typically do therefore using a cushy credit check, which allows you to see rates and terms you qualify for without affecting your recognition score. If you accept the loanword offer, the lender will perform a hard check to confirm your data. hard checks knock a few points off your accredit score.
Where Universal Credit stands out
Rate discount rate for lead requital to creditors : If you ’ re using a Universal Credit loanword to consolidate other high-interest debts, the lender will directly pay off those debts, leaving you with one monthly loanword payment. You may besides receive a rate discount rate of 1 to 2 percentage points for doing this. many lenders offer conduct payment to other creditors, but few include a discount rate. Reports payments to credit chest of drawers : Universal Credit reports loan payments to all three major accredit chest of drawers, which means on-time payments can help your credit, while late or miss payments could hurt it. Building credit can put you in a position to borrow at a lower rate next time. Credit-building tools : Through Upgrade, Universal Credit borrowers have free entree to their credit grudge, credit monitor and a credit score simulator tool. It ’ s not rare for lenders to give you access to your credit score, but the simulator tool and tips are rare. Keeping a close eye on your credit grudge can help you understand which behaviors help or hurt it. Existing customer rebate : Because Universal Credit is owned by Upgrade, customers who maintain an active upgrade rewards checking report may be eligible for a discount rate on a Universal Credit loan — up to 20 % off the annual percentage rate of their approve lend. sol, a loanword with a 30 % APR could drop arsenic low as 24 %. Change your payment date : When you get a Universal Credit loanword, you won ’ metric ton initially be able to choose your payment date ; however, the company says you can late change it at any time. That means you can move your requital date to better fit with your payday and expenses.
Where Universal Credit falls short
No joint, cosign or plug loans : Universal Credit borrowers can not add collateral, a co-signer or a co-borrower to a lend application. Adding collateral or a co-applicant with better accredit or higher income can mean a lower pace, higher lend measure or improve your chances of qualifying. many bad-credit lenders offer at least one of these options. Funding clock : Some lenders can fund your lend the like or next day after you apply. Universal Credit says it can fund a lend the day after you ’ re approved, but approval may take a few days. Funds for debt consolidation loans that are sent directly to pay off creditors can take up to two weeks, according to the lender.
How to qualify for a Universal Credit loan
- Minimum recognition score : 560 ; borrower median is 638 .
- minimal income : none ; median is $ 60,000 .
- minimum numeral of accounts on credit report : 2 accounts .
- utmost debt-to-income proportion : 75 %, including mortgage and the loanword you ’ rhenium enforce for .
loan model : A three-year, $ 10,000 loanword with a 20.5 % APR would cost $ 374 in monthly payments. You ’ five hundred pay $ 3,471 in full interest on that loan.
How to get a Universal Credit loan
Pre-qualify on NerdWallet
NerdWallet recommends comparing loans to find the best rate for you. Pre-qualifying may get you personalized rates from multiple lenders that partner with us, including Universal Credit. Pre-qualifying will not impact your credit.
Apply on Universal Credit
You can apply on Universal Credit ’ s web site by entering a lend total and determination on the home page. You ’ ll be asked for more data and to make an report, and then you ’ ll be pre-qualified. If you ’ rhenium shown any offers, you can accept one to continue the lend application process .