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The bottom line: Rocket Loans personal loans have solid APRs, but limited repayment term lengths as well as origination and late fees. You may be able to get more favorable terms elsewhere, especially if you have a good credit score.
Rocket Loans personal loan amounts and interest rates
Rocket Loans loan amounts range from $2,000 to $45,000, and the company accepts loan applications from residents of 47 states and Washington, DC. You won’t be able to get a loan in Iowa, Nevada, or West Virginia.
Depending on your credit score and other financial factors, your APR will range from 5.97% to %, which is in the middle https://paydayloansohio.net/cities/cambridge/ of the pack compared to some other major competitors’ ple, Marcus’ rates range from 6.99% to %, while Upstart’s loans have APRs between 5.55% to %.
Pros and cons of Rocket Loans personal loans
- Competitive minimum APR. Rocket Loans’ minimum APR is comparable to other top-notch lenders, but you’ll need to have excellent credit to qualify. Borrowers without excellent credit may find better rates elsewhere.
- No prepayment penalty. You can make additional payments toward your loan, and you won’t be charged an extra fee.
- Same-day funding available. If you need your money fast, you can get it as soon as the same day if you your loan is verified and approved by 1:00 p.m. ET.
- Multiple types of fees. You’ll have to pay an origination fee – an amount of money deducted from your loan balance when funds are disbursed- between 1% and 6% of your total loan amount, and that fee will be included in your loan APR. If your payment is more than 10 days late, you may be charged a late fee.
- Unable to add a cosigner to your loan application. If your credit score isn’t in the best shape and you are hoping to add a cosigner to your loan to improve your chances of approval, you won’t be able to do so with Rocket Loans.
- Limited repayment terms. You’ll only have the option of a three-year or five-year repayment term length. Other companies offer you more choices.
- Not available to borrowers in all 50 states. If you live in Iowa, Nevada, or West Virginia, you’re out of luck. You won’t be able to borrow from Rocket Loans.
Who is Rocket Loans best for?
Rocket Loans might be a good option for borrowers who are looking for fast funding and don’t mind choosing between only two repayment term options. You can also borrow as little as $2,000 from the lender, so it could be a great choice if you only need a small loan amount.
How Rocket Loans personal loans compare
Both Rocket Loans and Upstart have an origination fee. Rocket Loans’ is between 1% to 6% of the overall loan amount, while Upstart may charge you up to 8%. Marcus has no fees whatsoever.
Upstart may be the best option for borrowers looking for a very small amount of money; you can take out as little as $1,000 with the lender. However, Rocket Loans isn’t far behind, as it boasts a minimum of $2,000. Marcus has a higher minimum of $3,500.
If you need a larger amount of money, Upstart allows you to borrow up to $50,000, the highest amount of the three. Rocket Loans offers up to $45,000, while Marcus offers up to $40,000.
None of the three lenders allow you to add a cosigner to your loan, so if you need one you’ll have to look elsewhere.
How Rocket Loans personal loans work
Rocket Loans offers unsecured personal loans to US citizens or permanent residents aged 18 or older (19 years or older in Nebraska and Alabama). Unsecured personal loans are loans that don’t require collateral to receive, like a house or a car on mortgages or auto loans. You are unable to get a loan if you’re a resident of Nevada, Iowa, or West Virginia.
Rocket Loans personal loan applications are available online, and you can complete one within several minutes. You’ll choose between a 36-month or 60-month term length. The company doesn’t allow you to apply with a cosigner.
You can use an unsecured personal loan for a variety of purposes, including but not limited to, debt consolidation, home improvements, and vacations. To qualify for Rocket Loans’ best rates, you must have an excellent credit score, choose AutoPay (which comes with a rate discount), and meet other criteria.
You’ll pay an origination fee between 1% to 6% when your loan is funded, which will be deducted from your overall loan proceeds. Additionally, you’ll pay a $15 fee for any payments made not within 10 days of the due date and a $15 fee for a returned check.
Depending on your bank and the ability for Rocket Loans to verify your information electronically, same-day funding for your personal loan is available if you sign your loan agreement before 1:00 p.m. ET on that business day.
If your application is denied, you can reapply once your circumstances have changed. For instance, you may have raised your credit score or lowered your debt-to-income ratio.
To contact customer support, call Rocket Loans between 9:00 a.m. to 7:00 p.m. ET Monday through Friday, or between 9:00 a.m. to 6:00 p.m. ET on Saturday. You’re also able to email the company for any help you may need.
Is Rocket Loans trustworthy?
Rocket Loans has an A+ rating from the Better Business Bureau, a nonprofit organization focused on consumer protection and trust. The company is also a BBB-accredited business. The BBB looks at companies by evaluating businesses’ replies to consumer complaints, honesty in advertising, and clarity about business practices.
While its sister company Rocket Mortgage was involved in a 2019 scandal for alleged mortgage fraud, Rocket Mortgage is not the same as Rocket Loans – a common misconception. They both have the same parent organization, Rocket Companies. Rocket Loans has not been involved in any recent controversies.
You might decide you are comfortable taking out a personal loan from Rocket Loans because of its clean history and great BBB score.
