Rocket Loans Personal Loan Review

Learn if Rocket Loans personal loan rates are right for you

woman sits on carpeted floor with laptop considering personal loan options
•••

DaniloAndjus/Getty Images

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. Our detailed Rocket Loans personal loan review can help you decide if this lender is right for you.

Who Is a Rocket Loans Personal Loan Best For?

A Rocket Loans personal loan is likely best for anyone who needs a personal loan delivered in a short amount of time. An unsecured loan can be useful for things like debt consolidation, home improvement projects, and car-related expenses, including buying a new car. 

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). 

 You may want to consider a Rocket Loans personal loan if you:

  • Need your loan funds fast
  • Want an online application process
  • Wish to borrow up to $45,000 and take up to five years to repay it
  • Have good or excellent credit and can qualify for the lowest interest rates and most favorable terms 

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 Explained

  • 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 Explained

  • 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. Some lenders don’t charge fees.
  • 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 7.161% to 29.99% APR with the autopay 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. 

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. 

Key Takeaways

BENEFITS

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.  

DRAWBACKS

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. 

Article Sources

  1. Better Business Bureau. "Rocket Loans." Accessed May 19, 2020.

  2. Rocket Loans. "Disclosures and Licenses." Accessed May 19, 2020.

  3. Rocket Loans. "Let's Get Started." Accessed May 19, 2020.

  4. Rocket Loans. "Rates and Fees." Accessed May 19, 2020.

  5. Rocket Loans. "FAQ." Accessed May 19, 2020.

  6. Rocket Loans. "Online Loan Options." Accessed May 19, 2020.