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Rocket Loans Debt Consolidation Loan Review

Headquartered in Detroit, Rocket Loans has made it its mission to deliver simple, rocket-fast personal loans to eligible consumers.

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Rocket Loans has built its reputation on fast loans (that’s where Rocket comes in), while being a pioneer in online loan applications and funding.

Rocket Loans, a subsidiary of Rocket Mortgage, makes it easy to apply for a debt consolidation loan, and money can be available later that same day.

The company started in 1985 as Rock Financial and now is now one of the largest mortgage lenders in the U.S. It has been an innovator in digital lending, launching the first-ever online mortgage application and, later, the first online mortgage mobile app. The company branched out into personal loans and other products in 2016.

Rocket Companies now has five separate entities: Rocket Loans, Rocket Mortgage, Rocket Home, Rocket Auto and Rocket Solar with 27.6 million accounts spread among them. Rocket also launched its first credit card in March 2023.

Debt consolidation loans are offered by Rocket Loans, Rocket’s personal finance branch, and financed by Cross River Bank of New Jersey.

Debt consolidation loans range from $2,000 to $45,000 with 36 or 60-month terms. Rocket considers credit profile, income, and debt-to-income ratio before displaying a list of offers for an applicant to choose from.

Rocket says that borrowers must have “excellent credit” to qualify for the lowest rate, which means a credit score above 790. Most borrowers will likely have a lower credit score but can still save money by consolidating high-interest accounts into manageable payments with a Rocket loan.


  • Type of Debt Relief – Debt Consolidation Loan
  • Eligibility and Requirements – Must be 18 years old and a U.S resident and meet income and credit requirements
  • Fees – $15 late fee; up to 9% origination fee; $15 ACH return fee/returned check fee; 9.116% to 29.99% APR
  • Credit score impact – Minimal
  • Consumer Reviews – Mixed

How Rocket Loans Works

Like most online lenders, Rocket Loans offers a smooth online application process that lets you know your interest rate and savings in minutes, based on your credit and income.

Here’s how to apply for a debt consolidation loan:

Enter personal information: You supply your full name, current address, income information, Social Security number and date of birth to see your loan options.

Select loan: Rocket Loans shows you a list of loans you qualify for, and you choose the amount, rate, and term that works best for your financial situation.

In-depth assessment: Once you choose a loan, Rocket takes a deeper look at your finances, including bank account information, as well as employment status. They may ask for documents like a driver’s license, pay stubs, bank statements, and tax forms. This will mean a hard pull on your credit report, which will have a small negative impact on your credit score.

Receive money: If your information qualifies you for the loan, and you accept it, the money will be in your account within days. If approval is before 1 p.m. Eastern time, it could be in your account that day, but it depends on your bank. Many banks have safety measures that won’t allow it to go in that fast. Most borrowers will see the money within a few business days.

Rocket Loans Eligibility and Requirements

To qualify for debt consolidation with Rocket Loans, you must be 18 years old (19 in Nebraska and Alabama) and be a U.S. resident of Washington, D.C. or one of the 47 states where Rocket Loans does business.

As of 2023, Rocket Loans doesn’t lend in Nevada, Iowa, and West Virginia.

Credit score, monthly income, and amount of debt are considered when determining eligibility. Rocket Loans doesn’t list a required credit score, but reviewers and others in the industry say that at least 640 is needed to be approved.

The company runs a soft credit check that won’t have an impact on your credit score when you check your options. Soft credit pulls allow lenders to verify your identity and assess financial risk. Once you proceed past that point, however, a hard credit check will confirm your identity and security information, which will have a small negative impact on your credit score, whether you are approved or not.

Fees for Rocket Loans Services

Rocket Loans determines the interest rate based on the borrower’s financial profile and payment method selected. Financial profile includes an assessment of credit history, yearly income, debt amount, loan term, home ownership, and number of credit inquiries.

There is a small interest rate discount (the amount is not specified on the website) for borrowers who choose auto pay, which allows monthly payments to be taken directly from a checking or savings account. Be sure to select auto pay when you first accept the loan, if you want the discount. Borrowers who don’t choose auto pay when they accept the loan, but then change their mind and switch to it later, don’t get the discount. APRs range from 9.1116% (with auto pay discount) to 29.99% (without auto pay discount).

Your financial profile, as compiled by Rocket Loans, will also determine the amount you pay in origination fees. The lender charges up to 9% origination fee (it doesn’t specify a minimum). The origination fee is deducted before you receive the loan. The downside is that you will be paying interest on a loan that includes that fee amount.

If you don’t have enough money in your account for your monthly payment when auto pay hits, or the check you’ve sent bounces, a $15 late fee will be assessed. Rocket Loans sends a reminder email before each payment is due, so be sure to plan for the payment and avoid a late fee.

Pros and Cons of Debt Consolidation with Rocket Loans

Rocket Loans lives up to its name, offering a quick application, fast funding, and no prepayment restrictions. The high origination fee, though, will cost borrowers with lower credit scores.

Pros of Debt Consolidation with Rocket Loans

  • No prepayment penalty
  • Fast application process
  • Same-day funding
  • Autopay discount

Cons of Debt Consolidation with Rocket Loans

  • Up to 9% origination fee
  • $15 late and insufficient funds fee
  • Must add autopay upon acceptance to get discount
  • Credit and income requirements may take some applicants by surprise
  • Terms are either 36 or 60 months

Is Rocket Loans Right for Me?

