Reach Financial specializes in providing personal loans for individuals with robust credit histories, with a primary focus on consolidating unsecured debts such as credit card balances. Its distinguishing features include the ability to promptly disburse loans and the flexibility of repayment terms, setting it apart from other lenders.
However, it’s important to note that Reach may not report to all three major credit bureaus. Additionally, the company does not offer co-signed, joint, or secured loans. Nonetheless, it stands out for having relatively more lenient credit and income requirements compared to alternative lenders serving those with good credit. Despite this, prospective borrowers are required to have a credit history spanning several years to meet the qualification criteria.
How Does it Work?
For individuals burdened by high APRs on existing personal loans or credit cards, Reach Financial emerges as a compelling alternative. Furthermore, the average APR on current credit card accounts stood at 20.09%. In addition, those with excellent credit may secure APRs as low as 5.99% when opting for Reach Financial. Reach customers receive a free credit score check and, upon approval, can access loan funds within just 24 hours.
However, approval challenges may arise with Reach Financial if your credit isn’t in good standing, which is a crucial point to consider. Considerations with Reach Financial include no co-borrower option, potential origination fees ranging from 0.00% to 8.00%, and creditworthiness significance. Additionally, Reach Financial does not presently extend rate discounts to its borrowers.
How To Qualify For Reach Financial Personal Loans
Reach Financial approves borrowers across various credit levels but favors those with a higher likelihood of approval with credit scores around 700. Furthermore, to be eligible for a Reach Financial personal loan, applicants must fulfill specific requirements:
- Must be a resident or citizen of the United States.
- A minimum credit score of 640 is required for consideration. On average, successful borrowers typically have a credit score of 698.
- The applicant must demonstrate a minimum monthly income of $1,000 after accounting for other monthly obligations. Accepted income sources include earnings from employment, retirement funds, and Social Security payments.
- A minimum credit history of three years with at least one active account is necessary.
It’s essential to note that meeting these stipulations doesn’t guarantee approval for a Reach Financial personal loan.
What To Consider Before Applying For Reach Financial Personal Loans
It’s crucial to understand that meeting these requirements does not guarantee approval. Before applying for a personal loan from Reach Financial, it’s prudent to take the following preparatory steps:
Check your Credit
Obtain your free credit report from reputable sources. This allows you to identify and rectify any errors in your credit history before submitting your loan application.
Calculate Monthly Payments
Utilize a personal loan calculator to determine the optimal combination of the annual percentage rate (APR) and repayment term. This will help you secure a loan with affordable monthly payments tailored to your financial capacity.
Create a Repayment Plan
Evaluate the loan’s monthly payments and their impact on your cash flow. Review your budget, considering adjustments if necessary. It’s advisable to identify potential expense cuts beforehand, ensuring a clear repayment plan before borrowing.
Gather the necessary Documents
Applying to Reach Financial may entail submitting documentation like pay stubs, address proof, and a Social Security number for verification. Collecting these documents in advance can expedite the application process.
By diligently following these steps, you can enhance your readiness and streamline the application process for a Reach Financial personal loan.
Advantages and Disadvantages of Reach Financial Personal Loans
Reach Financial provides various advantages for individuals seeking to consolidate debt or refinance their credit cards. However, it’s essential to note that, similar to any financial offering, a Reach loan might not be suitable for everyone.
Advantages
Access to Loan Funds within 24 hours
Upon approval, Reach ensures that your loan funds will be ready to send to your creditors within the next 24 hours. Streamlining debt consolidation, Reach Financial directly pays specified creditors mentioned in your Truth-in-Lending Disclosure, simplifying the refinancing process.
Tailored Loan Terms
Unlike other lenders with fixed-term options, Reach Financial stands out, letting you customize your loan terms based on your preferences. Select from a flexible range of terms, spanning 24 to 60 months, to find a monthly payment that aligns with your budget.
Complimentary Credit Score
Reach goes the extra mile by providing borrowers with a free credit score. Although the specific credit score model and credit report source aren’t explicitly disclosed, this feature offers valuable insight into your credit standing.
Praised for swift pre-qualification, prompt loans, and excellent service, Reach Financial earns positive reviews on the Better Business Bureau and Trustpilot.
Disadvantages of Reach Financial Personal Loans
Limited Use of Funds
Reach exclusively offers loans for consolidating or refinancing existing debt. Specify the intended creditors during the application process for tailored assistance. Additionally, debt consolidation, like home improvement or medical expenses, explores alternative lenders, as Reach focuses exclusively on debt consolidation.
Incomplete Credit Bureau Reporting
Reach Financial reports loan payments exclusively to Experian and TransUnion, omitting Equifax from the reporting process. In addition, this practice somewhat diminishes the impact of building credit with a Reach loan.
Shorter Maximum Repayment Term
Reach has a maximum repayment term of 60 months, shorter than lenders offering terms of 72, 84, or 180 months. Moreover, this could limit flexibility for borrowers seeking a longer repayment duration.
No Joint Applications, Co-Borrowers, or Co-signers
Unlike some lenders that permit joint applications or the inclusion of co-borrowers or co-signers, Reach only accepts individual applicants. However, you must qualify on your own, without the option to leverage someone else’s creditworthiness for approval or better rates.
It’s important to note that Reach Financial caters exclusively to borrowers residing in specific states. For repayment periods beyond five years or loans for personal expenses, seek alternative lenders, as Reach does not provide these options.
How To Apply For a Reach Financial Personal Loan
Applying for a Reach Financial loan involves the following steps:
Pre-qualify on the Reach Financials website
Click “Apply Now” on Reach’s website. Fill out a form specifying your desired loan amount and the purpose (e.g., refinancing credit card debt or consolidating debts).
Provide personal details, including your name, email, phone number, birth date, address, and information about your employment and income. Importantly, there is no hard credit pull during this stage.
Preview and Accept Loan Offers
Pre-qualified applicants will receive loan offers detailing the loan amount, repayment term, APR, and monthly payment. However, choose a repayment term ranging from 24 to 60 months and select your preferred payment frequency (bi-weekly, semi-monthly, or monthly).
Once you’ve identified a suitable loan, you can proceed to submit a formal loan application, triggering a hard credit pull at this stage.
Manage Loan Payments
Reach financial reporting payments to two credit bureaus, impacting your credit score positively with on-time payments and negatively with missed payments. Furthermore, to stay on top of payments, consider setting up automatic payments and regularly monitoring your budget.
By adhering to these steps, you can navigate the Reach Financial loan application process effectively and responsibly manage your loan payments to positively impact your credit score.
Conclusion
For those in search of swift access to debt consolidation loans, Reach Financial stands out as a commendable option. Offering borrowers the opportunity to secure up to $40,000, the loans are designed to address unsecured personal debts, including burdensome high-interest credit card balances.