If you need emergency cash, then you’ve probably already heard of a Personal loan. Personal loans are often sought out because they can be used for almost any emergency expense and can be fast and convenient. When looking for a personal loan, you may come across Rocket Loans.
Rocket Loans offers several different types of loans, including 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 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 loans are versatile in uses, loan amounts, and loan terms.
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 cosigner 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 for your loan can impact your credit. 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: And the last few things you should consider with a personal loan are your current credit and the lender you may be working with.
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 ratio, credit utilization, and the general impact of adding another loan to your credit. Let’s say you don’t have an emergency and can save overtime for an expense. After looking at your credit report, you may decide to do just that. If you have to take a loan, it will be important to limit the number of hard credit checks, as each can impact all three of your credit reports. While a soft credit check, usually used for pre-approval, will not harm your credit.
The lender you work with is another significant variable you should consider. Your lender ultimately determines your loan terms, so it is important that you take the time to do some research and ask questions for clarity if they come up. Flexibility is one vital quality you should look for in a lender, which will impact your personal loan.
Decide whether you want a secured or unsecured personal loan: Many personal loans are unsecured, meaning they don’t require collateral. However, there are also secured loans, which do require collateral. Secured personal loans may work well when financing a purchase, and many different loan types can fall into this category. Typically, secured loans are easier to qualify for than unsecured loans; however, if you cannot repay your loan, you risk losing the collateral.
What To Expect From the Personal Loan Application Process?
The personal loan application process will vary from one lender to another, but typically, you can expect the following:
- Begin the inquiry process — The first step to getting started with a personal loan is to look through different personal loans/lenders and find a handful you think are a good fit. Then narrow down your choices to just one, or maybe two. Be sure to pay attention to interest rates, APRs, monthly payments, and loan terms so you can save money. Once you are able to pick the best loan option for you, you can move forward to final approval.
- Submit an application— Applying for pre-approval should be simple. All you’ll need to provide is some basic personal and financial information. Lenders will usually ask about your income, credit score, name, social security number, birth date, etc. This part of the process should only take a few minutes. Once done, you’ll get a close estimate of the money you can borrow and the loan terms you’ll potentially get.
- Send in documents for final approval — Once you are ready, you can submit documents for final approval. Here is the typical list of documents you may see with a personal loan application:
- A government-issued photo ID — a driver’s license, military ID, permanent resident card, etc.
- Proof of income — pay stubs, bank accounts, letters of income, etc.
- Proof of residency — mortgage or lease agreement, bank statement, utility bills, valid pieces of mail, etc.
- Bank account information — your bank account and routing numbers.
- A social security card or TIN
- Once approved, get your funds — Once you are approved for a loan, you can get the personal loan funds. In most cases, the funds can be sent straight to a bank account.
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:
- Traditional lenders — Traditional lenders are likely the first entities you think of when starting a loan search. These are your banks and credit unions, financial institutions with rigid rules, interest rates, and loan terms. Often where you have to apply for funding in person.
- Online lenders or private lenders — Non-traditional lenders are your private in-person and online lenders. You’ll likely find more flexibility with these institutions, with the application process itself into loan terms. When searching for lenders online, the one thing you should be aware of is loan scams, do some research before submitting any of your personal information.
- Direct lenders — Direct lenders provide loans directly to borrowers.
- Indirect lenders — Indirect lenders work with a variety of lenders and usually act as a connection service between the borrower and the lender.
Tips To Find the Right Personal Loan Lender
Have never searched for personal loans before? Here are some tips for finding the right 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 before choosing one to work with — 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?
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 bad credit, 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 their 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 Rocket Loans 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 Personal Loans from Rocket Loans 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 with 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.
Get Started With CreditNinja Today!
If you need a personal loan, CreditNinja is here to help! Get started with a simple online loan application, and once approved, you may be able to get the money you need as soon as the! Get started today!
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