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LightStream personal loans come with great terms — as long as you can meet eligibility requirements.
Lightstream; Alyssa Powell/Business Insider
The bottom line: LightStream offers some of the lowest rates on personal loans out there, provided you have a great credit score. The lender also has loans of up to $100,000 and can supply you with funding on the same day you apply and are approved.
Lightstream personal loan amounts and interest rates
At Lightstream, personal loan amounts range from $5,000 to $100,000, and can be repaid in a span of 24 months to 12 years, depending on the loan amount and purpose. There are no prepayment penalties for paying off your loan early.
While good credit is required with this lender, the low interest rates are hard to beat. Lightstream loans start at 5.73% APR, but other competing lenders with similar credit requirements have higher APRs. For example, SoFi’s lowest rate is 7.99% APR, and and Marcus’ minimum is 6.99%.
Lightstream may offer a rate 0.10% lower than what’s offered to you by a competing lender. To take advantage, you must show evidence that you were approved for another loan with the same terms offered by LightStream on the same day for a lower rate.
Pros and cons of Lightstream personal loans
Pros
Low rates for anyone with good or better credit. If you have good credit according to LightStream requirements (credit score above 660, a mix of credit types, other assets on hand, few or no delinquent payments, and a steady income), LightStream interest rates could be hard to beat. Interest rates start at 5.24% APR.Decisions and funding happen quickly. If the application is made during business hours, a decision should come shortly after applying. Loans can be funded on the same day if the application is approved, verified, and signed before 2:30 p.m. ET. No fees. LightStream doesn’t require any application fees, origination fees, or administrative fees. Additionally, there’s no prepayment penalty for repaying the loan early. Florida residents will have to pay a state stamp tax, however.
Cons
Only available to customers with good credit. A credit score of 660 is a minimum requirement. Lightstream also requires credit history, which could rule out borrowers with a limited history of taking out loans or using credit cards. To get the best rates, LightStream requires a minimum of five years of credit history and no delinquent accounts. LightStream doesn’t offer preapproval. A critical part of getting any type of loan, including personal loans, is shopping around to compare rates. Oftentimes, this involves getting preapproved by several different companies and comparing the offers before settling on one. LightStream doesn’t offer preapprovals for its personal loans.
Today’s personal loan rates
How LightStream personal loans work
Lightstream is the lending division of Truist Bank (Member FDIC), and it offers personal loans with competitive interest rates. Loans mainly focus on customers with good or better credit.
Personal loans from LightStream must have a purpose. But LightStream has quite a few acceptable uses to choose from, like home improvement or adoption expenses. Interest rates vary by the loan’s purpose, in addition to credit history, repayment timeframe, and the loan amount. Lightstream loans can’t be used for business purposes, nor to refinance an existing LightStream loan.
If you apply during business hours, a decision should come shortly after applying. Application processing happens on weekdays from 9:00 a.m. to 8:00 p.m. ET, and from noon to 6:00 p.m. ET on weekends. Loans can be funded on the same day if the application is approved, verified, and signed before 2:30 p.m. ET.
Lightstream loans are available to customers in all 50 states. While other Truist brands — SunTrust and BB&T — have physical locations, LightStream loans are only available online.
What credit score do you need for a Lightstream personal loan?
With LightStream, you’ll need to have a minimum credit score of 660 to qualify for a loan. This minimum is on par with other personal loan lenders who target consumers with good credit scores. For comparison, the lowest credit score SoFi will accept is 680, and Payoff’s minimum is 640.
You can find your credit report for free on annualcreditreport.com from any of the three major credit bureaus weekly through April 20, 2022. While this report won’t give you your credit score, it will show you information about your credit and payment history, which lenders use to decide whether to give you a loan. Reviewing your credit report can help you know what you need to improve.
You can find your score at no cost on your credit card statement or online account. You can also pay for it from a credit reporting agency.
There are other requirements as well, including:
Several years of credit historyA good credit mix, including a combination of credit card use, and consumer debt like an auto loan or a mortgageFew or no payment delinquencies on your credit reportOther assets, including liquid savings, investments, and retirement savingsA stable income that will comfortably cover any other expenses and the new loan
LightStream will conduct a hard credit inquiry once you accept the loan offer, which will likely affect your credit score. A hard inquiry gives a lender a complete look at your credit history, but may negatively affect your credit score.
Is Lightstream trustworthy?
LightStream is a Better Business Bureau-accredited company, and the BBB, a non-profit organization focused on consumer protection and trust, gives LightStream an A+ rating. The BBB evaluates companies by reviewing a business’ responses to customer complaints, honesty in advertising, and clarity surrounding business practices.
LightStream hasn’t been involved in any recent controversies. As a result of its good history and top-notch BBB rating, you might think about using LightStream as your personal loan provider.
Importantly, BBB scores don’t ensure you’ll have a great relationship with the company and are simply a way to begin your search for a personal loan provider.
LightStream and SoFi have quite a few similarities: Both offer loan amounts between $5,000 and $100,000, and they don’t require any fees. However, SoFi loans require a higher minimum credit score and also have higher minimum interest rates than LightStream.
SoFi stands out with its unemployment protection program. If you lose your job through no fault of your own and you’re approved for the program, SoFi will put your loans into forbearance, suspending your monthly payments.
Marcus‘ minimum APR of 6.99%, starts much higher than the minimum LightStream’s minimum APR of 5.24%. Loans from Marcus also max out at $40,000, while LightStream offers up to $100,000.
Marcus distinguishes itself from LightStream with its “on-time payment reward.” If you pay your loan on time and in full every month for one year, you can skip a month of payments and interest will not accrue during that time. The company will then extend your loan by one month.