You have financial woes and heard that Rocket Loans offers personal loans.
However, the problem is that Rocket Loans is just one of many companies offering personal loans, so choosing a suitable one quickly isn't that easy.
Is Rocket Loans the best option for you？
Rocket Loans is a good choice if you have a credit score above 640 and prefer a loan with a same-day funding option. But if you need a bad credit loan without fees, then there are better options available.
Rocket Loans Overview
Rocket Loans is a fully electronic lending platform created to provide super-fast personal loan processing to people. It is a subsidiary of Rocket Mortgage® and a sister company to popular Detroit-based mortgage lender Quicken Loans.
Rocket Loans offers borrowers personal loans from $2000 to $45000. Its loans can be used to cover various costs, like home improvement, auto expenses, medical bills, general debt consolidation, credit card debt consolidation, solar power installation, and vacation.
In addition to interest rates, Rocket Loans also charge an origination fee, which is between 1% to 6%.
Rocket Loans processing happens online, including identity verification, income verification, and bank account verification. When you take a loan on Rocket Loans, you can get funded as soon as the same day.
Rocket Personal Loans Highlights
- APR: 7.16% - 29.99%
- Loan amounts: $2,000 - $45,000
- Loan Terms: You can choose a repayment term between three or five years.
- Origination Fee: 1% - 6%
- Prepayment Fee: $0
- Late Fee: $15 (after a 10-day grace period)
- ACH return/returned check fee: $15 per occurrence
- Minimum Credit Score: 640
- Minimum Annual Income: $24,000
- Approval time: Same or next day
- Approval Notification Method: Once your loan gets approved, you will receive a notification via email to inform you of the decision.
- Funding time: 2 - 4 business days
- Joint applications: Rocket Loans does not allow co-signers, co-applicants, or any other form of the joint loan application.
- BBB rating: Better Business Bureau gives Rocket Loans an A+ rating on their page. The brand has been recognized by BBB since 2015.
- Pre-qualification: Allowed
- Ways to apply: Apply online or call (800) 333-7625
- Residency: Rocket Loans provides personal loans to residents of all U.S. states except Nevada, Iowa, and West Virginia.
Funding Time: Rocket Loans offers borrowers a fast funding option, allowing same-day deposits. However, the opportunity is only available for specific loan amounts and approval time.
Only borrowers that take out loans from $2000 to $25000 can receive a same-day deposit. In addition, they must have completed their loan processing and signed the promissory note by 1 p.m. Eastern time on that business day.
If you don't satisfy both conditions above, you may not access the same-day funding offer. It is also important to note that your bank may take longer to send you the money even if you receive a same-day deposit from Rocket Loans.
- It Offers Same-day Funding Once Approved
- You Can Enjoy a 0.3% Rate Discount If You Set Up Autopay
- The Loan Amount is Flexible
- Rocket Loans Is Very Transparent Compared To Many Lenders
- It Enjoys A Good Reputation and Customer Reviews
- You Can Check Your Potential Rate By Doing A Pre-qualification
- You Will Be Charged an Origination Fee of 1% to 6%
- You Have No Option To Choose Initial Payment Date
- You Only Have Two Repayment Term Options
- No Direct Payment To Creditors With Which Borrowers Have Debt Consolidation Loans
- Secured, Co-signed, or Joint Loans Are Not Available
- It Doesn't Support Student Loans
Rocket Loans provides consumers with an easy way to apply for an unsecured personal loan. It offers an excellent fast personal loan service to people with good credit scores.
Where Rocket Personal Loans Stand Out
It Offers Same-day Funding Once Approved
Rocket Loans claims to offer same-day fund deposits to its borrowers. However, whether you can enjoy the offer depends on how fast your verification is done and your bank processing time.
Loan approval can take as little as five minutes, and borrowers who sign their documents before 1 p.m. Eastern Time can receive funding that same day (Monday to Friday).
You Can Enjoy a 0.3% Rate Discount If You Set Up Autopay
Borrowers who set their monthly payment to be deducted from their account automatically can receive a 0.3 % discount off the interest rate.
The autopay also has the additional benefit of ensuring timely payment and preventing missed payments which may cost you an extra $15. It generally helps you to reduce the cost of borrowing a loan on Rocket Loans.
The Loan Amount is Flexible
The loan amount available on Rocket Loans is very flexible. You can borrow anything from $2000 to $45000, which allows you to cover different expenses, including small, minimal, and really large expenses.
Rocket Loans Is Very Transparent Compared To Many Lenders
Rocket Loans states its loan terms, conditions, fees, and requirements explicitly. You may not find this with many personal loan lenders who introduce surprise fees and clauses later on.
Rocket Loans does not do that, it states its fees, interest rate, minimum credit score, and income and allows participants to pre-qualify before applying for a loan.
It Enjoys A Good Reputation and Customer Reviews
Rocket Loans have positive ratings and good customer feedback on reputable product review sites.
