LightStream Loans review: what you need to know before applying for a personal loan
For clients with good and excellent credit rating, LightStream Loans is here to reward you with a special discount. This leading online lender offers the lowest interest rates for personal loans and quick approval.
As a branch of SunTrust Banks, Inc, LightStream is the leading online creditor that offers personal loans for a wide range of purposes. LightStream serves clients who have good to perfect credit portfolios and also sufficient revenue and assets.
The lender offers competitive rates that tend to differ depending on the function of the loan. Other factors that might affect the rates include loan amount, term and credit history of the borrower.
LightStream is known to provide the lowest rates for various loan products meant for home improvement, consolidation of debts, medical expenses and auto loans.
Borrowers can apply the loan amount from $50,000 to $100,000. The minimum loan duration is two years while the maximum duration is seven years.
LightStream is one of the best unsecured personal loans because it allows people to below highest amounts at lowest rates. Also, no fees involved.
LightStream was recognized as one of the best personal loans in the categories of excellent credit and home improvement. For instance, clients with good credit who want to fund a home improvement project might be eligible for extended loan terms of up to 12 years with no evaluations or home equity requisites.
Extended repayment terms can make monthly payments cheaper on costly home improvement projects
Who qualifies for LightStream personal loan?
LightStream can be ideal if you have a good credit score. To get this type of personal loan, you must have a minimum credit rating of 660 and many years of credit records. You also need ti to have a robust record of on-time payments and numerous credit accounts.
Clients with more than average credit score: typically, a borrower must have a minimum credit score of 660 to qualify for the loan. So, make sure you check your credit rating before applying for the loan.
Borrowers with strong credit history: most lenders require a borrower to have many years of credit records. However, having a strong credit record is not enough. LightStream requires borrowers to have several credit types such as credit cards, auto loan and home loans.
Savers: even though the creditor will not specify the amount you need to have in a bank account, LightStream needs proof of liquid assets such as ownership of stocks or savings account.
Any client borrowing for non-traditional use: just like other online lenders, LightStream provides personal loans for debt consolidation. It also offers other loans such as unsecured loans to buy cars, finance adoption, pay for medical procedures, weddings, home improvement and timeshares. LightStream claims that it will design the annual percentage rate depending on loan use.
Clients who apply for joint application: LightStream is among the few lenders who let many borrowers apply for one loan.
You must have someone to act as a co-signer. LightStream allows its clients to have joint applications every member must have a credit score higher than the minimum.
This unsecured personal loan is also ideal when you intend to consolidate a debt or fund home improvement. LightStream loans provide lower rates and long repayment duration, making is an alternative for loan use.
Who should not apply for LightStream personal loans
A borrower with bad credit: if your credit score is below 660, don’t apply for LightStream loans since you won’t be accepted. Alternatively, the creditor will ask for collateral to secure the loan.
Any person intending to borrow below $5,000: LightStream gives a minimum personal loan of $5,000. Therefore, anyone who needs a loan below that limit should look at other lending options.
Any person who needs a one-on-one experience: LightStream’s application process is exclusively online.
How LightStream compares with other lenders
SoFi and LightStream
Even though SoFi provides the similar loan amount and the same APR range as LightStream, the minimum credit score required for this loan is somehow higher which is 680. The borrower must have an annual income of not less than $100,000 to qualify. Therefore, it is important for creditworthy borrowers to evaluate the rate of both lenders. Just like LightStream, you must have a strong credit record and an excellent credit rating to be accepted. One benefit SoFi offers is the unemployment protection. In case you get fired from your current job, SoFi will stop your monthly loan repayment and even give you job placement help during that time.
Discover and LightStream
If you want a loan amount that exceeds $350,000 and you have a good credit rating, you will go home with a good deal by applying for the loan with LightStream than with Discover. Discover allows you to borrow up to $350,000 for 3 or 7 years. Discover’s APRs tends to high ranging from 6.99% to 24.99%. With LightStream, there is no fees prepayment penalty. To qualify for Discover loan, you must have an excellent credit rating that is over 660 and a minimum income of $250,000.
