A LightStream auto loan caters to borrowers looking for financial services regarding new car purchases, used car purchases from a dealer or an individual, auto lease buyouts, auto loan refinancing, or a motorcycle purchase or refinance.
LightStream also provides other financial products for different loan purposes like debt consolidation, home improvement, or other major expenses.
They offer their lowest rates for all loan types to borrowers with the highest credit scores and the lowest length of terms.
Here is everything you need to know about the auto loan provider LightStream to ensure you have the information at hand to make wise financial decisions.
How Does LightStream Work?
LightStream’s personal loans are the online lending division of SunTrust Bank and are registered with the NMLS (Truist who just merged with BB&T).
The arm is best suited for customers with “good credit” or “excellent” credit profiles or with years of credit history, who want a straightforward auto loan process.
If you would like to be considered for a loan, all you have to do is fill out an online loan application, providing information like your social security number, email address, phone number, and driver’s license number.
As an online lender, LightStream can complete the quick online application process in as little as a business day.
Additionally, LightStream offers eligible customers certain perks, such as the Rate Beat Program, Autopay discounts, and Loan Experience Guarantee programs.
This stage does come with a hard credit check with the three credit bureaus (Experian, Equifax, and Transunion), however, and there is no pre-approval process for prospective customers.
How Much Can You Borrow From LightStream?
You will have a variety of options when it comes to APR range, loan amount or size, and other terms.
Borrowers can receive anywhere from $5,000 to $100,000 with loan term lengths (repayment terms) from 24 to 84 months.
What Is the APR with a LightStream Auto Loan?
The annual percentage rate or APR is the interest rate per year associated with a loan.
The APR is an essential part of researching auto loans as it includes origination fees and other additional costs.
Put another way, the rate will tell you how much money it will cost you to take out a loan.
According to ValuePenguin, the average auto loan APR falls between three and ten percent.
The figure will fluctuate on several factors, including credit history, annual income, job history, and the final terms of the loan.
It is important to show you can build liquid assets and retirement savings as well as the means to place down cash down payment.
For instance, if you have a low amount of debt (like credit card debt) and a high salary, you will receive more favorable conditions.
Depending on the type and length of the loan, APR will be as low as 2.49 percent.
They back up their claim of having the best rates, promising if you find another lender offering low rates, LightStream will come in .10 percentage points beneath the other lender’s loan rate.
Current APR’s With LightStream:
- New Auto Purchase: 2.49% to 9.49%
- Used Auto Purchase from Dealer: 2.49% to 9.49%
- Used Auto Purchase from Individual: 3.49% to 10.49%
- Auto Lease Buyout: 3.49% to 10.49%
- Auto Loan Refinance: 2.49% to 9.49%
- Motorcycle Purchase or Refinance: 4.29% to 11.89%
*rates current as of 3/2/21*
Are There Any Fees?
There are different types of loan agreements, depending on whether you are purchasing a new or used vehicle, or if you want to refinance your current one.
When you look into auto loans at LightStream, each one lists the terms beneath the APR table.
Each of these points includes the phrase, “no fees or prepayment penalties.”
LightStream also does not have fees for the origination of the loan or late fees. There are no other extra expenses either.
When you combine the absence of fees and their competitive interest rates, LightStream comes through as a worthwhile option for anyone in need of a car loan without the hassle of various fees.
Pros & Cons of a LightStream Auto Loan
- Flexibility: The most significant benefit of working with LightStream is its flexibility on both sides of the aisle. For instance, the loan terms with various ranges of length, APRs, and amounts to borrow. Applicants do not face restrictions when it comes to the make, model, or mileage of their vehicle.
- Available in All Fifty States: No matter where you are in the United States, you can work with LightStream. The company is a worthwhile option for customers with strong credit scores (typically above 660), and those who want a competitive interest rate. Customers also have access to LightStream services if they purchase or own a car in Washington, D.C.
- No Fees: LightStream does not have any prepayment, origination, or late payment fees. The same cannot be said of other loan providers, especially when it comes to refinancing a vehicle. You and your wallet can rest easy.
- Discount: There is even a 0.5 percent discount rate for people using autopay monthly payments.
- Convenience: LightStream has set up the auto loan process to be as simple as possible for its customers. That includes an intuitive online application with responses that come as quickly as one day later. If you prefer to fax or complete your form in person, this pro may be a con.
- 30 Day Review Period: Customers have the opportunity to review their loan offer for up to thirty days. Applicants do not have to accept the terms of the offer, BCB though. If they do, they can receive a direct deposit to their bank account within 24 hours.
- Co-Signer Option: LightStream allows for co-signers as a way to bolster the applicant’s credit strength and improve their overall terms.
- Hard Credit Check: When you apply for an auto loan with LightStream, they will perform a hard credit check. Also known as a “hard pull,” this process is a way to thoroughly access a lending decision on the part of a lender. Hard credit checks can lower your credit score potentially, so it is an incentive for buyers to have an active interest or commitment to LightStream as opposed to shopping around for rates. This step may also deter people who are on the fence about whether their credit score is “good enough” to qualify for an auto loan from LightStream.
Are LightStream Car Loans Safe?
LightStream is a reliable source for car loans. The company is progressive and customer-forward in its loans with accessible online applications and proprietary technology.
They also have a range of different auto loans to service various vehicular needs, including unsecured loans.
LightStream has a respectable financial track record. Its parent company, SunTrust Banks, maintains positive scores from the heavyweight credit rating agencies, ranging from BBB+ to A as of December of last year.
SunTrust Banks has a lower to upper-medium grade as an institution.