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

MoneyGeek collected data and evaluated Rocket Loans vs.SoFi to help the average borrowers choose between these two personal loan providers. We are a reliable source for comparing the largest personal loan lenders in the United States, and we gather updated, relevant data to make these evaluations.

Both Rocket Loans and SoFi offer rapid loan disbursements with reasonable APRs. However, SoFi is better if you need a larger loan, while Rocket Loans is ideal for people who want to borrow a little-to-moderate amount of money.

MoneyGeek compared Rocket Loans and SoFi in terms of their APR ranges, loan amounts, loan disbursement times, repayment flexibility and qualifying minimum credit score requirement.

Although both lenders can distribute money fast, SoFi is a superior option for anyone wanting to finance significant purchases because it can offer up to $100,000. In contrast, you may borrow as little as $2,000 with Rocket Loans, making it ideal for minor expenditure loans.

The amount of interest a borrower will pay on their loan each year, plus any additional fees or charges imposed by the lender, is expressed as an annual percentage rate (APR). SoFi offers a lower starting and maximum APR in comparison to Rocket Loans.

It is important to remember that APRs frequently change, and you aren't guaranteed to acquire the lowest rate that's offered. Numerous variables, including your loan type, credit score, loan size and the underwriting model used by the lender, affect your APR. Knowing which APR range bracket you fall into is a good factor to consider.

While SoFi requires a minimum credit score of 680 in order to qualify for a personal loan, Rocket Loans welcomes candidates with fair credit of 640. The 40-point gap is significant enough to influence some prospective borrowers' decisions.

Using the data from your credit report, the main credit agencies produce your credit score. This is a numerical evaluation of your creditworthiness. It is used by lenders to determine your APR, loan terms and, ultimately, whether or not to approve your loan.

In general, credit scores range from 300 to 850. Individuals with credit scores of 670 or above are frequently seen by lenders as acceptable or low-risk customers, providing great prospects for speedy approval.

Keep in mind that your score can be impacted by things like your credit and payment history, unpaid debts and new credit account applications.

The lowest and highest sum that a lender will lend to a borrower falls within the loan amount range. SoFi has a significantly greater cap than Rocket Loans, allowing applicants to borrow up to $100,000. SoFi would be excellent for major expenditures, like a car or big house projects. On the other hand, Rocket Loans personal loans can cover smaller, less expensive lower than $5,000 so that you don’t have to borrow more than you actually need.

Instead of taking out several little loans from several lenders, it is preferable to find one lender whose product line covers all of your lending demands. It is easier to stay on top of your total debts and payments this way.

The length of time you have to repay a loan is determined by the repayment term, sometimes referred to as the payback period. Usually, lower interest rates are associated with shorter payback terms. However, other variables, such as your credit score, may still play a role.

SoFi offers a wider variety of options than Rocket Loans. This means that you can choose a shorter or longer payback period depending on what's financially better for you.

However, keep in mind that a lengthier payback period has disadvantages. In other words, even if your APR is low, you will pay more interest if your payback time is lengthy. Consider this while assessing a lender's payback period.

Applying for a loan online rather than in person is better if you want the money you need as soon as possible. The majority of lenders let you prequalify before applying without having an impact on your credit score. Providing all the necessary papers could also increase your likelihood of getting approved, not to mention the speed.

That said, both Rocket Loans and SoFi disburse money quicker than typical lenders. Both of these lenders may provide funds a few days after an application is approved, unlike conventional lenders that may take a few weeks.

In addition, both lenders let you prequalify within a few minutes of inquiry, and both also offer online applications to speed up the process.

SoFi, with its higher credit and gross income requirement, is harder to get approved for. However, if you qualify for its personal loans, then it could be the better choice when compared to Rocket Loans. It has a lower APR and a higher loan amount limit. This means better flexibility on where you can spend your money.

Rocket Loans also possess good qualities. It can process and release funds immediately. Plus, you can borrow as little as $2,000 for small expense loans.

The ideal personal loan company will ultimately depend on your needs and your profile. Consider your options to see whether you require a longer payback time, a bigger loan amount or a lower interest rate.

A personal loan must be carefully considered before applying. MoneyGeek has included some commonly asked questions regarding personal loans in order to assist you with the process.