2023 Rocket Loans Personal Loan Review
Rocket Mortgage is a large mortgage lender that also offers other loan products, including unsecured personal loans under the brand Rocket Loans.
- Fast funding timeline: If you’re approved for a Rocket personal loan, you could receive your funds the same day you sign your loan agreement — faster than many competitors.
- Potential origination fees: Depending on your credit history and financial profile, Rocket Loans may charge an origination fee of Up to 9%. That fee is subtracted from your principal loan amount before you receive your funds.
- Wide APR range: The low end of Rocket’s APR range (9.12%) is competitive, making this lender worthy of consideration. However, its highest rates (up to 29.99%) will cost you significantly more money in interest payments over the life of the loan.
- Limited loan term options: Rocket Loans only offers two loan terms to choose from: 36 or 60 months. If you’re hoping to limit the total amount of interest paid by selecting a shorter loan term, you may have to consider another lender.
- Prequalification with a soft credit check: Like many lenders, Rocket offers loan prequalification, so you can see conditional loan terms without hurting your credit score. Getting prequalified allows you to shop around for the best rates and select the lender that best meets your borrowing needs.
- Best for quick access to cash: Many borrowers turn to personal loans for short-term cash emergencies, and Rocket offers a competitive loan product with fast funding for borrowers in that situation.
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Rocket Loans pros and cons
Whether you’re a borrower with excellent credit looking for a bigger loan or a fair credit borrower who needs quick emergency funding, Rocket could be a competitive option.
Low minimum APR (9.12% with autopay discount)
Loan amounts as low as $2,000 and as high as $45,000
Same-day funding in some cases
Accessible to some borrowers with fair credit scores
Origination fees can be quite high (Up to 9%)
Cosigners for joint loan applications aren’t allowed
Limited loan term options (36 or 60 months)
Loans aren’t available in Iowa, Nevada or West Virginia
Rocket’s low starting APR and fast funding timeline may appeal to well-qualified borrowers with strong credit histories. This lender also works with those with shakier credit histories, though these borrowers can expect higher rates and fees. Rocket Loans doesn’t allow cosigners or offer joint loan applications, so your credit will have to be strong enough to qualify on your own.
Rocket’s loan origination fee can be higher than most competitors — Up to 9%. This one-time fee is taken out of your total loan disbursement, so be sure to budget for this additional cost when selecting a loan amount.
Rocket Loans requirements
Unlike many lenders, Rocket is transparent about loan eligibility criteria — it discloses the minimum credit score, debt-to-income ratio and income required to qualify.
|Minimum credit score||640|
|Debt-to-income ratio||32% or lower, excluding housing costs; 70% or lower, including housing costs|
|Minimum annual income||$24,000|
|Credit history||Two years and four accounts|
|Required documents||Driver’s license, pay stubs, bank statements, tax forms|
You’ll also need to disclose how you intend to use the loan funds. While Rocket Loans allows borrowers to use its funding for various purposes, like debt consolidation or home improvement, you can’t put the money toward post-secondary education expenses or illegal activities.
But even if you think a Rocket personal loan is a good match for your financial needs, be sure to shop around for a lender and get prequalified to see conditional rates and terms.
How to get a loan with Rocket Loans
Applying for a personal loan with Rocket is straightforward, and the entire process can be completed online. Here’s how to apply for a Rocket personal loan:
Prequalify to check your rate
Rocket Loans allows personal loan prequalification, so borrowers can determine whether they’re eligible without submitting to a hard credit check. To get prequalified, submit some basic personal information, including your name, address, income, Social Security number and date of birth.
Review your loan options
You’ll receive some loan options with a possible APR, origination fee, repayment term, monthly loan payment and total interest on the loan. Remember that a prequalified offer isn’t guaranteed; you won’t know the exact terms you qualify for until you officially apply and the lender performs a hard credit pull.
Complete your application
If you’re happy with the loan options and want to move forward, Rocket Loans will request additional information. You’ll need to provide documentation that confirms your identity, income and debt before Rocket can finalize your loan terms.
Receive your direct deposit
As part of the application process, you’ll have to provide your bank account information so the lender can directly deposit your funds. Depending on your financial institution and whether you need to include more documentation, you could receive your funds the same business day.
If you can’t meet Rocket’s loan requirements, you may want to work on improving your credit score. Not only will a higher credit score boost your odds of loan approval, but you’ll also be more likely to receive favorable loan terms.
How Rocket Loans compares to other personal loan companies
Comparing offers from multiple lenders can help you select the best loan for your needs. Here’s how Rocket Loans compares to some competitors:
|Lender||Rocket Loans||Prosper||U.S. Bank|
|Minimum credit score||640||640||660|
|APRs||9.12% to 29.99%||6.99% to 35.99%||8.74% to 21.24%|
|Loan amount||$2,000 to $45,000||$2,000 to $50,000||$1,000 to $50,000|
|Repayment term||36 or 60 months||24 to 60 months||12 to 84 months|
|Origination fee||Fee can be Up to 9%||1.00% - 5.00%||No origination fees|
|Funding timeline||As soon as the same business day||One to three business days||One to four business days|
|Bottom line||Rocket Loans has fewer loan term options and potentially high origination fees, but funds loans quickly.||Prosper is a peer-to-peer lender with a wide range of potential APRs and loan terms.||U.S. Bank only offers loans to existing banking customers with higher credit scores.|
How we rated Rocket Loans
To come up with our star rating for personal loan companies, LendingTree considered 22 data points across three categories:
- Accessibility: We paid attention to whether lenders offered loans to nontraditional borrowers, as well as those without excellent credit scores. We also checked if lenders offered soft credit pulls, and whether they were transparent about eligibility criteria other than credit scores.
- Rates and terms: We wanted to know if lender rates, terms, amounts and fees were not only transparent, but also competitive.
- Repayment experience: We based this category on lenders’ reputations, customer support availability and unique benefits.
The data points reflect every step of the process to shop and apply for, borrow and repay personal loans. A five-star lender, for instance, has flexible eligibility requirements, offers you the chance to prequalify without commitment and supports you in zeroing your balance.
The 22 data points, culled from the lenders themselves, determine the overall rating. We score lenders consistently, sometimes awarding partial points, so that you can make apples-to-apples comparisons when shopping around.
LendingTree isn’t paid for conducting these reviews, and lenders don’t have control over their content. With our reviews and ratings, we aim to give our users the objective and exhaustive information they need to make the best possible decisions.