LightStream Personal Loans Review: What You Need To Know

LightStream by Truist is an online lender that offers unsecured personal loans with relatively low annual percentage rates (APRs), no origination fees and no late fees.

It's best for people with top-tier credit, as it's known for strict underwriting and credit standards and doesn't allow you to check rates or approval odds without formally applying.

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Key Takeaways

• Rates run 7.24% to 24.89% with AutoPay. Skip AutoPay and your rate rises 0.50 percentage points on LightStream's general unsecured-loan lineup.

• Loan amounts stretch from $5,000 to $100,000. Terms range from 24 to 240 months depending on the loan's purpose and amount.

• LightStream skips the usual lender fees. There's no origination fee, no late fee and no prepayment penalty, though Florida borrowers may owe a state documentary stamp tax.

• There's no prequalification step. Applying authorizes a hard credit inquiry through TransUnion or Equifax before LightStream shows you a final rate.

• It's built for established credit profiles. LightStream tends to work best for borrowers with good-to-excellent credit, several years of credit history, savings and income that can cover existing debt plus the new loan.

Summary generated by AI, verified by MoneyLion editors

What Is LightStream and How Do Its Personal Loans Work?

LightStream is the online lending division of Truist Bank, offering fixed-rate, unsecured personal loans that fund a wide range of purchases, from debt consolidation to home improvements.

Because the loans are unsecured, LightStream isn't relying on collateral. It's leaning on your credit profile, income and assets to decide whether to approve you and at what rate.

Pros and Cons of LightStream Personal Loans

Company Overview

Headquartered in San Diego, LightStream is the online lending arm of Truist Bank, formerly SunTrust. It launched in 2013 with a mission to give people with strong credit access to fast, cost-efficient financing that would otherwise require collateral or be hard to find.

LightStream loans are available in all states plus Washington, D.C. They're known for low APRs, a lack of fees and flexibility, since you can get a loan of up to $100,000 with a repayment term as long as 20 years. Given their size, scope and target audience, LightStream loans are also notoriously difficult to qualify for.

Key Features

Interest Rates

LightStream offers fixed APRs between 6.49% and 24.89%, though that range assumes a 0.50% rate discount for enrolling in autopay. Otherwise, your fixed APR could range from 6.99% to 25.39%, based on your creditworthiness, loan purpose and loan term.

Even without the discount, LightStream's rates are competitive. Most lenders offer fixed APRs between 8% and 36% on personal loans, and few, if any, beat LightStream's minimum APR. Upstart and Happen Bank (formerly LendingClub) come closest, with minimum fixed APRs around 6.5% to 6.53%, though both charge much higher maximums near 35.99%.

Lower APRs may save you significantly over the life of your loan by decreasing monthly payments and total borrowing costs. The chart below illustrates how much LightStream's minimum and maximum APRs might save you on a 5-year, $15,000 personal loan compared with a lender offering APRs closer to the industry average.

Loan Amounts

LightStream offers unsecured personal loans from $5,000 to $100,000. That range means it's not a great fit if you're looking for a smaller-dollar loan; several lenders, including nationwide credit union PenFed and regional bank Old National, offer lower minimum borrowing amounts at competitive rates.

However, LightStream is one of the few lenders that offer such a high maximum. Many lenders cap personal loans at $50,000 or less. Keep in mind that higher, and therefore riskier, loans usually come with pricier APRs.

Repayment Terms

LightStream offers repayment terms from two to 20 years, though terms of seven years or longer are reserved for borrowing amounts of $50,000 or higher. Personal loan terms typically range from two to five years, and even lenders with extended options, like SoFi, cap loan terms at seven years, so LightStream stands out for its flexibility.

Still, despite LightStream's competitive APRs, longer loan terms can prove pricey. While they net lower monthly payments, they generally cost more in total fees and interest over time, as shown below for a $50,000 loan at LightStream's minimum advertised APRs by term.

A 20-year, $50,000 loan could have a significantly lower monthly payment than a five-year loan of the same amount, a $523 difference in this example, but that five-year loan could cost roughly $53,676 less in total fees and interest.

Funding Speed

LightStream advertises same-day funding, as long as your loan is fully approved on a banking business day, you review and sign your loan documents, provide funding preferences and required disbursement details, and complete a final verification process by 2:30 p.m. ET. If you miss that window, funding could take a few more business days.

