LightStream Personal Loans Review 2024
Updated March 22, 2024 at 11:06 am
Our Methodology Newsweek Vault’s loan experts evaluated multiple data points to help our readers make sense of their borrowing options across student loans and personal loans. To narrow down the best available offers, we weigh the product pros and cons across five core categories, including:
- Application process
- Eligibility requirements
- Interest rates
- Loan amounts (minimum and maximum)
- Repayment flexibility
LightStream Personal Loan
on Credible’s website
LightStream offers fast, flexible personal loans online—great for those who crave less fees and even less human interaction.
Expert take
LightStream takes online lending for personal loans to a whole new level with its ultra-competitive interest rates, flexible repayment options and fast funding option—and all without the fees we’ve come to expect from other lenders.
Pros
- No fees, including no prepayment penalty
- Fast approval and funding process with possible same-day funding
- Competitive interest rates, including a 0.50% discount for AutoPay enrollment
Cons
- Available online only with no in-person customer service
- Minimum loan amount is $5,000
- No preapproval process
Vault’s Viewpoint on LightStream Personal Loans
A LightStream offers a unique take on the entire lending process. For those with a good to excellent FICO Score, a strong credit history of on-time payments and a stable income, you can get rewarded with a personal loan approval from LightStream.
Not only can you use LightStream personal loans for virtually any purpose—from debt consolidation to weddings and medical bills—once approved, you can receive your funds as soon as the same business day. Plus, these loans aren’t weighed down by fees, including any prepayment penalties. It’s a refreshing take on an online-only lending experience.
About LightStream Personal Loans
LightStream, a division of Truist Bank financial services, is an online lender specializing in personal loans for those with good to excellent credit. It promises fast approval and fast funding, with loans ranging from $5,000 to $100,000. While many personal loan lenders charge fees, such as origination fees or prepayment penalties, you won’t find those typical charges with a loan from LightStream—plus it offers some of the most competitive interest rates available.
LightStream truly operates as an online-only lender. You can only submit an application online, with no phone or email option. While customer service options exist, you can only email if you have a question regarding the application or loan, although the company promises prompt replies during normal business hours: Monday through Friday, 9:30 a.m. to 7:00 p.m. Eastern Time, and Saturday, noon to 4:00 p.m. Eastern Time.
| Loan amount | $5,000 to $100,000 |
| Fees | None |
| Minimum credit score | 670 |
| Repayment schedule | 24 to 144 months |
| Funding speed | Same-day funding possible |
| APR | 7.99% to 25.49% with AutoPay (25.99% maximum) |
| Loan availability | Nationwide |
Who Should Get a Personal Loan With LightStream?
A personal loan through LightStream may appeal to a number of borrowers. If you’re someone with a strong credit history and at least a good credit score (and meet LightStream’s other requirements), it may be worth considering a loan through LightStream because borrowing can cost less overall. While you can use LightStream loan funding for almost anything, someone who is consolidating debt or taking on a larger home improvement project might get the most value from LightStream because there are no fees, competitive interest rates and quick funding.
An applicant who doesn’t mind an entirely-online process will be more comfortable using LightStream too, not only because the application submission process is online, but customer service is only available through email as well. However, since there are less overhead costs, the savings gets passed on to the customers through lower interest rates and a higher range of available funding.
Who Should Consider an Alternative Personal Loan to LightStream?
Someone who has challenges with their credit, either with their score or delinquencies on their report, may find the qualification process too tough with LightStream. The same goes for someone who might not be able to demonstrate a consistent, stable income or doesn’t have an established credit history.
There are personal loan alternatives available offering in-person customer service options—or at least available over the phone—which may appeal to someone who likes more of a human touch. Also, while you can use LightStream personal loans for a wide range of uses, you can’t use it for financing education or refinancing student loans, funding businesses, cash-out refinancing, contributing to retirement accounts or purchasing stocks, bonds or other investments. So if you need funding for any of these reasons, you should consider a lending alternative.
Getting a Personal Loan Through LightStream
Loans through LightStream are available to customers across the U.S., and you don’t have to be a current Truist Bank customer either. LightStream evaluates each applicant’s qualifications and walks you through each step for application submissions online.
How To Qualify for a Personal Loan With LightStream
LightStream does not list its exact requirements guaranteeing approval for a personal loan. However, it does offer guidelines. LightStream uses a combination of the following factors for its approval process:
- Good to excellent FICO Score: Although LightStream doesn’t guarantee approval based on credit score alone, it only considers applicants who fall within the “good” to “excellent” ranges with FICO. This means applicants must have a minimum of a 670 FICO Score for consideration.
- Long credit history: LightStream only considers candidates who demonstrate a long credit history, meaning, you’ve had your accounts for several years and have a variety of loan types (including credit cards, loans, vehicle loans and/or mortgages).
- Income versus debts: Not only must applicants show a stable, sufficient income source, but applicants must also show limited debt obligations. LightStream is looking for candidates who can easily repay any debt obligations they may have.
