Rocket Loans Review: Is It a Scam or Is It Legit?

In the world of personal loans, finding a trustworthy lender is essential. With the rise of online lending platforms, it’s important to evaluate each option carefully to determine if it’s legitimate and meets your financial needs. One such lender gaining popularity is Rocket Loans. In this article, we will review Rocket Loans and explore whether it’s a scam or a legitimate lending option.

Rocket Loans: An Overview

Rocket Loans is a financial company based in Detroit, Michigan, and has been in operation since 2015. As part of Rocket Companies, Inc., it operates under several subsidiaries, including Rocket Mortgage, LLC, Rocket Homes Real Estate LLC, RockLoans Marketplace LLC, and Rocket Auto Loan. Rocket Loans offers personal loans and other financial services to individuals in need of quick funding.

Understanding Rocket Loans’ Services

To better understand Rocket Loans, it’s important to explore how their lending process works. All loans offered by Rocket Loans are made by Cross River Bank, a New Jersey state-chartered commercial bank. Applying for a loan with Rocket Loans is relatively straightforward. You provide basic personal information and explore the loan options available to you.

Once you’ve selected the loan program that suits your needs, you can proceed with the application. Rocket Loans will verify the information you provided, ensuring accuracy and compliance. Upon successful validation, you can accept the final terms and conditions, and the funds will be disbursed to you.

Loan Terms and Charges

When considering a loan from Rocket Loans, it’s crucial to understand the associated terms and charges. Rocket Loans personal loan terms of either 36 or 60 months, depending on your eligibility. The Annual Percentage Rates (APRs) range from 7.727% to 29.99%, depending on your credit profile. It’s worth noting that these rates are subject to change at any time without prior notice.

Additionally, Rocket Loans charges an origination fee for each loan, ranging from 1% to 6% of the loan amount. This fee is deducted from the loan balance before the funds are disbursed to you. It’s important to factor in this origination fee when calculating the total cost of borrowing from Rocket Loans.

To provide a clearer picture of the costs, let’s consider an example from their website’s fine print: a 5-year $10,000 loan with a 10.5% interest rate and a 2.99% ($299) origination fee would result in 60 monthly payments of $214.94. This example demonstrates an Annual Percentage Rate (APR) of 11.855%, assuming an autopay discount. Don’t forget to make sure to have the minimum credit score requirement.

Trustworthiness and Customer Reviews

When evaluating any lender, it’s crucial to consider their reputation and customer reviews. Rocket Loans holds an A+ rating with the Better Business Bureau (BBB) and has been accredited since November 6, 2015. With an average of 133 customer reviews, Rocket Loans has had 7 complaints closed in the past 12 months. This information provides some insight into the company’s customer satisfaction and reliability.

Qualification and Borrowing Limits

To qualify for a personal loan from Rocket Loans, you must meet certain criteria. First, you need to be at least 18 years old (or 19 years old in Nebraska and Alabama). Additionally, you must be a U.S. resident residing in a state where Rocket Loans operates. Factors such as credit score, monthly income, and existing debt also come into play when determining your eligibility.

Rocket Loans offers loan amounts ranging from $2,000 to $45,000. The repayment terms extend from 36 to 60 months. The loan offers you receive depend on your credit profile, income, and debt-to-income ratio. It’s important to note that Rocket Loans does not impose prepayment penalties, allowing borrowers to pay off their loans early without incurring additional fees.

Credit Score Impact

One common concern when applying for a loan is how it may affect your credit score. Rocket Loans uses a soft inquiry, which does not impact your credit score when generating your rate. However, if you choose to proceed with the loan and they confirm your identity, a hard pull of your credit report will be necessary. This hard inquiry can have a temporary impact on your credit score.

Personal Loan Usage

Rocket Loans offers personal loans that can be used for a variety of purposes. Whether you need to consolidate debt, finance a dream vacation, purchase an engagement ring, or fund a new project, Rocket Loans provides flexibility in how you use the borrowed funds. However, it’s important to note that their personal loans cannot be used for student loans or illegal activities.