LendingClub and LightStream
LendingClub is the best lending alternative is you fail to meet the credit requirements for LightStream. To qualify for LendingClub, you must have a credit rating of 640, which is slightly lower than the required 660 credit rating for a LightStream. LendingClub allows you to make direct payments to your lenders, which might be useful for some borrowers who want to consolidate a lot of debt. Nevertheless, you can apply for a loan of up to $40,000 via LendingClub. Therefore, LightStream is an ideal option if you want more cash and have an excellent credit rating.
Earnest, on the other hand, requires a minimum credit rating of 680 but offers a lower maximum loan amount and high APR range than LightStream and SoFi.
How can you apply for a LightStream loan?
When applying for the loan on LightStream’s site, you will be promoted to identify the purpose of the loan. You will then look at the range of possible interest rates you are eligible to get for that specific purpose. You can either apply on your own or get a co-signer. Applicants will get a dedicated customer service phone number and email address to talk to customer support is any help is needed.
- LightStream loan application involves a simple process that doesn’t consume much time. Before you apply, make sure you meet the following eligibility criteria:
- You must be 18 years old and above
- US citizen or permanent resident in America
- Must have a good or perfect credit score
- Your revenue and asset must support the current debt burden and also the loan amount you want
Here are some of the personal information required when applying for LightStream loans:
- Information about your expenses and income
- Employment history
- Contact information such as home address, email address and phone number
- Full name, social security number and date of birth
When applying for LightStream personal loan, you start by filling out the necessary details concerning the loan. This includes how to intend to use the funds, the amount you want, your repayment duration and how you will pay the loan. You will then key in the personal details mentioned above.
You might be needed to upload documents to validate your identity, employment and income. When you submit the application form, you will get a fast response with a few hours. Once accepted, you will log on and sign the loan agreement and indicate the date you plan to fund.
You will say how and when you want to get the cash of up to one month from the date of acceptance. There is also a possibility of same day funding. To be eligible for the same-day funding, you must apply and get accepted on a business day and complete some procedures by 2.30 ET that day.
You will check and sign the loan deal electronically, and provide your funding preference and banking details. Make sure you complete the last verification process.
How does borrowing from LightStream work?
Make an online loan application and get feedback immediately. When accepted, you will be required to co-sign your loan agreement and include your funding information. Depending on the day of the week you apply, you might get the approved finances as early as the same day.
Features of a LightStream personal loan
Let’s look at the main advantages of LightStream personal loans
Competitive interest rates
LightStream personal loans are available with a maximum APR of 16.99, while the majority of online lenders offer high APRs of even 35.99%.
Variable loan amount and term
LightStream allows borrowers can apply a minimum loan of $5,000 and a maximum loan of $100,000. Your eligibility for any amount will depend on various aspects like your creditworthiness, your current financial condition and your capability to pay. The loan duration will range from 2 to 7 years while loans meant for home improvement projects will have a loan term of 12 years.
Funds can be used for a wide range of purposes
LightStream personal loans can be used for various purposes. Some of the uses are purchasing a car, paying for medical expenses or even for vacation.
Rate the best program
LightStream provides this program, and it aims to acquire the most competitive APR among the competitors. They intend to defeat any other creditor’s APR by 0.10%, so long as the other creditor’s APR meets specific terms and conditions.
Loans experience guarantee
LightStream’s primary aim is to offer state of the art client satisfaction. In case you are not happy with the loan process after getting the cash, feel free to call LightStream. You will get a questionnaire that you will be required to fill and submit, after which you will get a chance to receive $100 as part of the funding experience guarantee.
LightStream loans feature a fixed APR, so you will have a chance to know what you will be paying in the entire term.
No repayment penalty
You can make excess repayments to the loan any time you want without being asked to pay penalties. Also, you can pay back the loan early without being subjected to unnecessary penalties.
