Laurel Road and SoFi are online lenders that offer personal loans with similarly competitive APR ranges. Founded in 2013, Laurel Road is a digital banking platform that offers various financial products in addition to personal loans, such as mortgages, student loan refinancing and high-yield savings accounts. Like Laurel Road, SoFi also offers various credit and banking products.
Both lenders are worth considering if you have good credit. However, since they all have different pros and cons, you should compare them to assess which one suits you best.
Laurel Road vs. SoFi at a glance
While Laurel Road and SoFi are the best personal loan options for applicants with a strong credit profile, there are some crucial differences to consider when choosing between the two, such as loan amount, repayment terms, and minimum credit score requirements.
| Laurierweg | SoFi | |
|---|---|---|
| Bank rate score | 4.2 | 4.8 |
| Better for | Applicants with a co-signer | Large loan amounts and fast financing |
| Loan amounts | $5,000 – $45,000 | $5,000 – $100,000 |
| APRs | 9.49%-24.25% (with automatic payment) | 8.99%-25.81% (with automatic payment) |
| Length of the loan | 36-60 months | 24-84 months |
| Cost | $28 late fee or 5% of payment due, whichever is less | Loan origination fees from 0%-6% |
| Minimum credit score | Not specified | 680 |
| Time for financing | Up to a week | As soon as the same working day |
Personal Loans Laurel Road
Personal Loans Laurel Road
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Positives
- Competitive APR range.
- No origination fees.
- Co-signer loans available.
Cons
- High minimum loan amount.
- Longer funding speed.
- Late fee.
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Laurel Road offers general unsecured personal loans with a maximum loan amount of $45,000 for most borrowers, and specialty loans of up to $80,000 for medical professionals. Approved borrowers can use money for a variety of purposes, such as debt consolidation, travel, and weddings. But Laurel Road does not allow borrowers to use funds to cover post-secondary education costs.
However, a potentially major disadvantage is that approval usually takes up to seven working days after approval. This makes it not a good option if you need money immediately. Furthermore, unlike SoFi, Laurel Road charges a late fee of $28 or 5 percent of the late payment amount, whichever is less.
Personal loans from SoFi
Personal loans from SoFi
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Plus points
- Fast financing.
- Flexible refund terms.
- Member benefits.
Cons
- Good credit required to qualify.
- Higher maximum APR.
- Does not allow co-signers.
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SoFi offers personal loans of up to $100,000 to borrowers with a credit score of at least 680. You won’t be charged any fees, but you can choose to pay an origination fee in exchange for a lower interest rate. The lender offers flexible repayment terms from two to seven years consumers to choose an option that best suits their budget.
However, some disadvantages are that it has a higher maximum APR than Laurel Road. And Although you can apply with a co-borrower, co-signer loans are not available.
How to Choose Between Laurel Road and SoFi
Laurel Road and SoFi are both notable options for borrowers with good credit, but the best option varies depending on your situation. Laurel Road is more accessible to those with past credit problems, while SoFi allows you to borrow more and get financing faster.
Laurel Road is better for applicants with a cosigner
Laurel Road offers unsecured personal loans up to $45,000 to borrowers with good credit. Applicants who do not meet credit requirements can apply with a cosigner who does, which can help them get approved. But with SoFi you don’t have this option.
Laurel may also be a better option for applicants with slightly lower credit scores. Although SoFi’s minimum credit score requirement is 680, borrowers may be able to qualify for a Laurel Road loan with a lower credit score.
SoFi is better for larger loans and quick financing
If you want to borrow more than $45,000, SoFi is the better option. It offers loans up to $100,000, which you can use for a variety of reasons, such as home repairs and debt consolidation.
SoFi is also the better option if you need money quickly to cover emergency expenses. While Laurel Road can take up to seven days to disburse once approved, you may receive funds from SoFi much sooner – in some cases on the same business day.
Compare lenders before applying
SoFi and Laurel Road offer attractive personal loan options for borrowers with excellent credit profiles. But SoFi is the better choice if you need money quickly and want to take out a larger loan. On the other hand, Laurel Road may be a better option if you have bad credit and want to apply for a loan with a cosigner.
To assess which lender is best for you, consider pre-qualifying to compare rates and terms. Please note that prequalification does not guarantee approval.
