In this Review..
LightStream is the online consumer lending division of SunTrust Bank. SunTrust Bank is a regional bank while LightStream products are available in all 50 states. LightStream offers a wide range of personal loans for those with good to excellent credit.
LightStream do not have a “check your rate” or soft credit pull, but they have so many options it is definitely worth a look. They also have no fees, such as a high-cost origination fee. They are backed by a large regional bank and have very competitive rates.
LightStream is best for those with good to excellent credit. They offer longer terms, more loan uses, and higher amounts than other personal loan providers. They also have no fees, such as a high-cost origination fee.
APR
See website
Loan Amount
$5,000 - $100,000
Term
Flexible
Min score
Good to excellent
LightStream Loan Pros & Cons
As we know, each lender has its own pros & cons – here are the relevant things we found for potential borrowers:
Pros
- No Fees – LightStream has no origination, administration, or late fees. These fees should always be considered in the cost of your loan.
- Flexible Term Options –LightStream offers many different terms on each product. Many personal loan providers do not provide this flexibility.
- Competitive Interest Rates –Interest rates are competitive and rates are not as high as those of many other lenders for personal loans. LightStream states it will beat any competitor by 0.10%.
- Many Loan Uses – LightStream offers many different uses for their personal loans. They could help almost any borrower thinking of getting a personal loan.
- High Maximum Loan Amount – LightStream has one of the highest maximum loan amounts, up to $100,000.
- Direct Lender – LightStream is backed by a large bank that has been in business for over 100 years. They also do not have to deal with any third parties and therefore can provide funding fast.
- Available in All States –LightStream is licensed to do business in all 50 states.
- Quick Turnaround Times –LightStream has a quick process and many borrowers are approved or rejected within 24 hours. Many borrowers have money in their account by the end of the day.
- Joint Applicants – LightStream allows loans with joint borrowers. This can help improve your chances of getting approved.
- $100 Customer Satisfaction Guarantee – “After receiving your loan from us, if you are not completely satisfied with your experience, please contact us. We will email you a questionnaire so we can improve our services. When we receive your completed questionnaire, we will send you $100. Our guarantee expires 30 days after you receive your loan.”
Cons
- Not For Bad Credit Borrowers – If you do not have the best credit history you may not be able to get a loan through LightStream. They cater to those with good to excellent credit history
- No Soft Pull – Many personal loan providers do a soft pull inquiry on your credit to see what possible credit options they can offer you. LightStream only does a hard pull from the start, which will affect your credit.
- Stipulations –LightStream requires you to use the loan funds for the purpose you stated in the application.
- Restrictions for Business Use – LightStream loans cannot be used to fund a startup or expand an existing business.
Loan Details
Here are the basic specifications & requirements of LightStream Personal Loan :
What Can a LightStream Personal Loan Be Used For?
LightStream allows for many loan purposes. It also posts the best rates for each loan purpose. The website breaks down the loans into 5 categories: auto, home improvement, recreation, family life and “almost anything else.”
LightStream loans cannot be used for any post-secondary education expenses, to fund a startup or an existing business, or to pay off a current LightStream loan.
- Home Improvement
LightStream offers much longer terms for home improvement loans than other personal loan providers. The longest term for a LightStream home improvement loan is up to 144 months.
The advantages of using a personal unsecured loan instead of a home equity line of credit are that there are no fees, no appraisals, and a quicker turnaround time.
You can use LightStream home improvement loans for basement renovations, hot tubs, kitchen remodels, landscaping, solar, or swimming pools.
- Other
LightStream offers loans for some unique circumstances. They have labeled this as “other,” but it covers a wide range of uses. You can use the loan to purchase an airplane, buy a horse or a horse trailer, buy jewelry, buy land, even finance a tiny house.
LightStream also includes debt consolidation under other. They do not focus on consolidation as much as other lenders do. This could be because they focus on borrowers with good to excellent credit.
- Family Life
LightStream offers loans for many of life’s expected and unexpected costs. LightStream offers loans for adoption, pre-K-12 education, fertility treatments, medical costs, and wedding expenses.
- Auto Refinancing
The nice thing about not having the loan secured with your car is that there is less paperwork and you can get your money quickly. Also, you have more flexibility regarding what type of car you want to buy. LightStream can be used for auto refinancing, classic car purchase, lease buyout, motorcycle financing, new, used, or as a private party purchase.
The rates vary depending on what you are doing. LightStream can give you the cash upfront and you can negotiate with cash in hand.
LightStream Reputation
- NR on BBB: LightStream is not rated by the Better Business Bureau. But its parent company, Truist, has an A+ rating.
- 891/1000 points on J.D Power: Lightstream ranks 1st in the study and got 891 out of 1000 possible points in the 2020 research, much higher than the industry average. J.D Power offers the most comprehensive and independent study of personal loans consumer satisfaction . The study aims to help consumers and issuers to understand user opinions and ratings of top lenders. It covers terms, benefits, services, communication, transparency and more.
