Getting the Best Quicken Loans Personal Loan Rates

Personal loans can be a great option when you need extra funds for a major purchase, to pay off high-interest debt, or cover unexpected expenses. But shopping around for the best loan rate is key to saving money. In this comprehensive guide, we’ll explain everything you need to know about Quicken Loans personal loan rates so you can make the most informed decision.

What Are Quicken Loans Personal Loan Rates?

Quicken Loans offers both fixed and variable interest rates on personal loans ranging from about 5% to 36%. Your actual rate will depend on factors like your credit score, income, debt-to-income ratio, loan amount and loan term.

Rates are also determined based on current economic conditions, with interest rates generally rising when the economy is strong. For example, in 2022, average personal loan rates have risen above 10% due to inflation and interest rate hikes.

What Impacts Your Quicken Loans Personal Loan Rate?

Several key factors determine what interest rate you’ll pay on a Quicken Loans personal loan:

Your Credit Score and History

Your credit score gives lenders insight into how reliably you’ve paid off debts in the past. Borrowers with higher credit scores usually get better loan rates. For the best rates from Quicken Loans you’ll typically need:

• Credit score of 720+ for excellent rates
• Credit score of 680-719 for good rates
• Credit score under 680 for higher rates

Besides your score lenders will review your entire credit history including

• Payment history
• Types of credit in use
• Age and number of accounts
• Recent credit inquiries

Debt-to-Income Ratio

Your debt-to-income (DTI) ratio also affects your rate. DTI measures your monthly debt payments as a percentage of your gross monthly income. The lower your DTI the better rate you can expect since you pose less default risk. Quicken Loans generally looks for a DTI of 43% or less for the best rates.

Loan Amount and Term Length

The more money you borrow and the longer you take to pay it back increases risk for lenders. Shorter loan terms and lower loan amounts generally earn better rates.

Income

Your income helps demonstrate your ability to manage repayment so higher incomes often result in better rates. You’ll need to provide proof of income to qualify.

Type of Personal Loan

Secured loans backed by collateral like a savings account tend to have lower rates than unsecured loans. Quicken Loans offers both secured and unsecured personal loans.

Comparing Quicken Loans Rates to Other Lenders

While your individual financial situation determines your rate, it’s still essential to compare loan options across multiple lenders. Rates and fees can vary significantly for the same borrower between lenders.

Some major banks and lenders to compare personal loan rates with include:

• Wells Fargo
• Discover
• Marcus by Goldman Sachs
• Prosper
• Lightstream
• Upstart
• Best Egg

We recommend getting rate quotes from at least 3 lenders so you can find the best rate and loan terms for your needs. Don’t just look at interest rates, but also consider:

• Origination fees
• Prepayment penalties
• Late fees
• Credit check requirements

Online lenders like Quicken Loans tend to offer a faster and easier application process compared to traditional banks. But banks may offer better rates for some borrowers, especially those with excellent credit.

Tips for Getting the Best Quicken Loans Personal Loan Rate

While you can’t change some factors impacting your rate, like your income or credit history, there are steps you can take to help secure the lowest rate possible:

• Boost your credit score – Pay all bills on time, lower credit utilization by paying down balances, and correct any errors on your credit report.

• Pay down existing debts – This helps lower your DTI and reduce default risk in lenders’ eyes. Pay off credit cards first.

• Limit credit inquiries – Each application triggers a hard inquiry that may slightly lower your score. Limit rate shopping to a few weeks.

• Add a cosigner – A cosigner with better credit can help you qualify for a lower rate. But they take on equal loan responsibility.

• Compare lenders – Shopping around leads to the best rate offers. Apply with lenders who do soft credit pulls first.

• Consider a secured loan – Secured loans have lower rates but require an asset like a CD or cash to secure the loan.

• Ask about discounts – Some lenders offer interest rate discounts for setting up autopay or having an account relationship.

What Are Typical Quicken Loans Personal Loan Rates?

To give you a better idea of realistic Quicken Loans personal loan rates, here are a few examples based on credit score:

These rate ranges account for factors like a 3-5 year repayment term and meet typical approval criteria.

Your actual rate quote will depend on your full financial profile. But this table demonstrates how significantly your credit score impacts interest rates. Improving your credit by even 50 points could potentially save you thousands in interest.

Should You Take a Variable or Fixed Personal Loan Rate?

Quicken Loans offers both fixed and variable rate personal loans. With fixed rates, your interest rate never changes. Variable rates start lower but can increase or decrease over the loan term.

Fixed rates are preferable for most borrowers because your monthly payment stays consistent. This allows for easier budgeting.

Variable rates come with unpredictability and the risk that rates rise significantly over time. They only make sense if you plan to pay off the loan very quickly before any rate changes.

Be sure to ask lenders if they offer both fixed and variable rates so you can choose the option that provides the most stability.

Understanding the APR on Personal Loans

When comparing loan rates, it’s important to look at the APR (Annual Percentage Rate) and not just the interest rate. The APR represents the total cost of the loan annually including interest and fees.

For example, a loan with a 10% interest rate and a 5% origination fee would have an APR around 15%. The higher the APR, the more expensive the loan.

Ask lenders to provide the APR on any rate quotes so you understand the true cost comparison between loan offers. Small differences in APR can add up to thousands over the loan repayment period.

How Long Will the Loan Rate Lock-In Period Last?

When you apply for a personal loan, the rate quote you receive from a lender is only good for a limited period, usually between 30 to 60 days. This timeframe is known as the rate lock.

If your loan doesn’t close within the lock period, the rate can change. Ask Quicken Loans and any lenders you apply with how long the rate lock-in lasts.

Then be sure to complete all documents and finalize closing within that window so you secure the original quoted rate. If there are delays finalizing the loan, you may need to ask for a rate lock extension.

Prequalifying Can Help You Estimate Rates

While rate shopping, consider prequalifying with Quicken Loans and other lenders first. Prequalification uses a soft credit check to estimate rates you may qualify for based on your credit score and income, without a formal application.

This allows you to get a sense of potential loan rates and terms so you can determine if the loan is affordable. Prequalifying also doesn’t require submitting tons of financial documents upfront.

Once you prequalify and find a competitive rate offer, you can submit a full application with confidence. The lender will then do a hard credit inquiry and verify income and assets to finalize approval and your actual interest rate.

Is Now a Good Time to Apply for a Personal Loan?

Timing your personal loan application strategically can help you land better rates too. Here are some tips:

• Monitor rate trends – Apply when average rates start to decline.

• Avoid new inquiries – Wait at least 3-6 months after taking out new credit to apply if possible. Too many new accounts can lower your score.

• Consider Fed meetings – Interest rates often rise following Federal Reserve rate hikes. Apply between cycles.

• Watch for dips – Economic changes can cause temporary rate decreases. Apply during dips.

• Apply early in the year – January through March tend to have lower average rates.

Final Tips for Saving on Your Personal Loan

Besides shopping around for the lowest rates, here are a few final tips to save on your personal loan:

• Take out the shortest term you can afford
• Don’t borrow more than you need
• Make bi-weekly payments to pay the loan faster
• Enroll in autopay to score discounts
• Pay down the balance quickly to reduce interest

The Bottom Line