Rocket Loans Personal Loan Review


Learn if Rocket Loans personal loan rates are right for you
Rocket Loans is a sister company of Rocket Mortgage by Quicken Loans, the largest mortgage lender in America. It’s headquartered in Detroit and strives to offer “the most simple, rocket fast personal loan process.” Essentially, it’s an online marketplace for unsecured loans made by Cross River Bank, for which Rocket Loans acts for the servicer. Rocket Loans is accredited by the Better Business Bureau (BBB), and holds an A+ rating as of May 2020. It's an option for those who need to borrow up to $45,000. Our detailed Rocket Loans personal loan review can help you decide if this lender is right for you.

APR Range 7.16% to 29.99%
Recommended Minimum Credit Score 580+
Loan Amounts $2,000 to $45,000
Loan Terms Three or five years
PROS AND CONS FEES

Pros
Prequalification option

Same-day funding possible

No prepayment penalty

Low borrowing minimum

Cons
Charges fees

Limited repayment terms

High rates for borrowers with bad credit

Pros of Rocket Loans

Prequalification option: You can prequalify and check for potential interest rates, terms, and origination fees with a soft inquiry, which won’t affect your credit score. 
Same-day funding: Rocket Loans may deposit up to $25,000 in your bank account the same day you apply and get approved for a personal loan, if you apply before 1 p.m. Eastern time on a business day. However, the funding timeline also depends upon your bank. 
No prepayment penalty: Since Rocket Loans doesn’t charge a prepayment penalty, you can pay off your loan early and save on interest. 
Low borrowing minimum: If you only need to borrow a small amount of money, Rocket Loans can lend you as little as $2,000. 

Cons of Rocket Loans

Charges fees: If you take out a Rocket Loans personal loan, you’ll have to pay an origination fee ranging from 1% to 6% of your loan amount (the exact fee is based on your personal financial information). You’ll also pay a $15 late fee if you’re late on a payment or don’t have enough money in your account. And there’s also a returned ACH transfer or check fee of $15. 
.
Limited repayment terms: Repayment terms aren’t as flexible as other lenders. You must choose one of two options—36 or 60 months. 
High rates for borrowers with bad credit: If you don’t have the best credit, you may get stuck with a high interest rate. 

Rocket Loans Personal Loan Rates & Terms
Interest rates for Rocket Loans personal loans are fixed. Rates range from 7.16% to 29.99% APR with the auto pay discount, which you’ll get if you agree to make your monthly payments through automatic bill pay Your final APR will be based on your credit history.

Rocket Loans only offers two loan terms: 36 months or 60 months. So you won’t be able to take out a shorter- or longer-term loan if you need or want to. 

How Much Can You Borrow With Rocket Loans?
You can borrow between $2,000 to $45,000 with a Rocket Loans personal loan. The amount you’ll be offered will depend on the state you live in, and Rocket Loans determination of your ability to repay the loan, incorporating your income, credit profile, and debt-to-income ratio. Unless you have good or excellent credit, you might not get the full amount you ask for.

Rocket Loans has minimum loan amounts in some states. You must borrow a minimum of $3,001 in Georgia, $5,001 in Ohio, $6,001 in Massachusetts, and $2,501 in New Mexico.

Rocket Loans Personal Loan Fees
Rocket Loans does charge an origination fee of 1% to 6% of the amount you borrow. So, if you borrow $10,000, that means you’ll pay between $100 and $600 just to borrow. This origination fee is based on your personal financial information that you provide and it’s deducted from your loan amount before you receive the funds, so try to integrate that number into your loan request. 

You’ll also have to pay a late fee if you’re late on a payment or don’t have enough funds in your account to make one. Fortunately, there are no prepayment fees so you can pay off your loan early and save on interest. 

How to Get a Personal Loan From Rocket Loans
To apply for a Rocket Loans personal loan, prequalify online by providing some basic information about yourself like your employment status and annual income. Once you do, you’ll get some offers with potential rates and terms. 

Rocket Loans aren’t available to residents of Nevada, Iowa, and West Virginia. You must also be a U.S. citizen or permanent U.S. resident and 18 years old (or 19 in Nebraska and Alabama).

If you want to move forward with an offer, you’ll need to register as a user on the Rocket Loans website and complete the entire application online. This will result in a “hard pull” of your credit, and will impact your score as a credit inquiry. 

The Final Verdict
If you qualify for a low rate and favorable terms, a Rocket Loans personal loan can give you the money you need to consolidate debt, fix up your home, repair your car, or do just about anything. It’s a particularly good option if you prefer a fast, hassle-free application process online and qualify for same-day funding—but even if you don’t, you should have a good chance of receiving cash quickly, depending upon your bank.  

Since rates go up to 29.99% APR, you may want to avoid a Rocket Loans personal loan if you have a low credit score, poor credit history, or high debt-to-income ratio. A high APR paired with origination and late fees can steer you toward a cycle of debt. Plus, Rocket Loans’s inflexible repayment periods can be problematic if you want to repay your loan on a different timetable. 

Comments

Post a Comment

Popular posts from this blog

What Happens When the Debt Exceeds the Ceiling

The debt ceiling is a limit that Congress imposes on how much debt the federal government can carry at any given time. When the ceiling is reached, the U.S. Treasury Department cannot issue any more Treasury bills, bonds, or notes. It can only pay bills as it receives tax revenues. If the revenue isn't enough, the Treasury Secretary must choose between paying federal employee salaries, Social Security benefits, or the interest on the national debt. The nation's debt limit is similar to the limit your credit card company places on your spending. But there's one significant difference. Congress is in charge of both its spending and the debt limit. It already knows how much it will add to the debt when it approves each year's budget deficit. When it refuses to increase the debt limit, it's saying it wants to spend but not pay its bills. That's like your credit card company allowing you to spend above its limit and then refusing to pay the stores for your purchases....
Read more

The 5 Best Tax Relief Companies of 2020

Get the tax debt relief you deserve We publish unbiased reviews; our opinions are our own and are not influenced by payments from advertisers. Learn about our independent review process and partners in our advertiser disclosure. Approximately 114 million Americans had unpaid tax debt in 2018, according to figures from the Internal Revenue Service. The total dollar amount equaled $131 billion in tax debt, including penalties and interest that year.1 Many people fall into tax debt because they don’t realize how much they owe due to filing errors or incomplete bookkeeping records. Others don’t have the money to pay their taxes. Some think they can avoid filing taxes and it won’t catch up with them. But the U.S. government earns too much revenue from taxes to let taxpayers slide. In 2018, the IRS filed 410,220 federal tax liens and 639,025 notices of levies. The agency seized the property of 275,000 taxpayers. Ignoring tax debt is rarely a solution to a problem that will only grow over ti...
Read more

What Is a Self-Directed IRA?

A self-directed IRA is a type of retirement account that gives you more control over the types of investments you include in your IRA. In many cases, the custodian that holds the account for you will place more of the risk on your choices. Learn more about how a self-directed IRA works, and the types of assets you can include, along with the costs you’re likely to encounter when you open this kind of retirement account. What Is a Self-Directed IRA? With a self-directed IRA, you work with a custodian that is more likely to allow you to choose from a wider variety of investments for your retirement portfolio that go beyond what an IRA custodian would normally suggest or allow.     Alternate definition: A self-directed IRA allows you more leeway to choose investments that might be considered “alternative” investments     Acronym: SDIRA How Does a Self-Directed IRA Work? IRAs are held by custodians who usually provide a limited menu of assets to invest in. Custodians ...
Read more