Key takeaways
- SoFi is best for borrowers seeking large personal loans with flexible repayment terms, with or without a cosigner.
- Laurel Road is best if you have excellent credit and need a smaller personal loan.
- Prequalify with both to see which offers the better deal — and compare with other lenders, too.
Laurel Road and SoFi are online lenders that offer personal loans with similar competitive APR ranges. Established 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. SoFi, founded in 2011, also features several lending and banking products.
Both lenders are worth considering, especially if you have good credit.
Laurel Road vs. SoFi at a glance
| Laurel Road | SoFi | |
|---|---|---|
| Bankrate Score | 4.5 | 4.7 |
| Better for | Medical professionals | Large loan amounts and quick funding |
| Loan amounts | $5,000–$45,000 | $5,000–$100,000 |
| APRs | 8.99%-24.25% (with autopay) | 8.99%-29.99% (with autopay) |
| Loan term lengths | 36–60 months | 24–84 months |
| Fees | $28 late fee or 5% of the payment due, whichever is less | Loan origination fee from 0%-7% |
| Minimum credit score | 680 | No requirement |
| Time to funding | Up to a week | As soon as the same business day |
Laurel Road personal loans
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Laurel Road offers unsecured personal loans with a $45,000 maximum loan amount for most borrowers, and specialized loans up to $80,000 for medical professionals. Approved borrowers can use funds for almost any purpose, including debt consolidation, travel and weddings. But, like most personal lenders, Laurel Road doesn’t permit borrowers to use funds to cover post-secondary education expenses.
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Pros
- Competitive APR range.
- No origination fees.
- Cosigned loans available.
Cons
- Lower maximum loan amount.
- Longer time to funding.
- No co-borrower option.
SoFi personal loans
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SoFi offers personal loans up to $100,000 to borrowers, with no set minimum credit score. You can opt to add a cosigner or a co-borrower, the latter of whom shares your access to the loan proceeds. The lender offers flexible repayment terms from two to seven years, making it a good fit for larger loan amounts.
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Pros
- Fast funding.
- Cosigners and co-borrowers allowed.
- No minimum credit score.
Cons
- Need good credit to qualify.
- Higher maximum APR.
- Higher APR if you opt out of fees.
How to choose between Laurel Road and SoFi
Laurel Road and SoFi are both wonderful choices for borrowers with good credit, but the details mean SoFi may be better for many borrowers.
APR range
Borrowers with excellent credit profiles can potentially secure the same competitive starting rate. However, Laurel Road wins when it comes to its maximum rate, which is 24.25 percent — almost 6 percent lower than SoFi’s.
Minimum credit score
Laurel Road’s minimum credit score is 680. According to a SoFi representative, SoFi doesn’t have a set minimum credit score. However, that doesn’t mean everyone will qualify — you likely still need high income and an excellent score for the lender’s best rates. Both lenders allow you to add a cosigner, which could increase your approval odds and maximum borrowing amount if their credit history is healthier than yours. SoFi also allows co-borrowers.
Since both offer prequalifiation, you can find out whether you’re likely to qualify without harming your credit score.
Repayment terms
SoFi may be better if you want a longer term to lower your monthly payment — its maximum loan term is 84 months. That said, the longer your loan term, the more interest you’ll pay over the life of the loan.
Fees
Laurel Road doesn’t charge any origination fees, which means you get the full amount you’re approved for. SoFi, on the other hand, doesn’t require origination fees but gives you the option to pay one up to seven percent of the loan amount in exchange for a lower APR.
Before choosing a lender, compare APRs and terms to calculate the total borrowing costs of each option.
Bottom line: Which lender is better?
SoFi and Laurel Road offer attractive personal loan options for borrowers with stellar credit profiles. But SoFi is the better choice if you need funds fast and want to take out a larger loan — or if you don’t meet Laurel Road’s credit score requirement. Laurel Road’s the obvious pick if you’re a medical professional.
To assess which lender may be best for you, consider prequalifying with both to compare rates and terms. Keep in mind that prequalifying doesn’t guarantee approval.
Compare more lenders before applying
Although SoFi and Laurel Road both offer competitive minimum rates for borrowers with strong credit, they aren’t the only personal loans on the market. Check out personal loan rates and terms from other lenders — some offer even better rates for excellent credit borrowers.
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