For instance, it has a 4.9-star rating out of 5 on Trustpilot with a total of 4,627 reviews. 91% of the customers gave the company 5 stars, and 5% gave 4 stars with a focus on simplicity, fast funding, and friendly client support.
The negative reviews were mostly from customers who did not meet Rocket Loans' credit requirements.
On BBB, Rocket Loans also has tons of positive reviews, with a 4.89 star and an A+ rating from the customers and Better Business Bureau.
You Can Check Your Potential Rate By Doing A Pre-qualification
Rocket Loans allows you to preview loan options available before making a decision. You can check potential loan terms, interest rates, and origination fees when you apply for a pre-qualification. Your credit score will not be affected during this process, as only a soft check is done.
With this pre-qualification, you can shop for loans and find the most suitable one before applying. It is important to note that pre-qualifying does not necessarily guarantee that your application will get approved.
Also, when you finally apply, Rocket Loans will do a hard pull to check your credit history, which may temporarily reduce your score.
Where Rocket Personal Loans Fall Short
You Will Be Charged an Origination Fee of 1% to 6%
When you take out a loan on Rocket Loans, there is a constant origination fee charge, which can be from 1% to 6%.
For instance, if you borrow $5000 and the origination fee is 3%, $150 will be deducted from your loan. That means you will get a $4850 deposit instead of $5000.
The fee will be deducted from your original loan before the cash is sent to you. This is somewhat of a disadvantage as some other lenders do not charge origination fees.
You Have No Option To Choose the Initial Payment Date
Borrowers on Rocket Loans don't get to pick a preferred due date to start their loan repayment.
You Only Have Two Repayment Term Options
Compared to many other competitors, there are only two loan terms available on Rocket Loans- 3 or 5 years. You cannot choose a shorter term to cut the total interest rate or increase the term to make the payment more convenient.
No Direct Payment To Creditors With Which Borrowers Have Debt Consolidation Loans
Rocket Personal loans can be used for debt consolidation, that is, to pay off existing debt with a lower interest rate.
However, when you use loans from Rocket Loans for debt consolidation, they will not deposit the cash into your creditor's account directly.
Unlike with some competitors, you will have to wait for Rocket Loans to fund your account and then transfer to your creditor afterward. This takes a long process and can be a disadvantage in urgent cases.
Secured, Co-signed, or Joint Loans Are Not Available
Rocket Loans only accepts a minimum credit score of 640 before considering your application. In addition to the high credit requirement, joint loans are unacceptable to the company. This means that people with a lower credit score may never get a chance to secure loans on Rocket Loans.
Another downside of Rocket Loans is that you cannot take out a loan with collateral. All personal loans are unsecured, so you cannot use collateral in case you fall short of the credit and income requirements.
It Doesn't Support Student Loans
Rocket Loans does not allow borrowers to use loans for any student-related expenses. So, if your purpose for pursuing a personal loan on Rocket Loans is to settle your tuition or pay educational expenses, your application will not be considered.
Compare Rocket Loans With Other Lenders
Low credit score requirements and fast funding make Rocket Loans' loans appealing, but their origination fees make them fairly average overall.
If you have a credit score above 640, you should seek lenders who give out loans at lower interest rates and don't charge extra fees.
Here's a side-by-side comparison of Rocket Loans with close competitors who offer fairer loan conditions.
7.16% to 29.99%
7.99% to 23.43%
6.99 to 23.99%
Origination Fee: 1% - 6%
Prepayment Fee: $0
Late Fee: $15 (after a 10-day grace period)
ACH return/returned check fee: $15 per occurrence
Origination fee: $0
Late fee: $0
prepayment penalty: $0
Origination fee: $0
Late fee: $0
Prepayment Fee: $0
The Same day
The Same day
1 business day
$2,000 to $45,000
$5,000 to $100,000
$5,000 to $100,000
Min. Credit Score
3 or 5 years
2 to 7 years
2 to 7 years.
12 years on home improvement loans.
Borrowers with high credit scores.
Borrowers who want large loan amounts.
Borrowers who have urgent expenses.
Borrowers who tend to pay loans before the end of the loan term.
Borrowers with high credit scores.
Borrowers who have really large expenses to cover.
Borrowers who want same-day delivery.
Borrowers who need large loans.
Borrowers with high credit scores want lower interest rates.
Borrowers who don't mind waiting till the next business day to get funded.
Rocket Loans Vs SoFi
SoFi's loan amount range is $5000 to $100000. This makes it a better option for any borrower who needs a larger loan amount than Rocket Loans has to offer.
On the flip side, SoFi's minimum loan is high. Borrowers who need less than that will prefer to use Rocket Loans.
SoFi's personal loan does not charge prepayment, late, or origination fees, but Rocket Loans does. You will also get a lower APR on Rocket Loans than on SoFi.
