If you need emergency cash, then you’ve probably already heard of a personal loan. Personal installment loans are often sought out because they can be used for almost any emergency expense and can be fast and convenient. In fact, there are 21.1 million outstanding personal installment loans in the U.S.1
When looking for a personal loan, you may come across Rocket Loans. Rocket Loans offers several different types of loans, including unsecured personal loans. Not sure whether this lender is right for you and curious about others out there? Continue reading to learn more about Rocket Loans and alternatives. You’ll also find more general information on personal installment loans!
Finding The Right Personal Loan
Personal loans are some of the most commonly used loan options available and are popular for short-term emergencies. In most cases, they come with steady monthly payments, easily fitting into almost any budget. These quick cash loans are versatile in uses, loan amounts, and loan terms. For example, many people use personal loans as debt consolidation loans to organize their finances.
Finding the right personal loan is so important when looking for funding. But what does that mean exactly? It can mean finding a loan that fits your expenses, budget, and finances well.
Knowing How Much You Need
First and foremost, you’ll want to ensure a personal loan can cover the total cost of whatever you plan on using it for. Most personal loans are designed for short-term emergencies, so a single loan should suffice even if your expenses add up to a few thousand dollars. For those who can’t qualify for the funds they need, adding a co-signer can help.
Ideally, you’ll want to only have one loan to pay rather than multiple. If you are unsure about how much you will be spending, then a personal loan may not be right for you.
Figuring Out What Works for Your Budget
Secondly, you will want to ensure your personal loan fits your budget. You’ll want a loan that you can comfortably make payments on every month. The repayment of your loan can impact your credit score. In fact, payment history is the most significant factor that affects credit scores. So it is vital to set yourself up for success.
And so, before choosing a personal loan, find out about its monthly payment. Your lender can provide that estimate for monthly payments, or you can calculate things yourself using a personal loan calculator.
Your Lender and Current Credit Score
And the last few things you should consider with a personal loan are your current credit score and the lender you may be working with. For example, you should ask questions like, “How much can I borrow with a 700 credit score?”
Although during an emergency, you may not have a choice whether you need to borrow money or not, in the instances that you can, you should really consider your debt-to-income rate, credit utilization, and the general impact of adding another loan to your financial history.
Where To Begin the Search for Personal Loans
There are all kinds of personal loan lenders out there, and learning more about some of the basic types will help you figure out a good starting point.
Here are some of the basic types of lenders you’ll likely come across with personal loans:
| Type | Definition | Pros | Cons |
| Direct Lenders | Lenders that provide loans directly to borrowers without using intermediaries. | – Direct communication with the lender- Often faster approval process- Potentially lower fees | – Limited loan products compared to a marketplace- May require more effort in shopping around |
| Indirect Lenders | Lenders work with intermediaries (like brokers) to connect borrowers with suitable loans. | – Access to multiple loan products- Intermediaries may assist in finding the best deal | – Potential for additional fees- Less direct communication with the actual lender |
| Online Lenders | Lenders that operate primarily or exclusively online. | – Convenience of online application- Often quicker response times- Flexible terms | – Less personal interaction- Security concerns if not using reputable platforms |
| Traditional Lenders | Traditional banks and credit unions that offer loans at branch locations. | – Personal face-to-face service- Established reputation- Comprehensive financial services | – Slower application process- May have stricter requirements- Limited online services |
Tips To Find the Right Personal Loan Lender
Have you ever searched for online loans before? Here are some tips for finding the right personal lender for you:
- Read customer reviews — You should read detailed customer reviews to get an idea of what kind of lender you may be working with.
- Compare lenders with pre-approval — You won’t know the exact terms of a loan with pre-approval, but you’ll get a rough estimate which will be extremely helpful! With pre-approval, you can easily compare loan options quickly to find the best loan option for you.
- Make sure to ask questions — If you need any clarification with any part of the loan process, you should ask your lender! That way, you can make an informed decision when moving forward with a personal loan option.
Are Personal Loans Accessible for Borrowers Who Don’t Have the Best Credit Score?
Suppose you don’t have the highest credit score or best credit history. In that case, you may be a little discouraged about your chances of getting a personal loan. Yes, traditionally, personal loans weren’t always accessible to low-credit applicants. However, that is not the case anymore! There are lenders that give loans to borrowers with bad credit. And so, even with a bad credit score, you may be able to secure a personal loan; you just have to know where to look.
Loans Like Rocket Loans: What You Need To Know
Headquartered in Detroit, Rocket Loans is both a direct lender and an indirect lender, depending on the types of loan you are looking for. They also have a personal finance advising app that anyone can download and use. Rocket Loans is partnered with Cross River Bank for its loan products.
When looking at the Rocket Loans website, you’ll find different Rocket companies. For their loans, there is Rocket Mortgage, Rocket Homes, Rocket Auto, and Rocket Solar. And for personal finance, there is Rocket Money.
What Products Does RocketLoans Offer?
Rocket Loans offers a variety of loan options (for mortgages and solar loans, they are indirect lenders); here are all the different types of loans they offer:
- Mortgages — Mortgages offer a way for people to finance the purchase of a home.
- Personal Loans — Personal loans can be used for almost any purpose, making them a good choice for emergencies.
- Auto Loans — Auto loans help people finance a car purchase.
