However, you’ll need good or excellent credit to qualify — putting LightStream out of reach for many personal loan borrowers. If you do qualify, you can usually get approved and funded on the same day and enjoy little to no fees. Read below for our review of LightStream to help you decide if it’s worth applying.
LightStream At a Glance
- LightStream offers personal loans ranging from $5,000 to $100,000 with loan terms of 2 to 12 years.
- LightStream is a subsidiary of Truist Bank and a reputable company with a MarketWatch Guides rating of 5 out of 5 stars. It’s been in business for 26 years and has an A Better Business Bureau rating.
- LightStream offers some of the best rates on the market, starting at 6.99%.
- LightStream stands out for its same-day funding and “Rate Beat” program that offers to beat any comparable interest rate offer from a competing lender by 0.10%.
FEATURED PARTNER
Best For Low Personal Loan Rates
4.4
Best For Low Personal Loan Rates
4.4
Fast Facts
- Minimum credit score: Good to excellent
- Loan amounts: $5,000 to $100,000
- Loan terms: 2 to 12 years
- Rates: Starting at 6.99%
- Same-day funding: Funds available as soon as the same business day
- Rate Beat program: Offers to beat a competitor’s rate by 0.10%
Pros & Cons
Pros
- No fees associated with a personal loan
- Autopay discount
- Same-day funding
Cons
- Stringent credit requirements
- No prequalification
- Limited customer service
Usage Rules
You cannot use a LightStream loan for the following:
- Cash out refinancing
- Funding a business
- Investing in stocks or bonds
- Paying for college
Our Take on LightStream
LightStream offers some of the lowest starting interest rates for personal loans, currently 6.99%, along with same-day funding and no fees. Its “Rate Beat” Program takes this a step farther, offering to beat competitors’ rates. However, there is no prequalification option, so you’ll need to go through a hard credit check to determine if you’re eligible. Also, getting in touch with customer service is challenging as LightStream does not display a phone number and has no chat feature available.
How We Rate LightStream Personal Loans
Flip Card LightStream
LightStream Rating 4.4 / out of 5 stars
Rating breakdown
Affordability How expensive each company’s loans are to pay back. 4.7 / 5
Loan Features The breadth of loan terms and features available to prospective customers. 4.1 / 5
Customer Experience Ease of application, prequalification and customer service interactions. 4.5 / 5
Company Reputation An exploration of lenders’ BBB files, customer reviews and outstanding regulatory actions. 5.0 / 5
Our team put together a comprehensive 100-point rating system to evaluate personal loan companies. We gathered data points from 32 of the most prominent lenders in the U.S. and analyzed disclosures, licensing documents, sample loan agreements, marketing materials and websites. Our rating system takes into account four broad categories.
- Affordability (35%): How expensive each company’s loans are to pay back.
- Loan features (35%): The breadth of loan terms and features available to prospective customers.
- Customer experience (20%): Ease of application, prequalification and customer service interactions.
- Company reputation (10%): An exploration of lenders’ BBB files, customer reviews and outstanding regulatory actions.
| Affordability | 33/35 |
| Loan features | 29/35 |
| Customer experience | 18/20 |
| Company reputation | 10/10 |
| Total | 90/100 |
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We gave LightStream a total score of 90/100 due to its strong performance across multiple categories. This is the highest of any company we reviewed, and LightStream scores particularly highly for affordability, reputation and customer experience.
LightStream’s rates starting below 7% combined with its “Rate Beat” program put it at the top of the list among its competitors for affordability. Additionally, LightStream’s policy of no fees sets it apart from many lenders, such as Upgrade, which charges 1.85% to 9.99% of the loan amount as an origination fee.
LightStream also offers a wide range of loan amounts, from $5,000 to $100,000, and flexible terms that can be tailored to various purposes, such as financing vehicles, boats, or RVs. And its stellar reputation is backed by its strong customer feedback and affiliation with Truist Bank.
Our top-rated lenders may not be the best fit for all borrowers. To learn more, read our full personal loans methodology.
Will I Qualify for a LightStream Personal Loan?
According to the representative we spoke to, LightStream loans are for borrowers with good credit or better – which typically means a score of at least 670.
However, the company told us that it doesn’t necessarily define “good credit” with just a score. Instead, it looks for borrowers with a solid credit history with a variety of account types, a good payment history with very few delinquencies, and stable and sufficient income and assets. The rep further stated that LightStream bases its decision on the likelihood that the borrower has the ability to repay the loan, and a track record that indicates they’ll pay the loan back in full and on time.
If you have fair credit or below, you may have better chances of receiving a loan with Upstart or PenFed Credit Union.
Credit Score and Financial History
LightStream does not use a minimum credit score to determine eligibility, however it does state that it looks for borrowers with good credit. This is typically indicated with a FICO score of at least 670.
LightStream also looks at your total financial history to evaluate your creditworthiness. This includes the following:
- At least five years of significant credit history
- A solid mix of credit types (credit cards, auto loan, installment loans, etc.)
