LightStream Review – Competitive Rates for Loans
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Right before I sleep, I scroll through Pinterest to see the latest kitchen and bathroom design trends. Even though I know that these upgrades could easily cost tens of thousands of dollars, I can’t help but imagine recreating those looks in my tiny apartment—or, better yet, in a spacious condo overlooking the city.
If you’re like me and often find yourself dreaming of HGTV-esque spaces, here’s a tidbit of information you might find helpful: Technology has made it easier than ever to apply for a loan to cover an over-the-top kitchen or bathroom remodel (in addition to a variety of other luxuries, like a tropical vacation, destination wedding, or brand-new vehicle). So, before you toss your vision board into the garbage, here’s a rundown of LightStream — an online lender committed to helping people foot the bill for all kinds of things.
In this article
What is LightStream?
Founded in 2012, LightStream describes itself as the “nation’s premier online consumer lender.” The company prides itself on offering low-interest, fixed-rate loans from $5,000 to $100,000; the maximum APR for a LightStream loan is 25.00% with autopay. What’s more? Borrowers who have approved their loan agreement and have signed it by 2:30 p.m. EST can receive their funds as soon as the same day.
Unlike other online lenders, LightStream offers unique loan options with competitive rates and flexible terms. Borrowers can use a LightStream loan for various purposes, including IVF financing, debt consolidation, home improvement costs, and educational expenses (PreK–12 financing). If you have good credit, LightStream can help you out, no matter your loan purpose.
Bonus: With LightStream, there are no origination fees, no late payment fees, and no prepayment penalty.
LightStream is a Truist Bank division formed in 2019 after SunTrust Bank and BB&T merged.
Your Online Loan Marketplace
- 100% free of fees
- $0 origination fees
- $0 to check your rates
- $0 prepayment penalties
- One simple form
How does LightStream work?
Applying for a loan with LightStream is simple. To get started, visit lightstream.com and click “APPLY NOW.”
LightStream doesn’t offer a pre-qualification application on its website. When you apply on the website, you’re filling out the actual loan application and not an application for pre-approval.
However, prospective borrowers can get an idea of their rate based on their specific loan purpose.
For example, if you select “new auto purchase” and type in $50,000 as your loan amount, the site will auto-generate a list of options starting with the lowest rate.
When applying for a LightStream personal loan, you must enter your full name, date of birth, Social Security number, driver’s license number (last four digits), employment information, annual income, and monthly housing costs. Remember, this is a loan application, so they will want to know everything.
To qualify for a LightStream loan, you must have the following:
- Several years of credit history
- A credit history with a variety of account types (e.g., credit cards, mortgages, vehicle loans)
- Good payment history and an outstanding credit report
- Savings and tangible assets (e.g., real estate, stocks, bonds, bank deposits, etc.)
- A stable and sufficient income
In addition to filling out your basic and more detailed personal information, you must acknowledge that you received LightStream's Statement on the Use of Electronic Records and agree to use electronic signatures to sign your loan agreement. You’ll also need a valid Visa or MasterCard credit card for verification.
New customers must also create an online username and password before submitting their application. Usernames must be between 6 and 50 characters and contain a mix of numbers, letters, and special characters. For added security, new users are also asked to choose a security question before they can submit their completed application.
Once approved, you’ll be asked to e-sign your loan agreement and set up your funding method. Borrowers who complete their application, are approved, and have everything signed and ready to go by 2:30 p.m. can get same-day funding.
Related: Best Crowdfunding Investing Apps
How much does LightStream cost?
One of the best things about LightStream is that there are no fees. This means no origination fee, late fee, or prepayment penalty.
Your Online Loan Marketplace
- 100% free of fees
- $0 origination fees
- $0 to check your rates
- $0 prepayment penalties
- One simple form
LightStream features
LightStream offers a unique lending experience. Here are a few of the company’s best features.
Rate beat program
LightStream offers a price match guarantee similar to Walmart’s—if you can find the same loan (same terms, loan amount, etc.) from a competing lender for a lower rate, LightStream will counteroffer a rate of .10 percentage points lower.
To enter the “Rate Beat Program,” log in and click “Submit Rate Beat Request.” The screen will guide you through the next steps.
Loan experience guarantee
In addition to offering customers an even lower rate via the “Rate Beat Program,” LightStream encourages unsatisfied customers to participate in its “Loan Experience Guarantee” program.
