You might have seen the popular commercials for Quicken Loans and its Rocket Mortgage, where you can apply to buy or refinance a home online. Well, the sister company RocketLoans provides borrowers with the same quick and remote application process to take out personal loans.
With RocketLoans personal loans, you can apply online in minutes for an unsecured loan. The cash you borrow can then be used to make a big purchase, make home improvements, or consolidate your credit card debt.
RocketLoans has a customer satisfaction rate of over 90%, but is it the best lender for you? Here’s everything you need to know before borrowing from RocketLoans.
RocketLoans personal loans
With RocketLoans personal loans, you can apply for a personal loan and get offers within seconds. But, you’ll want to consider some pros and cons first.
Pros of RocketLoans personal loans
Having a lightning-speed application process available any time of day is one of the many upsides to RocketLoans. Here are some more:
Get your funds quickly: You could get up to $35,000 by as early as the next business day.
Lower interest rates: While your rate is determined by factors such as your credit score, RocketLoans could offer you a lower rate compared to a credit card or other personal loan companies. RocketLoans APRs range from 5.983% to 29.99%, as of May 1, 2018. But be sure to check the RocketLoans website for the latest rates. Comparatively, the average credit card APR in November 2017 was 16.15%, according to CreditCards.com. Personal loan rates in 2018 range from 10.30% to 32.00%, according to ValuePenguin.
Debt refinancing and consolidation: Since RocketLoans could offer you a lower interest rate than your current credit card, you could consolidate or refinance your debt with a personal loan.
Simplified repayment: You make a single fixed monthly payment over a set period. That means you’ll know how much you owe each month and when your debt will be paid off.
No prepayment penalties or hidden fees: You can pay your loans off faster without incurring fees. All other fees are clearly explained before you sign your loan agreement.
Browsing won’t affect your credit score: RocketLoans performs a soft credit inquiry when you’re viewing rate offers, so your credit score won’t be impacted. It’s only once you decide to move forward that the lender performs a hard inquiry.
Cons of RocketLoans personal loans
Yes, there are many positives to RocketLoans’ offering, but there are some downsides as well.
Fees: RocketLoans is transparent about its fee structure. You’ll have to pay an origination fee of 1% to 6%, which is determined by the loan amount and your financial background. You could also incur a charge of $15 each time your payment is late by 10 days or more, plus for each time your payment bounces.
You could have a higher interest rate: Although a good credit score could help you get a lower rate with RocketLoans, it’s important to comparison shop. Getting a personal loan through RocketLoans with a less-than-stellar credit score could land you a rate that’s close to 30.00%. Another company could offer you something better.
Quoted rates and terms could change: You could get an attractive offer with a lower interest rate and favorable terms when doing your initial application, but those rates and terms can change at any point without notice. Be sure to double-check everything before signing an agreement.
How you can use RocketLoans personal loans
RocketLoans personal loans can be used for a variety of reasons. And you don’t need to offer up collateral to get one. The lender website suggests a number of ways you can put your borrowed money to use. Here are some ideas:
Medical expenses: Getting sick or hurt unexpectedly is already a stressful situation, so you don’t have to add financial stress on top of that. RocketLoans will get you the money you need fast to cover medical bills and pay for any procedures.
Home improvements and repairs: You could use a personal loan to pay for a new kitchen, get some new living room furniture, or fix a leaky roof. This can be particularly helpful if you’re looking to sell your home soon and want to increase its value.
Debt consolidation: You can take out a personal loan to pay off existing debt that has a higher rate. Doing so could help you pay off debt faster and lower interest charges.
Big purchases: Major appliances and new furniture can cost more than what you have in savings. A personal loan could cover those expenses upfront.
Car financing: You can borrow money to purchase a new or used car, or to make repairs on your current vehicle.
These are just a few ways you could put a RocketLoans personal loan to use. The company also states that the money can be used for more general purchases, such as a vacation or special event.
But if you’re considering taking out a loan to cover college costs, that’s best reserved for student loan lenders.
Using the RocketLoans online system
RocketLoans has made a name for itself by having a fast and easy application process. You answer some basic questions, choose your loan option, share your banking information, sign an agreement, and get your money.
Here’s a step-by-step guide to applying.
Step 1: Fill in personal information
To kick off your application, you’ll provide personal information, such as your name, address, birthdate, and Social Security number. From a drop-down menu, you’ll select the purpose of the loan.
You’ll also create a RocketLoans account during this step.
Step 2: Choose a loan
Once you input your information, you’ll get to choose between loan options. This will include details such as the loan amount, repayment terms, and interest rate. These terms are all on a prequalified basis.
Step 3: Link your bank account
RocketLoans will ask you to log in to your bank account to share a read-only view of your financial info. This is helpful because you won’t have to upload any income documents later. Plus, you can get your loan funds sooner.
Step 4: Sign your agreement
Once you decide on a loan, you’ll decide on where its funds will be deposited. You’ll also sign your agreement online. You could get your money in as little as one business day.
RocketLoans interest rates and fees
Your credit score and financial background will determine your APR, fees, and repayment terms. RocketLoans rates range from 5.983% to a maximum 29.99%. The lowest rate is only available if you sign up for autopay.
You’ll pay a one-time origination fee ranging from 1% to 6%. If you took out a $10,000 personal loan, for example, with a 4% origination fee and an APR of 10.80%, your monthly payment over a 36-month term would be $313.36. The total interest you’d pay would come out to $1,281.09.
You could incur a $15 fee if you make a payment that’s late by 10 days or more, or if your payment bounces.
RocketLoans eligibility requirements
RocketLoans will take several financial factors into consideration when deciding your eligibility for a loan:
Debt-to-income (DTI) ratio
Number of credit inquiries
The company doesn’t specifically call out things such as a minimum credit score or DTI ratio. However, it does use these details to determine your interest rates and terms. It also could determine whether you’re approved in the first place.
RocketLoans customer service
Although you don’t have to interact with another person during the personal loan application process, you can reach out to one if you’re having trouble or need questions answered.
Email email@example.com, or contact customer service by phone between 9 a.m. and 6 p.m. ET Monday through Friday at 800-333-7625.
Note: Student Loan Hero has independently collected the above information related to RocketLoans personal loans. RocketLoans has neither provided nor reviewed the information shared in this article.
Interested in a personal loan?Here are the top personal loan lenders of 2018!
|Lender||Rates (APR)||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
* Important Disclosures for Upgrade Bank
Upgrade Bank Disclosures
|7.73% - 29.99%||$1,000 - $50,000|
|5.83% - 14.74%1||$5,000 - $100,000|
|5.96% - 35.97%*||$1,000 - $50,000||Visit Upgrade|
|8.00% - 25.00%||$5,000 - $35,000|
|4.99% - 29.99%||$10,000 - $35,000||Visit FreedomPlus|
|4.99% - 16.24%2||$5,000 - $50,000||Visit Citizens|
|15.49% - 34.49%||$2,000 - $25,000||Visit LendingPoint|
|5.99% - 35.89%||$1,000 - $40,000||Visit LendingClub|
|5.49% - 18.24%||$5,000 - $75,000||Visit Earnest|
|9.95% - 35.99%||$2,000 - $35,000||Visit Avant|