Regional Finance Loans Review : What You Need to Know Unlock 2025
What Is Regional Finance?
Regional Finance is a consumer finance company specializing in personal loans tailored for borrowers with less-than-perfect credit. Established in 1987, the company has grown to operate 346 branches across 19 U.S. states, offering loan products and services primarily to subprime, nonprime, and near-prime customers—those typically with credit scores below 650.
Loan Details
Loan Amounts and Terms
Regional Finance offers personal loans ranging from $500 to $25,000, with repayment terms stretching from 18 to 60 months. Your qualification depends on several factors, including:
- Your credit profile
- The state you reside in
- Specific loan details such as collateral and insurance
Interest Rates (APRs)
The average APR for loans under $2,500 is 45%, while loans over $2,500 typically have an average APR of 30%. Borrowers can expect rates ranging from 25% to 55%, making it crucial to evaluate whether these terms align with your financial needs.
Application Process
While you can prequalify online, completing the loan application requires visiting a Regional Finance branch. This in-person process helps establish a personal relationship with loan officers, who may attempt to upsell you on additional services like insurance.
State Limitations: You must live in one of the 19 states where Regional Finance operates. However, even within those states, the nearest branch may not be convenient.
Understanding Collateral and Insurance
Collateral Requirements
Most Regional Finance loans are secured using household goods or occasionally a lien on a vehicle. However, the collateral is often not of sufficient value to incentivize repossession, serving primarily as a psychological tool to encourage timely repayment.
Insurance Upselling
Regional Finance often pushes optional insurance products, such as:
- Life insurance
- Accident and health coverage
- Involuntary unemployment insurance
While purchasing insurance is not mandatory, borrowers are sometimes pressured into adding it, increasing the overall cost of the loan. Note that these premiums are not included in the APR, potentially misleading borrowers about the true cost.
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Fees and Penalties
Regional Finance charges various fees, including:
- Origination fees
- Acquisition fees
- Account maintenance fees
Borrowers should also expect late fees, which some customers describe as “outrageous.” Additionally, the company employs aggressive collection tactics for missed payments.
Impact on Your Credit
Regular, on-time payments to Regional Finance can help improve your credit score, as the company reports activity to credit bureaus. However, missed payments will harm your credit, making it essential to stay consistent.
Pros and Cons of Regional Finance Loans
Pros:
- Accessible to low-credit borrowers: Serves those with credit scores below 620.
- Builds credit: Timely payments can improve your credit score.
- Flexible loan amounts: Ranges from $500 to $25,000.
Cons:
- High APRs: Rates between 25% and 55% are steep.
- Collateral requirements: Adds complexity and cost.
- Insurance upselling: Optional, but often pushed.
- Inconvenient process: Requires branch visits.
How to Get the Best Loan Deal
- Shop Around: Apply to multiple lenders before committing. This ensures you get the best available terms.
- Understand Costs: Evaluate fees, APR, and the cost of optional insurance.
- Compare Offers: Look for alternatives online or through marketplaces that provide multiple loan offers without affecting your credit.
FAQs About Regional Finance Personal Loans
What credit score is needed for a Regional Finance loan?
Regional Finance primarily serves customers with scores below 650, making it a good option for those with poor or fair credit.
Can I apply online for a Regional Finance loan?
You can prequalify online, but the final application requires an in-person visit to a branch.
Are Regional Finance loans secured or unsecured?
Most loans are secured by household goods or vehicle liens. Unsecured options are less common.
Is insurance mandatory for Regional Finance loans?
No, insurance is optional, but borrowers are often encouraged to purchase it.
What fees does Regional Finance charge?
Fees may include origination fees, late fees, and account maintenance fees, depending on your state.
Do Regional Finance loans report to credit bureaus?
Yes, they report to major credit bureaus, affecting your credit score positively or negatively based on payment history.
What is the average APR for a Regional Finance loan?
APRs range from 25% to 55%, with loans under $2,500 averaging 45%.
Does Regional Finance repossess collateral?
Repossessions are rare; collateral mainly serves as a repayment incentive.
How can I avoid late fees?
Set up automatic payments or reminders to ensure timely payments.
Is Regional Finance a good option for poor credit?
It can be a viable option, but borrowers should explore alternatives with better terms first.
Conclusion
Regional Finance offers personal loans designed for borrowers with poor or damaged credit. However, high APRs, collateral requirements, and insurance upselling make it essential to evaluate whether these loans align with your financial goals. Always shop around and compare offers to ensure you’re making the best financial decision.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Please consult a financial advisor before making any borrowing decisions.
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