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Benefits explained
- Pre-approval available in seconds: Rocket Loans offers a quick and easy experience. Applicants can complete a simple online form and see their pre-approved loan amount, repayment term and rate in seconds.
- Financing available the same day: If you complete the loan process and sign your documents before 1 p.m. ET, you could receive funds the same business day.
- Flexible credit for loan pre-approval: Posting a quote on your loan terms will not hurt your credit scores as Rocket Loans performs a soft credit extraction in order to provide your quote.
Disadvantages Explained
- Original costs up to 6%: These fees range from 1% to 6% and are deducted from your loan funds before you receive them, meaning you may have to ask for more money than you actually need to borrow.
- Limited reimbursement conditions: Some lenders allow you to choose from multiple repayment terms, but with Rocket Loans you only have a choice of 36 months or 60 months.
- Individual applications only: Having a co-signer or co-applicant can increase your chances of getting approved for a loan or help you get better rates, but Rocket Loans does not allow joint applications at this time.
introduction
Rocket Loans provides a quick and easy process for applicants to view their quotes and apply for a personal loan. The fully online process can result in same day financing, and borrowers with less than stellar credit can be approved. You can also choose to set up automatic payment during the application process and get an APR discount.
Rocket Loans Auto Pay Discount is only available to borrowers who opt for auto pay at the time of application. This rate discount is not available for borrowers who automate their monthly payments after receiving their loan.
Although Rocket Loans is convenient, it does not offer the most competitive terms. Other online lenders like LightStream can beat their APR lineup while charging no fees. In contrast, Rocket Loans origination fees go up to 6%. Applicants with lower credit scores can expect to pay the full 6%. For a loan of $ 20,000, this would equate to a fee of $ 1,200.
Company presentation
RockLoans Marketplace LLC (Rocket Loans) was launched in 2016. The online lender is a sister company of Rocket Mortgage, which was founded in 1985. The original company has since evolved to include a number of other sister companies , including Rocket Auto and Rocket Homes. , as well as several insurance providers.
Rocket Loans offers personal loans to US citizens and permanent residents except in Nevada, Iowa, and West Virginia. His personal loans can be used to cover various expenses, however, they cannot be used as student loans.
Types of personal loans offered by Rocket Loans
Rocket Loans offers personal loans that can be used for a variety of purposes including, but not limited to:
- Auto repairs
- Vacation expenses
- Medical bills
- Debt consolidation or debt repayment
- Home improvement projects
- Business expenses
Time to receive funds
In some cases, same day financing is available through Rocket Loans. Rocket Loans advises applicants who completing the loan process and signing their promissory note by 1 p.m. ET on a business day can expect to receive their funds by ACH transfer the same day.
Features of Rocket Loans Personal Loans
Unsecured loans
All Rocket Loans loans are unsecured which means that they do not require any collateral from the borrowers. Instead, the qualification is primarily based on your credit rating. One of the main advantages of this type of loan is that borrowers don’t have to worry about losing collateral, like their car or house, if they fall behind on their loan repayments.
Debt Consolidation Loans
RocketLoans personal loans can be used for many purposes, including debt consolidation. This means that you can take out a loan from this lender to pay off your pre-existing debts which have higher rates or fees. Debt consolidation loans can be particularly useful for paying off credit cards, which usually have high APRs.
No early repayment penalty
Some lenders charge a fee when borrowers make prepayments, but Rocket Loans won’t charge a fee if you make extra payments for your personal loan or prepay your balance.
Apply for a Rocket Loans personal loan
Rocket Loans offers a simple online application process for those interested in a personal loan. To apply, follow these steps:
Prequalification
Start by filling out the Rocket Loans online prequalification form, which has no impact on your credit. You will need to provide your contact details, as well as the following:
- Type of loan
- Employment status
- Annual gross income
- Social Security number
Select your loan
Consult your offers and choose the amount, duration and rate of your loan. Note that the offer may change if you leave the Rocket Loans website.
