What is RocketLoans?
Quicken Loans, which is the largest home lender in America, launched two sister sites in 2015. In November of that year, RocketMortgage appeared on the scene. The online platform allows potential borrowers to apply for a mortgage quickly in the comfort of their own home. Quicken Loans partially attributes its status as the largest home lender in the country to the launch of this platform.
But earlier in 2015, Quicken Loans launched RocketLoans, an online-only platform that allows borrowers to apply for personal loans from home, sometimes receiving funding as soon as the day of application. RocketLoans claims to be the “most convenient and efficient personal loan experience in the industry,” catering to consumers’ desire for a simple and transparent loan process.
Let’s delve in and see how this streamlined process holds up to personal loans offered by competitors.
RocketLoans personal loan highlights
- Low APRs for excellent credit scores; higher APRs for average credit scores: RocketLoans accepts those with a credit score as low as 640. At first glance, this would appear to be a good thing, until you realize that those with a score at the bottom of that range are likely to end up closer to the max APR. However, if you have excellent credit, you may qualify for some of RocketLoans’ best rates, which outshine much of the competition.
- Origination fee: You will have to pay an origination fee of 1.00% - 6.00% with RocketLoans, though this fee is already accounted for in the advertised APR.
- Same-day funding: If you are borrowing $25,000 or less, you may be able to get same-day funding for your personal loan.
- APR range: 5.98%–29.99%*
- Minimum credit requirement: 640
- Terms: 36 or 60 months
RocketLoans Personal Loan Details
*This rate only applies after discount for using AutoPay.
RocketLoans product details
One of the most attractive things about RocketLoans personal loans is that you may be able to get same-day funding. In order for this to be a possibility for you, you will have to apply for your loan by 1 p.m. EST on a regular business day. Loan amounts over $25,000 are not eligible for same-day funding, but should be fulfilled within two business days.
It is important to note that just because you qualify for same-day funding doesn’t mean you’ll receive it. There is always a possibility that your financial institution’s ACH policies will hold up the process.
- Minimum credit score: 640
- Minimum credit history: Not specified
- Maximum debt-to-income ratio: Not specified
In order to qualify for RocketLoans, you must be a U.S. citizen or resident. You must also live in a state where RocketLoans offers its services, which currently excludes Iowa, Nevada and West Virginia. In addition to the other 47 states, RocketLoans personal loans are available in Washington, D.C.
Residency in and of itself isn’t enough. You must also be at least 18 years of age, or 19 years of age if you’re a resident of Alabama or Nebraska. While RocketLoans does not explicitly require employment as a qualifying factor for loan approval, you do have to have some sort of income totalling at least $24,000/year in order to be considered an eligible applicant.
Applying for a personal loan from RocketLoans
To begin the application process, you will fill out an exploratory form on RocketLoans’ site. You will be asked for information such as your name, address, income, birthdate and Social Security number. RocketLoans will perform a Soft Pull on your credit, which does not affect your score, to generate a quote including how much you can borrow and a potential APR offering.
If you find these terms to be satisfactory, you can officially apply and verify your information. Part of this process is a hard pull on your credit, which does carry the potential to ding your credit score. This is a normal part of the application process for any personal loan lender. You may also have to scan and submit any supporting documentation requested.
If your loan is approved, you will then submit your banking information. If you have applied before 1 p.m. EST for a loan of $25,000 or less and your bank’s ACH process is accommodating, you could see the funds deposited into your account as soon as the same day. Those borrowing larger amounts and those with banks who have a less accommodating ACH process should see their funds in their account within two business days.
Pros and Cons of a RocketLoans Personal Loan
Who’s the best fit for a RocketLoans personal loan?
If you have an excellent credit history, there are very few lenders who can beat RocketLoans’ lowest APR. However, if you have a score closer to the 640 minimum, a high debt-to-income ratio or otherwise less desirable aspects to your credit history, you could end up at the upper end of RocketLoans’ APR range. That means that those who will most benefit from RocketLoans’ offer are those with a great credit history.
You may also be attracted to RocketLoans’ product if you need your money in a hurry and prefer that the entire application process take place online. If you prefer to apply in person, this is not the product for you. You also need to remember that while loans up to $25,000 may be funded the same day, there is no guarantee. If you are approved, you may end up waiting for up to two business days.
Finally, RocketLoans offers a relatively small minimum loan amount, allowing you to borrow only what you need. If you need to borrow even less than the $2,000 minimum, turn to credit unions, where you can find personal loans in amounts as low as $500.
Alternative personal loan options
RocketLoans is far from the only lender in the personal loans game. The following lenders offer comparable products, each with their own pros and cons.
- APR: 5.99%–24.99%
- Credit requirements: 640
- Terms: 24 to 60 months
- Origination fee: 0.00% - 5.00%
Payoff offers a similar product to RocketLoans. Credit requirements and the starting APR are almost identical, though Payoff does offer a lower max APR and potentially lower origination fees. It also provides more and shorter terms should you want to pay off your debt at a faster clip. It is important to note that Payoff personal loans are made almost exclusively for the purposes of paying down credit card debt, so if you need your personal loan for another reason, this may not be the lender for you.
- APR: 5.99%–29.99%
- Credit requirements: 600
- Terms: 36 or 60 months
- Origination fee: 1.00% - 5.00%
Peerform has nearly identical terms on its personal loans when compared to RocketLoans. Term length, origination fees and APR are consistent, though Peerform differs in that it may approve those with lower credit scores. If you have a good or excellent score and have gotten a quote from RocketLoans, it’s more than worth checking Peerform to see if it offers you a better APR. Bear in mind that shorter terms tend to yield a lower APR offer.
- APR: 3.99%–16.99%
- Credit requirements: 660
- Terms: 24 to 144 months
- Origination fee: No origination fee
If you do have good credit, you may want to consider applying for your personal loan with LightStream. While APR offerings vary depending on the purpose of your loan, LightStream offers an APR match program in which it will match any offer from a competitor should it offer you a better rate. The challenge with this is that you’ll have to consider only 36 or 60 months terms in order for these rates to be comparable with what RocketLoans is offering you.
Interested in a personal loan?Here are the top personal loan lenders of 2019!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.95% to 35.89%*. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: LendingClub, 71 Stevenson Street, Suite 1000, San Francisco, CA 94105.
†Per reviews collected and authenticated by Bazaarvoice in compliance with the Bazaarvoice Authentication Requirements, supported by anti-fraud technology and human analysis. All reviews can be reviewed at reviews.lendingclub.com
**Based on approximately 60% of borrowers who received offers through LendingClub’s marketing partners between January 1, 2018 to July 20,2018. The time it will take to fund your loan may vary.
7 Important Disclosures for Earnest.
8 Important Disclosures for Avant.
* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.
** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.
|5.74% – 16.99%1||$5,000 - $100,000|
|7.54% – 35.99%||$1,000 - $50,000|
|7.99% – 35.89%*||$1,000 - $50,000|
|5.99% – 24.99%2||$5,000 - $35,000|
|5.99% – 29.99%3||$7,500 - $40,000|
|6.79% – 20.89%4||$5,000 - $50,000|
|9.99% – 35.99%5||$2,000 - $25,000|
|6.95% – 35.89%6||$1,000 - $40,000|
|6.99% – 18.24%7||$5,000 - $75,000|
|9.95% – 35.99%8||$2,000 - $35,000|