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A personal loan from Reach Financial could be a good option for anyone who wants to pay down debt and gain more control over their monthly payment. But there are some downsides: The lender only provides loans for debt consolidation, co-applicants aren’t allowed, and the range of loan amounts and terms is relatively narrow compared to competitors.
- Pros & Cons
- Key Takeaways
- Company Overview
Loan funds available to send to creditors within 24 hours
Can customize your loan terms
Free credit score
Funds can only be used to consolidate or refinance existing debt
Doesn't report payments to all three credit bureaus
Shorter maximum repayment term than competitors
Does not allow joint applications, co-borrowers, or co-signers
- Reach Financial only offers loans for debt consolidation or refinancing, and will pay creditors directly; there is no option to get loan funds sent to your own bank account.
- Terms range from 24 to 60 months.
- You can refinance a current Reach Financial loan to get a better rate or terms.
- Reach Financial offers 100% U.S.-based customer service to address borrower questions.
Reach Financial was created in 2015 to help customers gain more control over their finances through debt consolidation and loan refinancing. With headquarters in New York City, the fintech company has helped borrowers pay off over $1 billion in debt (according to Reach itself).?
While it boasts an A+ rating from the Better Business Bureau and similar excellent ratings from Trustpilot, it lacks some of its competitors' technical support capabilities, such as a mobile app. Reach doesn’t disclose a minimum recommended credit level, but you can pre-qualify on the site with no impact on your credit score.
Currently, the company serves borrowers in 39 states and D.C.; the states it does not cover are Colorado, Connecticut, Maine, Nebraska, Nevada, New Hampshire, Oregon, Tennessee, Vermont, West Virginia, and Wyoming.
Reach Financial is worth exploring if you need a debt consolidation loan, but there are many other lenders offering a wider variety of loans that can be used for many purposes.
- Loan funds available to send to creditors within 24 hours: Reach states that if you’re approved, your loan funds will be available to pay your creditors within 24 hours. The company will send funds directly to the creditors listed on your Truth-in-Lending Disclosure, making it easier to consolidate or refinance existing debt.
- Can customize your loan terms: Most lenders give you a few term options based on your requested loan amount, but Reach allows you to choose from its full range of terms, anywhere from 24 to 60 months. This can help you find a comfortable monthly payment that fits your budget.
- Free credit score: Reach provides borrowers with a free credit score, although it doesn’t disclose which credit score it provides, or which credit report it comes from.
- Funds can only be used to consolidate or refinance existing debt: Reach only offers loans for consolidating or refinancing current debts; you’ll need to specify your creditors during the application. If you need money for any other purpose, like home improvement or medical expenses, you’ll need to check other personal loan lenders.
- Doesn’t report payments to all three credit bureaus: Reach Financial only reports loan payments to Experian and TransUnion, leaving Equifax out. This isn’t a huge downside, but it somewhat reduces your ability to build credit with a Reach loan.
- Shorter maximum repayment term than competitors: While Reach only offers up to 60 months for loan repayment, many other lenders offer quite a bit longer, like 72 months, 84 months, or even 180 months.
- Does not allow joint applications, co-borrowers, or co-signers: If you can’t qualify on your own, a co-applicant can lend their creditworthiness to help you get approved or get lower rates. But Reach only allows individual applicants.
Types of Personal Loans Offered by Reach Financial
Reach Financial offers an unsecured personal loan that can be used to:
- Pay down credit card debt
- Pay down other unsecured installment loan debts
Personal loans from Reach Financial are always sent directly to your creditors, and cannot be used for personal expenses.
Time to Receive Personal Loan Funds
Reach Financial states that you can check your rate and potentially get an offer within minutes. If approved, it states that your loan funds will be available to pay your creditors within 24 hours.
- Minimum recommended credit score not disclosed
- Must be at least 18 years old
- Must be a U.S. citizen?
- Must not reside in one of the following states: Colorado, Connecticut, Maine, Nebraska, Nevada, New Hampshire, Oregon, Tennessee, Vermont, West Virginia, Wyoming
- Must provide name, address, date of birth, and other information; Reach Financial may ask for your driver’s license or other identifying documents
Reach Financial Personal Loan Features
- $15 late fee
- Free credit score: Reach offers a free credit score for loan borrowers, although it doesn’t disclose which credit score brand (FICO or VantageScore) it provides, or which credit report (Equifax, Experian, TransUnion) it generates the score from.
- No prepayment penalty: Like the other unsecured personal loan lenders we reviewed, Reach doesn’t charge any extra fees for prepayment or early repayment.
- Change your payment due date: You can change your next due date through the online dashboard by selecting the “Change Next Payment Date” button.
- Credit insurance is available: According to customer support, Reach offers credit insurance, which may help provide payment relief during specified periods of financial hardship.
Co-Signers and Co-Applicants
Unfortunately, Reach does not allow for co-signers or co-applicants of any kind at this time. If your credit isn’t so great, a co-applicant can help you qualify or get better rates, but you’ll have to look elsewhere for this feature.
The best personal loans with a co-signer give you an opportunity to get approved with good rates, letting you pay down your loan more quickly and with less overall interest.
