Rocket Loans vs. American Express: Which Personal Loan Is Right for You?

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Edited byMorgan Hull
Edited byMorgan Hull

Updated: July 25, 2023

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Rocket Loans is a financial technology (fintech) lending platform that began providing personal loans to consumers in 2016. Loan amounts range from $2,000 to $45,000 at APRs from 5.97% to 29.69%.

American Express personal loans range from $3,500 to $40,000. Although this type of loan is unsecured, it is available to qualified cardholders. Only American Express cardholders with a minimum credit score of 660 are eligible.

MoneyGeek provided up-to-date information to help you compare Rocket Loans and American Express personal loans. Our comparison looks at each lender’s APR range, minimum credit score requirements, repayment terms, pros, cons and more.

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Rocket Loans or American Express: Overview

This section talks about the similarities and differences between Rocket Loans and American Express. It gives a deeper insight into their interest rates, credit score requirements, loan amounts, repayment period and disbursement time.

Rocket Loans and American Express offer personal loans that can be used for debt consolidation, home improvement and more. While both lenders require a minimum credit score, American Express requires a higher credit score than Rocket Loans.

Rocket Loans

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American Express

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APR Range

Lender
APR Range

Rocket Loans

5.97% to 29.69%

American Express

4.93% to 19.97%

Rocket Loans personal loans have APRs ranging from 5.97% to 29.69%. In contrast, American Express personal loans have an APR ranging from 4.93% to 19.97%. For this category, American Express has a huge lead over Rocket Loans.

APR or annual percentage rate is the interest borrowers pay annually on a personal loan. Factors like a borrower’s credit score, employment history and risk profile affect your APR. Some lender-specific factors like repayment terms and loan amount also affect your APR range.

Since a lower interest rate means you’ll pay less for the loan over its life, APR is one of the most important factors to consider when choosing a lender.

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MONEYGEEK’S VERDICT

In this section, American Express wins because of its lower APR range, which starts at 4.93%. Again, only those with the highest credit scores will qualify for its lowest advertised APR.

It’s important to remember that APR varies between lenders and regularly fluctuates; the rate a lender advertises today may be different from the one that’s listed tomorrow. Because of this, it’s essential to verify a lender’s current APR range before applying.

Minimum Credit Score

Lender
Credit Score

Rocket Loans

640

American Express

660

In terms of minimum credit score, it was a close fight between these lenders, but Rocket Loans had a slight edge over American Express. Its minimum credit score requirement of 640 is 20 points less than that required by American Express. However, Rocket Loans may not be your ideal choice if you have a poor credit score because you may receive its highest advertised APR — 29.69%.

Lenders use a borrower’s credit score to evaluate their capacity to repay the loan. Besides eligibility for a loan, your credit score can also impact the personal loan amounts, APR and repayment terms available to you. If you aren’t in a rush to take out a loan, it’s best to improve your credit score first. That way, you can receive the best loan terms for your financial situation.

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MONEYGEEK’S VERDICT

In this case, Rocket Loans gained the edge due to its lower minimum credit score requirement of 640. Borrowers with good-to-excellent credit scores may be suited for this lender. However, this lender isn’t recommended for those that simply meet the minimum credit score requirement because they may be subject to high APRs and restricted loan terms.

Loan Amount Range

Lender
Loan Amount Range

Rocket Loans

$2,000 to $45,000

American Express

$3,500 to $40,000

A loan amount range refers to the amount of money, including a minimum and maximum, that a lender offers to borrowers. The amount available to you will be based on your needs and credit score. Some lenders place restrictions on the usage of funds, so it’s best to thoroughly research each lender to ensure that they can meet your needs.

Rocket Loans and American Express have relatively similar loan amount ranges; the former offers loans ranging from $2,000 to $45,000, while the latter provides loans from $3,500 to $40,000. As such, the best lender for you will be based on your financial needs.

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MONEYGEEK’S VERDICT

Rocket Loans and American Express tied in this category because they offer similar loan amount ranges.

The best personal loan amount for you depends on your financial needs. Smaller funds may be best for small house repairs or minor expenses. On the other hand, a more significant loan amount is fitting for those who want to consolidate debts or fund important occasions, like a wedding or vacation.

Remember that the loan amount you request in your application will impact your chances of getting approved. If you request an unreasonable amount for your financial history, your application may be rejected. Plus, it’s always best to borrow only what you need to avoid paying more in interest.

Repayment Terms

Lender
Repayment Terms

Rocket Loans

36 to 60 months

American Express

24 to 84 months

When choosing a lender, you should also consider repayment terms. Rocket Loans has repayment terms from 36 to 60 months, while American Express offers terms from 24 to 84 months.

Repayment term refers to the time given to the borrower to repay the loan. Long-term goals have a maximum of 84 months, while short-term goals have a maximum of 24 months. A longer repayment term will reduce the cost of your monthly payments, but you may end up paying more in interest.

Ideally, borrowers should choose the lowest repayment term available that fits within their budget. That way, they’ll pay less overall for the loan.

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MONEYGEEK’S VERDICT

MoneyGeek selected American Express as the better personal loan provider of the two due to its lower APR ranges and repayment term of 24 to 84 months. This lender will significantly benefit American Express cardholders with fair credit scores who need a moderate loan amount.

Usually, shorter repayment terms feature lower interest rates but have higher monthly payments (since you’ll be repaying the loan back over a shorter period of time). Borrowers can choose how long they will repay the loan, depending on their loan amount and preferences.

To choose your repayment term, you should evaluate your financial needs and ability to repay the loan.

Time to Receive Funds

Lender
Time to Receive Funds

Rocket Loans

Next day

American Express

Same day

While most lending companies can take anywhere from a few days to a few weeks to disburse funds, Rocket Loans and American Express disburse funds immediately after your application is approved.

For borrowers that are in a pinch and need cash fast, these lenders are an ideal option. With the advent of online applications, borrowers can easily apply from the comfort of their home, rather than in-person at a branch. Online applications also have the advantage over in-person applications in terms of approval time.

To expedite the application process, we recommend that borrowers gather and prepare documents, such as identification cards, pay stubs and other requirements in advance. That way, you have everything together when it’s time to apply.

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MONEYGEEK’S VERDICT

American Express wins in this category because it offers same-day fund disbursement. Since fund disbursement time shouldn't be your main reason for choosing a lender, unless you need funds to cover an emergency, we emphasize making your decision based on more important factors like APR, repayment terms and loan amount.

Final Thoughts

Rocket Loans and American Express are good options for personal loans since both have relatively low APR ranges, and you can receive the funds in a short period. Because both lenders offer different benefits, it’s difficult to select one as better than the other without knowing a borrower’s situation.

If your credit score disqualifies you from other lenders, you may choose Rocket Loans personal loans. But if you’re an American Express cardholder with a slightly higher credit score, you may benefit from a personal loan with American Express.

Key takeaways:

  • Rocket Loans has a lower minimum loan amount and minimum credit score requirement.
  • American Express is ideal for those who are prequalified eligible cardholders and need immediate funding.

Frequently Asked Questions About Personal Loan Lenders

Choosing a personal loan lender can be daunting. So here at MoneyGeek, we strive to make the process easier for you by answering the most commonly asked questions about personal loans.

What documents do I need to provide to personal loan lenders?
How do I know what my credit score is?
Do lenders conduct a hard inquiry?
Are interest rates on personal loans the same for all lenders?
Do lenders charge fees for personal loans?
What are the advantages of applying for a personal loan online?
Is prepayment allowed on personal loans?
sources
Shield Insurance

The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.

Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about our editorial policies and expert editorial team.