Application Process
- 1.
LightStream does not disclose their minimum requirements for applying like other lenders do, but they have a few guidelines to consider: several years of credit, as well as a variety of credit, savings, liquid assets, and income to pay for a new loan.
- 2.
LightStream does not do an initial soft pull, so you will have to go through the whole application process to see if you are approved. Applying is a 4 step process that takes only a few minutes. You first pick the type of loan you want, how much and what term you would like.
- 3.
You also choose at the beginning if you want the .50% interest discount for autopay. You can apply for a joint or individual application
- 4.
They require that you provide basic information about yourself including name, contact information, social security number, date of birth, assets, employment, and income. You then will create a LightStream account. The last step is reading over the application agreement and then submitting the application.
- 5.
Many times they can fund your loan within the same day. If they need more documentation they will reach out to you for ID, banking information, citizenship, and proof of income.
LightStream FAQs
LightStream is part of Truist Bank and it offers personal loans for almost any purpose. What makes this lender a good place to get a loan is the low starting interest rates. If you have excellent credit and sign up for autopay, you can expect to pay around 5%. You can also choose when to receive your funds, from the same day up to 30 days after approval.
However, LightStream requires good or excellent credit. You also need to have several years of credit history to qualify.
LightStream does require applicants to demonstrate sufficient, stable income or assets to show an ability to repay current debt obligations plus any new LightStream loan. Therefore, it is likely that you will be asked to show proof of income documentation. However, LightStream does not categorically state that all applicants must provide supporting documentation.
Like LightStream, Marcus don’t charge any origination, application or early repayment fees. However, Marcus does have a higher starting interest rate. The available loan amounts are also less compared to the maximums offered through LightStream.
So, if you are looking for a larger loan, LightStream is a better option.
SoFi has more similarities to LightStream compared to Marcus. Both companies offer loans up to $10,000 with no fees. Additionally, SoFi’s rates are similar if you have good credit and use autopay.
Both lenders are suited to those with good to excellent credit. SoFI is best suited to those who want a shorter term loan, as LightStream offers longer terms of up to 12 years, rather than the 7 offered by SoFi. However, SoFi does have less stringent criteria, so if you may struggle to meet the LightStream requirements, SoFi could be a good alternative.
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Learn more about how we review products and read our advertiser disclosure for how we make money. All products are presented without warranty.
This website is an independent, advertising-supported comparison service. The product offers that appear on this site are from companies from which this website receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This website does not include all card companies or all card offers available in the marketplace. This website may use other proprietary factors to impact card offer listings on the website such as consumer selection or the likelihood of the applicant’s credit approval.
This allows us to maintain a full-time, editorial staff and work with finance experts you know and trust. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impacts any of the editorial content on The Smart Investor. While we work hard to provide accurate and up to date information that we think you will find relevant, The Smart Investor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof.
Learn more about how we review products and read our advertiser disclosure for how we make money. All products are presented without warranty.
Alternatives Lenders For Consideration
Here are our 3 choices of lenders which can use as a great alternative to LightStream personal loan:
- RocketLoans
Rocket was founded to offer a rocket fast loan processing system to provide personal loans to eligible borrowers. Rocket is part of the Quicken group, which includes Rocket Mortgage and Rabid Advance.
Qualifying for a Rocket loan is contingent on creditworthiness rather than business type. You can use your loan for any purpose, including starting a business.
However, Rocket only qualifies people with a credit score minimum of 640 and a good credit history. You also need to have a permanent source of income and a low debt to income ratio.
Where Rocket stands apart is that loans are processed very quickly. 85% of borrowers receive loans within a day.
- Payoff
As its name suggests, Payoff Loans offers debt consolidation for borrowers with good credit. This is solely to repay existing debt, including credit cards.
Although Payoff does not force you to pay your credit card debt, they make this recommendation to keep your finance on track. This includes quizzes to assess your financial abilities and resources to help you reach your financial goals.
According to Payoff, this insight empowers borrowers to continue making smart financial decisions.
- Upgrade
Upgrade is an online direct lender established in 2017. The company offers both personal loans and lines of credit called “Upgrade Card”. To date, 8 million people have applied for an Upgrade personal loan or Upgrade Card.
According to representatives, Upgrade looks for a credit score of at least 620. However, the company may consider other factors to establish your creditworthiness.
One issue to be aware of is the Upgrade fees. While there is no prepayment fee, Upgrade charges an origination fee of 2.9 to 8% on personal loans. There is also a $10 late payment fee, which applies after a 15 day grace period.
LightStream Loan is Best for..
LightStream is best for those with good to excellent credit. LightStream should be considered in any personal loan search. They offer longer terms, more loan uses, and higher amounts than other personal loan providers.
They do not have a “check your rate” or soft credit pull, but they have so many options it is definitely worth a look. They also have no fees, such as a high-cost origination fee. They are backed by a large regional bank and have very competitive rates.
