In this Comparison
There is a huge amount of online lenders that you will come across in this day and age.
This review is going to focus on the offerings that PenFED credit union, Universal Credit, and Figure bring to the table.
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|---|---|---|---|
APR Range
The annual percentage rate (APR) is the total annual cost of borrowing money. This rate includes the interest rate as well as any additional finance charges. When you take out a personal loan, for example, you may be required to pay loan origination fees.
| 11.69% – 35.99% | 5.99% – 22.94% | 8.49% – 17.99%
|
Term
The term of your loan is the amount of time you have to repay it. For example, if you get a 24 months personal loan, the loan term is 24 months.
| 36 – 60 months | 3 or 5 years | 12 – 60 months
|
Loan Amount | $1,000 – $50,000
| $5,000 – $50,000
| $600 – $50,000
|
Min Score | 560 | 680 | 700 |
When Universal Credit Shines?
Universal Credit is a lender that deals with people who have poor or fair credit and it is an offshoot of another online lender – Upgrade.
Universal Credit personal loan can be a better choice than Figure and PenFED if you:
- Need fast funds
- Want to avoid fees
- Looking for payment flexibility
When Figure Shines?
Figure is a major online lender that focuses on people with better credit, as well as larger loan sizes.
Figure personal loan can be a better choice than Universal Credit and PenFED if you:
- Need fast funds
- Want to avoid fees
- Looking for payment flexibility
When PenFED Shines?
PenFED credit union is a leading credit union in the United States that also provides personal loans online. It is best suited to people who want a small loan.
PenFED personal loan can be a better choice than Universal Credit and Figure if you:
- Need fast funds
- Want to avoid fees
- Looking for payment flexibility
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Requirements
You will not find a lender that provides loans of a smaller size than PenFED, as you have the ability to get $500 from PenFED and up to $20,000. Universal Credit also has a relatively low minimum loan size, offering loans of between $1,000 and $50,000. In contrast to PenFed and Universal Credit, Figure has a large minimum loan size of $5,000 and offers loans worth as much as $50,000.
PenFED needs you to have a credit score of at least 700, which is pretty high. In contrast, Universal Credit caters to people with poor credit, accepting credit scores of as low as 560. Finally, you need a credit score of at least 680 to apply for a Figure personal loan.
PenFED is not transparent when it comes to the debt and income requirements it has in place for applicants. The max debt-to-income (DTI) ratio that you can get a personal loan with Universal Credit is 75%, with this metric requirement being 60% for a Figure personal loan. Each lender does only deal with you if you are at least 18 years old. You also need to be a citizen, resident, or visa holder in the US.
PenFED - Pros & Cons
- Small Loan Sizes
You are able to get a loan of just $500 with PenFED, which is a lot smaller than what most lenders offer
- Mobile App
There is a very good mobile app available with PenFED that allows you to carry out key functions of your personal loan.
- No Origination Fee
You will not get charged any origination fee by PenFED.
- Joint Loans
Unlike a lot of lenders, you can get a joint loan from PenFED.
- Doesn’t Offer Certain Loan Types
You will not be able to get a co-signed loan or a secured loan from PenFED.
- Lack of Payment Flexibility
PenFED does not allow you to alter your due dates for payments, while there is no way to send payments directly to creditors.
Figure - Pros & Cons
- Fast Application Process
The online process for applying for a Figure personal loan takes just a matter of minutes.
- Soft Credit Check
You are able to pre-qualify for a Figure personal loan without having to submit initially for a hard credit check.
- Refinancing Option
Unlike a lot of online lenders, Figure has extensive refinancing options for people.
- Autopay Discount
You are able to obtain an autopay discount worth 0.25% with Figure.
- Fee Structure
Borrowers will have to pay an origination fee of up to 3% with Figure.
- Limited Options
You are unable to obtain a co-signed loan, joint loan, or secured loan with Figure.
Universal Credit - Pros & Cons
- Good Range of Loan Size
You are able to borrow as little as $1,000 and as much as $50,000 through Universal Credit.
- Fast Funding Time
Universal Credit will give you your borrowed funds within one business day after your application has been approved.
- Nice Discount
You can get an autopay discount of 0.5%, which is larger than most other discounts of this kind.
- Free Credit Monitoring
There is no prepayment penalty in place if you want to pay off your Peerform earlier than you are supposed to.
- Origination Fee
You will need to pay an origination fee of between 4.25% and 8% of your loan size.
- Limited Options
There is no way for you to get a joint loan, secured loan, or co-signed loan with Universal Credit.
Repayment Options
PenFED is not very flexible when it comes to repayments, not allowing you to change the due date for your payments and there is no option for you to send creditors direct payments. PenFED will not charge you an early prepayment penalty, while it also does not have any sort of autopayment discount on offer.
