If you’re looking for a lender that provides unsecured personal loans with no hidden fees and offers rate discounts, LightStream Personal Loans could be the right choice for you.

What is LightStream Personal Loan?

Formed in 2019, LightStream is a consumer lending company that provides unsecured personal loans for various purposes. The company claims no origination fees, late payment fees, or prepayment fees and offers rate discounts to borrowers who enroll in autopay. LightStream is an excellent choice for applicants with good to excellent credit.

What services does LightStream offer?

LightStream has user-friendly features and provides loans big enough to cover heavy expenses such as home improvement projects. They offer personal loans for a variety of reasons, including:

  • Auto finance: Refinance, new, classic, or used.
  • Home improvements: Kitchen or bath remodeling, landscaping, solar or swimming pool financing.
  • Recreational financing: Boat loans and refinancing, aircraft loans and refinancing, timeshare loans and refinancing, motorcycles loans and refinancing, destination clubs financing, RV trailer loans and refinancing.
  • Debt consolidation: Credit card debts and others.
  • Family Financing: Medical, fertility, adoption, wedding, and education (PreK - 12 Only).

Most of these loan types are not commonly available from traditional lenders. LightStream is a good option for prospective borrowers who need a large loan with some flexibility and quick application and funding timeline.

Like other online lenders, LightStream imposes some restrictions on loan fund usage. Borrowers are not permitted to use their loans to fund post-secondary education or business expenses. Nonetheless, LightStream's loan amounts, terms, and Annual Percentage Rates (APRs), along with a minimum required credit score, make it a flexible option for many prospective borrowers.

How does LightStream work?

Factors to consider

Many factors can influence whether or not a personal loan application is approved or denied. Every lender has its own set of underwriting requisites. But they generally include details from an applicant's credit profile and other considerations that indicate the loan eligibility, such as income. Satisfying the conditions set below does not ensure approval, although it can help you determine if a personal loan is right for you.

Credit score conditions

Applicants must have a minimum FICO credit score of 660 to meet the criteria for a LightStream loan. Furthermore, a possible applicant must have several years of credit history, including different account types. For instance, credit cards, auto loans, and mortgage debt, as proven by their credit profile. Although a good credit score may be sufficient for approval, the best rates require an ideal credit history.

Borrower Income essentials

LightStream requires loan applicants to have a steady income. It should be sufficient to repay current debt obligations and a new LightStream loan to get approved. Aside from the applicant's income, LightStream also considers their liquid assets, cash down payments on real estate, retirement savings, and revolving credit card debt. However, it’s important to know that LightStream does not consider income from a marijuana business.

Requirements for Co-signers/Co-applicants

LightStream does not accept co-signers, but prospective borrowers can apply jointly. Unlike some lenders, Lightstream does not require co-applicants to stay at the same address as the primary applicant.

Potential borrowers should demonstrate that they will submit a joint application at the start of the application procedure and give information about these applicants in the online application. During the application assessment process, LightStream factors in each applicant's credit, income, and other details equally.

Prequalification

Unlike other online lenders, LightStream does not have a prequalification process. As a result, prospective borrowers must complete a formal application and undergo a hard credit check to determine if they meet the criteria and, if so, at what rate.

The Process

LightStream has an online application process, but an advisor may approach you by phone to seek additional details. To apply for a LightStream personal loan, you need to fill out the online application and include the following information:

  • Loan reason, amount, and term of payment.
  • Method of payment.
  • Personal and contact details.
  • Job details of current employment.
  • Present expenses, such as monthly housing expenses (e.g., rent or mortgage).
  • Long-term credit history.
  • Minimum credit score of 660.
  • Multiple account types in one's credit history, including major credit cards, car loans, or a mortgage.
  • A stable payment history.
  • Investments, retirement savings, or other evidence of ability to save money.
  • Enough money to pay off existing debts and start a new loan.

If the loan is approved before 2:30 pm EST on a banking business day, LightStream borrowers can receive funds the next day. Applicants must review and electronically sign the loan agreement. Then they must provide LightStream with their funding preferences and relevant banking information to complete a final verification. Everything needs to get done before 2:30 pm on the day of the loan approval.

What are the rates and fees of LightStream?

They offer personal loans of $5,000 to $100,000. Personal loans are available for terms ranging from two to seven years (24 to 84 months). Home improvement, swimming pool, and solar loans may have longer repayment terms of up to 12 years (144 months). If borrowers sign up for autopay, LightStream offers APRs ranging from 3.99% to 19.99%. Borrowers who do not enroll in autopay face APRs that are 0.50% more. The available APR ranges differ based on the loan purpose.

What are the repayment terms of LightStream?

The best personal loans provide competitive interest rates, flexible loan amounts, and a variety of terms.

  • Loan amount offered: $5,000 to $100,000.
  • Origination fees: None
  • Late fees: None, but late payments result in higher interest accrual.
  • Prepayment penalty fees: None

What are the pros and cons of LightStream?

Pros

  • Low-interest rates and no fees: LightStream provides low starting rates. Borrowers who choose autopay can get a percentage point rate discount. The company does not charge a fee for loan origination, delayed payments, or prepayment.
  • Choice Terms: Borrowers can choose from a variety of alternative repayment terms.
  • Home improvement offers: Borrowers with good or excellent credit searching to fund a home renovation project could meet the criteria for extended loan terms up to 20 years. There will be no appraisals or home equity prerequisites.
  • Rate beat scheme: LightStream offers to beat a competitor's interest rate by one percentage point if you can prove you obtained an unsecured, fixed-rate loan with the same terms.
  • 100% satisfaction guarantee: LightStream provides a $100 money return for disappointed borrowers that have had their loan for below 30 days.

Cons

  • There is no prequalification option on its website.
  • Hard check upon application.
  • A credit history of several years is required.
  • Debt consolidation loans do not provide direct payment to creditors.
  • College or post-secondary education expenses are not covered.
  • There is no due date flexibility.

FAQs

Is Light stream a reputable company?

On TrustPilot, LightStream has a 2.0-star rating based on 23 published reviews. Other online reviews, including their website, show 4.9 stars based on 24,257 reviews. It reveals much higher ratings from LightStream customers, with an average of four to five stars. On consumer affairs, they have a 3.9 average rating from 275 reviews.

People who have had positive experiences with LightStream say the application process is fast and easy. Funds are made available in a fair amount of time. Many customers agree that the process has transparency.

Is LightStream a financial institution?

LightStream is an online lender known for its fast application process, swift funding, and low APRs. It is ideal for borrowers who want to organize a large debt or undertake costly home improvement projects. It provides a comparatively broad range of loan amounts and repayment terms.

Does LightStream belong to SunTrust?

Truist's online consumer lending unit, LightStream, was formed in 2019 through the merger of BB&T and SunTrust. SunTrust purchased the assets of online lender FirstAgain in 2012 and rebranded the company as LightStream.

What is the difference between paying by invoice and paying by AutoPay?

When you arrange your loan for AutoPay, your payment is made directly to LightStream from your bank account. This arrangement lowers your rate because it is more efficient. If you pay by invoice, your interest rate will be 0.50% higher. If you log into your account, you can schedule a one-time payment.

About the author 

Greg Lorenzo

Greg is a financial expert who has been advising his audience on loans for over 10 years. He has a wealth of knowledge and experience in the area, and he is passionate about helping people get the best possible deal on their loans. Greg is an expert in negotiating loans, and he has a proven track record of getting his clients the best possible terms. He is also a strong advocate for financial literacy, and he regularly gives workshops and seminars on the topic.

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