In today’s digital age, more and more people are turning to online platforms for their financial needs. One such platform is Laurel Road, which offers a range of banking services, including personal loans, student loan refinancing, mortgages, and even a cashback credit card. But with so many financial services available, it’s important to evaluate if Laurel Road is the right choice for your needs. In this review, we’ll delve into the details of what Laurel Road offers, its customer experiences, and whether it’s a trustworthy option for your financial journey.
What Is Laurel Road?
Laurel Road is a digital banking platform that operates under the umbrella of KeyBank, one of the largest banks in the U.S. Since its inception in 2013, Laurel Road has aimed to streamline the lending process with an entirely online interface. The company offers a variety of financial products, including personal loans, student loan refinancing, mortgages, and credit cards. However, it’s worth noting that Laurel Road’s offerings are not FDIC-insured or guaranteed, which is an important consideration for potential customers.
One of the most appealing features of Laurel Road is its easy online application process. Applicants can quickly get pre-qualified for loans without affecting their credit score, thanks to the platform’s use of soft credit pulls.
Loan Products and Features
Laurel Road’s personal loan offerings are designed to provide borrowers with flexible solutions. Here’s a breakdown of what they offer:
- Loan Amounts: Personal loans range from $5,000 to $45,000, depending on the type of loan and purpose. The maximum loan amount for debt consolidation, home improvements, and large purchases is $45,000.
- APR Range: APRs for personal loans range from 9.24% to 24.50%. It’s important to note that these rates are subject to change and depend on various factors, including your credit history, current debts, and loan term.
- Loan Terms: Laurel Road offers loan terms between 3 and 5 years. Borrowers can also get a 0.25% discount on their interest rate by enrolling in automatic payments.
- Collateral-Free: Personal loans from Laurel Road are unsecured, meaning no collateral is required to secure the loan.
In addition to personal loans, Laurel Road also offers student loan refinancing options. This is particularly appealing for those looking to consolidate student loan debt into one manageable monthly payment.
Customer Service and BBB Rating
Laurel Road has an A+ rating from the Better Business Bureau (BBB), which generally indicates a commitment to resolving customer complaints. However, it’s important to note that the company is not accredited by the BBB, and over the past three years, it has received two customer complaints, both of which have been resolved. While the company’s BBB rating is high, there are no customer reviews currently available on their BBB page.
Despite its solid rating, some customers have raised concerns about the service. One notable complaint involved a misunderstanding about cashback offers, where a customer was misinformed by a representative about the eligibility of balance transfers for a bonus. Additionally, some users reported difficulty accessing their accounts or receiving proper customer support.
Applying for a Loan with Laurel Road
The process for applying for a personal loan with Laurel Road is straightforward. Here’s how it works:
- Pre-Qualification: You can start by completing a short application form, which asks for basic information such as your employment history. A soft credit pull will allow you to view conditional rates without impacting your credit score.
- Submit Documents: Once you’ve reviewed the rates and selected the loan that works best for you, you’ll need to upload the required documents. This may include proof of income, tax returns, or other financial information.
- Review and Approval: After submitting your documents, Laurel Road will review your application and confirm the final rates and terms. If you accept the loan offer, you can sign the agreement electronically.
- Loan Disbursement: Once all the paperwork is finalized, your loan will be disbursed on the date specified in your Truth in Lending statement.
Fees and Charges
One of the advantages of Laurel Road is its transparency regarding fees. There are no application, origination, or disbursement fees. Additionally, the platform does not charge prepayment penalties, so if you decide to pay off your loan early, you won’t incur any extra costs. However, borrowers should be aware of a $30 fee for returned payments and a late fee of $29 for missed payments.
How Does Laurel Road Affect Your Credit?
Laurel Road uses a soft credit pull during the pre-qualification stage, which does not impact your credit score. However, if you decide to proceed with the loan, a hard credit inquiry will be made, which can slightly lower your credit score.
Is Laurel Road Legit or a Scam?
With its strong BBB rating and partnership with KeyBank, Laurel Road is far from a scam. It is a legitimate financial platform offering a wide range of products. However, like any financial institution, it’s not without its flaws. Some customers have experienced issues with customer service and account management, which is something to consider before applying.
It’s also important to remember that, like many online lending platforms, Laurel Road’s services are not FDIC-insured, which means there is some risk involved in trusting your money to them. Additionally, while the company offers competitive rates, the APR range is relatively high compared to some other lenders.
Conclusion
In conclusion, Laurel Road provides a range of convenient and flexible loan options for borrowers in need of personal loans, student loan refinancing, and more. While the platform is legitimate, its customer service and some of its product offerings have received mixed reviews. It’s a good idea to carefully consider your options, compare rates, and read customer feedback before deciding whether Laurel Road is the right choice for your financial needs.
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