Can You Refinance a Personal Loan With Reach Financial?
Yes, if you currently have a loan from Reach Financial you can refinance that with a new Reach loan; this could reduce your overall loan cost if you get a lower rate, or provide some relief with a lower monthly payment.
|Telephone||(800) 606-8200||Weekdays 8 a.m. to 8 p.m. ET|
|firstname.lastname@example.org||Weekdays 8 a.m. to 8 p.m. ET|
|Mail (for Payments)||Reach Financial LLC
PO Box 12560
Newark, NJ 07101-0560
Reach Financial LLC
99 Wall Street #380
New York, NY 10005
According to Reach, payments mailed via overnight delivery must be sent through FedEx or UPS, rather than USPS, to be processed in a timely manner.
Reach Financial received a 4.8 rating on Trustpilot—an Excellent rating—where it is a verified company; as of October 2023, there are 344 reviews. Reach has positive reviews that acknowledge satisfaction with customer service staff personnel.
The lender also holds an A+ rating from the Better Business Bureau, an unbiased rating independent of customer reviews. But the 169 customer reviews on BBB are similar to Trustpilot, giving Reach 4.76 out of 5 stars.
How to Apply for a Reach Financial Personal Loan
- Begin the pre-qualification process: Enter your desired loan amount and select your loan purpose on Reach Financial’s initial application form.
- Provide personal information: Next, you’ll enter your personal information including your name, Social Security number (SSN), address, gross annual income, housing type, monthly mortgage payment, and employer name. The company will then conduct a soft credit check, which doesn’t affect your credit score.
- Wait a few minutes: Reach Financial will email you to let you know if you’re pre-qualified. The lender will also send an offer code if this is the case.
- Complete a full loan application: Enter your offer code and provide any other requested information to finish the full loan application and officially apply for the loan.
- Accept or deny the offer: If approved, Reach Financial will offer you some loan options so you can choose the monthly payment amount that works for you (take note of how your total amount paid changes based on your monthly payment). Reach will present details like the loan amount, terms, and APR, along with your origination fee (if you have one). You’ll be able to accept or decline the offer.
- Receive funds: Within 24 hours of agreeing to the offer, funds will be available to pay your creditors. Continue paying your current creditors until your new loan funds arrive.
Other Banking Services and Loans Offered by Reach Financial
Compare Reach Financial With Other Personal Loan Lenders
|Reach Financial||Patelco Credit Union||Achieve|
|Loan Terms||24–60 months||6–84 months||24–60 months|
|Recommended Minimum Credit Score||Not disclosed||640||620|
|Time to Receive Funds||1 day||Same day||1 day|
The Bottom Line
Reach Financial is an excellent choice for borrowers seeking quick access to debt consolidation loans. Borrowers can secure up to $40,000 to pay their unsecured personal debts, such as high-interest credit card balances. Besides fast pre-qualification and loan delivery times, Reach Financial receives praise for its excellent customer service from both the Better Business Bureau and Trustpilot.?
However, only borrowers who live in certain states can work with Reach; and anyone seeking loan repayment periods longer than five years or loans for personal expenses will need to consider other lenders, as well.
Is Reach a Legitimate Lender?
Reach Financial, launched in 2015, claims to have helped customers pay off over $1 billion in debt. With an average 4.8 rating on Trustpilot, customers report a mostly positive experience. The Better Business Bureau, an independent nonprofit that helps consumers identify trustworthy businesses, has given Reach Financial an A+ rating.
What Credit Score Is Needed for Reach Financial?
Reach Financial does not disclose a minimum credit score to obtain a personal loan. But the company allows you to pre-qualify for a loan with no impact on your credit score, so you can check your approval odds without worry.
Does Reach Financial Pay Creditors Directly?
Yes, after you are approved for a loan, Reach Financial will directly pay the creditors you’ve listed on your Truth-in-Lending Disclosure form, which you’ll complete during the application. In fact, this is the only option available—the loan funds must be sent to your creditors instead of your bank account.
Can I Refinance My Reach Loan?
Yes, Reach Financial allows you to refinance your current loan, whether that loan is provided by another lender or by Reach itself (actually, Reach only offers refinance/consolidation loans). Refinancing can be advantageous if you can get a lower interest rate to pay less overall, or to reduce monthly payments to ease some strain on your budget.
To evaluate and rank personal loan providers we collected hundreds of data points across more than 70 lenders, including traditional banks, credit unions, fintechs, and special interest finance companies. We researched and evaluated APRs, loan amounts and terms, fees, customer experience, and much more. To rank the lenders in our database and to generate star ratings, we weighted the data we collected, based in part on what consumers told us were the most important features of a personal loan and lender in a survey we conducted. We grouped those factors into four broad areas:
- Loan costs (advertised APR, fees, and six other factors): 29.25%
- Loan terms (loan amount, repayment term, and three other factors): 22.25%
- Borrowing requirements (credit score, membership requirement, and six other factors): 28.5%
- Additional features (online application, pre-qualification, and eight other factors): 20%
Learn more about how we evaluated personal loans in our complete methodology.