LightStream Personal Loans: Full Review

What is LightStream?

LightStream is an online consumer lender tailored toward borrowers with good credit scores. They offer low-interest, fixed-rate loans ranging from $5,000 to $100,000. These personal loans can be used for virtually any purpose. LightStream does not charge any fees for origination, prepayment, or late fees. In this article, we’ll cover all things LightStream personal loans including the pros and cons, what you need to qualify, and what other customers are saying in terms of reviews.

Is LightStream Legit?

Yes. LightStream is the online lending arm of Truist Bank. They are a trusted lender with an A+ score on the BBB (also known as the Better Business Bureau). And furthermore, the majority of customer reviews we found online are positive.

How to Qualify for a LightStream Personal Loan?

There are several things that LightStream looks for in applicants. Generally, the company lends to those with good to excellent credit. And those who can provide evidence of a healthy credit history and savings. LightStream is more selective than many other lenders. You must be over 18 years of age and prove that you are a U.S citizen to qualify.

In order to qualify for a personal loan through LightStrean, there are a few basic requirements you’ll need to meet.

• Credit score above 660
• Several years of credit history
• Evidence of savings
• Proof of income
• No history of delinquency
• Be 18 years old
• Be a U.S Citizen / permanent resident

How Do Personal Loans Work?

Personal loans are issued as a lump sum that is deposited into your bank account by a lender. In most cases, you’ll be required to pay back the loan over a fixed period of time at a fixed interest rate. Not everyone will be able to qualify for a personal loan; lenders will assess a borrower’s credit history in order to make this decision. Personal loans are usually used to pay for big life purchases or expenses. For instance, wedding expenses, home renovation projects, or medical bills.

The Application Process

The LightStream application process for a personal loan is simple and can be done entirely online. This means you can apply from anywhere, and you do not have to visit a physical branch.

Here’s how the process works:

1. Apply online through their website
2. Once approved, e-sign your loan agreement online
3. Set up your loan funding
4. Receive your funds

During the application, you’ll be asked things like how much you want to borrow, your preferred loan term, and what the funds are for. Be sure to fill out all information correctly and accurately. This will eliminate any potential delays from LightStream having to request additional information.

Next, you’ll provide personal information like your name, birth date and address, and income level. They will also ask for employment information, and home ownership. You may have to provide W-2s, pay stubs, and bank statements, to confirm the information you gave. To assure the fastest and easiest application process, it is helpful to have all this information handy.

Does LightStream Provide Pre-Approvals?

No. LightStream does not provide any loan pre-approvals. This means in order to check if you qualify, you’ll need to complete an entire application. Additionally, they will not accept application information by phone, fax, or email. All application information must be submitted online in order to be considered for a loan. However, if you are approved for a loan, you are under no obligation to accept the loan.

Repayment Period

LightStream offers repayment periods ranging from 2 to 7 years for personal loans. For home improvement loans, they offer repayment periods up to 12 years. The repayment period is defined as the amount of time you will have to repay the money borrowed. For example, if you borrow $10,000 and your repayment period is 2 years, you will have monthly payments for 24 months. After the 24-month period, all the money you borrowed plus the interest accrued will be paid off.

The repayment term will determine how much you will owe every month. As the borrower, you will be able to decide which repayment term works best for your unique financial situation.

LightStream APR

On their website, LightStream says APR will generally range from 4.99% to 19.99% for their personal loans. The maximum APR for a LightStream loan is 20.49%. APR is the annual percentage rate you will pay to borrow the money plus fees. Since LightStream doesn’t include added fees, the APR in this case is just the interest you will pay on the loan.

For example, monthly payments for a $10,000 loan at 3.99% APR with a term of 3 years would result in 36 monthly payments of $295.20, (which ends up being $10,627.20 total). LightStream will determine your APR based on loan purpose, amount, term length, and credit profile.

LightStream Personal Loans: Pros

At a glance, LightStream offers a good amount of perks in comparison to other lenders. Based on numerous customer reviews and our own investigation into their website, here are some of the upsides of using LightStream compared to other personal loan companies:

• No fees
• Discounts for autopay
• Low rates
• Available in all states
• Flexible on deposit date
• Special loans for home improvement
• Rate beat program

No fees

LightStream does not charge fees for loan origination, late payments, or prepayment —  which gives them a huge advantage over other companies that may charge fees for all three. While they do not charge late fees, late payments will result in higher interest accrual.

Low rates

If you have good credit according to LightStream, interest rates start around 2.49%. This is incredibly low in comparison to other companies. Furthermore, they offer a rate discount of 0.5 for customers who set up autopay.

Available in all states

Some lenders are only licensed in certain states. However, LightStream loans are available in all 50 states including Washington D.C and Puerto Rico.

