Does Laurel Road verify income for personal loan applications?

Yes, a Laurel Road personal loan does affect your credit score, both when you apply and during the entire time that you are paying the loan off. Initially, a Laurel Road personal loan will affect your credit score in a negative way, but the long-term impact can be very positive, assuming you repay the loan on schedule.… read full answer

How a Laurel Road Personal Loan Affects Your Credit Score

Hard pull: When you apply for a Laurel Road personal loan, Laurel Road will do a hard inquiry into your credit history, which will temporarily drop your credit score by about 5-10 points in most cases.

Increased debt level: Taking out a Laurel Road personal loan will naturally increase the amount of debt that you have. Since your debt level is one of the components of your credit score, you can expect that to have a negative impact initially.

Account diversity: One positive way that getting a Laurel Road personal loan can impact your score right away is by adding more diversity to the types of accounts you have open. Your "credit mix" is one of the components of your credit score, and the more types of accounts you have, the better - as long as you handle them responsibly.

Payments: The biggest factor in how a Laurel Road personal loan affects your credit score is whether you pay on time. If you make on-time payments, your score should steadily increase as a result. If you pay late or fail to make payments altogether, you can expect your credit score to drop.

The bottom line is that while a Laurel Road personal loan does affect your credit score, most of the way that your score changes depends on how responsible you are with the loan. If you'd like to estimate how certain actions might affect your credit score, you can use WalletHub's free credit score simulator.

To apply for a Laurel Road personal loan, first check for pre-qualification and then enter your personal and financial information on the online application. Next, verify the accuracy of the information, submit the application and wait to receive a decision.

How to Apply for a Laurel Road Personal Loan

1. … read full answerCheck for pre-qualification. Pre-qualification is a way to check your approval odds and potential rates before applying for a Laurel Road personal loan. It doesn’t hurt your credit. You can check for pre-qualification on the Laurel Road website.
2. Enter your personal information on the application. Laurel Road requires the following personal information on the application: your full name, email, date of birth, home address, Social Security number, phone number and citizenship status.
3. Enter your financial information on the application. Laurel Road requires the following financial information on the application: your employment status, gross annual base income, monthly payment on mortgage or rent, and level of education.
4. Double check the application for accuracy. To ensure that your Laurel Road personal loan application gets processed as quickly as possible, make sure that all the information is correct and complete before you submit it.
5. Submit your application. Laurel Road will typically provide a decision on your application within 2 to 10 business days (for both approval and funding).

If you are approved for a Laurel Road personal loan, you will generally receive the funds within up to 7 business days after approval. After that, it’s your responsibility to make monthly payments until you have fully paid back your loan, including interest.

Yes, Laurel Road does a hard inquiry when you apply for a loan. This credit report inquiry will likely drop your credit score by about 5 to 10 points, but you'll be able to get back on track with a few months of on-time payments.

Laurel Road's hard inquiry will stay on your credit report for two years, but it won't affect your credit after one year, and the impact may subside before then. To see how your individual credit score may be affected by a hard inquiry, you can use the … read full answercredit score simulator on WalletHub.

It's worth noting that some people may be uncertain about whether Laurel Road does a hard inquiry because there's only a soft inquiry during the pre-qualification process. Soft inquiries do not impact your credit score. But that's just the first step, and a hard inquiry is required when you officially apply.

If not having a hard inquiry is important to you, lenders that don't do a hard pull at all include Opploans, Integra Credit and NetCredit.