Rocket Loans Vs LightStream
LightStream offers loan amounts from $5000 to $100,000, making them a more suitable option to cater to big expenses than Rocket Loans allows. On the brighter side, Rocket Loans offers a lower minimum amount which can be great for those seeking small loans.
Comparing APRs, LightStream offers a lower APR than Rocket Loans and does not charge origination, prepayment, or late fees. In addition, LightStream has a more flexible loan repayment system which starts at 2 years and ends at 12 years (for home improvement loans).
Requirements For Rocket Personal Loans
Minimum Credit Score: You must have a minimum FICO score of 640 to be considered for Rocket personal loans.
Minimum Length Of Credit History: You must have at least two years of credit history with no bankruptcies.
Maximum Debt-to-income Ratio: Your DTI ratio must not exceed 70% for your loan application to be approved.
Minimum Annual Income: To apply and qualify for personal loans on Rocket Loans, you must have at least $24000 income.
Age: Borrowers must be at least 18 (or 19 years old in Nebraska and Alabama) to apply for a loan on Rocket Loans.
Citizenship: You must be a U.S. citizen or reside permanently in the U.S. to be eligible for a loan on Rocket Loans.
Identification: Rocket Loans requires your Social Security Number to verify your Identity.
Bank account: You must have a verifiable bank account.
Apply For A Rocket Personal Loan in 7 Steps
4 Crucial Preparation Before You Apply
Before applying for a loan on Rocket Loans, you must make the necessary preparations to increase your approval chance. Here are four things you should do;
- Find out your credit score: Ensure that your credit score meets the minimum requirement by checking it with an authorized company. You can get a check on the three bureaus, Equifax, Experian, and TransUnion, for free.
- Determine your monthly payments: Calculate what APR and loan term you'd need to get a loan with the monthly payments you can afford by using a personal loan calculator.
- Make loan repayment plans: If you are going to take a loan, ensure there's a feasible plan to repay it. So, review your budget, predict a monthly payment amount, and see how you can adjust your expenses to suit the debt settlement.
- Prepare your documents: Rocket Loans needs certain proofs like a W-2 or paystub to confirm your income, SSN for address and identity verification, and a bank statement to verify your bank account. It is advisable to have them all to avoid hitches in loan processing.
7 Steps To Apply For A Rocket Personal Loan
Step 1: Go to Rocket Loans' website via rocketloans.com.
Step 2: Click on Get Started or Check Your Loan Options.
Step 3: Enter your details on the Pre-qualification page. Some of the info required include; Loan purpose, homeownership status, full name, address, gross income, employment status, phone number, SSN, Email Address, and Date of Birth.
Step 4: Finish your Pre-qualification. After entering your details and if you are eligible, Rocket Loans will present some offers available. These offers will come with potential rates and terms.
You will then be asked to provide an ID for identity verification and a bank statement, tax report, or pay stub for income verification.
Step 5: Explore each loan and compare the offers. Click on the question mark icon for the loan options to find more details.
Step 6: Select a Loan and set up your loan account completely. Then, confirm your application so that Rocket Loans can begin processing the loan.
Step 7: Await the fund deposit of your loan to get approved. Note that decision-making can take up to four days, and you can get funded the same day your loan gets approved.
How CreditYelp Rates Rocket Loans
|Requirements & Application||4.6||The application process and requirements for Rocket Loans are clear and straightforward.|
|Loan flexibility||4.4||There is no option to choose the initial payment date.|
|Rates, Fees & Other Terms||3.8||Rocket Loans charge origination fees and only offer two repayment term options.|
|Customer experience||4.5||Rocket Loans has good customer reviews.|
|Transparency||4.8||Rocket Loans is very transparent compared to many lenders.|
Rocket Loans FAQs
Q1: Is Rocket Loans Legit?
Rocket Loans is a legit lending platform registered to do business lawfully in almost all states in the U.S.It is a subsidiary of Rocket Mortgage®, a popular home lender in America. It is also recognized by some of the most popular review sites like BBB and Trustpilot. Rocket Loans has a fully operational secured website where eligible borrowers can request loans.
Q2: Can I Have Over One Loan With Rocket Loans?
Rocket Loans allow users to borrow only one loan at a time, meaning you cannot take out more than one loan. You can only get another loan from the platform after fully repaying an existing one.
And if you need another loan urgently, you can apply to another lender that allows multiple loans at a time.
Q3: Can You Refinance a Personal Loan From Rocket Loans?
Rocket Loans allow borrowers to use a loan from the platform to refinance an existing loan from a different lender. This allows you to pay off such loans faster and at a reduced rate.
However, Rocket Loans does not support using a loan from a different lender for refinancing its own personal loans.
Q4: What Information is Needed for Pre-qualification?
When pre-qualifying for Rocket Loans, you will be asked to provide the following information;
- Full name, address, and phone number.
- Date of birth
- Email address
- Social Security Number
- Home ownership
- Annual income before tax
- Purpose of loan