LightStream personal loans review: No fees, flexible terms and more
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“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.
BLUEPRINT
Updated 6:19 p.m. UTC April 22, 2024
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Finding a personal loan that helps you reach your financial and life goals can be tremendously valuable. LightStream offers a flexible personal loan that’s best for individuals interested in debt consolidation with good to excellent credit.
LightStream overview
LightStream is an online lending service launched by SunTrust Bank. It’s now under the Truist Bank family of services. Personal loans are LightStream’s primary financial product which Truist underwrites. It also provides new and used auto loans and an invite-only savings account.
LightStream offers personal loans between $5,000 to $100,000 with repayment terms between two to 12 years.
LightStream
How to qualify for a LightStream personal loan
The lender doesn’t disclose specifics about its eligibility criteria for personal loans. Below are a few details about what you’ll need to qualify for a loan:
- Good to excellent credit (though exact score isn’t disclosed).
- Credit history that spans several years.
- Few or no delinquencies on past debts.
- A reliable income.
- A bank account under your own name.
How to apply for a LightStream personal loan
If you’re not an existing customer, the only way to apply for a LightStream personal loan is through an online form. The four-step form requires you to do the following:
- Fill out your loan details. Enter details about your loan, such as your primary loan purpose, your desired loan amount and term and whether you’re applying for an individual or joint loan.
- Add your personal information. Add your basic contact and identification information (e.g., Social Security number and citizenship), as well as employment and income-related details.
- Create a LightStream account. Choose a user ID, password and security question and answer to see the status of your LightStream application online. Here you can manage your loan if you’re approved and accept it.
- Review and submit your application. Review all of the details you’ve provided on your personal loan application. Also, read and acknowledge the disclosures shown on the page. If everything looks correct, click “Accept and Submit.”
Already a LightStream customer? Existing customers can apply for a new loan online or through the LightStream app.
Pros of a LightStream personal loan
- No origination fees or prepayment penalties.
- Flexible repayment terms.
- Rate Beat Program guarantee.
Cons of a LightStream personal loan
- No preapproval option.
- Unclear income and debt requirements.
- No direct payments to creditors.
LightStream perks and special features
Savings and discounts
LightStream offers its borrowers multiple savings and discount opportunities. First, you won’t pay an origination fee. You’ll also never pay a prepayment penalty for getting ahead on your loan payoff.
It also offers a Rate Beat Program, which beats any competitor’s unsecured personal loan rate by as much as 0.10 percentage points. In addition, if you choose to move forward on a loan approval, you can sign up for autopay to receive a 0.50% APR discount.
Loan Experience Guarantee
A 30-day Loan Experience Guarantee benefits unsatisfied personal loan customers. This means that if you’re not satisfied with your LightStream lending experience for any reason, you can contact the lender and complete a questionnaire to help it improve. Customers who complete and submit a questionnaire will receive $100 per funded loan.
Multiple loan term options
LightStream offers various repayment terms to suit your needs and monthly budget. Depending on the purpose of your personal loan, and other eligibility criteria, you might receive terms as short as two years and up to 12 years.
How LightStream could improve
Although LightStream offers some notable perks for approved applicants, its personal loan leaves more to be desired in other areas.
No preapproval feature
Unlike other online lending competitors, LightStream doesn’t offer a preapproval tool to check your rates online. This makes shopping for a personal loan more challenging since you’re unable to compare the rates you might qualify for.
Plus, LightStream requests a hard credit check from TransUnion or Equifax for each application, without disclosing your approval odds beforehand. Although a hard credit inquiry will only temporarily impact your score, a preapproval using a soft credit check is more ideal..
Unclear income requirements
Although LightStream clarifies that a good FICO score or higher is required for its personal loan, it doesn’t provide details about its income and debt-to-income criteria. Seeing as the lender explicitly notes that it assesses your income and existing debt, its requirements in these areas could be more transparent on its site.
No direct payments to creditors
LightStream doesn’t offer a feature to disburse loan funds directly to your creditors. If you’ve accepted a LightStream debt consolidation loan, funds will be deposited into a bank account under your name as an ACH or wire transfer. Then, you’ll need to manage repayment with your original creditors. Although this isn’t a deal-breaker, it’s a missed opportunity to offer customers another layer of convenience.
LightStream customer service and reviews
To contact LightStream, you can email them. Support agents are available Monday through Friday from 9:30 a.m. to 7:00 p.m. ET and Saturdays from 12:00 p.m. to 4:00 p.m. ET.
LightStream’s website is intuitive, and applying online is easy. However, its app isn’t reviewed too highly. As of June 2023, it received a 2.9-star rating on the App Store and 2.7 stars on Google Play.
LightStream generally doesn’t have strong reviews on popular customer review sites either, like the Better Business Bureau (BBB) and Trustpilot. For example, its Trustpilot score is 1.7 out of 5 stars and its BBB score is 1.33 out of 5 stars. Generally, complaints stemmed from loan application decisions and difficulties accessing a live support agent over the phone.
LightStream
LightStream alternatives: LightStream vs. SoFi vs. Upstart
Comparing a LightStream personal loan to other options is a smart move. Here are a couple of alternative personal loan lenders to consider.
Like LightStream, SoFi provides personal loans from $5,000 to $100,000. Approved customers can choose from repayment terms from two to seven years. In addition, it offers a preapproval tool and a rate discount of 0.25% when you sign up for autopay. Eligible borrowers can also benefit from unemployment protection which temporarily changes payment requirements when you need financial relief most.
Another personal loan option available is through Upstart, with loans as low as $1,000. Upstart is unique because it doesn’t rely solely on your credit score when reviewing your application — it also examines your education and employment to determine your rates. Plus, you can check your rate online without affecting your credit score. If you’re interested in securing a smaller loan and have a lower credit score, Upstart could be a viable alternative.
| LIGHTSTREAM | SOFI | UPSTART | |
|---|---|---|---|
Fixed APR
| 6.99% to 25.99%
| 8.99% to 29.49%
| 7.8% to 35.99%
|
Loan amounts
| $5,000 to $100,000
| $5,000 to $100,000
| $1,000 to $50,000
|
Repayment terms (years)
| 2 to 7 | 2 to 7
| 3 or 5
|
Min. credit score
| Does not disclose
| Does not disclose
| 300 |
Best for
| Debt consolidation
| Preapproval with soft credit check
| Poor credit
|
All interest rates are current and include discounts where applicable as of April 22, 2024.
Frequently asked questions (FAQs)
Yes, LightStream is a legitimate loan company. It first launched in 2012, and it is an online lending service under Truist Bank.
LightStream doesn’t state that its loan approval timeline is instant. However, applicants can expect a response during business hours shortly after applying.
You’ll be asked to enter your income details during the online application process. Then, if you’re approved, LightStream might request additional proof of income documents to verify your application details.
LightStream is an entirely online lender. This means applications for its personal loans are accepted online and approved borrowers can manage their loan through the lender’s online portal. You can also manage your loan through the LightStream app, available through the Apple App Store and on Google Play.
No, LightStream doesn’t let prospective applicants check if they’re preapproved for a personal loan before applying.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
