A personal loan from RocketLoans can be a great choice for borrowers with good credit, as the lender is flexible on how you use the funds and has competitive interest rates. RocketLoans makes unsecured personal loans up to $35,000 with annual percentage rates (APRs) of 5.983% to 28.99%. Loans come with terms of either three or five years. One drawback to using RocketLoans is the fees charged by the lender. There are origination fees, late fees and check processing fees associated with every loan.
- Review: Should You Apply?
- Eligibility Criteria
- Personal Loan Terms and Requirements
- Application Process
- How Does RocketLoans Compare to Other Lenders?
RocketLoans Personal Loan Review: Should You Apply?
We recommend a RocketLoans personal loan for borrowers with good credit who want flexibility in how they use their funds. RocketLoans offers unsecured personal loans from $2,000 to $35,000 with rates between 5.983% and 28.99% and terms of three or five years.
|Good for...||Bad for...|
A major selling point of RocketLoans is that the lender is very flexible on how you use your personal loan funds. According to the lender, borrowers can use their funds for debt consolidation, home improvement, medical expenses, business expenses, auto purchases or repairs and any other large purchases or expenses. The only things you can’t use a RocketLoans personal loan for are educational expenses (they are not a substitute for student loans) and illegal activities. For comparison, some online lenders and banks don’t allow personal loans to be used for home improvement, business expenses or debt consolidation.
One thing we don’t like about RocketLoans is the higher cost of taking out a loan when compared to similar lenders. Every personal loan from RocketLoans will have an origination fee between 1% to 6% of the loan amount. On a $10,000 loan, this would amount to $100 to $600. The lender also charges a $5 check processing fee, so you will need to pay through automatic transfers from your bank account to avoid this. There are additional fees for late or returned payments. In comparison to similar lenders, RocketLoans has more fees and higher costs. For instance, LightStream, SoFi and Marcus, which all require borrowers to have good credit scores, do not charge any origination fees or check processing fees on their personal loans, and they also have a lower maximum interest rates between 14% and 23%. If you’ve checked your rate at RocketLoans, we also recommend checking at your rate with these lenders to see if you can qualify for a better rate.
RocketLoans is available to residents 18 or older in all 50 states, though borrowers in Nebraska and Alabama must be at least 19 years old.
To qualify for a RocketLoans personal loan, we recommend borrowers meet the following criteria. Meeting these criteria won’t guarantee an approval from RocketLoans, but it will improve your chances.
|Minimum Criteria||Recommended Criteria|
RocketLoans Personal Loan Terms and Requirements
RocketLoans makes unsecured personal loans up to $35,000 that borrowers can use for almost any purposes, except for educational expenses.
|Loan Amount Range||$2,000 - $35,000|
|APR Range||5.983% - 28.990%|
|Loan Terms||3 or 5 years|
|Direct Payment to Creditors||No|
To check your rate, RocketLoans will have you fill in a simple online application. First, you’ll need to enter personal information, such as your name, address and phone number. You’ll also be required to enter your information about your employment status, annual income and housing payments. RocketLoans will also ask for your Social Security Number so the lender can perform a soft credit check (this will not affect your credit score).
|Time to Get Funds||1-4 days|
After the soft credit check, RocketLoans may present you with a variety of loan options and offers. If you select one of these options, you may be required to verify your identity, employment and income so RocketLoans can approve you for the loan. You will also be required to complete and sign a loan agreement. At this point, RocketLoans will also conduct a hard credit check, which can affect your credit score, to finalize the loan. Funds can be disbursed to your bank account within one to four business days.
How Does RocketLoans Compare to Other Lenders?
If you’re shopping for a personal loan, we recommend that you shop around to get the best rate. To help you out, we compared RocketLoans to some of its top competitors so you can get a sense of what's available.
RocketLoans vs. LightStream
If you think you can qualify for low interest rates, we recommend also checking your rate at LightStream. Rates at LightStream are extremely competitive from 2.19% to 17.99%, and the lender has a Rate Beat Program, promising to beat another lender’s rate by 0.1% percentage points. You can also get a 0.5% percentage point discount on your rate at LightStream by enrolling in AutoPay. Another thing we like about LightStream is that the lender makes loans up to $100,000 with terms from two to seven years, and does not charge any origination fees or late fees.
RocketLoans vs. Marcus by Goldman Sachs
A subsidiary of Goldman Sachs, Marcus is a better choice for fee-conscious borrowers or those looking for more flexible loan terms. Marcus charges no fees on its personal loans, meaning no origination fees, no check processing fees and no late fees. This means that when you take out a loan from Marcus you will get the full amount deposited to your bank account, instead of the amount minus an origination fee. While you can only borrow up to $30,000 through Marcus, you can pick any loan term between two to six years. RocketLoans, on the other hand, only has three or five year terms, so borrowers looking for shorter or longer terms may have better luck at Marcus. Annual percentage rates at Marcus are fairly similar to those at RocketLoans, ranging from 5.99% to 22.99%.
RocketLoans vs. SoFi
We’d recommend SoFi over RocketLoans if you want more than $35,000. Even if you don’t, SoFi offers very competitive fixed rates between 5.7% and 14.24% (the average rate is 8.5%), so we still recommend checking your rate here. The lender also offers variable interest rates, which may be an attractive option for some borrowers. SoFi makes unsecured personal loans up to $100,000 with terms of three, five or seven years. The lender also has fewer fees than RocketLoans as there are no origination fees or check processing fees. Similar to RocketLoans, you can use a SoFi personal loan for almost any purpose aside from educational expenses. However, SoFi does not provide same-day or next-day funding, instead taking three business days on average to fund your loan offer.