FAQs

1. Can I use a Rocket Loan to start my own business?

Answer: Rocket is designed for personal use and cannot be used specifically for starting a business. However, you can use the funds to cover personal expenses related to your entrepreneurial endeavors, such as purchasing equipment or investing in training and education.

2. What happens if I miss a payment deadline with Rocket Loans?

Answer: If you fail to make a payment within 10 days of the due date, Rocket will charge you a Late Payment Fee of $15. It’s crucial to ensure timely payments to avoid any additional fees or negative impact on your credit score.

3. How long does the loan approval process take with Rocket Loans?

Answer: The loan approval process with Rocket Personal Loans can vary depending on various factors, including the accuracy and completeness of the information provided during the application process. In some cases, if your information can be validated electronically and your bank supports it, you may even be eligible for the Same Day Funding.

4. Can I apply for a Rocket Loan if I have bad credit?

Answer: Rocket Unsecured Personal Loans considers various factors when evaluating loan applications, including credit scores. While having a lower credit score may affect the loan terms and interest rates you qualify for, it does not automatically disqualify you from obtaining a loan. Rocket Loans takes a holistic approach, considering factors such as income and debt-to-income ratio in their decision-making process.

5. Can I pay off my Rocket Loan early?

Answer: Yes, you can pay off your loan early without incurring any prepayment penalties. Rocket allows borrowers to make additional payments or pay off the remaining balance at any time without any additional fees or charges.

6. Are there any options for loan deferment or forbearance with Rocket Loans?

Answer: It does not explicitly mention options for loan deferment or forbearance on its website. However, if you encounter financial difficulties or unexpected circumstances that may hinder your ability to make timely payments, it’s advisable to contact them directly to discuss potential solutions or alternative payment arrangements.

7. Can I apply for a Rocket Loan if I’m self-employed or have variable income?

Answer: Yes, self-employed individuals can apply for a loan. However, since self-employed individuals may have variable income, Rocket Loans may require additional documentation to verify your income stability and ability to repay the loan. Providing tax returns or bank statements as proof of income can help support your loan application.

8. Is there an option to modify the loan terms after approval?

Answer: Once you have accepted the final terms and conditions and the loan has been funded, it’s generally not possible to modify the loan terms. Therefore, it’s crucial to carefully review and consider the terms before accepting the loan offer to ensure it aligns with your financial needs and repayment capabilities.

9. Are there any eligibility requirements for cosigners?

Answer: Rocket Loans does not explicitly mention the option of having a cosigner on their website. However, if you have concerns about meeting the eligibility requirements or want to improve your chances of approval, it may be worthwhile to contact them directly to inquire about the possibility of having a cosigner.

10. What should I do if I have a complaint or issue with Rocket Loans?

Answer: If you encounter any issues or have a complaint about your experience with Rocket Loans, it’s recommended to contact their customer support team at (800) 333-7625. They will be able to assist you in addressing your concerns and finding a suitable resolution to ensure your satisfaction with their services.

Conclusion: Are Rocket Loans Legit?

After thoroughly reviewing Rocket Loans, we can confidently state that it is a legitimate lending option. With an A+ BBB rating and accreditation since 2015, Rocket Loans has built a reputation for reliability and customer satisfaction. However, as with any financial decision, it’s crucial to conduct your own research, read customer reviews, and carefully consider the rates and terms before committing to a loan.

Rocket Loans provides a user-friendly online platform that simplifies the loan application process. With competitive rates and loan amounts ranging from $2,000 to $45,000, it caters to a wide range of borrowing needs. Remember to factor in the origination fees and other potential charges when calculating the overall cost of borrowing.

Ultimately, it’s essential to evaluate your financial situation, needs, and the terms offered by Rocket Loans to determine if it’s the right choice for you. By making an informed decision, you can ensure that your borrowing experience with Rocket Loans is a positive one.