Business Insider's team of personal finance experts compared Reach Financial Personal Loan to the best personal loans and concluded that it is a good choice for borrowers who are specifically looking to consolidate their debt. However, the loans can't be used for any other purpose and come with significant origination fees.
The right loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
Reach Financial Personal Loans Pros and Cons
Benefits
- Low minimum interest rate. Borrowers with the best credit scores will pay interest rates comparable with some of the lowest loan interest rates offered in the market. Keep in mind that you'll likely only qualify for that rate if you have an excellent credit history.
- Relatively fast funding speed. Reach Financial pays off your creditors directly — you won't see any money hit your account — and will do so within roughly 24 hours after your loan is approved.
- No prepayment penalties or late fees. Not only can this save you money, but it also gives you the flexibility to pay off your loan ahead of schedule.
- Pre-qualification only requires a soft credit check. This means your credit score won't be impacted when you check for potential rates.
- Monthly credit score updates for free. Reach Financial will help you keep track of your credit progress at no additional cost.
Drawbacks
- Can only use loans to consolidate or refinance debt. Many personal loan lenders allow you to use a personal loan for pretty much any purpose you want. Reach Financial limits your loan purpose to debt consolidation or credit card refinancing. Borrowers looking to cover other expenses will have to choose a different lender.
- Origination fee. Reach Financial has an origination fee that ranges from 0% to 8%. Origination fees are expressed as a percentage taken out of your overall loan proceeds and they add to the total cost of your loan. See our list of the best personal loans with no origination fee.
- Not available in all states. You won't be able to get a loan if you live in Colorado, Connecticut, Hawaii, Louisiana, Maine, Nevada, Oregon, Tennessee, Vermont, or West Virginia.
- High interest rates for some borrowers. If you have a lower credit score, you may be hit with a higher-than-desirable APR. See personal loans for bad credit.
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5.99% to 35.99%
$3,500 to $40,000
600
- Low minimum interest rate
- Relatively fast funding speed
- Can only use loan to consolidate debt or refinance credit cards
- Origination fee
- Late fee
- Not available in all states
- Loan term lengths between 24 to 60 months
- Loans unavailable in Colorado, Connecticut, Hawaii, Louisiana, Maine, Nevada, Oregon, Tennessee, Vermont, West Virginia
- Your creditors are paid directly about 48 hours after your loan is approved
- Make payments either biweekly or monthly
- Reach will only consolidate unsecured debt
Reach Financial Personal Loan Rates and Terms
Reach Financial offers personal loan amounts from $3,500 to $40,000 with term lengths of 24 to 60 months. Funds are typically released 24 hours after the borrower is approved.
The current annual percentage rate (APR) from Reach Financial ranges from 5.99% to 35.99%. These rates will vary based on your financial situation and creditworthiness.
Additionally, Reach Financial does not charge late fees or prepayment penalties. However, the lender does charge origination fees up to 8%.
Who is a Reach Financial Personal Loan Best For?
Reach Financial is best for borrowers with good to excellent credit who want to consolidate their debt at a low rate. Reach Financial offers great minimum rates that may be hard to find elsewhere. Additionally, many lenders don't cater specifically to debt consolidation, so Reach Financial may be able to better assist you in the process.
Borrowers who want to take out a loan for a different purpose won't be able to use this lender, and residents of 10 states also aren't eligible.
Quick tip: Check for prequalified offers for personal loans from multiple lenders in a loan marketplace to make sure you find the best rate available.
How to Apply for a Reach Financial Personal Loan
Here are the steps you'll need to take to apply for a Reach Financial personal loan
- See if you pre-qualify. You can check your rate online by completing the pre-qualification form, which can be found on the Reach Financial homepage. You'll need to provide basic information, such as the loan amount you need, the purpose of the loan, your name, email, home address, employer name, and income. Checking your rate will not impact your credit score and should only take a few minutes to complete.
- Review your loan offer. If you are pre-qualified, you'll receive a loan offer with personalized terms. Be sure to review the terms carefully and compare them with other loan offers. Keep in mind that a longer term length generally means you'll end up paying more in interest.