Flexible on deposit date

One additional thing that makes LightStream unique is the option to choose when you get the funds in your bank account. You can either have them deposited as soon as 1 day after approval or as long as 30 days after. The beauty of this is, that you can choose what works best for your personal financial needs. Scheduling a later fund date can allow time to plan for your first payment or give you flexibility in aligning your loan with the start of a home improvement project or other large expense.

Special home improvement loans

On average, the repayment terms for personal loans at LightStream range from 2 to 7 years. Although for home improvement loans, they offer repayment terms of up to 12 years.

Rate beat program

LightStream will beat a competitor’s interest rate by 0.1% for applicants who show they were approved by that competitor for a regular fixed-rate loan with the same amount, term, purpose, and payment method. The Rate Beat Program excludes secured or collateralized loan offers from any lender, and the competitive offer must be available to any customer with a similar credit profile.

LightStream Personal Loans: Cons

There are a few downsides to LightStream in comparison to other personal loan lenders. Here is what we found:

• Requires good credit history
• Can’t pre-qualify online
• Restrictions on money use
• Loans only up to $100,000

Requires good credit history

In order to qualify, borrowers will need to prove they have several years of credit history. In other words, borrowers with low credit scores or a history of delinquent payments may not qualify for a loan through LightStream.

Cant pre-qualify

Unfortunately, borrowers won’t be able to pre-qualify online like some other lenders. Instead, LightStream’s online loan calculator will only display example rates. This means in order to check to see if you qualify, you’ll need to go through the full approval process. And during this process, LightStream will check your credit score and other financial information which can drop your credit score a few points in the process.

Restrictions on money use

Due to the illegal status of marijuana under federal law, LightStream won’t accept income that is related to the marijuana industry. This includes wholesale, distributors, dealers, or growers. In other words, in order to qualify for a loan, you must provide proof of income. That proof of income can not be related to marijuana in any way. And LightStream also prohibits using loan proceeds for any activity deemed illegal under state or federal law. In addition to marijuana, LightStream has a list of other restrictions. These restrictions include college funding, bonds, stocks, and others.

Loans only up to $100,000

If you need a larger loan, (more than $100,00), LightStream probably isn’t the best option as they do not lend any personal loans above the 100k amount.

What can a LightStream Personal Loan be Used for?

Personal loans through LightStream can be used for almost any type of personal expense. We’ll cover what they don’t allow in the next section. Approved uses range from home improvement costs to medical bills, to wedding expenses. You must, however, disclose how you will use the funds in your application.  A personal loan from LightStream could be used for any of the following:

• Car Loans & Refinance Loans
• Home Improvement Loans
• Pool Loans
• Timeshare Financing & Vacation Ownership Loans
• Boat Loans & Aircraft Financing
• Fractional Loans
• IVF Financing
• Jewelry Financing
• Medical & Dental Financing
• Adoption Financing
• PreK-12 Education Loans
• Horse Loans

LightStream Personal Loan Restrictions

There are a few things that LightStream prohibits when it comes to personal loans. As we mentioned before, you must disclose the reason for your loan in the application. Thus, applicants will not be considered if they list any of the following reasons. Here are their restrictions:

• Loans cannot be used for funding college or post-secondary educational expenses
• Loans must be made to individuals, not businesses
• Funding/payments must be made to and from a personal bank account
• No cash-out refinance loans are available
• Loans cannot be used for bonds, stocks, or stock options
• Funds cannot be used for retirement, life insurance, or education savings plans

Will LightStream Check my Credit?

Yes. LightStream will do a hard inquiry from TransUnion or Equifax. This may lower your credit score by 5 to 10 points. But, you’ll be able to raise it back up after a few on-time monthly payments. This is not just unique to LightStream, in fact, any time a lender or bank does a hard pull, your credit will be effected.

Will LightStream Accept Bad Credit?

LightStream tends to accept applicants with only good or excellent credit that is above 660. LightStream may not be the best choice for applicants with lower credit scores. There are a few things you can do that may help raise your credit score:

• Pay credit card bills on time
• Ask for higher credit limits
• Open a new credit card
• Look into debt consolidation

Read further about easy tips to raise your credit score.

Can I Improve My Chances of Being Accepted by LightStream?

There are a few qualifying factors that LightStream looks for in applicants that may improve your chances of getting a loan.  The company lists the following qualifications online:

• Must have several years of credit history
• A credit history with a variety of account types (such as major credit cards)
• Good payment history with few delinquencies
• The ability to save, evidenced by liquid assets

Having several years of credit history means you have a strong history of paying debts back on time for several years. Your credit history first begins when you open a credit card or take out a loan. And, your credit history will grow with time as you open new accounts. LightStream is more likely to approve someone who has already paid back a loan, and/or has never had a late payment for their credit card. LightStream also evaluates applicants based on their liquid assets, cash down payments on real estate, and retirement savings. Essentially, LightStream wants proof that you’ll repay their loan on time, and having excellent credit history is a way to predict that.

