Lightstream is a lending service under the lending division of SunTrust bank. Since the service is from the lending division, loans come with quite competitive APRs and yet high standards of approval. If you are looking for a personal loan, such lenders are usually ideal; and you even if you are not a member of SunTrust bank, you can still apply for a personal loan. However, according to the industry's regulations, the range is on the lower end, and borrowers have to qualify first. What makes Lightstream stand apart in the industry is offering personal loans with no fees, coupled with a quick turnaround from the time you apply for the loan and when you receive the funds.
While Lightstream is bank owned and operated, the approval process is quite similar to other lenders, and is relatively fast and straightforward. You only need to submit all the necessary documents as required, and if everything goes smoothly, you might be eligible for a same day funding. To support its confidence on the simplicity of the application process, the lending company vows to reward you with $100 if you are not at all satisfied with the experience. That said, Lightstream is definitely a great option worth taking an in-depth look at. Here is a comprehensive Lightstream Loans Review with everything you need to know about the service.
Company Profile
Lightstream is an online consumer lending service from SunTrust Bank, whose corporate offices are located in Richmond Virginia, and Atlanta Georgia. When the SunTrust Bank acquired the online consumer lender First Again LLC. and its assets in 2012, it relaunched as Lightstream. The loans issued through the Lightstream division are usually funded by the SunTrust bank.
The lender's model is generally based on the fact that what you buy affects the interest rates you pay. Those who meet the high credit standards can benefit from the Lightstream interest rates, which are tailored to anything from paying for fertility treatments, to purchasing a horse. However, the company doesn't provide loans to businesses or for college tuition.
The company recognizes that taking a loan to pay off some existing debt is primarily riskier compared to other ventures such as buying a new car. The good part is that Lightstream has very competitive interest rates on unsecured personal loans, which are low enough to compete with the conventional loans that usually require some form of collateral.
Is Lightstream Legit?
Lightstream has been accredited since 1967, with an A+ rating from the BBB. Although there are various pros and cons with the unsecured customer debt, this is a legitimate lender, who has been providing a popular service for a very long time.
Qualifying for a Loan
It's important that you have a good credit score rating and a steady flow of income to qualify for a Lightstream loan. However, as mentioned earlier, you don't need to be a member or customer of SunTrust to be approved. In general, what Lightstream wants to see before awarding you a loan includes:
- A credit history on various account types, such as an installment debt (car loans) and credit card history (MasterCard, Visa, American Express)
- A number of years' credit history
- A credible payment history with no misconducts
- Sufficient and stable income and/or assets to repay any currents debts, including the new loan
- The ability to save some funds, as indicated by ownership of bonds, stocks, retirement savings, and bank deposits. Your previous payments on revolving credit card debt and cash down payments on real estate are also considered.
Keep in mind that Lightstream defines "good credit" a few notches just below the "excellent" status, with a few years of considerable credit history. The recommended credit score of 720 is usually ideal, and you shouldn't have any misconducts or late payments on your credit.
Loan Categories
Lightstream features loans ranging from categories such as vehicle and home improvement to recreation and "anything else". Any personal loans taken for credit card debt or debt consolidation will be categorized under the anything else category. Their loan products are often aimed at those people who have a consistently high income and a very good credit rating. In this case, their ideal customer is likely to be buying a small airplane or a horse, rather than paying off credit card debt.
Loans ranging from $5,000to $100,000 can be requested with a payback terms of 24 to 84 months. The interest charged usually vary from as low as 1.99% for the most qualified borrowers, which makes them very competitive for consumer or personal loan products. Keep in mind that the interest rates are fixed for the life of the loan, which helps to keep the payment amount same throughout the payback process.
As a prospective borrower, you should note that the interest rates will vary depending on the loan category. The anything else loan category for instance has the lowest interest rate as 5.99% for an amount of $10,000 to $24,999 on a payment term of 24 to 36 months. Based on the amount you borrow, the rate of the anything else category could go up to 14.49%. obviously, the interest rate is dependent on the general credit market trends over the period.
Under the vehicle loan category, the interest rates could go to as low as 1.99%, home improvement loans can go as low as 3.99%, and recreational loans as low as 2.99%. Lightstream also offers unsecured personal loans, which by principle do not require collateral to back them up. Moreover, you have the option to apply for a secured loan for vehicle purchases only.
Lighstream Fees and Payments
You won't be charged by Lightstream for the loan origination fee, and neither for missed payments and late fees. Your monthly payments will automatically be debited from your bank account, unless you have specifically chosen to be billed and pay via check each and every month. Those who opt for the automatic debit option are entitled to a 0.5% reduction in their interest rates, which is quite a strong incentive. Borrowers can request for repayments terms of anywhere between 24 to 84 months.
