The LightStream Loans, a division of Truist Bank, offers highly competitive personal loans that are designed to cater to borrowers with really strong credit profiles. LightStream stands solid in the loan market because of its transparent pricing, flexible loan terms, and lack of fees.
So, if you are a borrower looking to finance a home improvement project, or purchase a new vehicle, LightStream provides low-interest loans with minimal hassle. As long as you are qualified enough to borrow loans, this is one of the most attractive options you can go.
Unlike many online lenders, Light Stream’s main focus is on the prime and super-prime borrowers, offering lower interest rates, especially for borrowers with excellent credit. Furthermore, their loan amounts range from $5,000 to $100,000, with no origination fees or prepayment penalties.
What Are LightStream Loans?
LightStream offers unsecured personal loans to borrowers who have strong credit. This means that the loans are not backed by collateral such as a car or home. However, the loans can come with competitive interest rates that reflect the borrower’s creditworthiness. LightStream loans can be used for almost any purpose, including but not limited to:
- Debt consolidation
- Medical expenses
- Auto or RV financing
- Home improvement projects
- Wedding expenses
- Major purchases
Another factor that makes LightStream stand out is its commitment to transparency. They have no fees, no hidden charges, and flexible terms that can be customized to suit your financial needs.
How LightStream Loans Work
The loan process of LightStream is pretty straightforward and entirely online. Here’s a step-by-step guide on how it is done:
Check Your Rate: Start by visiting Light Stream’s official website and selecting your loan purpose. Also, you can check rates without it affecting your credit score overall.
Loan Offer: After checking your rate, LightStream provides you potential loan offers with different loan amounts, interest rates, and repayment terms.
Submit Your Application: Once you have gone through the terms of the loans, you need to fill out a formal loan application. This will include you providing personal information, details about your financial situation, and verification of your income.
Approval and Funding: If and once you are approved, you can receive the funds as quickly as the same business day. Though, it all depends on the time your loan is approved.
These are the simple steps on how applying for a LightStream loan works.
Eligibility Criteria To Get Loans
LightStream places its main focus on borrowers with excellent credit. While they don’t specify a minimum credit score, most borrowers have good-to-excellent credit (typically 660 or higher). In addition to your credit score, here are several other factors that is considered before you are qualified:
- Strong credit history
- Stable and sufficient income to support loan repayment
- Assets, including savings and investments
- Evidence of responsible credit use, such as a history of timely payments
LightStream Loan Terms and Rates
Starting from the loan terms, LightStream offers their amount in the range of $5,000 to $100,000. Although, the true amount depends on your creditworthiness and the loan purpose. Moreover, higher loan amounts are available for certain loan types, like home improvement or auto loans.
Repayment Terms
LightStream offers flexible loan terms, ranging from 2 to 12 years. The specific term you can qualify for depends on the loan purpose, amount, and your credit profile. Furthermore, longer terms typically result in you making lower monthly payments but higher overall interest costs. Meanwhile, a shorter term means you make higher monthly payments but less interest paid over time.
Interest Rates
The interest rates on LightStream Loans are highly competitive, especially for borrowers with excellent credit. Their rates typically range from around 7.99% to 24.99% APR, depending on your credit profile, loan term, and amount.
Additionally, LightStream offers a ‘Rate Beat Program’, where they promise to beat any competitor’s rate by 0.10% (with certain conditions). This makes LightStream an excellent option for those looking to secure the lowest possible rate on a personal loan.
Discounts for AutoPay
To encourage their borrowers to make timely payments, LightStream offers a 0.50% interest rate discounts if you set up automatic payments from your bank account (AutoPay). In the long run, it also helps you save money and reduce the risk of late payments.
Pros and Cons of LightStream Loans
Here are the many advantages and drawbacks that a borrower may face with LightStream Loans:
Pros
No Fees: This reliable online lending platform doesn’t charge any fees, making it a low-cost option for personal loans.
Fast Funding: Borrowers can receive funds the same day they apply, making LightStream ideal for those who need quick access to money.
Flexible Terms: Additionally, borrowers can choose loan terms from 2 to 12 years, providing flexibility in managing monthly payments.
Rate Beat Program: LightStream has a commitment goal to beat other competitor rates by 0.10%. This action means it will be easy for you to secure the lowest available interest rate.
AutoPay Discount: Moreover, borrowers can reduce their interest rate by 0.50% by setting up automatic payments.
Cons
Now that we have seen some of the benefits of Light Stream’s loans, here are some risks associated with it as well:
Strict Eligibility Requirements: LightStream is more linear towards borrowers with good to excellent credit. However, this makes it difficult for borrowers who have poor credit scores to access it at all.
No Prequalification Option: LightStream doesn’t offer a prequalification process before you can take out a loan. This is different from the usual method of traditional lenders, meaning a hard credit check is required to apply for a loan.
Limited Customer Support: LightStream also doesn’t offer phone support, which may be a drawback for borrowers who prefer personalized assistance during the loan process.
These are some of the benefits and the cons of LightStream Loans that you should consider before you make the final decision.
How LightStream Loans Compare to Other Personal Loans
Here are some of the ways LightStream and the loans they offer differ from other loan lenders:
LightStream vs. SoFi
- Loan Amounts: Both lenders offer high loan amounts, but LightStream’s maximum is higher at $100,000, compared to SoFi’s $100,000 limit.
- Eligibility: LightStream also have stricter credit requirements than SoFi, which caters to a wider range of borrowers, including those with fair credit.
- Extra Perks: On the other hand, SoFi does offer additional benefits like career coaching, financial planning, and unemployment protection. These are some of the features that LightStream doesn’t provide.
LightStream vs. Marcus by Goldman Sachs
- No Fees: Both LightStream and Marcus by Goldman Sachs offer loans with no fees. However, Marcus doesn’t have a Rate Beat Program, giving LightStream an edge in securing the lowest rates.
- Loan Terms: In the case of loan terms, Marcus offers loan terms up to 72 months (6 years). However, the terms with LightStream can go up to 144 months, making it a more flexible option.
These are some of the ways that LightStream varies in their services, different from other personal loan lenders.
Frequently Asked Questions
Here are some frequently asked questions you can check out:
How long does it take to get approved for a LightStream loan?
LightStream offers same-day approval and funding in some cases. However, this can only be easy as long as your loan is approved early in the day and you provide all necessary information quickly.
Will applying for a LightStream loan affect my credit score?
In a way, it will. LightStream performs a hard credit inquiry when you apply, which can impact your credit score. Also, LightStream does not offer a prequalification process with a soft credit pull.
Can I use a LightStream loan for any purpose?
LightStream loans can be used to solve varying financial needs including debt consolidation, home improvement, auto purchases, medical expenses, and more. However, they do not offer loans for educational expenses or business purposes.