Ultimately, LightStream’s determination is based on whether they conclude that there is a high likelihood the loan will be repaid in a full and timely manner.

How Long Does LightStream Take to Approve?

Approval can happen fast with LightStream — sometimes within one day. They do not list a guaranteed approval time anywhere online, but the majority of customer reviews have claimed it is relatively quick if you submit all of your information correctly. And furthermore, loans can be funded on the same day if the application is approved, verified, and signed before 2:30 p.m. ET. So all in all, the entire process can be fast if you need funds quickly. Online, it says their application processing times are as follows:

Application Processing Times

Monday – Friday: 10 a.m. to 6 p.m.

Saturday & Sunday: 1 p.m. to 6 p.m.

If you are hoping to get approved the same day, be sure to submit your application as early as possible to assure LightStream has the full day to review your information and make a decision. Obviously, application review times will depend on a variety of factors. And it is best to try to avoid national Holidays.

Does LightStream Verify Income?

Yes, LightStream does verify income for personal loan applicants in order to confirm that people can repay what they borrow. But they do not disclose a minimum income requirement that is required.

Does LightStream Allow Co-Signers?

No, LightStream does not allow co-signers. But prospective borrowers can submit a joint application. And the co-applicant does not need to live at the same address as the primary applicant.

LightStream will weigh each applicant’s credit, income, and other details equally when evaluating the application.

How Long are my Funds Available After Approval?

Funds must be transferred into your account within 90 days for all home improvement loans. After 90 days, the loan approval will expire and a new loan application will be required.

When approved for all other loan purposes, the funds must be transferred into your account within 30 days. If for some reason you are unable to transfer the funds into your account after 30 days, the loan approval will expire and a new loan application will be required.

How Will I Make Payments Toward My Loan?

LightStream offers two options for payments. You can either make payments toward your LightStream loan by autopay or invoice. If you select autopay, your payment will go directly to LightStream from your bank account. Because this is more efficient, LightStream may give you a lower interest rate.

Also, payments can only be made from your personal bank account.  Payments will not be accepted from a business or third-party account. It is also important to note that payments cannot be processed on the same day. This means you must sign into your account at least two business days before your desired payment date.

Early Payments

LightStream also allows early payments. If you wish to make your payment early, it will be considered an extra payment. An extra payment will go toward the overall amount you owe. However, it is important to note that your regularly scheduled payment will still be due by the due date.

How Will I Manage My LightStream Personal Loan Once Approved?

LightStream’s online account services area enables customers with funded loans to virtually manage all aspects of their loan through the online portal. The ease and convenience of being able to pay from anywhere gives LightStream a big advantage over other lenders that don’t offer this.

After logging into their website, you’ll be able to:

• Review your loan(s) and payment history.
• Make extra payments or pay off your loan.
• Update your contact information.
• Update your security information (user id, password, security question and answer).
• Conveniently apply for another loan.

How is LightStream Related to Truist?

LightStream is a part of Truist Bank. While most correspondence will come from LightStream, you might notice the name Truist on certain communications too.

Today, Truist Bank is among the top 10 largest banks in the U.S. You do not need to be an existing customer of Truist Bank to qualify for a LightStream loan.

Customer Reviews

Generally, we found that most customers had positive reviews. And on average across several review websites, we found they get about 4.5 out of 5 stars.

Most customers are happiest about LightStream’s easy and transparent process. Notably, most were happy about the low interest rates and zero fees. Additionally, LightStream has some philanthropic programs that customers may enjoy. And, since 2013, LightStream has planted a tree for every loan they have funded. Lastly, LightStream offers a downloadable app that makes paying your bills very easy according to customers.

Those who gave LightStream lower ratings reported issues like having to follow up with the lender for application status updates, receiving funds later than expected and a lack of responsiveness from customer support.

LightStream Customer Service

You can contact LightStream customer service through the email listed on their website ([email protected]). They also list a physical mailing address on their website, but email will be the fastest way to communicate with them. They do not offer a direct phone number online.

Loan Experience Guarantee

Another perk that LightStream offers is their Loan Experience Guarantee. If you are not completely satisfied with your experience after receiving your loan, you have the option to contact them. They will email you a questionnaire and when they receive the completed questionnaire, they will send you $100. The guarantee expires 30 days after you receive your loan.

Lightstream Personal Loans: The Bottom Line

Overall, we found LightStream to be a good option for personal loans for those with good to excellent credit. Firstly, they do not charge origination and other fees. And second, they have relatively low-interest rates compared to the competition. Furthermore, they offer a process that can be done entirely online. This makes them a convenient option for those who do not want to visit a physical location. Lastly, they are available in every state which makes them a convenient choice. Their online application process is also quick and easy.

The major downsides include their strict qualifications for eligabilty, and restrictions on how you can use the money. Nevertheless, compared to the competition, they remain a solid choice for personal loans if you meet their credit requirements.

Best Overall Choice for Personal Loans