Loans Personal Loans

LightStream Loan Review [2024]: Is This Online Lender Legit?

Lightstream offers personal loans for almost any need for borrowers with good-to-excellent credit.

By Matt Miczulski
and Samantha Hawrylack

Edited by Becca Borawski Jenkins

Updated Dec. 17, 2024

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LightStream

OUR VIEW

I’m always looking for loans that don’t carry a lot of extra fees, making borrowing even more expensive, and Lightstream fits the bill. However, their qualifying requirements are somewhat strict, so they’re best for highly qualified individuals.

You need good-to-excellent credit and little to no existing debt to qualify. If your qualifying factors don’t fit the bill, there are other options for personal loans for borrowers with bad or average credit.

Pros

No fees

Large selection of personal loans

Fast funding

Cons

Need good-to-excellent credit

Can’t have much personal debt

No soft credit check option

How we evaluate products

What is Lightstream?

LightStream is an online consumer lender headquartered in San Diego, California, and is a division of Truist Bank.

As an online lender, LightStream offers consumers a completely online application process. There are no paper applications, and customer representatives cannot accept applications over the phone, via fax, or email. I love this aspect because it means no lost paperwork and a fast application process.

You can apply, get approved, and sign your loan agreement from your computer or mobile device, and potentially receive funds the same day as your application if approved before the cutoff.¹ You can fund your loan today if today is a banking business day, your application is approved, and you complete the following steps by 2:30 p.m. Eastern time: (1) review and electronically sign your loan agreement; (2) provide us with your funding preferences and relevant banking information; and (3) complete the final verification process. They are so confident in their loan process that they offer a $100 satisfaction guarantee.

Keep in mind that LightStream does not offer pre-approvals. This means they will pull your credit and not do a soft credit check as part of the application process. A new inquiry could drop your credit score a few points, even if you don’t accept the loan.

I’m not the biggest fan of this part because I like to have a few pre-approvals to compare. The good news is that you are not obligated to accept the loan offer. You can also apply with other personal loan lenders, like SoFi®, which doesn’t require a hard credit pull for a quote.

Tip

LightStream also goes beyond just providing a paperless loan process. LightStream partners with American Forests, the oldest conservation organization in the United States, and donates a tree for every funded loan to support restoration efforts. So when you get your funds, you know it’s part of a bigger cause.

Is Lightstream legit?

Lightstream has an A rating from the BBB, but its customer ratings are only 1.33 out of five stars. Many of the negative reviews are complaints about being denied and for poor customer service, while those who are happy with their experience rave about the ease and quickness of the entire process.

As we said earlier, LightStream is owned by Truist Bank, which is accredited with the Better Business Bureau (BBB), has an A+ rating, and is a legitimate bank with FDIC insurance.

What does Lightstream offer?

Minimum credit score required	Good to excellent credit
Loan amounts	$5,000 - $100,000
Loan terms	2 to 12 years² <p>Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice.</p><p>Payment example: Monthly payments for a $25,000 loan at 7.59% APR with a term of 12 years would result in 144 monthly payments of $265.02.</p>
Rate discounts	0.5% for autopay
APR	As low as 6.94% (as of 12/23/24), check your rate
Fees	None
Prepayment penalty	None

LightStream offers competitive rates and fixed-rate financing for borrowers with solid credit. They offer loans between $5,000 - $100,000, and borrowers can benefit from:

Flexible repayment terms
No fees
No penalty for repaying your loan early

Lightstream offers a Rate Beat Program that ensures you get the lowest rates possible. If you receive a rate from another financial institution for the same loan terms offered by LightStream,

LightStream will offer a rate of 0.10 percentage points lower than the rate the competing lender offers. I like this because I always shop around for loans before deciding, so knowing I can negotiate is great.

Lightstream determines your interest rate by factoring in several factors, including loan purpose, loan term, loan amount, credit profile, and the payment method you select, and loan APRs start from 6.94% (as of 12/23/24).

How can you use LightStream loans?