Submit your application
You will need to provide your bank account information. You may also need to provide the following supporting documents:
- Driving license
- Payslips
- Bank statements
- Tax forms
Sign documents
Finally, sign the promissory note and other required documents.
If you are approved for a personal loan from Rocket Loans, you can receive the funds the same day. However, some transfers can take up to a few business days, depending on your bank’s processing.
Can You Refinance A Personal Loan With Rocket Loans?
Rocket Loans does not currently offer personal loan refinancing. However, you can choose to use your personal loan funds for debt consolidation.
Customer service
You can contact Rocket Loans by email at [email protected] or by phone during business hours: 9:00 a.m. to 7:00 p.m. ET Monday through Friday and 9:00 a.m. to 6:00 p.m. ET Saturday.
Experts in personal loans (800) 333-7625
Loan management team (313) 230-5233
Client satisfaction
Rocket Loans hasn’t been around for long, but customer reviews are generally positive. The lender received an impressive 4.8 out of 5 stars on Trustpilot, with over 3,500 reviews. Many reviewers note an easy application process and a quick turnaround time for funding.
Account management
Borrowers can choose to set up automatic payment for their monthly loan payments or pay by check. You can also view and update your account through an online account dashboard, or contact a live agent during business hours.
How Rocket Loans Stacks Up To Other Personal Loan Companies
Not all lenders will disburse loan funds as quickly as Rocket Loans, but speed should not be a reason to overlook the high cost of borrowing. Unlike Rocket Loans, some lenders do not charge any origination fees, which could represent big savings for borrowers.
Other loans have lower APR brackets than Rocket Loans personal loans, including LightStream and SoFi personal loans. Both also offer larger loan amounts than Rocket Loans, with a maximum of $ 100,000 available for each.
Here’s a better look at how Rocket Loans compares to LightStream:
Rocket vs LightStream Loans
Rocket Loans and LightStream are both online lenders that offer financing in just one day. However, there are significant differences between their personal loan products.
LightStream offers a longer repayment term and much larger loan amounts. Unlike Rocket Loans, LightStream does not offer quotes, but its low APR range and lack of fees could make borrowing from this lender much cheaper.
- Lightstream charges no late fees, no prepayment penalties, and no origination fees.
- Rocket Loans offers loan pre-approval with no hard credit call, while Lightstream does not offer loan pre-approval.
- For eligible borrowers, Lightstream says it will beat eligible offers from other lenders by 0.10 percentage point.
| Rocket loans | LightStream | |
|---|---|---|
| APR range | 5.970% – 29.99% (low-end APR includes auto-pay discount, rates are correct as of November 18, 2021) | 4.98% to 20.49% (Low-end APR includes 0.50% auto-pay discount, rates exact as of November 18, 2021) |
| Loan amounts | $ 2,000 – $ 45,000 | $ 5,000 – $ 100,000 |
| Loan conditions | 36 or 60 months | 24 – 144 months |
| Average creation costs | 1% – 6% | $ 0 |
| Late charge | $ 15 | $ 0 |
| Financing available the same day? | Yes | Yes |
| Refinancing available | No | No |
Rocket Loans and LightStream offer several similar features, including an online application process and financing available in as little as a day.
LightStream, however, provides more flexibility for borrowers, with lower APR ranges, longer loan terms, higher loan amounts, and no loan fees. The main disadvantage of LightStream is that you cannot get pre-approved for a loan before you apply.
Read our full review of Lightstream personal loans here.
Final verdict
Rocket loans can be a good option for someone with good credit who needs to get a loan quickly. While borrowers with poor credit may qualify, they may be subject to high origination fees.
Loan terms may not be ideal with Rocket Loans, but it doesn’t hurt to be pre-qualified as it won’t hurt your credit to see a quote. Just be sure to shop around, as you can get a lower APR and lower fees elsewhere, without extending the time to finance your loan.
Methodology
Investopedia is committed to providing consumers with unbiased and comprehensive reviews of personal lenders. We’ve collected over 25 data points from over 50 lenders, including interest rates, fees, loan amounts, and repayment terms, to ensure our content helps users make the right decision. borrowing decision for their needs.
