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Rocket Loans In-Depth Review
In a nutshell: Rocket Loans offers a straightforward application process and quick pre-approval of personal loans ranging from $2,000 to $45,000.
Rocket Loans In-Depth Review
In a nutshell: Rocket Loans offers a straightforward application process and quick pre-approval of personal loans ranging from $2,000 to $45,000.
Rocket Loans In-Depth Review

Overview

Rocket Loans is an online finance company that offers personal loans ranging from $2,000 to $45,000. Their straightforward application process and quick pre-approval make them an attractive choice for borrowers. Before deciding if Rocket Loans is right for you, let’s delve deeper into the pros and cons of this personal lending service.

Rocket Loans streamlines the borrowing experience with a user-friendly online platform. Applicants can receive pre-approval within minutes, making it convenient for those seeking swift access to funds.

Whether you need a small loan or a larger sum, Rocket Loans caters to a wide range of financial needs. Borrowers can secure loans from $2,000 up to $45,000. Unlike some lenders, Rocket Loans does not penalize borrowers for early repayment. You can pay off your loan at any time without incurring additional fees.

That said, Rocket Loans charges an origination fee of up to 9% of the total loan amount. This fee is significantly higher than many competitors, potentially impacting your overall cost of borrowing.

While Rocket Loans offers flexibility in loan amounts, the available terms are somewhat restricted. Qualified clients can choose between 36 or 60-month loan durations, which may not suit everyone’s preferences.

The Annual Percentage Rate (APR) for Rocket Loans spans from a minimum of8.99% (with autopay discount) to a maximum of 29.99% (without autopay discount). Borrowers should carefully review their personalized rates to ensure affordability.

Rocket Loans combines convenience, speed, and flexibility, making it a viable choice for those seeking personal loans. However, borrowers should weigh the origination fee and APR carefully before making a decision.

Requirements

Eligibility depends on several factors, including credit score, income, and debt-to-income (DTI) ratio. Rocket Loans sets the bar with a minimum credit score requirement of 640. Income requirements start at a minimum of $24,000.

To qualify for a Rocket Loan, applicants must meet the following criteria:

  • Credit Score: Rocket Loans considers creditworthiness, and a higher credit score improves eligibility.
  • Income Verification: Borrowers need to demonstrate a stable income source.
  • Age and Residency: Applicants must be at least 18 years old and U.S. citizens or permanent residents.

Loan Process

Applying for a Rocket Loans personal loan involves a few straightforward steps: prequalification with a soft credit check, selection of loan options, submission of a formal application with additional details, and signing of loan documents upon approval. The process is designed for efficiency, with potential for same-day funding if conditions are met.

Start by submitting an online application, providing personal and financial details. Next, Rocket Loans assesses your application and offers pre-approval. During this process, you’ll need to submit necessary documents, such as proof of income and identification. Once approved, funds are disbursed directly to the your bank account.

Loan Terms

You can use your personal loans to help fund almost anything, whether you need help paying for your wedding or covering an emergency vet bill. Rocket Loans offers unsecured personal loans from $2,000 to $45,000. Rates vary from a minimum of 8.99% (with autopay discount) to a maximum of 29.99% (without autopay discount).

Rocket Loans' APRs range from 8.416% to 29.99%, factoring in the autopay discount, and require a minimum credit score of 640. The terms offered are either 36 or 60 months, making it a somewhat flexible but also limited choice depending on the borrower's needs.

The origination fee varies from 1% to 9%, is a critical factor to consider, as it is deducted from the loan amount prior to disbursement, potentially affecting the total available funds. The fees for late payments and returned payments due to insufficient funds stand at $15 each, though there is a grace period for late payments.

Customer Support

Rocket Loans prioritizes customer satisfaction. Their customer service is available by email at support@rocketloans.com or by phone at (800) 333-7625. Support hours are Monday through Friday from 9:00am - 7:00pm ET and Saturday from 9:00am - 6:00pm ET.

Rocket Loans has a range of online resources to provide answers to your questions without contacting support. Their Simple Loan Calculator instantly helps understand rates and monthly repayments for any type of loan. You can also access the learning center to find out more about personal loan basics, financial tips, and lending options available.

Customer reviews on platforms like TrustPilot and the Better Business Bureau (BBB) highlight a generally positive experience, praising the easy application process and quick approval times. Although some borrowers express dissatisfaction with the origination fee, the speed of receiving funds tends to offset these concerns.

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Pros
  • Easy application process
  • Flexible loan amounts
  • No prepayment penalties
Cons
  • High origination fees
  • Limited loan terms
  • Interest rates vary widely
Rocket Loans at a Glance
8.8 Editorial Score
Credit impact
8.0
Performs a standard credit check process that involves a minor impact on your credit score
Funding speed
9.0
Quick funding process, usually within one to two days after approval
Loan flexiblity
9.0
Good flexibility in terms and conditions, allow for modifications such as payment deferrals and changes to repayment terms
Borrower rewards
9.0
Many borrower benefits and rewards, including significant rate discounts for responsible payment history and loyalty rewards
Loan amounts
9.0
Provides maximum loan limits that are sufficient for substantial expenses
FAQs About Personal Loans
Before taking a personal loan be sure you familiarize yourself with all the terms and conditions associated with the loan. To help you get started, we've compiled some of the most frequently asked questions about personal loans below.
What is a personal loan?
Personal loans are loans taken from a lender and paid back by the borrower in fixed monthly installments. These loans can be taken for a wider variety of reasons ranging from home improvement to financing large purchases. Unlike mortgage loans or some types of business loans, personal loans are almost always unsecured, meaning they aren't backed by any collateral.
Can I take a personal loan online?
Absolutely! By using an online personal loan service you save yourself the trouble of arranging meetings with banks and/or credit unions and you can easily compare offers while sitting at home. Furthermore, many online personal loan lenders offer better rates than banks and provide more flexible terms ranging from 61 days up to 180 months. These online personal loan services often function as a middleman between the borrower and the lender. The loan service will connect you with a lender who will make a loan offer specifying the APR and loan terms.
What do I need in order to apply for a personal loan?
Applying for a personal loan is much easier than you might've thought. Many online applications take only a few minutes to complete and don't require many personal details. Usually, loan applications simply require details such as name, address, and contact information, plus some basic questions concerning your financial history, credit score, and income.
What is APR*?
APR stands for annual percentage rate and refers to the annual interest rate charged for your personal loan. Actual APR numbers vary but will always cap at 35.99%. Typically, online lenders will offer an APR somewhere between 5% and 30%. The APR of your loan will depend on various factors such as credit score, income, and financial history. *APR rates mentioned include associated fees.
How long do I have to repay the loan?
Much like APR, the term or length of your loan will depend on a variety of factors. Repayment periods can range from 61 days to 180 months. One of the great things about online personal loan services is they allow you to compare loan terms meaning you can choose a repayment period that best suits your financial goals.
Representative Example
Assuming a loan of $5,000 over 36 months at a fixed rate of 10.5% per annum and fees of $60.00.
This would result in a representative rate of 11.3% APR, with monthly repayments of $162.51, for a total amount paid of $5,910.44.
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