- Solar Loans — These loans can only be used to finance the purchase of solar panels.
What Does the Loan Process With RocketLoans Look Like?
If you are thinking about a personal loan from Rocket Loans, you should know what to expect. Here is what the personal loan process will look like with Rocket Loans:
- Apply for a loan online — The first step with Rocket Loans is to fill out a personal loan application online. You’ll have to submit some personal and basic financial information, such as your annual income, what the loan is for, and your employment status.
- Find out about approval — Once you submit your information, you’ll be able to find out what options you have for pre-approval. You will then have to verify things online, including your identity and income, and validate your bank account electronically.
- Go over the loan terms — With final approval, you can then go over the loan terms.
- Sign the loan contract and get funding — If everything looks good, you can review the loan contract and get the funds.
What Can I Expect Once I Take Out One of These Loans?
With Rocket Loans, you can expect to find out about an approval decision on the same day that you apply, and they offer same-day funding. Rocket Loans suggests using their loans for debt consolidation, home improvement, solar, and other emergency expenses.
When you take out a personal loan, Rocket Loans charges up to 8% of an origination fee, which will be taken out of the loan balance. There can be a 36 or 60-month loan term. APRs will range starting at 9.116% up to 29.99% maximum—there is also an autopay discount you can get. Like most personal loans, one through Rocket Loans will have steady monthly payments until the loan is paid in full.
An example that they have on their website is for a loan that is $10,000. If the APR is 13.26%, an interest rate of 11.00% and a borrower has five years to repay the loan, the monthly payment would be $217.42.
CreditNinja: How Does It Compare?
At CreditNinja, we have been a lender since 2018 and have helped thousands of people find financial solutions. Our personal loans are convenient, fast, and simple, and the entire process can be done from the comfort of your home. One of the first things you may notice about CreditNinja compared to RocketMoney is that you don’t have to worry about navigating the site for different loan products because we only provide personal loans.
How Do Personal Loans From CreditNinja Work?
Personal loans from CreditNinja are fast and flexible from beginning to end. From the very start, the application process can be done completely online and only requires a few simple steps. Once that application is filled out, you will know about pre-approval. And then, with a few additional steps and verification, you’ll find out about final approval.
Loan terms can vary from a few months to a few years, and your loan amount will vary based on your finances, which encompasses your income and credit scores. Repayment with our loans is simple, too; you’ll have steady monthly payments you can make online or over the phone.
What Are Some Benefits of Working With CreditNinja?
You’ll get plenty of benefits when working with CreditNinja for a personal loan. Here are some to look forward to:
- A flexible repayment schedule.
- If approved, you may get your money as soon as the next business day.
- As mentioned above, a completely online application process.
- Convenient loan terms.
- You don’t need excellent credit.
- Our loans are a safe and reliable financial solution.
Is There a Minimum Credit Score for Applicants?
There is no minimum credit score requirement to apply for a personal loan through CreditNinja. And so, borrowers from all financial backgrounds are encouraged to apply. Instead of focusing solely on credit scores, we’ll take a look at your income and ability to repay the loan for a final decision.
Frequently Asked Questions About Rocket Loans
Rocket Loans may have specific minimum credit score requirements depending on the type of loan and other factors. It’s best to consult with a Rocket Loans representative or visit their website to understand the exact criteria for the personal loan you’re interested in.
Rocket Loans may perform a soft credit check during the pre-approval stage to provide an initial assessment of your eligibility. Soft credit checks don’t affect your credit score and are not visible to other lenders, making them a borrower-friendly part of the process.
Yes, Rocket Loans personal loans can often be used for debt consolidation. This can help you combine multiple debts into one manageable monthly payment, potentially at a lower interest rate. Specific terms and conditions should be discussed with a Rocket Loans representative.
Your debt-to-income ratio is one of the factors Rocket Loans may consider when evaluating your loan application. A high debt-to-income ratio might indicate a higher risk, but other factors like your credit score and employment history are also considered. Speaking with a Rocket Loans representative can provide personalized insights.
Rocket Loans evaluates applicants based on a variety of factors, including credit history. While a consistent credit history may be favorable, they may also consider other aspects like income and current financial stability. It’s advisable to discuss your specific situation with Rocket Loans to understand your eligibility.
Rocket Loans may offer special promotions or discounts from time to time. These could be related to interest rates, fees, or other incentives. Checking with Rocket Loans directly or visiting their website will provide the most up-to-date information on any available offers.
If you don’t meet the minimum credit score requirements for a Rocket Loans personal loan, there may still be options available. Rocket Loans might offer alternative products, or you may consider adding a co-signer. Speaking with a Rocket Loans representative can help you explore all available options tailored to your situation.
CreditNinja: What You Should Know About Rocket Loans
If you are thinking of applying for a Rocket Loans personal loan, it’s in your best interest to inquire with multiple lenders before making a final decision regarding your finances. Every lender has different requirements and benefits, so you may miss out on a great loan offer by only inquiring with one lender. But keep in mind that having six or more hard inquiries is seen as too many by lenders and can negatively impact your credit.4
References:
- Personal Loan Statistics │ Chamber of Commerce
- Homepage │ Rocket Loans
- Personal Loans │ Rocket Loans
- How Many Hard Inquiries Is Too Many? │ Newswire
Additional Loan Options
