Financial technology companies are advancing and offering users more features within the same platform. Bread Financial is a growing financial services company that helps people create bank accounts, get credit cards, and borrow money.
What is Bread Financial?
Bread Financial, previously known as Comenity Direct, is a fintech company that connects consumers with loans, bank accounts, and credit cards. Bread Financial was founded in 1983 and has its headquarters in Columbus, Ohio. Ralph Andretta leads the company as its CEO.
How Does Bread Financial Work?
Bread Financial offers several financial products for its users. Bread Financial lets you access financial products from well-known companies and also has its own line of financial products. Bread Financial helps people get cashback on their purchases and build up their savings with attractive interest rates. The financial services company does not have checking accounts, but its savings accounts are very competitive.
What Services Does Bread Financial Provide?
Bread Financial offers several services that can strengthen your finances. Here’s what you can look forward to if you do your banking with Bread Financial.
Bread Cashback Card
The Bread Cashback Credit Card gives you 2% cashback on every purchase. You don’t have to worry about rewards caps, annual fees, or spending categories. You can either receive cash in your bank account or use the cashback to trim your credit card debt. Bread Financial lets consumers make that choice. The card also includes premium American Express benefits.
Bread Loans and Payments
Qualifying Bread Financial users can take out Bread Loans of up to $35,,000 on a 2-5 year term. These loans do not have any application or origination fees and have interest rates as low as 6.99% APR. Bread Financial gives you a decision within seconds, and you won’t have to worry about a hard credit check. Your credit score will not get impacted throughout the loan application process.
The 2-5 year term gives consumers flexibility in how they approach payments. A 2-year term has higher monthly payments, while a 5-year term has lower monthly payments but higher interest payments in the long run.
Bread Savings
Bread Savings accounts are FDIC-insured and have competitive interest rates. You can open a high-yield savings account with 4.75% APY or a 1-year CD that offers 5.25% APY. These are some of the highest interest rates in the industry, and you start earning interest immediately. You can also get 5& APY on a 2-year CD. Interest rates drop off a bit as you go further out, but a 5-year CD still has a respectable 4.25% APY. Many financial institutions have 1-year CDs that do not exceed 4.25% APY.
Bread for Business
Bread Financial helps business owners access capital they can use to grow their companies. Bread Financial partners with leading brands to give business owners more choices and also has an array of business features.
Financial Education Resources
Bread Financial offers several resources that can sharpen your financial skills and lead to more informed decisions. The education section teaches consumers about the basics, such as emergency savings and building credit. Bread Financial frequently updates its Financial Education section with new content.
What Makes Bread Financial Stand Out?
Bread Financial stands out because of the various services it offers, low-interest rates, 2% cashback credit cards, and high-yield savings accounts. Consumers can earn respectable returns with Bread Financial CDs and get cashback on every purchase. Other financial institutions don’t offer rewards or interest rates that are as competitive as Bread Financial’s offerings.
The Pros and Cons of Bread Financial
Pros
- High-interest rates on savings accounts: Get up to 5.25% APY from a Bread Financial CD. The interest rate on a Bread Financial 5-year CD exceeds the interest rates you can find on a 1-year CD for other financial institutions.
- Get 2% cashback on every purchase: Some credit cards only offer 1% cashback. The ones that offer 2% cashback usually limit you to specific spending categories. With Bread Financial, you don’t have to worry about how you spend your money. You will still get 2% cashback on every purchase.
- Get an interest rate as low as 6.99% APR for your loan: That’s a low-interest rate compared to other lenders, and your credit score will not get hurt at any point in the process (as long as you make on-time loan payments).
Cons
- No checking accounts: You cannot create a checking account with Bread Financial. You must create a high-yield savings account instead or put your money into a certificate of deposit.
- Low loan amounts: You can only borrow up to $35,000 with a Bread Loan. Some people may need more money than that for their expenses.
- You cannot withdraw cash from your Bread Financial account: If you need cash in your wallet, you will have to transfer funds from Bread Financial to another bank.
Should You Open an Account with Bread Financial?
A Bread Financial account gives you access to high savings rates and low-interest rates on loans. It’s a good combination that rewards users. You also get to enjoy 2% cashback on all of your purchases. You won’t have to keep track of spending categories or use multiple credit cards to receive 2% cashback.
How to Get Started with Bread Financial
You can get started with Bread Financial by visiting the company’s website and creating an account. Bread Financial will ask for a few basic details as you go through the quick application process.