Borrowers can use Lightstream or any personal loans for a variety of purposes including:

Personal
Auto
Education loans
Home improvement
Recreation
Family life
Debt consolidation
Aircraft loans

Apply Easily, Get Money Quickly

LightStream Benefits

Finally, a loan that rewards your good credit
Apply in minutes. Have funds in your account as soon as today¹ You can fund your loan today if today is a banking business day, your application is approved, and you complete the following steps by 2:30 p.m. Eastern time: (1) review and electronically sign your loan agreement; (2) provide us with your funding preferences and relevant banking information; and (3) complete the final verification process.

Compare Rates & Offers via AmONE’s website

How to qualify

Lightstream requires good to excellent credit, but they take it a step further and look at various factors, including:

Credit history: A long, stable, and varied credit history is necessary to get approved at Lightstream. They don’t focus on your credit score alone but look at how you use your credit, pay your bills, and the types of accounts you carry.
Proof of savings: Lightstream wants proof that you know how to save money, not just spend it. They look for things like savings accounts with large balances, investment, or retirement accounts. The more money you have saved, the better your chances.
Low debt-to-income ratio: Borrowers should have a low amount of debt compared to their monthly income. Lightstream prioritizes borrowers who have little to no credit card debt.

Overall, they look for borrowers who can repay the loan beyond a reasonable doubt, with little to no risk of default.

How to apply

The Lightstream application process is similar to any other personal loan application process and has three simple steps:

Complete an online application
Review and accept your loan agreement if you like the offer
Receive your funds

When completing the application, you will answer questions about your identity, income, assets, and debts. You’ll also select the purpose of the loan and the amount you need to borrow.

Before submitting your application, you’ll receive a range of interest rates and monthly payments to decide if you want to move forward with the application.

Alternatives to Lightstream

If you don’t meet the strict qualifying criteria Lightstream requires or want other options that don’t do a hard credit pull, here are a couple of good alternatives.

Upgrade

Upgrade offers personal loans up to $50,000 with no prepayment penalty.³ Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 9.99%-35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's bank partners. Information on Upgrade’s bank partners can be found at <a href="https://www.upgrade.com/bank-partners/" target="_blank" rel="noopener noreferrer">https://www.upgrade.com/bank-partners/</a>. You can check your rate online with no obligation or hard credit check, and they fund loans within one business day of approval in most cases.

The downside is that they charge a one-time origination fee deducted from your loan proceeds, leaving you with less money when you receive the funds.

Learn more in our Upgrade Personal Loan review

SoFi

SoFi® offers personal loans from $5,000 to $100,000 with no prepayment penalty.⁴ Fixed rates from 8.99%-29.99% (as of 09/05/24) APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive. Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi. Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan. Their application process takes only a minute or two, and there’s no impact on your credit score.

Depending on when you get final approval, you may receive funds the same business day, and if you’re consolidating credit card debt, they’ll pay the credit card companies directly and reduce your rate by 0.25%.

Learn more in our SoFi® Loans review

FAQ

Is LightStream part of SunTrust?

LightStream is no longer part of SunTrust. It is a division of Truist, a bank formed from the merger of SunTrust Bank and Branch Banking and Trust Company (BB&T).

Can you pay off a LightStream loan early?

You can pay off a LightStream loan early without worrying about any prepayment penalties. Paying off your loan early will save you money by cutting down the interest costs.

Does LightStream report to the credit bureaus?

LightStream reports balances and monthly payments on loans to all three major credit bureaus — Experian, Equifax, and TransUnion. Be sure to pay your loan balance on time each month to avoid any late payments, which can damage your credit score and hinder future borrowing.

What credit score is needed for a LightStream loan?

LightStream pulls your credit when you apply. Their loans cater to borrowers with good credit. But since every borrower’s credit situation is unique, Lightstream considers other factors when determining if you qualify.

Can I refinance my LightStream loan?

You can refinance your LightStream loan with money borrowed from a different lender. You can’t, however, use a new LightStream loan to refinance an existing LightStream loan.

Bottom line

Lightstream targets borrowers with good credit and a low debt-to-income ratio. But it’s always best to do your due diligence and get quotes from several lenders to ensure you get the best personal loan for your needs.

The lack of fees and the ability to repay your loan as early as you want are great perks, but it’s important to compare the loan’s overall cost with a few other options to be sure you get the most affordable loan.