LightStream debt consolidation loan
LightStream allows you to consolidate your debts at an affordable interest rate and establish your financial confidence. If you have been tied up with debts, it’s time you consider taking a LightStream personal loan since it has a low-interest rate and no fee required. With many low cost fixed rates, you will have a chance to save some interest every month when you consolidate several payments into a single payment. The loan is offered by LightStream, and the application process is simple that will take you a few hours to find out if you are accepted.
Reasons to obtain LightStream loans
Just from the convenience of your laptop or smartphone, LightStream gives you incredibly competitive fixed rate funding. thee online lender advertises a hassle-free loan that rewards its clients for the excellent credit score and pledges the best finding experience.
Here are some of the reasons to choose LightStream personal loans
Flexible loan terms
LightStream offers numerous loan terms to its clients. The maximum loan term you will get at LightStream is a 144-month or 12-year loan term. The company offers other small options, so there is something for everyone. Borrowers can choose a loan with a 24-month term. LightStream offers a high level of flexibility and lets clients select a loan term that suits their needs.
The high maximum loan amount
LightStream is very competitive in the amount of loan it gives clients. Clients have a chance a chance to borrow a minimum of $5,000 and a maximum of $1000,000. With this wide range of loan amount accessible, clients have the power to choose a loan amount that will meet their requirements.
Unlike the majority of lenders, LightStream provides its loans directly in-house. This is to say that the loan is funded instantly. Note that there are no intermediaries involved in the funding process. This reduces the chances of a client getting into the hands if scams, predatory lending and other types of unlawful activities like identity theft.
Disadvantages of LightStream personal loans
The moment a client applies for funding, LightStream has professionals who carefully examine the details of the loan and the borrower. You will receive the same day funding if you are accepted and selects a financing date by 2.30ET.
When the funds are accessible, the client getting the loan via LightStream has two months to transfer the cash into a personal bank account or else the loan application will be annulled. Additionally, the cash should be used for the purpose indicated when doing the loan application, or the loan is invalid.
Minimum credit rating
To qualify for a LightStream loan, a borrower must have a minimum credit rating of 660. This tends to be high when comparing with other online lenders. Nevertheless, LightStream boasts the online lender that rewards its clients for good credit.
Does not support peer-to-peer lending
Peer to peer lending is gaining tremendous popularity. However, LightStream doesn’t provide this alternative.
Terms and conditions of LightStream personal loan
Note that the loan terms such as APR might vary depending on various factors such as the use of the loan, credit portfolio, loan amount and duration. The rate will be quoted with AutoPay discount that is accessible when you choose AutoPay before the loan is funded. Rates that are in the invoicing alternative tend to be 0.5% higher. If the loan application is accepted, your credit portfolio will define if the loan you will get is unsecured or secured. Subject to credit acceptance, conditions and limitations will apply. Note that the advertised interest rate and loan terms can be changed without prior notice.
The company is optimistic that they will beat the interest rate offered by any other creditor by .10 provided the creditor’s rate meets the terms and conditions illustrated here:
The creditor’s interest rate should not be supported by any other arrangements like car manufacture subvention payments or discounts offered by manufacturers.
The creditor’s rate offer should be accessible to all its clients that have same credit risk portfolio.
LightStream will give a rate that is 0.10% below the specific rate provided by competing lender
The interest rate offered for the loan amount, loan term and loan function and payment mode must be the same as those provided by LightStream. This offer is accessible to fixed rate loan only.
If needed by the company, you must present evidence to LightStream to its satisfaction. This will comprise a letter of acceptance, loan document having the APR and other information that LightStream deems sufficient.
How to Get an Unsecured Personal Loan
When you want to secure a loan to consolidate debt, get a personal loan as it will help you to take care of the expenses without straining. Many personal loans available are unsecured, implying that you don’t have to give out our car or house as collateral. For instance, LightStream offers personal loan amount ranging $5,000 to $100,000 and repaid in fixed payments.
Steps to obtaining a personal loan
Checking your credit score
A robust credit rating offers you high chances of getting approved for personal loans and getting reasonable interest rates. Make sure you evaluate your creditworthiness by checking your free credit rating.