Rocket Loans is a worthwhile option if you need money fast and your credit and income are decent enough to get a low interest rate. This is particularly true for borrowers looking to refinance high-interest credit card debt. If your credit score isn’t high enough to get an interest rate that will save you money, work to improve your credit first, then try again.

Borrowers with a credit score of more than 640 will have the best chance at approval, and the higher your credit score, the better interest rate you’ll get. Rocket Loans encourages borrowers to re-apply if their circumstances change, particularly if their credit score or debt-to-income ratio has improved, or their income has increased.

Rocket Loans’ terms of 36 or 60 months may not be flexible enough for some borrowers, who’d like more of a choice on repayment length, and the cap of $45,000 may not meet a borrower’s needs for debt consolidation.

Rocket Loans Reputation and Consumer Reviews

Rocket Loans has an A-plus rating with the Better Business Bureau and has never made news for running afoul of the Federal Trade Commission or other consumer watchdogs. Its parent company was penalized by the FTC in 2002, back when it was Quicken Loans, for failing to notify applicants they were rejected because of their credit history. Rocket Companies has had a clean record since then.

Of 564 complaints to the Consumer Financial Protection Bureau since January 2020, 488 have to do with Rocket Mortgage, and only eight with Rocket’s personal loan services.

When it comes to financial products, reviews are always a mixed bag. Comments fluctuate from “absolutely great experience” to “total waste of time.” However, they’re still helpful in gauging the kinds of things that would be an issue if you apply, as well as the legitimacy and professionalism of an organization.

Positive reviews say Rocket Loans lives up to its name. Borrowers found the service fast, efficient, and reliable. One reviewer noted that the entire process took about three hours, and they got their money the next morning. Some reviews from borrowers with poor credit praised Rocket Loans for saving them from dealing with triple-digit interest rates offered by payday lenders.

It can be hard to predict who will qualify. Some applicants wondered why their financial profiles were deemed inadequate despite being homeowners or long-time professionals with good credit, though it’s not clear if they met Rocket Loans’ other criteria for financial soundness, like income level or debt-to-income ratio. It’s best to review and understand your credit and debt before applying for a loan. What seems good to you, may not to a lender.

Alternatives to Rocket Loans

Rocket Loans is one of many solutions for borrowers looking to consolidate debt. If you don’t qualify for Rocket Loans, there are options to get a loan with bad credit.

Avant accepts applicants with a credit score as low as 580, though most Avant borrowers have credit scores between 600 and 700. Loans range from $2,000 to $35,000, with APRs of 9.95%-35.99% for terms of 12 to 60 months. Fees include an “administrative fee” of up to 4.75% when the loan is approved, and there is a $25 late payment fee.

Discover allows lower credit scores, so it may be an alternative for Rocket Loans for borrowers with less-than-great credit. APRs are 6.99%-24.99%, loan amounts are $2,500-$40,000 and repayment terms are more flexible than Rocket Loans, at 36-84 months. Discover’s “buyer’s remorse” option allows a borrower to return the loan money within 30 days of receiving it with no interest charged.

PenFed Credit Union has been loaning money since 1935. Credit unions, since they’re member-owned, offer lower APRs and few fees. PenFed’s APRs are 7.74%-17.99%, and the credit union doesn’t have an origination or early payoff fee on debt consolidation loans. But don’t mistake PenFed for the little local credit union on the corner – it has $31 billion in assets. You can borrow up to $50,000 with terms of up to 60 months. APR is based on credit worthiness and length of membership. You don’t have to be a member to apply, but if accepted you have to become one, which means opening a checking or savings account.

Alternatives to Debt Consolidation Loans

There are ways to consolidate or eliminate credit card, student loan or medical debt without borrowing more money, particularly if you have poor credit.

It’s a good idea before you apply for loans to know your credit score, credit history, what the numbers mean and how things like your debt-to-income ratio play a part in decisions by lenders. Check your credit reports from all three credit reporting agencies (Equifax, TransUnion, and Experian) to make sure there are no errors on your report. That should ensure that decisions made based on your credit score are accurate and that you understand what you may have to do to get to the point where you can qualify for a debt consolidation loan.

It’s never a good idea to solve the problem of having too much debt by borrowing more money if it’s just going to cost you more.

If you’re having trouble paying your bills, consider credit counseling. A consultation with a counselor at a nonprofit credit agency is free. They are required by law to offer advice that’s in your best interest. They will help you create a budget by going over your income and expenses and review options for reducing debt. They’ll offer tools and resources than can help you attack your debt and improve your financial situation.

The counselor may recommend a debt management plan, which is not a loan. It is a program offered by nonprofit credit counseling agencies that helps reduce the interest rate on credit cards. It reduces the amount you’ll pay overall, as well as your monthly payment. The agencies work with creditors on your behalf to get the lower rates. You pay a fixed monthly amount to the credit counseling agency, and they pay off your unsecured debt in 3-5 years.

About The Author

Bents Dulcio

Bents Dulcio writes with a humble, field-level view on personal finance. He learned how to cut financial corners while acquiring a B.S. degree in Political Science at Florida State University. Bents has experience with student loans, affordable housing, budgeting to include an auto loan and other personal finance matters that greet all Millennials when they graduate. He has a prodigious appetite for reading, which he helps feed with writing from Scottish philosopher Adam Smith, the “Father of Capitalism.” Bents writing also has been published by JPMorgan Chase, TheSimpleDollar and


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