About Reach Financial personal loans
Reach Financial is an online lender that focuses their efforts on helping borrowers consolidate debt. I believe they are owned by National Debt Relief which means that they focus on people who are struggling to get out of debt.
Loan terms and rates
Reach Financial offer personal loans ranging from $3,500 to $40,000 with loan terms of 24 to 60 months. The company claims that their interest rates range from 5.99% to 35.99%. But, that lower number isn’t realistic. Nobody is getting a personal loan for 5.99%. That’s meaningfully lower than prime mortgage rates right now. I suspect their loans will have interest rates between 20% and 35.99%.
Fees
Reach Financial charges an origination fee of up to 8% of the loan amount. This fee is deducted from the loan proceeds before disbursement. Origination fees are not reimbursable if you pay your loan off early. So, if two loans have the same APR, pick the one with the lower origination fee.
Late payment fees and insufficient funds fees may also apply, as stated in the loan agreement. So, you’ll want to pay attention to the fine print. Borrowers should carefully review all fees associated with the loan before accepting an offer.
Application process for Reach Financial personal loan
You can complete the application entirely online, but it is more likely that you will work with one of their customer service representatives. Reach Financial loan applications often require a lot of information. You will likely need to share your credit report; your bank account data; bank statements; credit card statements; copies of paystubs; debt payoff amounts; and, a government-issued ID.
Borrowers can prequalify with a soft credit check, which does not impact their credit score. If you accept the loan, a hard inquiry will be placed on your credit report. After you sign the loan agreement, you can receive your funds as quickly as the next business day.
Eligibility Requirements Reach Financial Personal Loan
To qualify for a Reach Financial personal loan, you must be at least 18 years old, have a valid Social Security Number, and provide proof of income and employment. Reach Financial does not specify the minimum credit score requirement, but third-party websites suggest that you would need at least a 640 to be approved.
When not to use Reach Financial
Many of Reach Financial borrowers come to the company through National Debt Relief, a debt settlement company. They often are encouraged to consolidate their loans as part of their debt relief program. They might recommend that you take a Reach Financial personal loan at the end of the debt settlement process as a way of rebuilding your credit score. There are cheaper and easier ways of rebuilding your credit, though, and you shouldn’t need to take a personal loan to do it.
National Debt Relief might also encourage you to consolidate all of your credit card debt to simplify your monthly payment obligation. Debt consolidation can be a very effective tool in helping you get out of debt, but there are a couple of rules of thumb you must stick to: First, do not consolidate unless the personal loan will give you a lower APR. You should try and get 2-3 percentage points lower. The second rule of thumb is that you should never extend out the term of your debt through consolidation. Any money you might save on your monthly payment or your lower interest rate will be lost if you are paying your debts longer.
Shop Around
Before you take a loan with Reach Financial, you owe it to yourself to shop around. You should try and get two or three approvals before you make a decision which lender to go with. This will guarantee that you are getting the best deal you can get. At the Yukon Project, we’ve tried to make shopping around easy. On our marketplace page, you can apply to one of our premium lenders and we will check your rate with up to 40 other lenders. You will see all the offers so you can select the lender the is best for your situation.
Summing up Reach Financial personal loan
If you came by Reach Financial through National Debt Relief, you would do well to think about whether the loan is something you really need. You would also do well to shop around to make sure that you are getting the best deal that you can.
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