Lightstream Personal Loans Review

LightStream is an online lender that is a division of Truist Bank. It provides unsecured personal loans to borrowers with good-to-excellent credit profiles. Lightstream stands out from its competitors due to their no-fee loans and guarantee to beat any rate you have received for an unsecured loan from another lender. Unfortunately, borrowers with fair or worse credit scores won't get to enjoy these features, due to their strict approval criteria.

Loan Options

• LightStream offers unsecured personal loans between $5,000 and $100,000.

• Loan lengths typically range from 2 to 7 years, though certain loan purposes — such as home improvement projects — may qualify for substantially longer repayment terms of up to 20 years.

• LightStream allow co-applicants on loans, which could improve your chances of approval, as they will consider the joint income and assets. Furthermore, the legal responsibility to repay the loan will be equally shared by multiple people. Simply select "Joint Application" at the beginning of the application process.

Interest & Fees

• APR: LightStream personal loans have fixed rates from 6.99% to 25.99%, though this range will differ by loan purpose.

• Origination Fee: No origination fee.

• Prepayment Penalty: Borrowers do not incur any fees if they wish to pay off their loan early.

• Late Payment: LightStream do not charge fees for late payments.

• Unsuccessful payment: No fees for failed check or ACH payments.

• Discounts: LightStream will apply a 0.5% autopay discount if you choose to have your payments pulled automatically from your bank account.

Geographical Availability

LightStream accept personal loan applications from residents of all 50 states plus Washington DC.

Loan Eligibility

LightStream require a good-to-excellent (660+) FICO score as a qualifier to be reviewed.

Income Requirements

No information on minimum income thresholds has been publicly disclosed.

Are they legit?

LightStream is a part of Truist Bank, which formed in 2019 following the merger of BB&T and SunTrust Banks. By some measures, it is among the top 10 largest banks in the United States.

Reviews & News

At the time of writing, LightStream had approximately 11% 5-star reviews on Trustpilot from an unusually low total of just 107.

On their A accredited BBB profile, they have an average rating of 1.27/5, with just over 83 complaints closed in the last year.

Do They Report to the Credit Bureaus?

Yes. LightStream report monthly snapshots of loan and payment status to the three major credit reporting agencies: Equifax, Experian and Transunion. Regular on-time payments in your credit file will likely increase your credit score and improve your chances of qualifying for credit in the future. However, failure to satisfy your repayment obligations could damage your credit score, making it more difficult to borrow again.

Get in touch

For customer service, LightStream does not publicly list a customer service phone number on its website and primarily handles support online and via email. Borrowers can contact the company at customerservice@lightstream.com during normal business hours: 9:30AM-7PM ET (Monday-Friday) and 12PM-4PM ET (Saturday).

What we like?

Low Cost: LightStream truly stands out from the competition in providing no-fee and low rate unsecured personal loans.

Rate Beat: Even if you're approved for a good deal elsewhere, LightStream promise to beat it by 0.1%, assuming you satisfy some conditions, which are outlined here.

Longer Terms: Many online lenders offer loans up to 5 years, while LightStream loans can go as high as 7 years- and even 12 years in the case of home improvement loans. Repaying over an extended period could reduce your monthly payment, though you will likely pay more interest over the life of the loan.

App: The free LightStream Lending app makes it easy to manage your account- you can make payments, receive updates on your loan and even track your credit score. The app is available for both Apple and Android.

What we don't like?

No Prequalification: Unlike most online lenders, LightStream generally does not allow borrowers to check their rate through a soft credit inquiry. To receive a loan offer, applicants typically need to submit a full application, which may result in a hard credit pull. This makes it more difficult to compare offers without potentially impacting your credit score.

Negative customer reviews: LightStream has a poor customer rating on BBB and Trustpilot, with complaints commonly relating to communication issues, funding delays, payment processing problems and application denials. The volume and consistency of negative feedback stands out compared to many other prime-focused lenders.

Tough Approval Requirements: LightStream primarily targets borrowers with strong credit profiles and stable finances. Even applicants with good credit scores may find approval difficult if their income, debt obligations or overall financial profile do not meet LightStream's underwriting standards.

Summary

LightStream remains one of the stronger options for borrowers with good-to-excellent credit, particularly those seeking low rates, no fees and larger loan amounts. However, the lack of a soft-credit prequalification process and relatively strict underwriting standards may make it less appealing for borrowers who are still shopping around or have less established credit profiles.