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LightStream In-Depth Review
In a nutshell: As a direct lender, LightStream is an excellent option for borrowers with good credit and financial history.
LightStream In-Depth Review
In a nutshell: As a direct lender, LightStream is an excellent option for borrowers with good credit and financial history.
LightStream In-Depth Review

Overview

As a direct lender, LightStream makes an especially good option for borrowers who have establishes good credit and financial history. Their personal loan service looks at factors like credit history, assets, income, and payment history for loans between $5,000 and $100,000.

Their loan service applies to personal loans for a range of purposes, from home repairs to wedding expenses. LightStream personal loans can also work for car loans, home improvement, recreational costs, solar financing, medical bills, and much more.

Requirements

LightStream emphasizes that borrowers have a good financial track record, looking at factors like credit score, income, and assets. Not all applicants can qualify, and LightStream has certain requirements for customers to successfully obtain a personal loan. LightStream does look at credit history, and prospective borrowers should have a credit score of at least 640 or higher to qualify. That also means that applicants should have a credit history of at least a few years or more.

Loan Process

LightStream makes it easy to apply for a loan, and prospective borrowers can do so right from the website. When filling in your application, LightStream will ask you to select the loan purpose from their long list of options. Then you can view the range of potential interest rates on your loan for that particular purpose. In some cases, LightStream applicants may need to run a soft credit check. LightStream also allows applicants to receive a loan either on their own or with a co-signer.

After applying, LightStream’s team of underwriters will review the applicant’s details. Approved borrowers can request same-day loans. Once the funding is approved, borrowers have 30 days to transfer money to their personal account or else LightStream will void the loan. In this case, customers will need to re-apply to receive the loan.

Loan Terms

LightStream allows borrowers to use their money for a range of purposes including auto expenses, kitchen or bathroom remodel, debt consolidation, swimming pools, medical bills, weddings, or even to purchase a timeshare or a boat.

While some personal loan services allow customers to shop for different loan offers, LightStream actually provides the loan directly themselves. LightStream rates and terms depend on the applicant’s credit history, assets, and income.

Those who set up autopay enjoy better rates. Repayments with LightStream range between two to seven years. In order to ensure the quality of their service, LightStream guarantees to pay customers $100 if they do not feel satisfied with their loan offer. LightStream doesn’t charge any origination fees.

Customer Support

The LightStream website clearly states all of the information prospective borrowers will need prior to signing up. Their website includes the range of rates, repayment terms, and loan options right upfront. The online FAQ also has answers to common questions to help you get started. You can also contact support directly through email by filling in an online contact, and business hours are Monday through Friday, 9:00 a.m. to 8:00 p.m. and Saturday, Noon to 7:00 p.m. Eastern time.

As a Norton Secured Site, customers can rest assured that none of their financial information ends up in the wrong hands. Once you apply, financial and personal data shared with LightStream remains safe using Norton Security protection.

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Pros
  • Compare multiple rate options
  • No origination fees
  • Direct lender
Cons
  • Requires good credit
  • No peer-to-peer lending
FAQs About Personal Loans
Before taking a personal loan be sure you familiarize yourself with all the terms and conditions associated with the loan. To help you get started, we've compiled some of the most frequently asked questions about personal loans below.
What is a personal loan?
Personal loans are loans taken from a lender and paid back by the borrower in fixed monthly installments. These loans can be taken for a wider variety of reasons ranging from home improvement to financing large purchases. Unlike mortgage loans or some types of business loans, personal loans are almost always unsecured, meaning they aren't backed by any collateral.
Can I take a personal loan online?
Absolutely! By using an online personal loan service you save yourself the trouble of arranging meetings with banks and/or credit unions and you can easily compare offers while sitting at home. Furthermore, many online personal loan lenders offer better rates than banks and provide more flexible terms ranging from 61 days up to 180 months. These online personal loan services often function as a middleman between the borrower and the lender. The loan service will connect you with a lender who will make a loan offer specifying the APR and loan terms.
What do I need in order to apply for a personal loan?
Applying for a personal loan is much easier than you might've thought. Many online applications take only a few minutes to complete and don't require many personal details. Usually, loan applications simply require details such as name, address, and contact information, plus some basic questions concerning your financial history, credit score, and income.
What is APR*?
APR stands for annual percentage rate and refers to the annual interest rate charged for your personal loan. Actual APR numbers vary but will always cap at 35.99%. Typically, online lenders will offer an APR somewhere between 5% and 30%. The APR of your loan will depend on various factors such as credit score, income, and financial history. *APR rates mentioned include associated fees.
How long do I have to repay the loan?
Much like APR, the term or length of your loan will depend on a variety of factors. Repayment periods can range from 61 days to 180 months. One of the great things about online personal loan services is they allow you to compare loan terms meaning you can choose a repayment period that best suits your financial goals.
Representative Example
Assuming a loan of $5,000 over 36 months at a fixed rate of 10.5% per annum and fees of $60.00.
This would result in a representative rate of 11.3% APR, with monthly repayments of $162.51, for a total amount paid of $5,910.44.
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