- A solid payment history with little to no missed payments or delinquencies
LightStream pulls your credit score from either TransUnion or Equifax. You likely have different scores for both, though they are often very close to each other. Although you can’t get preapproved with LightStream, pulling your credit reports from each of these bureaus and reviewing them against these factors can help you decide if the approval odds are in your favor.
Income and Employment
LightStream also needs proof that you have a stable income and plenty of assets, such as investment and retirement savings, or checking and savings account balances. It also needs to verify that you have a low debt-to-income (DTI) ratio, which means very little of your monthly income should be going toward any existing debt payments.
If you’re not sure if you meet these requirements, there are a few things you can do. First, you can look for ways to increase or stabilize your income. This could include asking for a raise, finding a new full-time job or picking up a part-time job or freelance work. If you receive any sort of income from rental property or investment dividends, this could also work in your favor.
LightStream Personal Loans Reviews
To give you a look at how customers overall feel about personal loan companies, MarketWatch Guides compiled tens of thousands of reviews from popular publicly available user-review sites, including Trustpilot, the Better Business Bureau, Consumer Affairs and Best Company.
We then categorized each review and analyzed the sentiment to determine whether it was positive or negative. Finally, we normalized scores against each other to create a fair standard.
With all of that data, we generated numeral scores to gauge LightStream’s ease of use, responsiveness, transparency, reliability, and customer service as it relates to other companies in the industry. Scores do not guarantee your experience and are only intended to convey general trends. LightStream’s score includes a mix of positive and negative reviews, and may include comments on aspects of other bank features – not just personal loans.
In all categories, a score of 3.5 stars is average.
LightStream did not respond to a request for comment on the negative reviews.
Most Praised Features
LightStream scored highest for its ease of use with customers stating appreciation for the quick process and user-friendly platform.
- Quick loan process: Some customers appreciated the swift and simple loan application process at LightStream, mentioning efficient fund disbursem*nt and minimal documentation requirements. About 20% of positive reviews mentioned the speed of the application.
- Ease of use: Some users highlighted the user-friendly nature of LightStream’s platform, appreciating the straightforward online application and website design. About 15% of positive reviews fell in this category.
Most Common Complaints:
Like many other big banks, LightStream’s customer review score falls below industry average, with its lowest score being for customer service.
- Customer service inefficiency: Many reviews criticized LightStream for poor customer service, noting issues such as unresponsiveness, rudeness, and a lack of helpful support during the loan application and management processes. About 40% of negative reviews cited poor customer service.
- Transparency issues: Customers expressed frustration over a perceived lack of transparency, particularly regarding loan terms, fees, and the accuracy of advertised APRs. About 30% of negative reviews mentioned transparency.
Who Are LightStream Personal Loans Best For?
LightStream personal loans can be ideal for people with good to excellent credit (typically 670 or above) who need access to funds quickly and wish to save on the overall cost of the loan. It offers loans ranging from $5,000 to $100,000, making it a good fit for most financing needs, such as debt consolidation or home improvement projects.
LightStream’s features, such as the “Rate Beat” program, same-day funding and no-fee lending appeal to people who prioritize cost and efficiency. However, due to its strict credit requirements and lack of prequalification, it might not be ideal for those with fair or poor credit.
Jane wants to remodel her kitchen and needs a $20,000 loan to cover the costs of new appliances, countertops, and cabinets. She has a FICO score of 750 and a strong credit history, so she will likely qualify for a loan with LightStream and get a decent rate. She might also benefit from its same-day funding, allowing her to start her project immediately.
Michael has $25,000 of credit card debt and is looking to consolidate it into a single loan with a lower interest rate. The interest rates he is paying on all three of his credit cards range from 18.5% to 23%. He has a FICO score of 720 and a steady income, so he will likely qualify for a much lower rate with LightStream, helping him to reduce his debt.
Susan bought her car a couple of years ago at 12.60%. However, she has since gotten a salary increase and raised her FICO score to 780. With her more robust financial profile, she might qualify for LightStream’s lower interest rates, allowing her to reduce her monthly payments and save money over the life of the loan.
How LightStream Compares to Other Lenders
If you’re thinking about a LightStream personal loan, make sure you compare it to other lenders. Here’s how LightStream stacks up against three of the best personal loan providers: Discover, SoFi and PenFed.
LightStream vs. Discover
LightStream and Discover have almost identical personal loan rates and both require little to no fees. But there are a few differences in terms of loan amounts and requirements. First, LightStream has a wider range of loan amounts — $5,000 to $100,000, compared to Discover’s loan range of $2,500 to $40,000.
Discover may have easier credit score requirements, but you’ll need at least $25,000 in annual household income to qualify for a Discover loan. LightStream also has a “Rate Beat” program that will beat a competitor’s interest rate offer by 0.1% points — including a Discover offer.
