Does Rocket Mortgage Do Personal Loans? Everything To Know

If you’ve searched for mortgage companies, chances are you’ve heard of Rocket Mortgage. They are the largest mortgage lender in the United States. But what about other loan products – does Rocket Mortgage offer personal loans too?

The short answer is yes! Rocket Mortgage has a personal loan platform called Rocket Loans. However, it is good to understand the relationship between the two companies.

Rocket Mortgage and Rocket Loans: What’s the Connection?

Rocket Mortgage focuses solely on mortgage products – home purchases, refinances, etc They live up to their name by providing a fast and convenient online mortgage process

Rocket Loans handles personal loan offerings beyond mortgages. This includes debt consolidation loans, home improvement loans, auto loans, and more.

Both companies are owned by Rocket Companies. But Rocket Mortgage and Rocket Loans operate as separate businesses, each with their own website, loan process, and customer service teams.

The key takeaway is that Rocket Mortgage strictly handles mortgages, while Rocket Loans provides personal loans up to $45000. Same parent company, but different products and entities.

Overview of Rocket Loans Personal Loan Options

As an online personal lender, Rocket Loans offers loans from $2,000 up to $45,000. Here is an overview of their loan options:

• Loan amounts: Borrow between $2,000 to $45,000.

• Interest rates: Rates range from 9.116% to 29.99% APR depending on your credit score and other eligibility factors.

• Loan terms: Choose between 3 or 5 year repayment terms.

• Origination fee: An origination fee up to 9% applies. This fee is deducted from the loan proceeds.

• Credit requirements: Minimum credit score of 620 is generally required for approval.

• Funding time: Rocket Loans offers fast funding. If you accept your loan offer by 1 PM ET on a weekday, funds can be deposited same day.

Rocket Loans provides prequalification online to check rates without a hard credit inquiry. So you can easily view your estimated loan offers before formally applying.

Top Uses for Rocket Loans

A Rocket Loans personal loan can be used for almost any purpose. Here are some of the most popular uses:

• Debt consolidation: Pay off and consolidate higher interest credit cards or loans into one monthly payment. This simplifies payments and can save on interest.

• Home improvements: Fund projects like remodeling a kitchen, finishing a basement, replacing the roof, etc.

• Major purchases: Make large purchases for things like medical procedures, assistive devices, recreational vehicles, and more.

• Special financing: Pay for a wedding, adoption fees, or other life event needing financing.

• Moving expenses: Cover costs to move or relocate like deposits, hiring movers, rental trucks, etc.

• Taxes: Pay off back taxes or tax debt owed to the IRS or state.

• Car repairs: Make high-cost repairs or maintenance for your vehicle.

The flexibility of personal loans allows you to borrow for nearly anything personal. And Rocket Loans provides online prequalification and fast funding.

What Are the Requirements to Qualify for a Rocket Loan?

To qualify for a Rocket Loan, here are some of the main requirements:

• Credit score: A minimum credit score of 620 is generally needed for approval. The higher your score, the better the chances for approval.

• Income: Stable monthly income is required. Rocket Loans may ask for paystubs, tax returns or other income verification.

• Debt-to-income ratio: Your total monthly debt payments compared to income must meet program guidelines, typically below 40%.

• Good credit history: On-time payments on credit cards and loans can help approval odds.

• Citizenship: You need to be a U.S. citizen or permanent resident.

• Age: Borrowers must be at least 18 years old.

• Bank account: An active checking account is required to receive loan funds electronically.

Meeting these requirements provides the best shot for personal loan approval through Rocket Loans. But they do consider applicants with less-than-perfect credit on a case-by-case basis.

Pros of Getting a Personal Loan with Rocket Loans

Here are some of the key benefits of using Rocket Loans:

Fast online process – The application takes just minutes online. Prequalification is instant without affecting your credit score.

Quick funding – If approved, funds can be deposited as soon as the same or next business day.

Fixed payments – Payments are fixed for the loan term. This helps budgeting versus revolving debt like credit cards.

No prepayment penalties – You can pay off your loan early with no penalty.

Multiple uses – Personal loans provide funding flexibility for debt consolidation, home projects, and more.

Potential to rebuild credit – Making on-time payments can help boost your credit score over time.

The online process combined with fast funding makes Rocket Loans a convenient lending choice. And set payments help borrowers pay down debt faster.

Tips for Getting Approved with Rocket Loans

Here are some tips to boost your chances of getting approved for a Rocket Loan:

• Maintain a debt-to-income ratio below 40%
• Pay down existing credit cards and other debt
• Check your credit reports and fix any errors
• Pay all bills on time leading up to your application
• Build your credit history with responsible use of credit
• Avoid applying for other new credit before applying

Having lower debt and a higher credit score can help you qualify for better loan terms. Being proactive about improving your credit position before applying is key.

Who Should Consider Rocket Loans for Personal Financing?

Rocket Loans may be a good lending choice if you:

• Prefer a fast, 100% online application process
• Need funds quickly within days of applying
• Want fixed monthly payments to consolidate debt
• Have fair credit or rebuilding credit (scores around 620+)
• Seek an unsecured loan without requiring collateral
• Want to avoid borrowing from 401(k) plans or pensions

With its online model and streamlined approvals, Rocket Loans works well for those who value speed and convenience.

Alternatives to Compare

While Rocket Loans is a top pick especially for fast funding, it helps to compare a few alternatives:

• Local banks and credit unions
• Online lenders like Upgrade, Avant, Best Egg, etc.
• 401(k) or pension loans from your employer plan
• Home equity loans or lines of credit
• Credit cards with intro 0% APR promotions

Weigh the rates, fees, and terms across multiple lenders. This helps ensure you find the most affordable financing option.

The Bottom Line

Rocket Loans provides an easy way to get personal loan funding quickly online. They offer borrowers access to up to $45,000 that can be used for almost any purpose.

While Rocket Mortgage focuses on home lending, Rocket Loans handles flexible personal loans. Both companies are owned by Rocket Companies and known for speed and technology.

If you need fast financing with fixed payments, Rocket Loans makes for a convenient personal loan choice. Just be sure to compare across multiple lenders to find the best rates for your situation.