Credit rating has the following categories:
- 300-629: poor credit
- 630-689: better or average credit
- 690-719: Good or above average credit
- 720 and higher or Excellent credit
If you have a bad score, make sure you build it up before applying for a personal loan. Some of the things that might be affecting your credit rating include on-time loan repayments and the amount of loan you borrow relative to loan limits.
Get pre-qualified for a loan
Pre-qualifying for the funding offers you an insight into the type of offers you might get. Most online lending companies will conduct a soft credit inspection during the pre-qualification process. Note that this will not affect your credit rating, so checking it beforehand is important.
Shop for the best personal loan
While having your pre-qualified loan offers in your hand, try to compare the amount given, terms and interest rate. Getting personal loans from local credit unions might be a good idea since they give their loans at low interest rates and flexible terms.
Some financial institutions provide unsecured personal loans such as LightStream.
Compare the options with other credit alternatives
Find out if you can qualify for a 0% credit card.
If you have an excellent credit score, getting a credit card that has 0% interest on purchases might be easy. If you can manage to pay back the loan in that period, a credit card might be the best alternative.
Think of getting a secured loan
If you have a bad credit rating, you might get an affordable interest rate with secured personal loan. However, you will need to provide collateral like a car or savings account. If you are a homeowner, a home equity loan or line of credit will be the best option than an unsecured loan.
Read the fine print
Just like with any funding, make sure you read the terms of the loan product and ask questions where you don’t understand. Here are the things to look at:
Prepayment penalties: many online lending companies such as LightStream don’t charge any fees for early loan repayments.
Automatic withdrawals: if the creditor wants payments to electronically withdraw from your account, make sure you set up a minimum balance signal with your bank to prevent unnecessary overdraft charges.
APR surprises: the cost of the personal loan comprising origination charges must be disclosed and accounted for in the annual percentage rate.
How to Increase the chances of getting your personal loan approved
Bear in mind that there is no definite formula for making sure your personal loan application is approved. There are some factors like credit rating and income that tend to differ. However, the only concern of any lending company is getting paid on time, which indicates that they accept clients who meet all the requirements.
Here are some tips to assist you to increase the chances of getting approved:
Improve your credit rating
Credit rating is a key aspect when it comes to applying for personal loans. Having an excellent credit rating increases the chances of getting accepted. Examine your reports to see if there are some errors. Make sure you collect anything that might affect your rating like wrong accounts, deactivated accounts reported as open and incorrect credit limits.
Rebalancing your income and debts
When applying for personal loans, you will be required to provide your annual income. In this case, you can include revenue received from part-time jobs. You can opt to start a side job so that you can supplement your current revenue or work hard to increase the salary at your full-time work.
You can also sell your liquid assets like stocks invested in the taxable accounts. Aim at increasing your proceeds and reducing your debt to as this will help you increase the debt-to-income-ratio.
Don’t borrow too much
Borrowing huge amount than what is required to solve your financial problem might be considered as risky by some lenders.
Evaluate the reasons you need the loan and tie a certain amount to the financial needs and borrow exactly what you need.
A huge personal loan will hurt your budget since high loan repayment will affect your capability to take care of other financial obligation.
Look for a co-signer
If you have a bad credit rating, getting a co-signer with an excellent credit score and income will boost your chances of acceptance.
Since the co-signer will be accountable to pay back the loan, it is important to co-sign with an individual who can manage the risk. While you might want to pay back the loan on time, some things such as job loss can’t be predicted. Have a truthful discussion with your potential co-signer to make them understand the risks involved.
Shop for the best lender
The majority of the online lending company will tell their minimum requirements for credit rating and yearly income and if they offer alternatives such as co-signers.
If you have the minimum requirements disclosed by the lender and you need to see the projected rates and terms, you can pre-qualify for funding.
While obtaining a LightStream personal loans will assist you to alleviate the burden of your debt and cover some unexpected expenses, make sure you evaluate all your available options before you settle for one choice. Get a lender who offers the lowest interest rates and borrow the amount you need and be sure that you pay on time.