LightStream vs. SoFi
LightStream and SoFi are both reputable online lenders that offer competitive interest rates on personal loans with same-day funding available. LightStream offers a “Rate Beat” program that promises to beat any competitor’s rate by 0.1% points if you meet certain requirements, while SoFi offers unemployment protection and career coaching services to borrowers.
LightStream and SoFi have the same minimum and maximum loan amounts — $5,000 to $100,000. But LightStream offers loan terms of up to 12 years, while SoFi’s loan terms max out at seven years.
LightStream vs. PenFed
LightStream and PenFed have low rates but offer different benefits for personal loans. LightStream has a higher loan limit of up to $100,000, while PenFed only offers loans up to $50,000. LightStream also has longer loan terms for certain uses, such as home improvement, boat, RV and aircraft loans, which can go up to 12 years.
PenFed, on the other hand, has a lower minimum loan amount of $600, making it a good option for those who need a smaller loan. LightStream offers a 0.5% autopay discount and has a “Rate Beat” program, while PenFed doesn’t advertise any discounts.
| LightStream | SoFi | PenFed | Discover | |
|---|---|---|---|---|
| Loan Amount | $5K – $100K | $5K – $100K | $600 – $50K | $2.5K – $40K |
| Minimum Credit Score | “Good” credit | 680 | 580 | 660 |
| Loan Terms | 2 – 12 years | 2 – 7 years | 1 – 5 years | 3 – 7 years |
| Rates | 6.99% – 25.99% | 8.99% – 29.49% | 7.99% – 17.99% | 7.99% – 24.99% |
| Fees | None | None | None | None |
| Funding Speed | Same-day | A few days | 1 day | 1 day |
Pros and Cons of LightStream Personal Loans
There’s a lot to love about LightStream, but it’s also not without its drawbacks. Consider these pros and cons as you weigh your options.
Pros
No fees: There are no fees associated with a personal loan.
Autopay discount: You’ll get a 0.5% discount for setting up automatic payments.
Same-day funding: Most approved loans are funded on the same day.
Rate guarantee: The “Rate Beat” program gives you a lower rate than any qualified competing lender.
Available everywhere in the U.S.: Loans are available in all 50 states plus Washington, DC.
Cons
Stringent requirements: You’ll typically need good to excellent credit to qualify.
No prequalification: Unlike most lenders, LightStream doesn’t offer prequalification, so finding out your rates and terms results in a hard credit inquiry.
Limited customer service: There is no customer service number listed, nor is there an option for chat. You’ll only be able to easily reach out by email.
LightStream Personal Loans Usage Rules
When you submit your application, you’ll be asked to choose your reason for taking out a loan. You must use your LightStream funds for this reason. Legally, you can’t use your loan proceeds for the following:
- Paying off another LightStream loan
- Paying for college or postsecondary education expenses
- Funding a business
- Investing in bonds, stocks, stock options or anything related to stock market securities
- Contributing to a retirement, life insurance or education savings plan
- Cash out refinancing
Frequently Asked Questions About LightStream Personal Loans
LightStream looks at your total credit profile — including your credit history, assets, income, debt and payment history — so there’s no set minimum credit score. That said, LightStream tends to only approve borrowers with good or excellent credit, so a score of 670 or above would provide you with the best chances of securing a loan.
It may be difficult to get a LightStream loan if you have a lower credit score or if you’re missing a key part of your credit profile, such as a strong credit history, stable income or a history of on-time payments. LightStream accepts co-applicants, so you can apply with someone who has a stronger credit profile if you’re worried about being denied. But note that LightStream will look at both of your profiles equally to make a final decision.
LightStream funds most approved loans on the same day as they’re approved as long as you review and sign your loan agreement, provide your funding preference and complete the final verification process by 2:30 P.M. Eastern Time.
Many customer reviews state that LightStream’s application process is fairly quick and straightforward. You can follow these steps:
- Apply online: Click the “Apply Now” button at the top of the page on LightStream’s website.
- Submit your information: You’ll need to input your personal information, such as a Social Security number, as well as information about your employment and financial records.
- Wait for a response: LightStream will review your application and notify you of your status.
No. We love it when lenders offer a form on their websites to prequalify for a loan without hurting your credit, but LightStream requires you to go through the official application process. This will result in a hard pull on your credit.
LightStream does not charge any fees, including origination fees, late fees and early repayment penalties.
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someoneyou trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
Learn More About LightStream
See how LightStream stands out in our roundups of the best financial institutions and personal loans available today:
- #1 on Best Fast Personal Loans
- #1 on Best Personal Loans with No Origination Fees
- #1 on Best Unsecured Personal Loans
- #1 on Best Personal Loans
- #1 on Best Low-Interest Personal Loans
- #1 on Best Online Personal Loans
- #1 on Personal Loans for Good Credit
- #1 on Best Debt Consolidation Loans
- #1 on Emergency Loans
- #1 on Personal Loans for Veterans
- #1 on Best Joint Personal Loans
- #1 on Best Personal Loans With a Co-Signer
- #1 on Easiest Personal Loans to Get
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.com.
