LightStream: 2023 Auto loan review

LightStream features

Consider these benefits and drawbacks of an auto loan with LightStream before applying.

LightStream is an online lender that offers unsecured auto loans for new and used car purchases. It also offers auto loan refinancing and lease buyouts. Each option can be funded the same day you apply.

Because LightStream’s auto loans are unsecured, your car is not used as collateral — but it still has competitive rates and a variety of repayment options.

Do you qualify?

LightStream does not provide specific eligibility requirements for its loans. However, the company does look for borrowers with several years of credit history, a credit history with a variety of account types, a good payment history, a proven ability to save and stable income. The lowest rates go to borrowers with an excellent credit score, which is typically defined as a FICO Score above 740.

What we like and what we don’t like

Here are some of the benefits and drawbacks of LightStream auto loans.

What we like

• Good user experience. LightStream operates entirely online, and its website is simple and easy to navigate. The application is quick and can be completed using a phone, tablet or computer.
• Fast funding timeline. You can receive funding as soon as the day that you apply for a loan with LightStream, and the funds are deposited directly into your bank account.
• Loan terms up to 84 months. You can apply for repayment terms from 24 months to 84 months, which gives you more flexibility in finding an affordable monthly payment.

What we don't like

• Unsecured loan. LightStream’s auto loan essentially functions as an unsecured personal loan, so you don’t use your vehicle as collateral. This could translate to higher interest rates than what you’d find with a lender offering traditional auto loans.
• High minimum loan amount. LightStream has much higher loan minimums than those of its competitors. The minimum to refinance or finance a new or used vehicle is $5,000, so LightStream may not be a good option if you’re looking to buy a cheap used car or you’re refinancing a few thousand dollars at the end of your existing auto loan.
• No prequalification. When you submit your application with LightStream, you’ll go through a hard credit check. Unlike with other lenders, there’s no way to check your rate and eligibility beforehand.

How to contact LightStream 

Auto loan types offered

New and used auto loans

Although LightStream’s auto loans are technically unsecured, they have decently competitive rates. You may be able to score a lower rate with a bank, but LightStream may still be a better option for most people than dealership financing. And with terms up to 84 months, you should be able to find a payment plan that works for your budget.

Refinance

LightStream’s refinance option has a lower starting amount than many banks — which makes it good if you are near the end of your current loan. However, the starting APR is high. So if you financed your car when rates were lower, you may want to hold off on refinancing unless you need a longer payment term. In that case, LightStream’s 84-month term could be useful, but it will end up costing you more in interest.

Lease buyout

LightStream is one of the more competitive options when it comes to buying out your lease, especially since many banks and other online lenders don’t offer it. Like with its new and used auto loans and refinancing program, you will have flexible loan terms and the ability to finance a large amount, which can be handy if you leased a more expensive model.

How to apply for a loan with LightStream

You can apply for a loan with LightStream on its website. You may need to provide identifying documents after completing your application. If you apply within business hours, you could receive a response, sign your loan documents electronically and receive funding within the same day.

LightStream FAQs