Did you learn about rocket loans through an advert or a referral through a friend or on social media? However it may be, you need to know about the Rocket mortgage personal loan rates before you apply for their personal loan.
If you have considered getting your personal loan from Rocket loans, then it is important for you to also consider and understand how Rocket personal loan rates are calculated.
More so, if you have bad credit, you will find out if the loan is available for you or if the required credit score that you need and other requirements for a rocket loan personal loan.
Meanwhile, before we go over to explain all these details to you about rocket personal loans we will do a quick review of the personal loan offered by rocket. The review will give you a detailed explanation of what a personal loan means ad the important technicalities that you should know about it.
You must understand how it works to avoid getting yourself on a perpetual loan. Furthermore, you have to do everything possible to go for the lender with the best rates for personal loans. This will help you determine if rocket loan is the best lender for your personal loans.
Rocket Mortgage Personal Loans Rates Review
Person loans are funds that are gotten or sourced from external sources. These sources include banks, mortgage institutions like rocket mortgage, and credit facility institutions.
As much as it is not usually advisable to seek loans, they are certain issues that require emergency funds which include sorting out medical bills, school fees for students, and funds for your home improvement.
Rocket Mortgage Personal loan rates are usually paid with interest and the loan period is usually from a term of 2 years and above.
A personal loan could be either secured or unsecured.
Secured Personal Loan: This is a type of loan collected for cars or homes and other properties where the lender still has the right of seizure over the property in the instance of default of payment from the borrower. Thus, it is a loan with collateral.
They generally have a lower interest rate because they provide a form of protection to the lender in the instance of any default from you. So if you obtained a rocket-secured personal loan and you did not pay up, the house or car you used as security can be taken until the debt is paid.
Unsecured Personal Loan: These are loans secured without any collateral. Thus it is not backed up by any security or assets. Examples of this kind of unsecured personal loan are loans on credit cards, medical bills, utility bills, and other bills of the same kind.
This kind of loan has a higher interest rate. This is because the lender bears a higher risk when there is a default as there is nothing to fall back on for repayment. The only remedy is for a court matter for repayment of the loan or declaration of the defaulter bankrupt.
Notwithstanding, you shouldn’t default on repayment of loans as this affects your credit score greatly.
In a worst-case scenario, you might not be able to get loans anywhere from any lender when you have bad credit. This is because it is rare to see a lender who would secure a loan for you without credit checks.
Meanwhile, Rocket Loan’s origination fee ranges up to 6%. Applicants with lower credit scores may expect to pay that full 6%. For a $20,000 loan, that would amount to a $1,200 fee.
Pros and Cons of Rocket Personal Loans
Benefits of Rocket Mortgage Personal Loans Rates
They are various benefits to applying for rocket loan personal loans. They are as follows;
- Quick Pre-approval Rate Quote: Rocket loans pride itself on the quick delivery of pre-approval letters immediately after you fill out the form and provide them with the information. The pre-approval letter contains the personal loan amount, repayment terms, and rates.
- Quick Funding on the same day: When you apply for the loan and process it quickly signing the necessary E-documents by 1:00 pm, it’s possible to receive the funds on that same day. The application is usually done online individually.
- Rocket personal loan uses soft credit pull: This does not affect your credit score because it is treated as one score.
- Unsecured Personal Loans: One of the reasons why rocket mortgage personal loan rates are high is because it offers only unsecured loans. This means that you don’t need any form of collateral to secure the loan as it could be for any emergency. So you do not have to worry about losing any of your property in case of any default.
- Debt Consolidation Loans: Rocket loan offers debt consolidation loans that you can use for multiple purposes including paying off existing debts that have higher rates.
- No Penalty for Repayment: Rocket loans do not charge you any form of fee for making early payments, unlike some other lenders. This is the reason why rocket mortgage personal loan rates are better compared to other lenders.
- Its personal loans can be used to cover various expenses, however, they cannot be used as student loans.
- One of the major downsides of rocket mortgage personal loan rates is the issue of origination fees which is up to 6 %. The fee is usually deducted from the original funds. So if you apply for a $20,000 loan, the origination fee of 6% is $1,200. This means that you need to apply for more than you need sometimes.
- Rocket loan repayment period is only limited to either 36 months or 60 months. So you do not have the choice of choosing several repayment terms
- Personal Application Alone: Rocket loans currently only support individual applications even though having a co-signer can increase your chances of getting your loan approved.
- Rocket Mortgage personal loan rates might be too high for you if you have a bad credit score.
- Personal loans are not available in Iowa, Nevada, or West Virginia.
Personals Loans Offered by Rocket loans
Rocket Loans offer the following kind of personal loans which you can use for various purposes. They are as follows;
- Auto repairs
- Vacation Expenses
- Medical bills
- Debt consolidation or debt payoff
- Home improvement projects
- Business Expenses
Rocket Mortgage Loans Personal Requirements
Rocket loan’s personal loan requirements are as follows;
- The borrower must have a minimum credit score of 640 to qualify for a personal loan from rocket loans
- The minimum annual income of $24,000. So if you do not earn above that point, you do not qualify for rocket loans
- Maximum debt-to-income ratio: 40% or 70% including mortgage; borrower average is 20%.
- Must be at least 18 years old in most states.
- Must provide Social Security number.
What is the Minimum Rocket Personal Loan Credit Score?
Rocket Loans has a minimum credit score requirement of 640, and the borrower average is 684.
How do I get Personal Loans with Bad Credit?
They are several factors that cause bad credit scores ranging from default in repayment to owing multiple debts. If you have a bad credit score below 640, then you should try other lenders as rocket loans do not give loans to individuals with bad credit score records.
How to guarantee Rocket Personal Loan Instant Approval
The best way to guarantee rocket loan instant approval is to meet the requirements above. Thereafter follow the steps below to apply after checking the rocket mortgage personal loans rate
How to Apply for a Rocket Loans Personal Loan
Applying for a personal loan typically involves prequalifying for a rate, submitting a formal application, and awaiting loan approval. Follow these steps to apply for a Rocket Loans personal loan:
- Find out your rate. To start the application process, provide basic information—name, address, income, Social Security number, and birthday—to see the rate you’ll qualify for. This involves a soft credit check and will not negatively impact your credit.
- Review your loan options. Once you enter that information, Rocket Loans will show you what loan options you qualify for so you can choose the loan amount, term, and rate that fits your needs.
- Submit the formal application. Next, submit your application by providing additional details like bank account information. This is also the point at which Rocket Loans will verify your personal information, including income. Rocket Loans may also need to request supplemental documentation, although the lender aims to validate borrower information in real time.
- Sign your loan documents. Finally, you’ll be presented with a promissory note and loan terms that summarize everything you’ve entered and chosen throughout the application process. Once you sign the necessary documents, the loan is approved and funded.
How long do Rocket Loans take to approve personal loans?
If all required loan documents are submitted, Rocket Loans can approve a personal loan application in less than five minutes.