Considering Your Loan Options?

MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with personalized offers from top providers, so you can compare rates, terms and fees from different lenders and choose the best offer for you.

MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms and fees from different lenders and choose the best offer for you.

What Rates, Fees and Terms Does LightStream Offer?

Let's dig a little deeper into what LightStream has to offer:

How Much Does a LightStream Loan Cost?

LightStream's current general APR range runs 7.24% to 24.89% for borrowers who enroll in AutoPay. Skip AutoPay and the rate rises 0.50 percentage points. Landing near the low end of that range generally requires excellent credit, a solid income and manageable existing debt.

What Loan Amounts and Repayment Terms Does LightStream Offer?

• Loan amounts range from $5,000 to $100,000.

• Loan terms run 24 to 240 months, depending on the loan's purpose.

• Not every term is available for every purpose or loan amount.

• Rates may change depending on the term you select.

• A longer term can lower your monthly payment but increase the total interest you pay.

Does LightStream Charge Fees?

LightStream doesn't charge any of the following:

• Origination fees.

• Late fees.

• Prepayment penalties.

Residents who take out a LightStream loan in Florida are subject to the state's documentary stamp tax. LightStream collects this tax and remits it to the state of Florida, so it can add to your total borrowing cost even though it isn't a lender fee.

What Credit Score and Eligibility Do You Need for LightStream?

LightStream doesn't publish one universal minimum credit score, and a high score alone doesn't guarantee approval. Instead, LightStream reviews a fuller financial picture, including:

• Good-to-excellent credit.

• Several years of credit history.

• Multiple types of credit accounts.

• Savings and investment assets.

• Income relative to your existing debt.

• Payment history.

Because LightStream leans toward the top of the credit spectrum, it helps to know where you stand. A good credit score generally falls in the 670 to 739 FICO range, while very good and exceptional scores run from 740 to 850. Reviewing your personal loan requirements before applying can help you gauge your odds.

Can You Prequalify for a LightStream Loan?

No, LightStream doesn't offer prequalification. It requires a complete online application and pulls a hard credit inquiry from TransUnion or Equifax before showing you a final rate. You're not obligated to accept an approved loan, but you won't know your exact terms until after that inquiry posts to your credit report.

Does LightStream Allow Joint Applications?

Yes. Joint applications are available for two applicants who want to rely on combined income and assets, similar to applying for a personal loan with a cosigner. Both applicants are reviewed during underwriting and are equally responsible for repayment.

Who It's Best For

LightStream is best for people with good-to-excellent credit who have strong odds of qualifying for its competitive APRs and largely fee-free financing. It offers some of the most consumer-friendly terms on the market.

LightStream is less of a fit for people with average, poor or thin credit, since it has strict approval standards and doesn't allow prequalification. Without prequalification, your application could generate a hard credit inquiry and affect your credit score. If you need a much smaller loan amount and have limited or challenged credit, a small-dollar lender like Fig Loans may be worth exploring instead, though it comes with a much higher APR than LightStream.

How Do You Apply for a LightStream Personal Loan?

Here's how to apply for a LightStream personal loan, similar to how you'd apply for a personal loan online with most digital lenders:

1. Select your loan purpose, amount, term and payment method.

2. Choose an individual or joint application.

3. Enter your personal, employment, income, asset and debt information.

4. Submit the application and authorize the hard inquiry.

5. Review your decision and final terms.

6. Sign the agreement and schedule funding if approved.

Approval isn't guaranteed, and you're not required to accept an offer even after LightStream extends one.

How Fast Does LightStream Fund Loans?

LightStream funds approved loans in one of two ways.

• Same-day wire transfer: Approved borrowers may receive funds on the same banking business day if they sign the agreement, submit funding details and complete verification before 2:30 p.m. ET. The recipient bank may charge its own wire fee.

• ACH direct deposit: Borrowers must schedule ACH funding on the business day before the requested receipt date. Funds must land in the borrower's personal bank account, not a business or third-party account.

How Does the LightStream AutoPay Discount Work?

