The estimated value of consumer loans in 2017, at all commercial banks, was $1.380 trillion, according to the U.S. Federal Reserve Bank. This is a sign of a universal truth — life happens. And when you’re in need, you can turn to personal loan lenders like RocketLoans.
The simple truth is you never know when you’ll need a personal loan.
Maybe you have medical bills, broken appliances, or car and home repairs. No matter what life throws at you, loans can help cover these big expenses.
Many people rely on personal loans because these loans are unstructured. This means they don’t require any collateral.
Personal loans are used in a variety of circumstances.
You’ve seen RocketLoans before. They are one of the most popular, recognizable online lenders.
Are they worth considering the next time you take out a personal loan?
Here’s a look at what they have to offer:
The Basics of RocketLoans
There is no lending service that fits every single person looking for a personal loan.
Before requesting this service, you need to know the main features of what they offer to see if they’re the right fit for you and your needs.
First of all, let’s look at their process. They’re known for being super fast in processing your request (hence their name).
Here’s a rundown of their process:
1. Answer basic information about your request, and provide the following information:
- Your full name
- Annual income
- Employment status
- Phone number
- Social security number
- Current address
- Date of birth
2. You will receive a list of loan options you were approved for. Review these options and choose the following:
- Length of your term
- Interest rate
- Amount of loan
3. RocketLoans then validates the rest of the information you need to provide, which includes your bank account. This is often done in real time.
4. After validation, you simply agree to the final terms and receive your money. They can even accomplish same day funding, depending on your request.
Now that you know their process, here are a few quick highlights of their service:
What You Need
- A good credit score — 640 or higher
- At least 2 years of credit history
- Minimum annual income of $24,000
- Their APR ranges from 5.98% to 28.99%
- This is determined by your financial profile. This includes a lot of information, like the following:
- Annual income
- Debt amount
- Loan term
- Amount of credit inquiries
- Credit history
- You can choose between 36 and 60-month terms
- Their loan programs range from $2,000 to $35,000
The online lending industry is in a major boom and for good reason — it’s accessible and relatively easy.
RocketLoans is among the best online lenders. Here are the many advantages you can expect:
As you saw in their process, your experience is super easy. Not only can you do it all online, but you may receive approval within 24 hours.
They even offer pre-approval that can be generated within seconds.
They are part of Quicken Loans, which is one of the most reputable mortgage lending companies in the country.
They’re known for their amazing customer support. In fact, most online reviews of RocketLoans praise the support they received whenever they needed help.
They’re not just fast. They’re hands-on, engaged, and straightforward with their customers.
The best part about requesting loans through them is they can meet most of your needs.
There are several ways to use personal loans, including:
Move high-interest debt to lower, fixed-rate loans. You can choose the term that best fits your needs (either 36 or 60 months).
Unexpected medical emergencies happen. Instead of dodging bills, use a loan to pay them off. Also, plan ahead and use a loan to finance medical procedures.
Whether you need an initial investment or have to cover unexpected expenses, a loan is a great option for small business owners.
Cover the expenses of improving the value of your home, like upgrading your deck. Or fix major home damages, like a leaking roof.
Prevent major issues down the road by financing a pressing repair now. You can also use personal loans to finance new and used cars.
Instead of adding to your credit card balance, use a loan to pick up major purchases. This could include new appliances and furnishings.
Credit card payoff
Finally, pay off that high-interest credit card balance with a lower-rate loan.
Every online lender has their disadvantages for every person. These cons depend on what your goals are and what your current financial situation is.
Here’s a look at the potential disadvantages:
Not for Everyone
RocketLoans is not for you if you haven’t established yourself as responsible with credit. They’re not willing to take risks on you if your credit history is bad or nonexistent.
While requesting a loan through their service doesn’t hurt your credit score, it won’t be worth your efforts if your score is under 640.
There are a few fees you need to be aware of before signing the dotted line. These include both an origination fee and a late fee.
The origination fee is a one-time fee that is administered once the loan is funded. It ranges from 1% to 6%.
The late payment fee is self-explanatory. If you’re 10 days past due on your monthly payment, you’re charged $15. This happens every time you’re late, so it can add up.
While these fees are common, it’s important to understand what fees you might incur.
There is a silver lining: The company is transparent and shares their fee schedule without any fine print.
As with every lender, you are limited to their loan options. The maximum you can borrow is $35,000.
This is a disadvantage if you need more cash than this. You should consider other online lenders who are willing to offer more money.
The Verdict of RocketLoans
While your decision depends on your needs and current situation, overall, RocketLoans is an excellent lender.
They’re a great solution for those looking to establish good credit and get funding quickly. Their services are especially helpful if you’re looking to start a business and need some quick cash.
They also offer competitive interest rates by comparison. Since personal loans don’t require collateral, their APR might seem high at first glance.
However, RocketLoans’ rates fall within the industry average.
Bonsai Finance helps you find great personal loans that could fit your needs. Visit our blog to learn more.