LightStream: 2023 auto loan review

LightStream auto loans are best for fast funding

LightStream provides unsecured personal loans that can be used to purchase a vehicle. The lender doesn’t interface with the auto’s seller, instead sending the money directly to your bank account. That lack of extra steps and paperwork means that LightStream can fund loans with lightning speed — even as soon as the day you apply. That’s faster than the majority of its competitors.

LightStream pros and cons

LightStream offers long-term loans and quick funding, but there are some key drawbacks, like not having the option to prequalify.

LightStream is an online lender offering 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. Its rates are close to average for personal loan lenders, but start higher than you typically see for auto loans. LightStream’s minimum rate for new cars is 8.99 percent, which compares unfavorably to the national average auto loan interest rate of 5.16 percent.

Do you qualify?

LightStream does not provide specific eligibility requirements for its loans. However, the company looks 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.

LightStream vs. Credit Direct

Credit Direct is a loan marketplace that connects borrowers with unsecured loans. Its loans range from $1,000 to $40,000, meaning this lender may be a better choice for borrowers hoping to finance an inexpensive vehicle. However, it serves only 14 states and doesn't offer refinance and lease buyout loans. Of the two, LightStream is likely to be the more accessible option for many buyers.

LightStream vs. PNC Bank

PNC Bank has a large network of branches. People who don’t like LightStream’s fully online approach may prefer PNC’s in-person interactions. It also offers the unique Total Auto program, which helps with searching for vehicles in your area and comparing prices. However, LightStream offers lower minimum loan amounts and may have lower rates for borrowers with less than perfect credit. See our full LightStream vs. PNC Bank breakdown for more help deciding.

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

• High minimum interest rate. LightStream’s auto loan functions as an unsecured personal loan, so you don’t use your vehicle as collateral. Due to the increased risk to the lender, this translates to a higher starter interest rate than competitors offer.
• 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 

LightStream offers customer assistance via an online form but does not have a phone number for general queries. Business hours are Monday through Friday 10 a.m. to 8 p.m. ET and Saturday 12 p.m. to 4 p.m. ET. Information regarding your application or loan can be found 24/7 on LightStream’s website or app.

Auto loan types offered

LightStream offers auto loans for new and used vehicles. It also offers loans for refinancing and for buying out your lease.

New and used auto loans

• Amounts: $5,000-$100,000
• Terms: 24-84 months
• APR: 8.99%-16.44% with autopay

LightStream’s auto loans are unsecured, so their rates start higher than many auto loan competitors’. You may be able to score a lower rate with a bank, but LightStream may still be a better option than dealership financing — especially if you’re concerned about defaulting on the loan. And with terms up to 84 months, you should be able to find a payment plan that works for your budget.

These loans can also be used to purchase from a private seller, with rates from 9.24 percnet.

Refinance

• Amounts: $5,000-$100,000
• Terms: 24-84 months
• APR: 9.24%-16.69% with autopay

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

• Amounts: $5,000-$100,000
• Terms: 24-84 months
• APR: 9.24%-16.69% with autopay

As with LightStream’s 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.

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.

Features and additional perks

LightStream offers the Rate Beat program. If you can get approved for an unsecured loan from another lender at a lower interest rate than LightStream offers, LightStream will lower its offer to 0.10% below your best offer. That can help you save money if you take the time to shop around.

Additionally, LightStream boasts a 0.50% rate discount if you enable autopay.

Fees and penalties

LightStream states upfront that it does not charge any fees on its loans, so you need not worry about costs such as origination fees or prepayment penalties.

LightStream FAQs

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.