Enrolling in AutoPay reduces your APR by 0.50 percentage points, but you must select it before your loan funds. The payment account can be held at any eligible U.S. bank or credit union, though you can't add the discount retroactively once funding is complete.

How Does the LightStream Rate Beat Program Work?

Truist may beat an approved competing unsecured-loan rate by 0.10 percentage points when:

• The competing offer has equivalent terms.

• The offer is available to similarly qualified consumers.

• You submit proof of the competing offer by the deadline.

• The competing loan is also unsecured.

Not every competitor offer qualifies, so it's worth reading LightStream's program rules closely before counting on the discount.

How Much Could a LightStream Loan Cost?

Here's a breakdown of how LightStream loan costs could look, based on published rate and term examples:

These figures assume simple interest on a fully amortizing loan and are for illustration only. Your actual rate, term and payment will depend on your credit profile, loan purpose and the amount you borrow.

How Does LightStream Compare to Other Lenders?

SoFi may suit borrowers who want to check their rate with a soft credit pull first and prefer terms between two and seven years, since SoFi personal loans let you shop around before committing to a hard inquiry.

PenFed Credit Union may be a better fit for people who need less than LightStream's $5,000 minimum, since PenFed personal loans start as low as $600 and cap rates at 17.99%.

Upstart may be more realistic for applicants with a limited traditional credit history, since Upstart personal loans weigh education and employment alongside credit score and offer a prequalification check.

If you're still comparing options, it can help to compare personal loan offers side by side before applying anywhere, especially if you want to avoid an unnecessary hard inquiry.

Bottom Line

LightStream personal loans may be worth considering if you have an established good-to-excellent credit profile, need at least $5,000 and value large loan limits, no lender fees and flexible purpose-based terms. The biggest drawback is that LightStream doesn't offer prequalification, so you'll need to accept a hard credit inquiry before learning your final rate.

Review LightStream's purpose-specific rates and estimated payments first, then weigh that final offer against loans you can check through a soft inquiry, like SoFi or Upstart, before you decide.

Key Terms

• Annual percentage rate: The yearly cost of borrowing, including interest and applicable finance charges.

• AutoPay: Automatic monthly payments that qualify LightStream borrowers for a 0.50-percentage-point rate reduction when selected before funding.

• Hard credit inquiry: A formal credit check that can affect the applicant's credit score.

• Prequalification: An estimate of potential loan terms, usually based on a soft inquiry; LightStream doesn't offer it.

• Unsecured loan: A loan that doesn't require collateral.

• Simple interest: Interest calculated on the outstanding principal balance.

• Fully amortizing loan: A loan structured to be completely repaid through scheduled payments by the end of the term.

• Joint application: An application in which two people rely on shared income and assets and are both responsible for repayment.

Summary generated by AI, verified by MoneyLion editors

Sources

• Truist: LightStream Unsecured Personal Loans

• LightStream by Truist: Rate Beat Program

• Consumer Financial Protection Bureau: Guidance on Hard Inquiries and Comparing Personal Loans

Summary generated by AI, verified by MoneyLion editors

FAQ

Here are quick answers to common questions about LightStream personal loans:

Is LightStream a Good Personal Loan Lender? LightStream may be a good option for borrowers with good-to-excellent credit who need at least $5,000 and want no origination, late or prepayment fees. It's less suitable if you'd rather check your rate before agreeing to a hard credit inquiry.

What Credit Score Do You Need for LightStream? LightStream doesn't publish one universal minimum credit score. It requires good-to-excellent credit and reviews your credit history, income, assets, debt and payment history when making a decision, so a strong score alone won't guarantee approval.

Does LightStream Check Your Credit? Yes. Submitting a LightStream loan application results in a hard credit inquiry through TransUnion or Equifax. LightStream doesn't offer a soft-pull prequalification process, so you can't preview your rate without that inquiry.

How Fast Can LightStream Fund a Loan? LightStream may provide same-day wire funding on a banking business day if your loan is approved and all required steps are completed before 2:30 p.m. ET. Otherwise, you can schedule ACH funding or a later deposit date.

Does LightStream Charge an Origination Fee? No. LightStream doesn't charge origination, late or prepayment fees. Florida borrowers may still owe a state documentary stamp tax, which gets added to the cost of the loan even though it isn't a lender fee.