- Assets: Any assets, ranging from checking and savings accounts to retirement and investment accounts, are also included in LIghtStream’s qualification process.
- Clean payment history: LightStream places an emphasis on candidates with a demonstrated history of making payments on time, with no delinquencies.
How To Apply for a Personal Loan With LightStream
Applications for personal loans with LightStream are only available for submission online. Fortunately, the process is straightforward and can go quickly if you have the required documentation ready to go. The following steps can help you navigate the application process:
- Decide if you’re applying by yourself or with someone else
- Select the loan amount, loan type and payment method
- Enter personal information for the application, including your Social Security number, housing and income details
- Create an online account for all your loan correspondence and document submissions
- Once submitted, LightStream will email you with the approval decision
- Sign the loan agreement, if approved
- Receive funding—possible the same day if you sign the loan agreement before 2:30 p.m. ET on a business day—within one to two business days
How Does LightStream Stack Up to Its Competitors?
There are a wide variety of personal loan lenders available, which can lead you to ask if LightStream is a good loan company. Let’s take a look at other popular lending options compared to LightStream so you can see how it stacks up.
LightStream vs. SoFi
Like LightStream, SoFi is an online-only lending option. It offers a huge assortment of financial products and services, from student loan refinancing and private student loans to mortgages and banking services. Current SoFi customers may appreciate choosing a personal loan option from a financial institution they’re already familiar with. For personal loans, SoFi also offers funds ranging from $5,000 to $100,000, possible same-day funding and no fees or prepayment penalties either.
SoFi has other similarities to LightStream too, but a few differences are worth noting. SoFi’s interest rates range from 8.99% to 25.81% with discounts—slightly higher than LightStream’s baseline interest rate. Borrowers can pay back the loan anywhere from 24 months to 84 months. You must have a minimum credit score of 680 for consideration, plus meet other eligibility requirements from SoFi, such as income verification.
One advantage SoFi offers is the Unemployment Advantage program. If you lose your job for no fault of your own, you can apply for this benefit and SoFi will modify your personal loan monthly payments for up to 12 months (and even offer assistance in finding a new job).
LightStream vs. Discover Loans
Discover is another alternative for personal loans, and like SoFi, you may already have one of Discover’s many other financial products, such as a credit card, checking account or home loan. Discover’s personal loans look slightly different than LightStream’s. For starters, the funding amount ranges from $2,500 to $40,000, which may or may not fit your borrowing needs. Repayment terms range from 36 months to 84 months though, with interest rates ranging from 7.99% to 24.99%. And like LightStream and SoFi, you’ll need a good credit score for approval.
If you’re approved, you can receive your funds as soon as the next business day with Discover. Although there are no physical branches, Discover does offer 24/7, year-round service, available with a human on the phone, chat or email. Another advantage Discover loans offer is the option to pay your creditors directly if you’re using a personal loan for debt consolidation. This option isn’t available with LightStream or SoFi, and you may find this is a huge advantage if debt consolidation is your goal.
LightStream vs. Best Egg
Best Egg offers personal loans geared toward those who have experienced challenges with their credit. A lower credit score doesn’t automatically count you out of the approval process for a personal loan through Best Egg. Typically, personal loans fall under the unsecured loan category, which means you do not have to use any collateral in exchange for approval and need only your signature. However, Best Egg offers a secured personal loan option for those who might not qualify for an unsecured loan. This means an applicant can work with Best Egg and determine the best collateral for a secured personal loan and possibly obtain approval through this measure.
However, even with less stringent credit score requirements, Best Egg doesn’t offer the loan funding flexibility you might find with other lenders, including SoFI, Discover and LightStream. For example, Best Egg’s loans range from $2,000 to $50,000, with repayment terms from 36 to 60 months.
If debt consolidation is your main objective with taking on a personal loan, you may prefer Best Egg’s option for direct payment to your creditors so you can remain disciplined in your payoff strategy. But debt consolidation isn’t the only option—you can use your funds in a variety of ways, such as for home improvement, weddings or medical treatments.
Frequently Asked Questions
What Are the Income Requirements for a Personal Loan From LightStream?
LightStream does not disclose its specific income requirements for personal loans, although you do have to submit income verification as part of the approval process. LightStream uses a multi-prong approach for determining approval, which includes approving candidates with a good to excellent FICO Score, a strong credit history of on-time payments, a review of assets like checking and savings accounts and analyzing an applicant’s income (plus debt obligations).
Can You Get Preapproved for a Loan With LightStream?
LightStream does not offer preapproval for its personal loans. This means you must submit a full application online for loan approval, which can temporarily impact your credit score by a few points. However, you are not under any obligation to take on the loan if you do receive approval, and the funds remain available for up to 90 days after you’re approved.
Does LightStream Allow Co-Applicants for Personal Loans?
Yes, it’s not a problem to use a co-applicant personal loan application with LightStream. A co-applicant must go through the same approval process too, which includes income verification, review of their credit report, evaluating income versus debt, analyzing assets and assessing payment history. This also means it will impact the co-applicant’s credit score both for the application process and taking on the loan.
Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
