Best Egg vs. Laurel Road: Which offers better personal loans?

Best Egg has a 95 percent customer satisfaction rating and has funded 1.1 million in personal loans. Laurel Road has been around as a lender since 2013 and became a part of KeyBank in 2019.

Best Egg and Laurel Road are good options to consider if you’re looking for a small-to-midsize personal loan. That said, there are some key differences to consider before applying with either one.

Best Egg vs. Laurel Road at a glance

Best Egg and Laurel Road’s personal loans are quite similar regarding repayment terms and loan amounts. However, they differ when it comes to fees, interest rate caps and funding timelines.

Best Egg personal loans

Rating: 4.6 stars out of 5

4.6

Learn more in our Bankrate review

• Pros and cons

  

  Pros

  • Prequalification available.
  • Quick funding.
  • Lower minimum credit score than competitors.

  

  Cons

  • Origination fee.
  • Not available in all states.
  • No joint loans allowed.

• Bankrate's view

  As a lender with higher user ratings, Best Egg has provided over 1.1 million in personal loans. The online lender offers quick funding and the option to check your rate without impacting your credit score. Best Egg also evaluates more than just credit score to determine if a loan will be approved. And, the lender has lower credit score minimums than many competitors.

  However, Best Egg may not be the best lender for everyone. Unfortunately, they do have an origination fee, which can be as high as 8.99 percent. Best Egg also doesn’t fund loans for residents of Iowa, Vermont, West Virginia or Washington, D.C. Residents of these states will need to look elsewhere for personal loans.

Laurel Road personal loans

Rating: 4.2 stars out of 5

4.2

Learn more in our Bankrate review

• Pros and cons

  

  Pros

  • No origination fees.
  • Allows co-signers.
  • Autopay discount.

  

  Cons

  • High minimum loan amount.
  • Undisclosed credit requirements.
  • Slower-than-average funding.

• Bankrate's view

  Laurel Road is best known for its student loan products. However, the lender’s personal loans are pretty competitive, too. 

  Though its minimum loan amount requirement is on the higher side and funding can take up to seven days, Laurel Road caps interest rates at 24.5 percent. This is a much lower rate cap compared to that of competitors.

  Laurel Road allows co-signers for applicants who can’t qualify for a loan independently and don’t charge origination fees or prepayment penalties. Customers who sign up for automatic payments also get access to a 0.25 rate discount, which can further reduce borrowing costs.

How to choose between Best Egg and Laurel Road

Both Best Egg and Laurel Road offer online personal loans with mid-range APRs and minimal frills. However, there are a few key ways the lenders differ.

Best Egg is best for borrowers with fair credit or better

While Laurel Road doesn’t disclose its minimum credit score requirement, Best Egg works with those with a credit score of at least 600. This is considered fair credit and is a lower minimum than most competitors, making Best Egg a good fit for this type of credit applicant.

Laurel Road makes personal loans affordable

Laurel Road has several loan features that make them an affordable option for borrowers. They offer an autopay discount that lowers the interest rate by 0.25 percent. Additionally, any upfront fees aren’t charged on its personal loans.

Best Egg, on the other hand, charges an origination fee of up to 9.99 percent on all its personal loans. Additionally, its maximum rate is 35.99 percent, whereas Laurel Road caps its rates at 24.50 percent.

Compare lenders before applying

Laurel Road and Best Egg are two solid options for personal loan lenders. However, they aren’t the only alternatives. Make sure to shop around for rates from multiple lenders to get the most favorable loan for your situation. If possible, see if prequalification is available, as this will let you compare realistic offers side-by-side without hurting your credit.