Here’s how it works: After receiving your loan, contact LightStream. The company will email you a questionnaire to fill out. Once you complete it and send it back to LightStream, the company will send you $100.
Environmentally-friendly loan process
LightStream partners with American Forests — the oldest conservation organization in the U.S. — to plant one tree with every loan.
Who is LightStream best for?
- People with several years of credit history. LightStream isn’t for newbie borrowers. According to the company website, LightStream loans are best suited for people with several years of credit history.
- Responsible borrowers with good credit. In addition to having several years of credit history, LightStream requires all of its customers (prospective and current) to have good or excellent credit. This means having a good payment history with very few delinquencies.
- Individuals with assets and a stable income. People with stable and sufficient income and assets to repay current debt obligations are more likely to get approved for a LightStream loan.
Related: Best Personal Loans for Excellent Credit
Who shouldn’t use LightStream?
- People with poor or fair credit. Individuals with poor or fair credit may want to apply elsewhere, as LightStream requires a minimum credit score of 660.
- First-time borrowers. New customers need a good credit score and some skin in the game. If you’re a newbie borrower, try applying for a loan with Upstart or Upgrade.
Pros and cons
Pros
- Quick application process. While LightStream doesn’t offer a way to get pre-qualified, the application is still fairly simple and quick to fill out.
- No fees. LightStream doesn’t charge its customers any fees! This means no origination fee, late fees, or prepayment penalty.
- Autopay discount. Borrowers who sign up for autopay receive a .5 percentage point rate discount.
- Loans as high as $100,000. LightStream offers loans as high as $100,000.
- Low interest rates. LightStream’s personal loan rates are crazy good with an APR of up to 25.00%. Others charge as much as 35.99%.
- Longer repayment terms. Unlike other lenders, LightStream offers repayment terms as long as 12 years.
- Various loan purposes. According to the company website, LightStream loans can be used to finance just about anything, including auto loans and IVF treatment costs.
Cons
- No option to pre-qualify. There’s an upfront credit check once your application is submitted.
- Minimum credit score. Applicants must have a credit score of 660 or higher
- Several years of credit history. In addition to having a good score, applicants are required to have several years of credit history under their belt as well.
- Direct payment to creditors not offered with debt consolidation loans. LightStream doesn’t offer a direct payment option for borrowers with a debt consolidation loan.
- No co-signers are allowed. LightStream doesn’t allow co-signers. However, prospective borrowers can submit a joint application.
Your Online Loan Marketplace
- 100% free of fees
- $0 origination fees
- $0 to check your rates
- $0 prepayment penalties
- One simple form
LightStream vs. competitors
Lender | APR | Loan amount | Fees |
LightStream | Up to 25.00% | $5,000 to $100,000 | None |
Upgrade | 8.49% to 35.99% | $1,000 to $50,000 | 1.85% to 9.99% origination fee, $10 late fee, $10 on failed electronic or check payment attempt |
SoFi | 8.99% to 29.49% | $5,000 to $100,000 | None |
Upgrade
Upgrade is a great option for individuals with fair or poor credit. The lender offers loans of $1,000 to $50,000. That said, Upgrade’s rates are much higher than LightStream’s rates. In addition to personal loans, Upgrade also gives customers the option to apply for a Rewards Card or Rewards Checking account.
SoFi
SoFi offers loans between $5,000 and 100,000 with an APR range of 8.99% to 29.49%, depending on the loan purpose. Even so, SoFi can’t beat LightStream in terms of lengths.
Read a full review on SoFi loans.
FAQs
Is LightStream a legit company?
Yes, LightStream is a reputable online lender and has a Better Business Bureau (BBB) rating of A.
Is it hard to get a loan from LightStream?
Compared to other online lenders, it may be harder to secure a low-interest loan with LightStream. LightStream requires applicants to have several years of credit history.
What is an excellent credit score?
Ranges typically depend on the credit scoring model, but according to Equifax, an “excellent” credit score is 800 or higher.
Is LightStream legit?
LightStream is a solid loan option for individuals with a financial house in order. This means having a strong credit history, good payment record, good-to-excellent credit, and a squeaky-clean credit report. Having savings stowed away and a few assets doesn’t hurt, either.
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Writer
Tabitha Britt is a New York-based freelance writer and editor whose work has appeared on INSIDER, the Huffington Post, and Taste of Home. When she's not glued to her computer screen, she can be found walking her beloved pooch, Biscuit.
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