- 24 to 84 month loan terms
- One low monthly payment
- No upfront fees, no monthly fees
- $100 best loan experience guarantee
How to Apply For A Lightsream Loan
The application process for Lightstream personal loan is quite simple and straightforward. While you won't need all the documents to apply, you need to fill out the rather detailed application form explaining your income, finance, and residency status in order to proceed with the loan agreement. You must fill out the application online, which is usually done in three stages:
- Decide the terms of the loan you wish to take
- Submit your security information
- Provide personal information details such as your full name, address, employment status, etc.
You may also be required to submit the relevant documents to verify your physical address, identity, and income details. The lender will then inform you whether you have been approved, which usually takes minutes or even days depending on the terms of the offer. Don't forget that Lightstream usually conducts a hard pull through Experian or Equifax when finalizing your application process. If you complete all of the necessary steps and upload your documents by about 2.30 pm. EST on business days, you could receive your funds on the same day. You could also select to receive your funds at a specific date within the first 30 days of approval. According to the application page, you also need to have a valid MasterCard or Visa Credit card for verification purposes before you receive your funds.
Lightstream Loans Review: The Pros and Cons
Lightstream offers competitive interest rates and terms as discussed earlier, and the maximum loan amounts you can take are evidently much higher that the offering from other lenders. Basically, personal loans are maxed out at about 5 years, and these are capped at $25, 000 to $35,000. For those with a large project to take on such as consolidating a lot of debt, or taking on a home improvement project, Lightstream could be a good option for you.
It's also quite hard to believe that there are no fine prints with the Lightstream's personal loans. According to the website, no fees of any kind are incurred. Further inquiry confirmed this, and the customer care representative clearly stipulated that there are no extra fees (late fee, application fees, or prepayment fees) associated with their loans.
When asked about what happens with late payments, they said that the borrower must pay the accrued interest on a per diem basis, until the payment is made. Considering that most other lenders would charge about $15 each time a payment doesn't go through or you miss on a payment, it's really good news.
Nonetheless, for those locked into utilizing the funds in the specific purpose stipulated on the application, different rates and terms apply for each depending on the type of loan. For instance, wedding loans won't get the same 1.99% offered on auto loans. Moreover, you need to have an excellent credit rating in order to qualify for a loan. You need a strong and positive credit history, with a higher chance of being approved if your score is above 720.
Another downside note to Lightstream is its inability to refinance student loans, while its competitors have this option. In this case, if you are looking to do that, then you can just apply with another lender. Many of them out there don't have this restriction.
Lightstream is fond of pushing its home improvement loans on its website and the different social media platforms, for a good reason. For those looking to do a major overhaul on their homes like adding a new room, or a kitchen renovation, you may require more than the $35,000 offered by other lenders.
Lightstream Transparency Score
The website is quite intuitive and easy to use. However, there are a few elements missing and this necessitated further inquiry. The Lightstream website doesn't explicitly say whether a hard or soft credit check is used, and it didn't go over eligibility details.
Those looking to call Lightstream directly might not find it straightforward. If you go to its Questions page, you will only find an email listed. But if you are filing out the application, there's a "contact us" link that appears at the top of the page, giving you a phone number that you can call to ask any questions. Understandably, Lightstream could be trying to keep its cost down, and probably pass on the saving to borrowers as loans. So, send them an email if your question is not urgent. While it's a good thing that you have the option to reach them on call, their representatives are fairly fast when it comes to responding to emails.
What if I have a Poor Credit Score?
Be sure to check your credit and determine your financial strengths. Keep in mind that loan approval and the corresponding interest rates are dependent on your credit score alone. Most lenders tend to look at your income, credit history, and the debts you carry. For instance, a higher debt could negate a great credit score, or a low score bolstered by high income.
Shopping around could also come in handy. It may be worth considering other alternatives that uses a soft pull of your credit unlike lenders like Lightstream that use a hard pull on your credit. You can check the rate at which you are eligible for from those lenders first. Shop around within a 30-day period, since more time is likely to have a negative impact on your credit score.
Lightstream Loans Review: Final Word
Lightstream provides you with very competitive rates and terms, with a greater maximum loan amount than what similar lenders offer in their plans. People with great credit scores will not only have a higher chance of being approved, but also benefit most from Lightstream loan plans.Visit Site With all these factors into account, the ideal candidate for Lightstream loan is not looking to repay debts, or struggling financially. For them, the low rates and the lack of fees makes Lightstream a very attractive lender, even with the apparent lack of phone support.