Reach Debt Consolidation is an online lender that offers fixed rate personal loans for debt consolidation purposes. This debt consolidation also helps you manage the crushing weight of never-ending minimum payments, which takes a financial and mental toll.
In this post, I will tell you everything I wish I knew before considering them for my own consolidation loan a few years ago. By the end, you’ll have all the information you need to decide if Reach Debt Consolidation is the best choice to help you finally take control of your debt situation. Let’s get started!
Key Things to Know About Reach Debt Consolidation Loans
Reach Financial allows borrowers to roll high-interest debts from multiple accounts into one Reach personal loan. This consolidation loan has fixed rates and payments over 3 to 7 years to pay off debt faster.
You can consolidate credit card debt, payday loans, auto loans, and more types of unsecured debt with Reach. Federal student loans are not eligible. Their loans feature competitive rates, flexible loan amounts, and a 100% online application process taking just minutes.
Reach makes paying off balances more convenient and affordable. It simplifies juggling multiple creditors.
Here are the key details on their loans:
- Loan amounts from $5,000 up to $100,000
- Interest rates from 5.99% – 35.99% APR
- Loan terms available from 2 to 7 years
- No application fees, origination fees or prepayment penalties
- Minimum credit score requirement of 580
- 100% online application with funds in as soon as 24 hours
Reach Debt Consolidation makes it fast and easy to get a rate quote online in minutes. But how reputable are they for debt consolidation loans?
Pros of Using Reach Debt Consolidation
Here are some of the main benefits that Reach Debt Consolidation offers:
- Their rates are generally lower than high interest credit card rates, allowing you to save substantially on interest.
- You can choose a repayment term from 2 to 7 years. Longer terms have lower monthly payments.
- Many customers report quick approval and funding in as little as 24 hours.
- The 100% online application is convenient and can be completed anytime.
- Their customer service team is available around the clock for any questions.
- Reach Debt Consolidation does not charge application or origination fees.
- Their website provides useful financial tips and guides to help manage debt.
Cons and Risks to Consider
However, there are also some potential downsides to weigh:
- They have strict credit score requirements . Although the minimum is 580, you’ll need good credit to get the lowest advertised rates.
- They require a 43% or lower debt-to-income ratio for approval, so your income must be substantially higher than debts.
- Reach Debt Consolidation has a poor BBB rating of just 1 out of 5 stars, citing issues with sales practices and contract terms.
- If you miss payments, they can repossess assets used to secure financing.
- Consolidation alone won’t address uncontrolled spending or overuse of credit.
Reach Debt Consolidation may not be the right fit for everyone’s financial situation and debt relief needs.
Do You Meet the Eligibility Requirements?
To receive a Reach personal loan for consolidation purposes, applicants must have:
- It requires a FICO credit score of at least 620 to qualify.
- $10,000 in debt to consolidate
- Steady verifiable income
- Debt-to-income ratio under 40%
- Clean repayment history
- No recent bankruptcy or foreclosure
Meeting these requirements indicates you can manage additional debt responsibly and will likely qualify for one of Reach’s fixed-rate loan offers.
How to Apply for a Reach Consolidation Loan
If you meet the above criteria, the application process is simple. Follow these steps:
Visit Reach’s Consolidation Loan Page
Go to Reach’s website and click “Apply Now” on their debt consolidation loans page. This will open a secure online application.
Fill Out the Online Application
Dedicate 15-20 minutes to complete the consolidation loan application questions on personal details, income, employment, expenses, debts, assets, and credit history. Answering accurately ensures the best rates.
Upload Required Documentation
You’ll need to submit recent pay stubs, tax returns, bank statements, and debt account statements proving details entered.
Confirm Your Information
Double check all application details and documentation for accuracy before submitting formally. Errors can impact your approval odds.
And that’s it! The online application only takes a few minutes. Next Reach will review your case and provide a loan decision.
Reach Will Access Your Credit Report
As part of reviewing your consolidation loan application, Reach Financial will complete a “hard credit check”. This allows them to access your full credit report from agencies to independently verify details on debts, payment history, credit score, and other financial information you entered.
Hard checks can cause a small temporary drop in your score. But taking out a Reach consolidation loan and repaying responsibly can boost your credit over time.
The Reach Consolidation Loan Decision Timeline
Reach aims to provide fast lending decisions. Here is what you can expect after applying:
- Same Day: Application received
- 1-2 Days: Credit report accessed and reviewed
- 1-3 Business Days: Loan decision reached
- Within 5 Days: Loan offer details provided if approved
So you will generally know if you are approved within a week or less after starting your consolidation application. If sadly denied, Reach advises on steps to potentially reapply down the road.
Review Your Consolidation Loan Offer Carefully
If approved, Reach will email full details on the personalized loan offer. Be sure to carefully review:
- Loan Amount: Ensure it covers your total debts.
- Interest Rate: Competitive fixed rates from 5-35% APR
- Fees: No application or origination fees. Late fees apply.
- Loan Term: 3-7 years. Longer terms have lower monthly payments.
- Payment Amount & Schedule: Same fixed payment each month.
Only accept the offer if the loan details fit your budget and consolidation goals. Reach also provides a 14-day satisfaction guarantee period to cancel with no fees.
Loan Funds Get Disbursed Directly to Your Creditors
Once you formally accept your approved Reach Debt Consolidation loan offer, the loan will fund within 1-3 business days typically. Reach then disburses money directly to each of your creditors, paying off your debts in full.
You’ll receive email confirmation as Reach settles each account. This leaves just the consolidated loan balance owed to Reach Financial at your new lowered interest rate and monthly payment.
Tips for Responsibly Managing Your Reach Loan
To ensure your Reach Debt Consolidation loan saves you money over time:
- Make at least the minimum payment every single month
- Setup automatic payments from your checking account
- Pay extra when possible to pay down the principal faster
- Avoid taking on new debts during the repayment term
- Contact Reach immediately if ever struggling to make payments
Sticking to your repayment schedule allows the consolidation loan to simplify your finances.
Having to roll multiple debts into one with a consolidation loan can simplify payments and reduce costly interest charges. But it’s critical to choose a trustworthy lender. While Reach Debt Consolidation provides a fast-online application, their poor reputation merits caution.