Rocket Loans Review: Is Rocket Loans Legit?

Rocket Loans Features and Loan Details

Rocket Loans offers unsecured personal loans that can be used for debt consolidation, home improvements, major purchases, and other personal expenses. Loans are provided through lending partner Cross River Bank.

Here's a quick look at the most important Rocket Loans terms:

Rocket Loans isn't currently available to borrowers in Iowa, Maryland, Nevada, West Virginia, or Puerto Rico.

Rocket Loans Review: Editorial Rating

Trusted Company Rating Score for Rocket Loans: 7.6

Rocket Loans earns points for its straightforward online application, fast funding, and soft-pull prequalification.

However, it's less flexible than some competitors. Borrowers have only two repayment terms to choose from, origination fees can be substantial, and the lowest advertised APR requires enrolling in autopay when the loan originates.

Rocket Loans also doesn't send debt consolidation proceeds directly to creditors. If you're consolidating credit card debt, you'll receive the loan proceeds and be responsible for paying your creditors yourself.

Overall, Rocket Loans may be most attractive to borrowers who value speed and simplicity and qualify for competitive terms. Comparing offers from leading personal loan providers is still important because your individual APR and origination fee can determine whether the loan actually saves you money.

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Rocket Loans Rates and Fees

Rocket Loans currently advertises moderate interest rates. However, securing these rates is generally available only to borrowers who meet the lender's strongest qualification criteria and who are willing to sign up for the autopay discount.

An origination fee of up to 9.99% may also apply. Unlike interest, which is paid over the life of the loan, the origination fee is deducted from the loan proceeds before you receive the money.

That distinction matters when deciding how much to borrow. If you need a specific amount of cash to consolidate debt, an origination fee can leave you with less money than the face value of the loan.

Cost of a $10,000 Rocket Loan

For example, assume you take out a $10,000 Rocket Loan with a 9% origination fee, a 15.49% APR, and a 36-month repayment term.

The $900 fee is deducted before disbursement, so you receive $9,100 even though you borrow and repay $10,000.

This is only an example. Your actual APR, fee, monthly payment, and total borrowing cost will depend on the offer you receive.

How Rocket Loans Works and Who Qualifies

Rocket Loans uses an online application process that starts with prequalification. You provide basic personal and financial information, and the company uses a soft credit inquiry to determine your potential loan terms. At this stage, there's no effect on your credit score.

If you decide to continue, you'll submit a formal application and may need to provide documentation verifying your identity, income, and other financial information. A hard credit inquiry, which will affect your credit score, will generally occur after submitting the application. 

Rocket Loans doesn't publish a firm minimum credit score. However, borrowers with scores around 640 or higher are generally more likely to qualify. That said, your credit history isn't the only consideration. Income, existing debt, debt-to-income ratio, and other factors can also affect approval and the terms you're offered.

Basic application requirements may include:

• Being at least 18 years old in most states

• Having a Social Security number

• Providing proof of income

• Meeting Rocket Loans' credit and underwriting requirements

• Not having an active bankruptcy

How Fast Does Rocket Loans Fund Loans?

Funding speed is one of Rocket Loans' stronger features. Qualified borrowers who complete the application and verification process early enough on a business day may receive their money that same day.

Not every loan funds that quickly. Additional verification or documentation can delay approval and disbursement, so borrowers shouldn't assume same-day funding is guaranteed.

Rocket Loans Reviews and Complaints

Rocket Loans reviews vary considerably depending on where you look.

Currently, Rocket Loans has a 4.9 out of 5 rating on Trustpilot from more than 9,700 reviews, with 92% awarding the company five stars. Positive reviews frequently mention a simple, user-friendly application process and fast access to funds.

The picture is different at the Better Business Bureau. Rocket Loans has an A+ BBB grade for its responsiveness and is accredited. However, its customer-review average is approximately 1 out of 5 stars. The company has received 19 BBB complaints during the past three years, with 13 closed during the previous 12 months.

Complaints and negative Rocket Loans reviews include issues involving loan denials after prequalification, fees, technical problems, and customer-service communication. 

Is Rocket Loans Legit?

Yes. Rocket Loans is a legitimate personal loan provider and part of Rocket Companies, the same publicly known financial services organization associated with Rocket Mortgage.

Rocket Loans works with Cross River Bank, Member FDIC, to originate personal loans. Cross River Bank is headquartered in Fort Lee, New Jersey.

Rocket Loans is also accredited by the Better Business Bureau and currently holds an A+ BBB grade. The company has been BBB accredited since 2015.

The company currently has thousands of reviews on Trustpilot and a 4.9-star average, while its much smaller collection of BBB customer reviews is substantially less favorable.

Being legitimate doesn't necessarily mean Rocket Loans is the best lender for every borrower. Pay particular attention to the APR and origination fee you're offered, regardless of lender. A loan that consolidates several debts into one payment is only beneficial if its overall cost and repayment terms make sense for your situation. For additional resources, see our overview of the best debt consolidation providers. 

Rocket Loans Alternatives

Rocket Loans isn't your only option, and comparing lenders can be particularly valuable because personal loan rates and fees depend heavily on the borrower.

If your primary goal is consolidating debt, start with our full guide to the best debt consolidation companies. For other funding options, compare our best personal loan provider options. 

You can also compare Rocket Loans with several individual personal loan providers and marketplaces:

• LendingTree: Lets you compare potential personal loan offers from multiple lenders through one online marketplace.

• Credible: Offers a streamlined way to compare prequalified personal loan rates from multiple lending partners without affecting your credit score.

• Upstart: May be worth considering for borrowers with less-established credit because its lending model considers factors beyond credit score when evaluating applicants.

If you're borrowing specifically for a home purchase or already own a home, an unsecured personal loan may not be the only financing option worth considering. Our best mortgage lenders guide covers home-purchase financing. Homeowners who want to borrow against existing equity can also compare our best home equity loans.