Item: Rocket Loans
Rating: 4
Author: Nicole Dow

4.0

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4.0

NerdWallet Rating

Est. APR

8.01 - 29.99%

Min. credit score

640

Time to fund

1 day

Loan amount

$2K - $45K

Loan term

3 to 5 years

Origination fee

Up to 9.99%

Disclosures from Rocket Loans

Overview

Rocket Loans offers three- or five-year personal loans with same-day funding and rates that start below 10%. You’ll need at least a 640 credit score and a debt-to-income ratio no higher than 40% (not including a mortgage) to qualify.

With loan amounts ranging from $2,000 to $45,000 and few restrictions on how the loan can be used, you can turn to Rocket Loans for a variety of borrowing needs. Compared with other lenders, Rocket Loans lacks some convenient features, like the ability to manage your loan with a mobile app or send funds directly to creditors with a debt consolidation loan.

» MORE: Compare personal loans

What the nerds think

"Rocket Loans is a fitting choice if you have good or excellent credit and are in urgent need of a mid-sized personal loan. Loan approval times are typically within minutes of submitting an application, and same-day funding is available. Rocket Loans’ low starting rates and rate discounts help the most qualified borrowers save money on loan costs."

Nicole DowLead Writer & Content Strategist

What Rocket Loans is best for

Home improvement

Personal business loans

Installment loans

Detailed breakdown

Affordability

(25%)

4.5/5

We review lenders’ annual percentage rate offerings and the competitiveness of each lenders’ APR range. We also assess whether a lender charges an origination fee and any opportunity for borrowers to receive a rate discount.

Customer experience

(20%)

4/5

We consider the experience of the consumer trying to manage a personal loan, which means accessibility of customer service representatives, whether borrowers can choose and change their payment due date, and the ability to track their loan on a mobile app.

Underwriting and eligibility

(20%)

4.5/5

We consider the rigorousness of each lender’s underwriting practices and how widely available their loans are. This category includes whether a lender does a hard credit check before providing a loan, the range of credit profiles they accept and how many states their loans are offered in.

Loan flexibility

(20%)

3.5/5

We assess how flexible lenders can be with borrowers, including whether they offer multiple loan types, personal loan amounts and repayment term options and whether they offer direct payment to creditors on debt consolidation loans.

Application process

(15%)

4.5/5

We consider the lender’s full application process, including a borrower’s ability to preview their loan offer via pre-qualification, whether basic loan information such as APR range and repayment terms are available and easy to find online and how quickly a loan can be funded after approval.

Overall

4/5

Read more about our ratings methodology for personal loans.

Where Rocket Loans personal loans stand out

Low starting APR: Rocket Loans offers annual percentage rates starting at 8.01%, which is relatively low for personal loans. A low APR means you’ll pay less interest costs over the life of the loan.
Multiple rate discounts: Borrowers who set up automatic loan payments receive a 0.30 percentage point rate discount. Existing Rocket Mortgage customers may also receive a rate discount that varies based on their risk profile. Rocket Loans employees may receive rate and seasonal discounts.
Comprehensive pre-qualification: Before committing to a loan, Rocket Loans allows applicants to pre-qualify and check their rate with a soft credit pull, which doesn’t affect credit scores. Pre-qualifying lets you see your potential loan amount, APR, repayment terms, monthly payments and total interest costs. You may also receive multiple loan offers. If you accept a loan offer and formally apply, Rocket Loans will verify your information with a hard pull, which can cause your score to dip by a few points.
Fast funding: Rocket Loans can approve applications within minutes and fund loans the same or following business day. Borrowers who sign their loan documents before 4 p.m. ET Monday through Friday may receive their money the same day. The exact timing depends on how quickly the lender can verify your information and your bank can process the funding.
Wide range of loan amounts: Rocket Loans offers loans from $2,000 to $45,000, which can cover a variety of expenses like debt consolidation or home improvement projects.

Where Rocket Loans personal loans fall short

Origination fee: Rocket Loans charges an origination fee of up to 9.99% of the loan amount. It deducts this fee from the loan proceeds, so you’ll want to be sure the amount you receive covers your expense. Though many online lenders charge origination fees, some competitors do not.
Limited repayment terms: Rocket Loans offers either a three- or five-year repayment term. Borrowers can’t choose a shorter term and pay less interest, or a longer one to lower their monthly payments.
No secured, co-signed or joint loan options: Rocket Loans offers only unsecured personal loans, meaning borrowers cannot secure the loan with collateral (like a car) or add a co-signer or co-borrower to their application. These options, offered by some competitors, can help borrowers qualify for a lower rate or a larger loan.
No direct payment to creditors: Borrowers receiving loans for debt consolidation cannot have the funds sent directly to creditors. This means you must pay off your credit accounts yourself, creating an additional step in the process.
No mobile app: Unlike some competitors, Rocket Loans does not offer a mobile app to manage your loan payments.

How to qualify

To qualify for a personal loan from Rocket Loans, you must be at least 18 years old and a U.S. citizen living in one of the states where the lender does business.

Rocket Loans’ borrowing requirements

Minimum credit score: 640.
Minimum gross annual income: $24,000.
Maximum debt-to-income ratio: 40% or 70% including a mortgage.
Minimum credit history: 2 years and 3 accounts.
Must have a valid U.S. bank account and valid email address.
Must provide a Social Security number, proof of residency and proof of employment or income.
Cannot be a resident of Iowa, Maryland, Nevada or West Virginia.

» MORE: How to get a personal loan

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Profile of an average Rocket Loans borrower

Credit score

739

Annual income

$139,530

Debt-to-income ratio

14.8%

Average APR

17.3%

Loan amount

$20,590

Loan term

5 years

Compare Rocket Loans to the best lenders

4.0	4.5	5.0	5.0
EST. APR 8.01-29.99%	EST. APR 8.74-35.49%	EST. APR 7.90-35.99%	EST. APR 7.74-35.99%
LOAN AMOUNT $2K-$45K	LOAN AMOUNT $5K-$100K	LOAN AMOUNT $1K-$60K	LOAN AMOUNT $1K-$50K
MIN. CREDIT SCORE 640 Get My Rate	MIN. CREDIT SCORE None Get My Rate	MIN. CREDIT SCORE 600 Get My Rate	MIN. CREDIT SCORE 600 Get My Rate