Rocket Loans

Josh Patoka
November 11, 2020

Rocket Loans is a sister company to Quicken Loans and Rocket Mortgage. They issue personal loans between $2,000 and $45,000 with interest rates between 7.16% and 29.99% APR for a 3 or 5-year term. These rates are competitive with other lenders and slightly lower than most online lenders. It’s possible to receive an interest rate discount when enrolling in automatic monthly payments. There isn’t a prepayment penalty.

Borrowers will need either good or excellent credit to qualify for a loan. Rocket Loans requires a minimum 640 personal credit score. Applicants must also have an annual income of $40,000, although the average borrower has an annual income of $78,000. All borrowers will pay an origination fee between 1% and 6% deducted from the opening loan balance.

Where Rocket Loans Stands Out

Same day funding available: Rocket Loans is one of the very few lenders to offer same day funding when they can quickly verify your application and bank information. Same day funding is available for loan balances up to $25,000. Borrowers can also receive next day funding, which can also be quicker than many lenders.

Autopay discount: Enrolling in automatic monthly payments lets borrowers qualify for an interest rate discount. This discount is uncommon for personal loan lenders who usually only waive the prepayment penalty as a way for borrowers to save money. Rocket Loans doesn’t charge a prepayment penalty either.

Loan amounts up to $45,000: Being able to borrow up to $45,000 makes Rocket Loans one of the most generous lenders. Borrowers will need a strong credit score, annual income, and low debt-to-income ratio to qualify for the higher borrowing amount.

Competitive interest rates: Interest rates can also be lower than other lenders, especially with the autopay discount. Rates can be as low as 7.161% APR with the autopay discount. Even without the autopay discount, the highest interest rate of 29.99% APR is several points lower than most lenders.

Where Rocket Loans Falls Short

Stricter borrower requirements: Applicants must have a minimum 640 personal credit score and an annual income of $40,000. The annual income requirement is higher than other lenders but is still achievable for most. These stricter qualifications can help Rocket Loans offer lower interest rates than other lenders.

Origination fee up to 6%: Paying an origination fee up to 6% can offset some of the potential savings from Rocket Loans lower interest rates. Borrowers paying the maximum fee might find a lender that only charges 5%, which is the average fee for most lenders. Well-qualified borrowers can qualify for a lower fee that can still make Rocket Loans the cheapest lender.

Same day funding can be difficult for U.S. west coast residents: To receive same day funding, Rocket Loans requires the application details to be verified and the promissory note signed by 1:00 pm Eastern Standard Time. This can be an issue for applicants living in the Pacific or Mountain time zones to complete the necessary steps. Even if the deadline is missed, it’s still possible to receive loan funds the next business day.

Is Rocket Loans The Best Option For Me?

Any applicant with a minimum 640 credit score and makes at least $40,000 annually should strongly consider Rocket Loans. This is because of the autopay interest rate discount and the fact that the maximum interest rate is still lower than most personal loan lenders. Rocket Loans can also be a good option for anyone desiring same day or next day funding.