About lender
LightStream is an online consumer lender that offers fixed-rate unsecured personal loans such as auto, home improvement, recreation, family loans, and debt consolidation. The company is a marvelous alternative to traditional banking services, as it provides a great variety of nontraditional financial options such as horse, aircraft, dental and other types of loans.
LightStream is part of Truist Financial Corporation. It was founded in 2012 and nowadays operates in Atlanta, GA.
Pros and cons
Let’s look at the major advantages and disadvantages of applying for LightStream’s services.
LightStream is applicable for those who want to get a loan to finance vehicles, recreation, and family needs, buy land, and make some other purchases.
Pros
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Charges no origination, prepayment, or late fees and has low rates
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Offers Rate Beat program and Experience Guarantee.
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Has long repayment terms on swimming pool and solar loans
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Gives an opportunity to use a rate discount for autopay
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With LightStream, customers can choose a fund date for personal loans themselves. So, they will have some additional time to plan their first payment or join a home improvement project at the same time.
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Has quite a high minimum credit score eligibility requirement for personal loans in comparison to other lenders.
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While many lender companies have a limited number of local branches opened around the U.S, LightStream’s loans are available nationwide.
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LightStream has within-a-day funding and approval processes for personal loans.
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Offers a great variety of personal loans, from buying a car to financing a horse.
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Comparingly to other lender companies, LightStream has relatively high personal loan amounts ranging from $5,000 to $100,000.
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Has A+ BBB (Better Business Bureau) rating
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Allows borrowers to apply for personal loans online or over the phone, with a typical processing time of fewer than 24 hours.
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LightStream requires a low debt-to-income ratio.
Cons
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Unlike alternative lenders, LightStream has no prequalification option on its website. Nevertheless, applicants can pre-qualify with a soft credit check through NerdWallet.
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Requires several years of credit history to qualify for personal loans
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Has no direct payment to creditors. So, once customers consolidate their debts with a loan, LightStream does not send payments directly to lenders. Instead, borrowers must allocate their loan funds to pay off creditors on their own.
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LightStream does not offer business loans, which can be a serious disadvantage compared to competitors' services.
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Offers limited customer service options. Applicants with questions are redirected to fulfill an email form on LightStream’s website instead of providing a phone for customer service, as it is stated by the lender.
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LightStream places some limitations on the usage of loan funds. Hence, borrowers can’t use their loans to pay for post-secondary education or cover business expenses.
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Customers can not use a LightStream loan to pay for higher education, refinance other LightStream loans, purchase bonds, use stock options, or contribute loan proceeds to retirement, life insurance, or education savings plans.
Owing to streamlined application and approval processes, lasting repayment terms, and rate discounts on personal loans, LightStream may be an ideal choice for prospective borrowers with a strong credit history looking for flexibility options. However, if customers have poor creditworthiness, they should better consider some alternatives to LightStream.
Terms and conditions
LightStream personal loans generally imply 4,99%-24.49% APR for borrowers who are signed up for autopay. Others are subjected to APRs 0.50% higher. The loan amount is from $5,000 up to $100,000.
LightStream’s major competitive advantage over other personal loan companies is its long-lasting loan terms. While lenders predominantly offer repayment terms from 2 to 5 or 7 years, LightStream loan terms vary from 2 to 7 years on personal loans and up to 12 years on swimming pool and solar loans. The company charges no fees for its services.
LightStream also offers very nontraditional and sophisticated services, such as a Rate Beat program that beats a competitor’s interest rate by 0.1%. It is applicable for customers approved by the competitor for a regular fixed-rate loan with the same amount, term, purpose, and payment method. Another option is a LightStream Guarantee program that is intended for unsatisfied borrowers who have had their loan for fewer than 30 days. Such clientele can get up to $100. Note that each borrower is limited to one $100 payment per funded loan.
Funding a loan
LightStream deposits funds directly into the customer's account in the app within the same day or up to 30 days after approval. The operational time of the lender is from 1 to 6 months.
