LightStream Personal Loans Reviews

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As a division of Truist Bank, LightStream is an American online lender. Truist was formed in December 2019, as the result of a merger between SunTrust Bank (of which LightStream was a division) and BB&T.

LightStream, founded in March 2013, provides unsecured, personal loans to people with good credit ratings through a digital process.

In an attempt to reduce the costs of operating a separate brand, Truist announced on April 20 it would fold LightStream into its broader consumer business.

LightStream offers a quick application process, fast funding, and low APRs, making it one of the most competitive online lenders in the personal loan space. For borrowers looking to consolidate a significant amount of debt or complete expensive home improvement projects, it offers a wide range of loan amounts and repayment terms.

Minimum credit score

660.

APR

7.99% – 25.49%.

Fees

No fees.

Loan amount

$5,000 to $100,000.

Repayment terms

2 to 7 years. 12 years on home improvement loans.

Time to fund after approval

1 business day.

Loan availability

Loans are available in all states and Washington, D.C.

How Can LightStream Personal Loans Be Used?

You must use your personal loan for the purpose you specified in your application. Loans can be used to finance:

  • Vehicles: Refinance your mortgage, buy a new, used, or classic car, get a motorcycle, or buy out a lease.
  • Improvements to the home: Invest in a kitchen remodel, a hot tub, a landscaping project, a solar energy system, or a pool.
  • Recreation: Purchase a boat, an aircraft, an RV, a timeshare or destination club, or refinance a boat loan, RV loan, or boat repair.
  • Needs of the family: Pre-K through 12th-grade education expenses, medical or dental procedures, in vitro fertilization, or wedding expenses can be covered.
  • Purchases made elsewhere: Pay off debt, buy an engagement ring, buy land, or finance a tiny house.

LightStream loans cannot be used for:

  • Higher education costs money.
  • Other LightStream loans can be refinanced.
  • Repay a loan against a stock option or purchase bonds, stocks, or stock options.
  • Invest loan proceeds in retirement, life insurance, or education savings plans.
The advantages of LightStream personal loans
  • No fees and low rates: Depending on the loan amount, purpose, repayment term, and applicant’s credit profile, LightStream offers low starting rates. Borrowers with excellent credit can get the lowest rates, and those who choose autopay can get a rate discount of 0.5 percent. In addition, LightStream does not charge fees for loan origination, late payments, or prepayments.
  • Term availability: LightStream offers borrowers a wide range of repayment terms (two to seven years for most loans), letting them choose between lower overall interest rates with a shorter term and lower monthly payments with a longer term.
  • Features of special home improvements: If you have good credit or excellent credit, and are looking to finance a home improvement project, you may be qualified for extended loan terms of up to 12 years. This can make monthly payments more affordable on expensive home projects like a kitchen remodel, solar panel installation, or swimming pool addition. The lender can also delay funding a loan for up to 90 days, which gives the borrower more time to coordinate the remodel without additional interest.
  • Program Rate Beat: If you prove you have been approved by the competitor for an unsecured, fixed-rate loan with the same terms, LightStream will beat the competitor’s rate by 0.10 percentage points.
  • Guaranteed Experience: For unhappy borrowers who have had their loan for less than 30 days, Lightstream offers a $100 refund. You must contact the company and fill out a questionnaire.
The disadvantages of LightStream personal loans
  • Pre-qualification is not possible directly for applicants: Although LightStream offers an online loan calculator that displays example rates based on your loan purpose and amount, the lender does not allow applicants to pre-qualify directly from its website. However, applicants can pre-qualify with a soft credit check through NerdWallet.
  • Direct payments to creditors are not allowed: When you consolidate debts with a LightStream loan, you don’t receive direct payments from LightStream to creditors. Instead, borrowers must allocate their loan funds to pay off creditors on their own.
  • Customer service options are limited: In order to contact LightStream, prospective applicants should fill out an email form on the lender’s website. Once a customer, you will receive a phone number for customer service.
LightStream Personal Loans: How Do They Work?

Click the “Apply Now” button on lightstream.com.

After selecting the purpose of your loan and requesting a loan amount and term, you will see a monthly payment and an annual percentage rate. Next, you will enter personal, employment, and financial information before submitting your application.

A decision will be made quickly during business hours. If the loan is approved, you will sign your loan agreement and receive your money the same day.

You must receive funds within 30 days – 90 days for home improvement loans – or you will need to reapply.

How Do LightStream’s Loan Terms, Fees, and Conditions Work?

Depending on the loan purpose, amount, term length, and credit profile, interest rates will differ. Excellent credit is required for the lowest rates.

APR rates range from 5.99% to 23.99%, including the autopay discount. Loan amounts range from $5,000 to $100,000 with terms ranging from 24 to 144 months.

Use autopay for a half-point APR discount, and LightStream charges no origination or late fees.

Before submitting your application, you will first select the purpose of your loan, request a loan amount and term, and see a monthly payment and an annual percentage rate.

Applicants will receive a decision quickly during business hours. If your loan is approved, you can receive your funds the same day.

Unless you reapply, the funds must be transferred into your account within 30 days – 90 days for home improvement loans.

How Do LightStream’s Loan Terms, Fees, and Conditions Work?

It depends on the loan purpose, the amount, the term length, and your credit profile to determine the loan terms. The lowest rates require excellent credit.

Loan amounts range from $5,000 to $100,000 with terms ranging from 24 to 144 months. The APR is fixed at 5.99% to 23.99%, including the autopay discount.

You can save half a percentage point on your APR by using autopay, and LightStream does not charge origination or late fees.

What are the requirements to qualify?

A credit decision is based on the specific facts of each credit profile, according to LightStream.

Credit must be excellent or good, as outlined by the lender:

  • At least several years of credit history.
  • You must have a stable income and sufficient assets to repay your debts.
  • Having experience with different types of credit, such as credit cards, auto loans, and mortgages.
  • Savings evidence, such as retirement savings and college savings accounts.
  • Good payment history with few, if any, problems resolving debts.
How Do You Calculate Your Credit Score?

To qualify for a personal loan from LightStream, the borrower must have good to excellent credit and be able to repay the loan.

According to Julie Olian, vice president of public relations and integrated communications at LightStream, “Our determination of good credit ultimately depends on whether we believe that our loan will be repaid fully and on time.”

What is the reputation of LightStream?

Based on a bit more than 50 reviews, LightStream received an A+ rating from the Better Business Bureau and a poor 1.9 out of 5 from Trustpilot.

In 2022, the Consumer Financial Protection Bureau received 142 complaints about LightStream’s parent company, Truist, regarding personal loans. The main complaints were related to problems with the payoff process and payment problems. Truist responded to 129 promptly and closed 133 with an explanation, seven with nonmonetary relief, and two with monetary relief.

Personal loans from LightStream rated by us

Here’s what we prioritized : 

Category

Star rating

Affordability

Transparency

Loan flexibility

Customer experience

Overall

Personal loans from LightStream are best for:
  • Creditworthy individuals.
  • Those who do not want to pay loan fees.
  • Those who would like to apply online.
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