With Rocket Loans, you can pre-qualify without damaging your credit, and loan funds may be disbursed the same business day. However, you can find a better offer somewhere else with origination fees of up to 6% and APRs of up to 29.99%.
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- Best Emergency Loans For Bad Credit
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- Debt Consolidation Loans For Bad Credit
- Best Personal Loans For Excellent Credit
- Best Small Personal Loans
- Best Bad Credit Loans
- Best Personal Loans
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Pros
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- Pre-approval is available instantly.
- Available on the same day
- Pre-approval of loans requires a soft credit pull.
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Cons
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- Up to 6% origination fee
- limited terms of repayment
- only for individual applications
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To view their rate quote and apply for a personal loan, applicants can do so quickly and easily through Rocket Loans. Borrowers with less-than-perfect credit may be accepted thanks to the entire online process, which can lead to same-day funding. You can set up autopay and get a lower APR during the application process.
Although Rocket Loans is convenient, its terms could be better available. Other online lenders with lower APRs and no fees, like LightStream, are competitive with it. In contrast, the origination fee for Rocket Loans can reach 6%. Those with lower credit scores should prepare to pay the complete 6%. That works out to a $1,200 fee for a $20,000 loan.
Business Overview
In 2016, RockLoans Marketplace LLC (Rocket Loans) was established. The online lender is a Rocket Mortgage subsidiary, a business established in 1985. Since then, the original business has expanded to include several other sister businesses, such as Rocket Auto and Rocket Homes, as well as many insurance providers.
Except in Nevada, Iowa, and West Virginia, Rocket Loans provides personal loans to United States citizens and authorized residents. Although personal loans cannot be used as student loans, they can be used to pay for various expenses.
Personal Loans Available from Rocket Loans
Personal loans from Rocket Loans are available for a range of uses, including but not limited to the following:
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- Auto repairs
- Vacation expenses
- Medical bills
- Debt consolidation or debt payoff
- Home improvement projects
- Business expenses
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When to Expect Funds
Rocket Loans offers same-day funding in some circumstances. Rocket Loans advises borrowers to anticipate receiving their funds via ACH transfer the same day if they complete the loan application process and sign their Promissory Note by 1 p.m. ET on a business day.
Loan Features from Rocket Loans
Unsecured Loans
All Rocket Loans’ loans are unsecured, meaning borrowers are not required to put up any kind of security. Instead, your credit score is the main factor in qualifying. One of the main advantages of this kind of loan is that borrowers won’t have to worry about losing collateral, like their car or home, if they can’t keep up with loan payments.
Loans for Debt Consolidation
Debt consolidation is one of the many uses for personal loans from RocketLoans. That implies that you can use a loan from this lender to settle debts with higher interest rates or fees. Credit cards, which frequently have high APRs, can be beneficial for paying off debt with debt consolidation loans.
Zero Prepayment Penalty
Rocket Loans won’t charge you a fee if you make extra payments toward your personal loan or if you pay off your balance early, unlike some lenders who do.
Do Rocket Loans Allow Refinancing of Personal Loans?
Refinancing personal loans is not currently available through Rocket Loans. You could, however, decide to use the money from your personal loan to pay off debt.
Customer Satisfaction
Although Rocket Loans is a new company, most of its customers have given it positive reviews. On Trustpilot, the lender has received an impressive 4.8 out of 5 stars from roughly 4,000 reviews. Many reviewers note an easy application process and a fast turnaround time for funding.
Account Management
For their monthly loan payments, borrowers can set up autopay or write a check. A live agent can speak with you during business hours, or you can access your account through an online dashboard.
How Other Personal Loan Companies Compare to Rocket Loans
Although not every lender will process loans as quickly as Rocket Loans, speed shouldn’t be used as an excuse to ignore the high cost of borrowing. Some lenders, unlike Rocket Loans, do not impose any origination fees, which could result in significant savings for borrowers.
Other loans, such as personal loans from LightStream and SoFi, have lower APR ranges than those from Rocket Loans. Each offers a maximum loan amount of $100,000 and more significant loan amounts than Rocket Loans.
Featured Image: Unsplash © DJ Johnson