- Submit your formal loan application. After reviewing your options, you'll need to submit an application and provide additional documentation (such as pay stubs) to verify your identity and income. This is also when Reach Financial will do a hard credit pull that will impact your credit score.
Reach Personal Loan Alternatives
A Reach Financial personal loan can be a smart choice for debt consolidation, but other lenders offer a wider variety of options. Here's how Reach compares with some of the leading alternatives.
Reach Personal Loans vs. SoFi Personal Loans
A SoFi personal loan is generally a better option than a Reach Financial personal loan. While Reach only offers debt consolidation and credit card refinancing loans, SoFi personal loans can be used for a broader range of expenses, including home improvements, weddings, vacations, and IVF.
If you're specifically looking for debt consolidation, the choice between Reach and SoFi depends on the details of your desired loan. Reach is often better for smaller loans with shorter terms. It offers loans from $3,500 to $40,000, and the terms range from 24 months to 60 months. SoFi has more options for larger, longer-term loans, with loan amounts that range from $5,000 to $100,000 and terms from two to seven years.
Read our SoFi personal loan review.
Reach Personal Loans vs. Upstart Personal Loans
Upstart personal loans are often a better option than Reach Financial personal loans because there aren't as many restrictions on what the money can be used for. With Reach, you can only take out a loan for debt consolidation. Upstart offers loans for debt consolidation, as well as home improvement and medical expenses.
Even if it's a debt consolidation loan you're after, Upstart offers a larger variety of loans, with amounts ranging from $1,000 to $50,000. Reach, by comparison, offers loan amounts of $3,500 to $40,000.
Reach also offers more flexibility than Upstart by offering terms for two years, while the shortest term with Upstart is three years. So, if you want a shorter loan, Reach could be better. The interest rates with Reach also start at a lower APR than Upstart. That means it would be worth requesting a rate from both lenders before making a choice.
Read our Upstart personal loan review.
Reach Personal Loans vs. PenFed Credit Union Personal Loans
PenFed Credit Union is another lender that offers more flexibility than Reach. While a Reach Financial personal loan can only be used for debt consolidation, PenFed personal loans can be used for debt consolidation, weddings, family growth, travel, and medical expenses.
If you want a debt consolidation loan, PenFed offers slightly more flexible options. Both lenders offer terms up to 60 months, but PenFeds loans go up to $50,000, while Reach only offers loans up to $40,000.
Read our PenFed personal loan review.
Reach Financial Customer Experience
Reach Financial has an excellent online reputation, receiving an average of 4.9 stars on the review site Trustpilot. Customers describe the company's representatives as accommodating, professional, and easy to work with.
Many reviewers even singled out specific customer service representatives for praise. This suggests the support customers receive from Reach Financial is personable and helpful.
Is Reach Financial Trustworthy?
Reach Financial is a Better Business Bureau-accredited business with an A+ grade from the organization. The BBB is a nonprofit focused on consumer protection and trust. It evaluates companies by looking at their response to customer complaints, honesty in advertising, and truthfulness about business practices.
Reach Financial hasn't been involved in any recent controversies.
Why You Should Trust Us: How We Rated Reach Financial Personal Loans
All personal loan products in our reviews and guides are rated on a scale from 1-5. The overall rating is a weighted average of seven categories that reflects how the personal loan compares to its competitors:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths and loan amounts (15% of rating)
- Funding speed (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each category is assigned a weighting based on its importance to the borrower's experience. For instance, fees and interest rates are weighted the most heavily because they have the largest impact on borrowers.
See more on how we rate personal loans »
FAQs
What credit score do you need for Reach Financial?
There is no minimum credit score required for a Reach Financial personal loan. Instead, the company considers your overall financial situation when making final lending decisions.
Can I use a Reach Financial loan for home improvement or other purposes?
Reach personal loans can only be used for debt consolidation and credit card refinancing. That means you'll need to use a different lender to borrow money for home improvement, weddings, or other expenses.
How long does it take to get approved and receive funds from Reach Financial?
Reach often approves personal loan applications within minutes. Once approved, the funds will be delivered to your creditors within 24 hours.
