Sun. Sep 25th, 2022

Rocket Loans Personal Loans: 2022 Review

Rocket Loans features

Here’s a breakdown of some of the benefits and drawbacks of Rocket Loans personal loans.

 Pros

  • Easy online application process
  • Check your rate with no impact to your credit score
  • No prepayment penalties
  • Rapid funding

 Cons

  • Origination fee
  • High rates for excellent credit
  • Not available in all states

Rocket Loans makes it easy for consumers to apply for an unsecured personal loan. Prospective borrowers can check their rate and determine eligibility without a hard inquiry on their credit report, and those who are approved can apply online and receive funding as soon as the same day.

Rocket Loans is transparent about its loan process, although consumers with excellent credit can likely get a personal loan with lower fees elsewhere.

Rocket Loans snapshot

Loan amounts$2,000 to $45,000
APR5.97% to 29.99% (with autopay)
Minimum credit scoreNot specified
Time to receive fundsAs soon as the same business day

Pros and cons of Rocket Loans personal loans

Before you apply for a personal loan from Rocket Loans, you should know about the upsides, as well as any potential pitfalls to watch out for. Here are the main advantages and disadvantages.

Pros

  • Easy online application process: You can apply online and receive funding as soon as the same business day.
  • Check your rate with no impact to your credit score: Using Rocket Loans’ prequalification form will help you determine eligibility and estimate loan costs before you apply with only a soft credit inquiry.
  • No prepayment penalties: You can pay off your personal loan at any time without paying a prepayment penalty.
  • Rapid funding: Borrowers can receive loan proceeds the same business day they apply.

Cons

  • Origination fee: Rocket Loans charges an origination fee between 1 percent and 6 percent of the loan amount. Since a handful of personal loan providers don’t charge this fee, you should keep the extra cost in mind.
  • High rates for excellent credit: Some personal loan companies offer starting APRs that are lower than those of Rocket Loans. Consequently, Rocket Loans is an inferior option if you have excellent credit that could help you qualify for a personal loan with more competitive rates and terms elsewhere.
  • Not available in all states: Personal loans are not available in Iowa, Nevada or West Virginia.

Lending terms

Rocket Loans offers qualified borrowers personal loans with APRs between 5.97 percent and 29.99 percent. The rate you receive depends on your credit history, current debt load, annual income, requested loan amount, requested repayment term and housing costs. You can borrow between $2,000 and $45,000 and repay your loan over 36 or 60 months. There are no prepayment penalties to worry about if you decide to pay off your loan early.

Rocket Loans doesn’t list a minimum credit score. However, it does explain that your loan eligibility is determined by the following criteria:

  • FICO Score.
  • Monthly income.
  • Debt-to-income ratio.
  • Whether you rent or own your home.
  • Number of credit inquiries.
  • Preferred repayment term.

Fees and penalties

Rocket Loans charges an upfront origination fee of 1 percent to 6 percent of your loan amount, which can vary based on the details in your application and your creditworthiness. This fee is deducted from your loan proceeds, meaning that someone who borrows a $20,000 loan with an origination fee of 6 percent would only receive $18,800 in loan proceeds. However, they would need to repay the entire $20,000 loan plus interest.

Rocket Loans also charges a $15 late payment fee if you fail to make a payment within the 10-day grace period. You may also pay a $15 returned check fee if your check or ACH transfer is rejected by your bank for insufficient funds or any other reason.

How to apply for a loan with Rocket Loans

To qualify for a personal loan from Rocket Loans, you need to be at least 18 years of age (or 19 in Nebraska or Alabama). Rocket Loans states that, aside from your age and where you live, it considers your credit score, how much you earn and how much existing debt you have, among other details.

When you’re ready to apply, you’ll need to head to Rocket Loans’ website and click “Get Started” or “Check Your Loan Options.” From there, you’ll be asked to enter personal information on the loan prequalification page. Details you should prepare to share include your:

  • Loan purpose.
  • Homeownership status.
  • Employment status.
  • Gross income.
  • Address.
  • Full name.
  • Phone number.
  • Social Security number.
  • Email address.
  • Date of birth.

Rocket Loans will move forward with a soft credit check, which will not impact your credit score. From there, you’ll find out if you’re prequalified for a personal loan. If you do meet its general eligibility requirements, you’ll be presented with a list of loan options with unique rates and terms. These options will vary in terms of the loan amount you would receive, as well as the length of time you would be required to make payments on your loan.

You could also be asked to provide the following:

  • A copy of your photo ID to verify your identity.
  • Bank statements, pay stubs or tax forms to confirm your income.

You can compare loan options at this point and click on the question mark icon for each loan option to see the origination fee you would be charged.

If you like one of the loan options available to you, you can click on the button to “select” the loan and set up a password for your loan account. From there, you’ll consent to the funding of the loan, at which point Rocket Loans will move forward with a hard inquiry on your credit report.

Upon approval, you’ll enter bank account information that Rocket Loans will use to move your loan funds into your account. Since Rocket Loans can fund personal loans as soon as the same business day, it’s possible that you could apply in the morning and have your loan funds deposited into your account and ready to spend by the evening.

If you have questions about Rocket Loans, you can reach a personal loan expert at 800-333-7625. Representatives are available Monday through Saturday from 9 a.m. to 7 p.m. ET and Saturday from 9 a.m. to 6 p.m. ET

How Bankrate rates Rocket Loans

Overall Score4.6
Availability4.8Rocket Loans has a low minimum loan amount and quick funding, though it doesn’t disclose many eligibility requirements.
Affordability4.5Rocket Loans’ minimum APRs are low; however, it does charge a few fees.
Customer Experience4.7Rocket Loans has a seamless online platform, but its customer support hours are slightly limited.

SOURCE https://www.bankrate.com/loans/personal-loans/reviews/rocket-loans/

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