LightStream

LightStream Overview

Since 2004, LightStream has provided personal loans for borrowers with excellent credit and an established credit history. They are funded by a financial institute, SunTrust Bank, rather than a group of investors. Our LightStream personal loan review will help you decide if the lender is right for you.

LightStream is unique in the fact that your interest rate is based heavily on the reason you take out your loan. This means you must use your loan in the way you informed LightStream and if you have cash left over after using your loan for the intended purpose, you can make a larger monthly payment to go towards paying off the loan earlier.

Your personal loan's interest rate is also based on the risk of the loan you take out. Personal loans used to pay off debt are considered riskier, which usually results in a higher interest rate.

LightStream Pros

• Competitive interest rates: LightStream provides loans with low-interest rates to borrowers with excellent credit.
• Same day funding: You can receive your loan on the same business day if you apply before 2:30 PM ET.
• LightStream’s loans allow co-signers.
• We will respond promptly during our normal business hours. Monday through Friday, 9:00 a.m. to 8:00 p.m. and Saturday, Noon to 7:00 p.m. Eastern time.
• Take your time to make the right decision: Loan offers are valid for 30 days, giving you time to weigh the decision before you accept it.
• Customer service guarantee: If you are not satisfied with your LightStream experience, you can fill out a questionnaire and receive a $100 guarantee.
• Unsecured loans: LightStream's loans do not require you to put up collateral.
• Three bureau credit reporting: LightStream reports to all three major credit bureaus (Experian, Equifax, and TransUnion), which gives you the incentive to make your payments on time and improve your credit score.
• Transparency: LightStream lists their loan amounts, terms, and interest rates on their website.

LightStream Cons

• LightStream does not offer loan financing for higher education, although you can take out a personal loan to finance grade school.
• If you have a credit score that is not considered good or excellent, LightStream may not be the best option to look into, even with a joint applicant.

How Does LightStream Work?

LightStream works much like other personal lenders, with one noteworthy twist.

With a typical personal loan, you apply for the loan and can use the proceeds for almost any purpose. While the lender might ask why you’re applying for a loan, it usually doesn’t matter that much or impact the details of your loan.

With LightStream, your reasons for applying factor into the interest rate. That means that you need to be honest about why you’re applying and actually use the funds for the purpose you state. In general, loans secured by assets will have lower rates.

For example, loans for home improvement are likely to have lower rates than loans for financing a major purchase.

Products Offered

LightStream only offers one product: personal loans. However, unlike other lenders, the details of its loans will depend on the reasons you have for applying.

How to Qualify for a LightStream Personal Loan?

LightStream, like any other lender, wants to make sure that you can afford to repay a new loan. the company will consider factors like your credit score, income, and debt when making a lending decision. The better your credit, higher your income, and lower your debt, the better your odds of getting approved.

LightStream does publish the following requirements to qualify:

• A credit history of at least five years
• A minimum credit score of 680
• A minimum $50,000 annual income
• Having a savings and retirement account will help you secure your loan
• A history of on-time payments

How to Apply for a LightStream Personal Loan?

Applying for a loan from LightStream is easy. It’s just a three step process.

First, you visit the LightStream website and fill out an application online. You don’t have to go anywhere in person or speak to a lender. The application will ask for some info, including your financial and credit situations.

LightStream claims that it can respond within hours if you submit your application during business hours.

If LightStream approves your application, you’ll get a loan offer. You may receive a few options with different repayment terms, rates, and monthly payments. If you like one of the offers, all you have to do is use an electronic signature to sign the documents.

If all goes well, LightStream can fund your loans as soon as the same day you apply.

Terms & Requirements

Beyond having good credit and income, LightStream personal loan requirements include:

• A mix of different types of credit like credit cards, car loans, and mortgages
• A credit history of at least five years
• A low debt-to-income ratio, so the less of your available credit you use, the more likely you are to be approved
• Be at least 18 years of age or your state's minimum age, whichever is higher

If you don’t meet these requirements, you might struggle to qualify for a loan

LightStream Pricing

• LightStream does not charge an application fee, origination fee, prepayment fee, or a late fee. If you miss a payment, your interest simply accrues.
• Their personal loans range from $5,000 to $100,000.
• LightStream’s loan terms range from 2 to 7 years.
• Their loan interest ranges from 3.09% to 14.24%.
• If you set your account to automatic payments, LightStream deducts 0.50% from your monthly payments.
• LightStream’s “Rate Beat” program guarantees to beat any competitor’s rate by 0.10% points if you meet certain conditions.

For Whom LightStream is Good?

LightStream is a good choice of lender for people with strong credit and a specific reason for borrowing. LightStream is unusual in that it adjusts its loan rates based on why you need a loan. Many lenders have a single interest rate range that doesn’t change with your reasons for getting a loan.

LightStream offers its lowest rates to people who are applying for loans related to an asset, such as home improvements or buying a car. If you’re looking for a loan for those reasons, LightStream can be a cheap lender. If you’re doing something like consolidating debt or paying an unexpected bill, other lenders may be cheaper.

LightStream Personal Loan Alternatives

There are hundreds of different personal lenders out there. If you’re in need of a loan, it’s a good idea to shop around to try to find a good deal.

If you’re not certain that LightStream is the right choice for you, consider these other options.

Summary

LightStream meets all the requirements for a great lender: they offer high loan amounts, unsecured loans, competitive rates, discounts, guarantees, and no hidden fees. Customer reviews of LightStream personal loans are also highly complimentary.

If you have excellent credit and you are serious about taking out a loan, LightStream is worth a look.

CONTACT LIGHTSTREAM:

Hours: Monday through Friday 9 am to 8 pm, Saturday 12 pm to 7 pm Address: LightStream PO Box 117320 Atlanta, GA 30368-7320