Item: Reach Financial Personal Loans
Rating: 4
Author: Nicole Dow

4.0

NerdWallet Rating

Get My Rate

Checking rates is free and won't impact your credit score

4.0

NerdWallet Rating

Est. APR

7.99 - 35.99%

Min. credit score

600

Time to fund

1 day

Loan amount

$3.5K - $40K

Loan term

2 to 5 years

Origination fee

Up to 8%

Disclosures from Reach Financial Personal Loans

Overview

Reach Financial provides personal loans to good- and excellent-credit borrowers exclusively to consolidate credit card and other unsecured debts.

Reach loans can be funded quickly, but repayments aren’t reported to all three credit bureaus. Reach also doesn’t offer co-signed, joint or secured loans.

» MORE: Compare personal loans

Detailed breakdown

Affordability

(25%)

3.5/5

We review lenders’ annual percentage rate offerings and the competitiveness of each lenders’ APR range. We also assess whether a lender charges an origination fee and any opportunity for borrowers to receive a rate discount.

Customer experience

(20%)

3.5/5

We consider the experience of the consumer trying to manage a personal loan, which means accessibility of customer service representatives, whether borrowers can choose and change their payment due date, and the ability to track their loan on a mobile app.

Underwriting and eligibility

(20%)

4.5/5

We consider the rigorousness of each lender’s underwriting practices and how widely available their loans are. This category includes whether a lender does a hard credit check before providing a loan, the range of credit profiles they accept and how many states their loans are offered in.

Loan flexibility

(20%)

4.5/5

We assess how flexible lenders can be with borrowers, including whether they offer multiple loan types, personal loan amounts and repayment term options and whether they offer direct payment to creditors on debt consolidation loans.

Application process

(15%)

5/5

We consider the lender’s full application process, including a borrower’s ability to preview their loan offer via pre-qualification, whether basic loan information such as APR range and repayment terms are available and easy to find online and how quickly a loan can be funded after approval.

Overall

4/5

Read more about our ratings methodologies for personal loans.

Where Reach personal loans stand out

Direct payment to creditors: Reach personal loans can only be used for debt consolidation, and the lender says it sends funds directly to borrowers’ creditors on accounts with balances of at least $500. Having a lender send the funds for you streamlines the payoff process.
Next-day funding: Reach says it sends funds to creditors within a day of the loan being approved, though loan approval can take a couple days after submitting an application. Keep repaying your debts until you see the account balances at zero to avoid missed payments while the funds are processing.
Relatively low income requirement: While the lender says its average borrower has an annual income around $80,000, Reach only requires borrowers to earn $20,000 a year in order to qualify for a personal loan.
Free credit score access: Reach lets borrowers view their credit scores for free each month. This allows borrowers to see the impact that paying off debt has on their credit standing.

Where Reach personal loans fall short

Charges an origination fee: Reach charges an origination fee up to 8% of the loan amount. It is deducted from the loan proceeds, essentially lowering the amount you’ll receive.
No rate discount: Unlike some lenders, Reach does not offer ways borrowers can reduce their annual percentage rate. Other lenders provide rate discounts to borrowers who set up automatic loan payments or authorize direct pay to creditors on debt consolidation loans.
No co-signed, joint or secured loans: Reach only provides unsecured personal loans. Co-signed, joint and secured loans typically have lower rates than unsecured loans.
Reports payments to only two of three major credit bureaus: Reach Financial reports personal loan payments to Experian and TransUnion but not Equifax. This means if, after repaying a Reach personal loan, a consumer applies for credit with a lender that only checks Equifax, that lender won’t see any positive payment history from Reach.

How to qualify

Reach Financial offers debt consolidation loans to good- and excellent-credit borrowers whose debt account balances are $500 or more. Loans are not available to residents of CO, CT, ME, NV, NH, TN, VT, WV or any of the U.S. territories.

Reach Financial’s borrowing requirements

Minimum credit score: 600.
Minimum annual income: $20,000.
Maximum debt-to-income ratio: 70%, not including mortgage payments.
Minimum credit history: 3 years and 1 account.
Must provide a Social Security number and valid email address.

» MORE: How to get a personal loan

Ready to check rates? See what rate you can get by pre-qualifying.

See my rates

Profile of an average Reach borrower

Credit score

700

Annual income

$80,000

Debt-to-income ratio

20% to 30%

Loan amount

$18,000

Average APR

21%

Loan term

50 months

Compare Reach to the best lenders

Personal loan lenders offer different rates, loan amounts and special features, so it pays to weigh other options. The best personal loan is usually the one with the lowest APR.

4.0	4.5	5.0	5.0
EST. APR 7.99% - 35.99%	EST. APR 8.74% - 35.49%	EST. APR 7.9% - 35.99%	EST. APR 7.74% - 35.99%
LOAN AMOUNT $3.5K - $40K	LOAN AMOUNT $5K - $100K	LOAN AMOUNT $1K - $60K	LOAN AMOUNT $1K - $50K
MIN. CREDIT SCORE 600 Check Rates	MIN. CREDIT SCORE None Check Rates	MIN. CREDIT SCORE 600 Check Rates	MIN. CREDIT SCORE 600 Check Rates