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

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.

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 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.

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.

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.

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.

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.

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.

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.