Rocket Mortgage personal loans
Maybe you’ve received a pre-approved offer for a personal loan from Rocket Mortgage. Or, maybe you have a Rocket Mortgage and wonder whether they would be a good place to get a personal loan. In this article we are answering the internet’s top questions about a Rocket Mortgage personal loan.
What does a personal loan with Rocket Mortgage look like?
Rocket Mortgage offers personal loans that are unsecured, which means you borrow money without having to give them something valuable, like your car or house, as collateral. They offer loans between $2,000 and $45,000 with a term of 2-5 years. Their APR currently range from a minimum of 9.116% to a maximum of 29.99%. Only the best candidates (read credit score of at least 760) will earn the lowest rate, and only if they sign up for auto-pay. Rocket Loans has an origination fee that can be as high as 9%.
How does the Rocket Loans origination fee work?
Rocket Loans’ origination fee comes out of the proceeds of the loan. So, if you’re borrowing $10,000 and the origination fee is 5%, the fee is $500. When you receive your money, you will receive $9,500, but will still be required to pay back the $10,000. The origination fee and the interest rate make up the APR. If you pay the loan early, you save money on interest! However, you do not receive a refund on the origination fee.
What credit score is needed for a Rocket Loan?
Rocket Loans boasts that they focus on “high quality, prime borrowers.” They don’t even accept applicants with credit scores below 640. At the Yukon Project, we suspect that they don’t approve many people with scores below 680. You might expect special treatment if you are a good customer of their mortgage division, but they don’t actually talk to each other, so it probably won’t help you.
Is it easy to apply for a personal loan from Rocket Mortgage?
In most cases, applying with Rocket Loans is fairly straightforward. To start the process, you will need to give your full name, current address, income information, social security number, and date of birth. You will ultimately need to provide documentation (like your drivers license) and grant them access to your bank account data. Most people can complete this process in one sitting. For others, it might take a couple of days.
What are the requirements for a Rocket Mortgage personal loan?
In order to apply for a personal loan with Rocket Mortgage, you will need to be at least 18 years old and have an active bank account. You will also need to have a personal income of $24,000 or more annually. Rocket Loans only considers your income. Household income does not count. They will not include a co-borrower in their loans like other lenders do. Rocket Loans also states that you must have a FICO score of 640 or better.
Is it easy to get a loan from Rocket Loans?
Rocket says that you need a FICO score of at least 640 to apply, but you will probably struggle to be approved with a credit score below 680. They focus on high-quality, prime borrowers. Of course, credit score is not enough. They will review your credit history. If you have late or missed payments in the recent past, they may not approve you. One of the most important things that they will look at is your debt-to-income ratio. They don’t say what ratio they are looking for, but if you are already carrying significant debt, especially relative to your income, they may not approve you. In the end, the only way to know for sure whether they would approve you is to apply.
How fast do you get your money with Rocket Loans?
Once you’ve been approved, you could get money from Rocket Loans on the same day, but that will depend on the bank you use and whether you accepted the loan before 1 pm Eastern. More likely, you will get your money in 1-3 days.
What fees does Rocket Loans charge?
When you take out a Rocket Loan, you will be charged an origination fee of up to 9%. The actual fee amount will depend on your state, your borrowed amount, and your credit situation. But, you do need to recognize that 9% is a high origination fee. I don’t know of any lenders that charge more than that.
Rocket Loans will also charge you a $15 late payment fee. But, they only charge you the late fee after a 10 day grace period. Any payment made after 2 pm Eastern will be credited to the next day. That is especially important to those of you who live on the west coast.
They also charge a $15 “bounced check” fee if an ACH payment fails or a physical check is returned. These are sometimes called a non-sufficient funds fee.
Is Rocket Loans a legitimate company?
Rocket Loans is owned and operated by the publicly traded company that owns Rocket Mortgage (RKT). A vast majority of their business is in mortgages. Their personal loan business is a little different. The actual lender of a Rocket Mortgage personal loan is Cross River Bank in New Jersey. But, if you take one of their loans, you will work directly with Rocket Loans throughout the process.
Is Rocket Mortgage personal loan good for debt consolidation?
Rocket Loans may not be your best option for debt consolidation. They don’t have the features that would make debt consolidation easy. For instance, they don’t appear to have the ability to pay your other creditors directly. That means that they are unlikely to adjust your debt-to-income ratio based on the fact that your Rocket loan replaces other debts. For this reason, it might actually be more difficult to get approved for the amount you need in order to consolidate your other debts.
What are some alternatives to a Rocket Mortgage personal loan?
Rocket Loans may be a great solution for you, but you owe it to yourself to always shop around. Every lender has a different algorithm for determining how much to lend you and at what rate. So, we recommend that you apply to at least three or four lenders before you accept a loan. At The Yukon Project, we try to make shopping around easy. On our marketplace page, you can check your rate with up to 40 lenders all at the same time. And they use a soft credit check, so applying won’t hurt your credit score.