You can change your payment dates with Universal Credit, as well as direct payments to creditors if you are consolidating your debt. You also get a very good autopay discount of 0.5% with Universal Credit. Finally, there is no prepayment penalty in place.
Like Universal Credit, Figure also offers an autopay discount. For Figure personal loans, this discount is 0.25%. No late fees or prepayment penalties are a part of this offering, but you also cannot change your Figure loan payment due date.
Customer Experience
Figure | PenFed | Universal Credit | |
|---|---|---|---|
iOS App Score | 3.5 | 4.2 | N/A |
Android App Score | 3.3 | 4.5 | N/A |
BBB Rating | F | A+ | A+ |
WalletHub Rating | N/A | 3.8 | N/A |
Contact Options | phone/mail | phone/mail | phone/mail |
Availability | 6am – 6pm (PT) | 7 am – 11 pm (ET) | 6 am – 6 pm (PT) |
PenFED will provide the answer to many possible questions through a wide-ranging FAQ section on its website. You are able to contact the service team seven days of the week and it has a very strong mobile offering for loan management. PenFED does not currently hold a Better Business Bureau rating, but its old score was A+.
Universal Credit has a very efficient online application process and will credit you with your borrowed funds in just one business day. You are given the ability to manage your Universal Credit personal loan through the mobile app, while there is plenty of customer support options on the website. The Better Business Bureau rating for Universal Credit is A+.
Figure offers plenty of different options when you need to contact the support team, being available every day of the week. Loan management is also a possibility when you utilize the Figure mobile app. Figure does not currently have a Better Business Bureau accreditation.
Which Personal Loan is The Winner?
Each lender will how its own redeeming qualities. Universal Credit is ideal for people seeking a good autopay discount, have poor credit, and fast time to funding.
Figure is a good fit for people with good credit, while PenFED offers some small loan sizes that are conducive to a lot of borrowers’ needs.
| | | |
|---|---|---|---|
APR Range
The annual percentage rate (APR) is the total annual cost of borrowing money. This rate includes the interest rate as well as any additional finance charges. When you take out a personal loan, for example, you may be required to pay loan origination fees.
| 11.69% – 35.99% | 5.99% – 22.94% | 8.49% – 17.99%
|
Term
The term of your loan is the amount of time you have to repay it. For example, if you get a 24 months personal loan, the loan term is 24 months.
| 36 – 60 months | 3 or 5 years | 12 – 60 months
|
Loan Amount | $1,000 – $50,000
| $5,000 – $50,000
| $600 – $50,000
|
on Credible's website |
on Figure website |
on Credible's website |
FAQ
No, it is not possible to add a cosigner to your Universal Credit loan application. This means that you will need to rely on your own credit report to secure your loan.
However, Universal Credit does offer loan deals for those with fair credit. So, even if you haven’t got a good or excellent score, you can still find a loan deal with this lender.
There is no minimum income requirement for a Universal Credit personal loan. However, you do need to provide a verifiable bank account to qualify. Universal Credit may use this information to check your income and determine loan affordability. But, in most cases, you don’t need to supply pay stubs as you may with other lenders.
Universal Credit is a decent option if you’re looking for a debt consolidation loan without having a good credit score. This lender offers competitive rates even if you have a low credit score.
However, what is really good about this lender is that they offer a rate discount if you opt for direct payment to your creditors. This not only makes for a better deal, but it eliminates the hassle of needing to wait for the funds to clear in your bank account before you can start paying off your existing accounts
Yes, there are no prepayment fees, so you can repay your loan before the end of the loan term without any penalties or additional costs. It’s up to you whether you want to make a lump sum payment or make additional payments during the course of your loan to pay down the principle.
PenFED is a credit union, so it is unlikely that you will be able to negotiate the rates when you’re loan shopping or want a settlement figure. Credit unions work for the benefits of their members, so it is unlikely that they will want to receive less from your account, which could impact other members.
PenFED is a credit union, so it offers all the financial products you would associate with a credit union. This includes checking and savings, money market accounts, IRAs, auto loans, mortgages, and even credit cards. So, if you are looking for a lender who can also cater to your day to day financial needs, this could be a good option for you.
PenFED does allow co-borrowers on loan applications. This is a little different to using a co-signer. While both a co-signer and co-borrower can bolster your credit report to increase your chances of qualifying and both have financial responsibility should you fail to make your monthly repayments, a co-borrower can in theory also access the loan funds as a joint account holder.
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Read Full Comparison: FIGURE Vs SoFi Vs Prosper: Which Personal Loan Is Better?
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When it comes to repayments, Axos is flexible, whereas PenFED offers some of the smallest loans in the online lending space.
Read Full Comparison: SoFi Vs PenFED Vs Axos: Which Personal Loan Is Best?
