LightStream
Summary
At a Glance
In the world of personal finance, Light Stream is known for its simplicity and empowerment. It offers low fixed rates ranging from 7.99% to 25.49% APR with AutoPay. But Light Stream is not only about loans; it's about financial liberation. Whether you dream of a home renovation, need to consolidate debt, or have other financing needs, they are here to cover you. In this article, join us on a bright journey of reviewing Light Stream Personal Loan and find out if that's the one for you!
Fees and Charges
Unlike competitors, who frequently charge an origination or application fee, Light Stream doesn't charge any fees for its debt consolidation loans. Moreover, there is no prepayment penalty if you repay the loan early.
Light Stream debt consolidation loans start at 8.99% and go up to 25.99%. Moreover, borrowers who opt for autopay at the time of application (which means deducting a recurring automatic payment each month from their bank account) pay 0.50% less interest, as mentioned.
Note: To avail of this 0.50% discount, you must select autopay while completing the application.
Eligibility Criteria for the Loan
Whether you opt for debt consolidation or other financings, the eligibility and requirements will be there. Here are significant eligibility guidelines that are required for Light Stream debt consolidation:-
Credit Requirement:
Light Stream states in advance that only customers with fair to excellent credit scores are eligible for its loans. Since Light Stream uses a FICO rating, a score of at least 680 indicates a strong score.
Note: If you are unaware of your credit score or are below par, don't apply; look elsewhere! Because applying here and getting rejected will lower your credit score.
Credit Criteria for Approval:
Light Stream seeks a good score for (mentioned below). The good credit means:
- At least several years of significant credit history with diverse account types. or
- Proven ability to save money. or
- Evidence of retirement/investment accounts and liquid assets. or
- Stable, sufficient income and assets for effortlessly managing existing debt obligations alongside potential new loans.
Payment History:
Light Stream seeks an excellent payment history with no delinquencies or other problems repaying debt obligations.
Documents Required
To apply for a LightStream debt consolidation loan, prospective borrowers typically need to provide specific documentation. While the exact requirements can vary, the following are common documents often requested:
1. Proof of Identity: You will likely need to provide a valid form of identification, such as a driver's license, passport, or state ID, to confirm your identity.
2. Proof of Residence: Documentation confirming your current address, such as a utility bill or lease agreement, may be required to verify your residency.
3. Proof of Income: Demonstrating a stable income is essential. You may be asked to provide recent pay stubs, tax returns, or bank statements to verify your income. Self-employed individuals may need to provide additional documentation, such as profit and loss statements or 1099 forms.
4. Employment Verification: Some lenders may require verification of your employment status to assess your ability to repay the loan. This could include recent pay stubs or a letter from your employer.
5. Credit History: While not always explicitly stated, your credit history is a significant factor in the loan approval process. Lenders like LightStream typically look for a good credit score and a history of responsible credit use.
6. Other Financial Information: Depending on your financial situation, you may be asked to provide additional documentation, such as bank statements, investment account statements, or information about other debts you may have.
How to Apply?
Step 1: Light Stream will ask for a loan to pay off unsecured debt, such as credit card debt and medical costs. Moreover, Fill in the Name, Social Security Number, Income, Employment History, and Supporting Papers.
Note: A Light Stream debt consolidation loan cannot be used to settle an existing Light Stream loan or a student loan.
Step 2: Click on the agree to receive electronic records and start using an electronic signature to sign your loan agreement as part of the application.
Step 3: Now, you’ll be asked for autopay. If you opt for auto-pay, you’ll have a rate that’s 0.50% lower than you listed.
Step 4: As soon as the loan is approved, Light Stream will ask for a valid Visa or MasterCard credit card for verification purposes before you get the money.
Note: The card won’t be charged.
Remember, not everyone will take care of your financial future, but Light Stream does in a very simple way. Listed above are the few steps to a debt consolidation loan in a straightforward manner.
Comparison
Terms and Conditions to look for
When considering a LightStream Debt Consolidation Loan, it's important to pay attention to the following key terms and conditions:
1. Eligibility Criteria: Ensure you meet LightStream's eligibility requirements, which typically include a good credit score, stable income, and a positive credit history.
2. Annual Percentage Rate (APR): Understand the APR associated with the loan. LightStream offers competitive APRs, which can vary based on factors such as creditworthiness and loan terms.
3. Loan Amounts and Terms: Review the loan amounts and repayment terms available to determine if they meet your needs. LightStream offers loans ranging from $5,000 to $100,000 with terms varying from 24 to 144 months.
4. Fees: Check for any fees associated with the loan. LightStream does not charge origination fees or prepayment penalties, which can save you money over the life of the loan.
5. Auto-Pay Discount: LightStream offers a 0.50% interest rate discount for borrowers who enroll in autopay, which can help reduce the overall cost of the loan.
6. Unemployment Protection: LightStream does not offer a specific unemployment protection program. However, they do offer a Rate Beat program, where they will beat any competitor's APR by 0.10 percentage points if certain conditions are met.
7. Additional Features: LightStream offers a few additional features, such as a "Same-Day Funding" option for loans approved before 2:30 p.m. EST, and a "Loan Experience Guarantee," where they will send you a $100 gift card if you're not satisfied with your loan experience.
It's always advisable to carefully review the terms and conditions of any loan offer and to compare multiple offers before making a decision.
Other Products
In addition to debt consolidation loans, LightStream offers a variety of other financial products and services to meet different borrowing needs. Some of their key offerings include:
1. Personal Loans: LightStream provides personal loans for various purposes, such as home improvement, auto purchases, medical expenses, and other major purchases. These loans are unsecured and typically have competitive rates for borrowers with good credit.
2. Home Improvement Loans: LightStream offers specific loans designed for home improvement projects, including renovations, repairs, and upgrades. These loans can be a good option for homeowners looking to finance their home improvement projects.
3. Auto Loans: LightStream provides financing for new and used auto purchases, as well as auto loan refinancing. Borrowers can benefit from competitive rates and flexible terms, making it easier to finance a vehicle purchase.
4. Recreation Loans: LightStream offers loans for recreational vehicles (RVs), boats, and aircraft. These loans can help finance the purchase of a new or used recreational vehicle, making it more affordable for borrowers.
5. Medical Financing: LightStream provides financing for medical expenses, including elective procedures, dental work, and veterinary care. These loans can help borrowers manage unexpected medical costs without using high-interest credit cards.
6. Other Financing Options: LightStream also offers financing for adoption, timeshares, and horse loans, providing borrowers with a range of options to meet their specific financing needs.
Overall, LightStream offers a variety of financial products and services, each tailored to meet different borrowing needs. Whether you're looking to consolidate debt, finance a major purchase, or cover unexpected expenses, LightStream may have a loan product that's right for you.
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FAQ's
Yes, Light Stream is a legit company backed by Truist Bank.
Light Stream can approve your debt consolidation loan application on the same day you submit it as long as you provide all the required information.
Light Stream customer support is available Monday through Friday from 9:30 a.m. to 7 p.m. ET and Saturday from 12 p.m. to 4 p.m. ET.
No, Light Stream does not offer pre-approval; every time you apply at Light Stream with a low credit score, your credit has a hard pull.
Light Stream requires a minimum credit score of 660, but it can depend on the loan purpose. Its debt consolidation loan is not openly disclosed, but an average credit score of 727 is gtg from the borrower's point of view.
Further Readings
