NerdWallet rating: 5.0 / 5.0
Good for: Good credit, debt consolidation, co-signers
Laurel Road’s unsecured personal loans have emerged as an option for strong-credit borrowers looking to consolidate debts, make home improvements or fund unexpected expenses.
The lender compares favorably to similar lenders, offering low rates, no origination fees or prepayment penalties, and an autopay discount. While Laurel Road requires good credit to qualify, it also accepts co-signers, which can improve your approval chances.
Laurel Road personal loans at a glance
|Loan amounts||$1,000 - $45,000|
|Typical APR||5.75% - 11.99% (without autopay)
5.5% - 11.74% (with autopay)
|Time to funding||Average of five days|
|Repayments||Monthly over three, four or five years|
|Soft credit check?||Yes|
|How to qualify||
|Best for||Borrowers with good personal credit and a co-signer, consolidating debt|
Click “Compare Rates” to see estimated rates from multiple lenders on NerdWallet.
Detailed Laurel Road personal loan review
To review Laurel Road, NerdWallet collected more than 30 data points from the lender, interviewed company executives, completed the online loan application process with sample data, and compared the lender with others that seek the same customer or offer a similar personal loan product. Loan terms and fees may vary by state.
Laurel Road provides unsecured personal loans from $1,000 to $45,000, with typical annual percentage rates ranging from 5.5% to 11.74%, which includes a .25% discount for automatic bank payments. There are no application fees, origination fees or prepayment penalties.
For physicians and dentists in practice or within 12 months of completing training with a signed contract to practice, Laurel Road has a separate medical loan offering, with loans up to $80,000, APRs between 5.50% and 9.99% (with autopay), and repayment terms up to seven years.
The maximum borrowing amount for Laurel Road’s personal loans for debt consolidation, major purchases and home improvements is $45,000. For all other purposes, the maximum is $35,000. Its average loan size is $38,000, and 60% of its borrowers use their loans for debt consolidation, according to Frank Luisi, head of the personal loan division at Laurel Road.
Laurel Road allows applicants to apply with a co-signer, an option that can improve your odds of loan approval and get you more favorable terms on your loan.
Loan example: For a borrower with excellent credit (720 to 850), a $30,000 personal loan with a repayment term of five years at 10.94% APR carries monthly payments of $651, according to NerdWallet’s personal loan calculator.
Laurel Road’s rate beat discount
Applicants who pre-qualify for a Laurel Road personal loan and get a lower rate offer from a competitor can submit the competing offer to Laurel Road and request a lower rate. Laurel Road says it will beat the interest rate on that offer by .25%.
The competing offer must be a comparable personal loan product, and applicants must be eligible for Laurel Road financing to qualify for this discount, which includes meeting the lender’s 680 credit score minimum.
How Laurel Road personal loans compare
Laurel Road’s rates and terms compare favorably to other lenders that require strong credit.
- Lightstream requires a credit score of 660 or higher, but also several years of credit history, which is not a requirement at Laurel Road. Lightstream also offers a rate beat discount for those who qualify, but the discount is .10% versus Laurel Road’s .25%.
- SoFi requires a 660 credit score or higher and offers loans up to $100,000, compared with $45,000 at Laurel Road. SoFi places more of an emphasis on income, and its borrowers have a median income of $101,000.
- Marcus borrowers typically have a credit score above 700, but the lender has a higher APR range of 6.99% to 23.99% compared with 5.5% to 11.74% at Laurel Road.
How to apply for a loan
You can pre-qualify for a personal loan and get a quote with no impact to your credit score at Laurel Road’s website.
The application requires information such as your Social Security number (to verify your identity), your employment status and gross annual income, education history and loan information. You’ll need to authorize Laurel Road to do a soft credit inquiry. You can add a co-signer later in the application process, if you decide to move forward with a loan.
Laurel Road then either approves the loan with conditional rates, denies the loan or requires further review. One instance when the lender might further review your application is if you want to use the loan for debt consolidation but your debt-to-income ratio is too high to qualify. Laurel Road determines if an option like directly paying your creditors for you would improve your eligibility.
NerdWallet recommends comparing loans to find the best rate for you. Click the button below to see estimated rates from multiple lenders on NerdWallet.
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PERSONAL LOANS RATINGS METHODOLOGY
NerdWallet’s ratings for personal loans awards points to lenders that offer consumer-friendly features, including: soft credit checks, no origination fees, payment options, short time to funding, interest rate caps of 36%, and absence of prepayment penalties. Features are considered for their positive impact on consumers’ credit history and financial health. We only review lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews. Read our editorial guidelines.
— Among the very best for consumer-friendly features
— Excellent; offers most consumer-friendly features
— Very good; offers many consumer-friendly features
— Good; may not offer something important to you
— Fair; missing important consumer-friendly features
— Poor; proceed with great caution