NerdWallet rating: 5.0 / 5.0
Good for: Good credit, debt consolidation, co-signers
Laurel Road personal loans are a low-cost option for borrowers looking to consolidate debts, make home improvements or fund unexpected expenses.
Laurel Road could be a good fit if:
- You need to consolidate debts: Laurel Road has no origination fees, low rates and an autopay discount, making it a strong option for debt consolidation.
- You have a co-signer: The lender allows you to add a co-signer to your loan, which can increase your chances of qualifying or get you a better rate on the loan.
- You have good credit: Laurel Road requires a minimum credit score of 660, but having a good credit score (690 and above) can improve your chances of qualifying.
Laurel Road loan rates and terms
|Loan amounts||$1,000 - $45,000.|
|Typical APR||5.75% - 11.99% (without autopay).
5.5% - 11.74% (with autopay).
|Fees||Origination fee: None.
Prepayment fees: None.
Late fees: 5% or $28, whichever is less.
|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.|
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 with typical annual percentage rates ranging from 5.5% to 11.74%, which includes a 0.25 percentage point discount for automatic bank payments. There are no origination fees or prepayment penalties.
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.
Co-sign loans: Laurel Road allows applicants to apply with a co-signer, which can improve your odds of loan approval and get you more favorable loan terms.
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. The company says it will beat the interest rate on that offer by one-quarter of a percentage point.
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 660 credit score minimum.
Loans for medical professionals: The company has a separate medical loan offering for health care professionals, with loans up to $80,000, APRs between 5.50% and 9.99% (with autopay) and repayment terms up to seven years.
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.
How Laurel Road compares
Laurel Road’s rates and terms compare favorably to other lenders that require strong credit.
Like Laurel Road, 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 one-tenth of a percentage point versus Laurel Road’s 0.25 percentage point.
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 emphasis on income, and its borrowers have a median income of $101,000. Time to funding is typically seven days, compared to an average of five days at Laurel Road and as fast as the same day at LightStream.
How to apply for a Laurel Road 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 entire application process can be completed online, and a customer service representative is available to help via phone, email, in-app messaging or live chat.
The application requires information such as your Social Security number (to verify your identity), your employment status and gross annual income. 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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