PenFed and LightStream feature flexible personal loan products with attractive terms. Both are ideal for borrowers with good-to-excellent credit. However, they do have some differences that set them apart. For example, PenFed operates as a credit union, so you must become a member to apply for a personal loan. LightStream, on the other hand, serves anyone who meets its eligibility guidelines.

PenFed vs. LightStream at a glance

PenFed and LightStream offer personal loans at competitive rates. Here’s an overview of what to know about each when evaluating your options:

PenFed LightStream
Bankrate Score 4.7 4.7
Better for Good credit borrowers who need a small loan Loan consolidation and home improvement
Loan amounts Up to $50,000 $5,000-$100,000
APRs 7.99% to 17.99% Fixed APR 7.49% to 25.49% Fixed APR (with Autopay)
Loan term lengths Up to 60 months 24 to 144 months
Fees
  • Late payment fee: $29
  • Returned payment or ACH fee: $30
 None
Minimum credit score Not disclosed Not specified; only approves good-to-excellent credit profiles
Time to funding One to two days Same-day funding available

PenFed personal loans

PenFed

Rating: 4.7 stars out of 5
4.7
Learn more
  • Green circle with a checkmark inside

    Pros

    • No origination fee.
    • Access to member benefits and discounts.
    • Co-signers permitted.
    Red circle with an X inside

    Cons

    • Membership required to accept the loan offer.
    • Eligibility guidelines not disclosed online.
    • Lower maximum loan amount.

  • PenFed’s member benefits and discounts make this lender a stand-out option for those who meet the credit union’s requirements. Plus, the lender allows for co-signers, which can help improve your eligibility odds. However, you will need to qualify for membership to borrow with the lender, but the good news is that the criteria are fairly easy to meet. 

    PenFed’s online experience creates a seamless, organized application process and touts quick funding if you’re approved. If you opt into the prequalification process (which allows you to see your potential offer without impacting your credit), you can view these offers directly on the dashboard. You can also apply for, accept or deny your loan offer and apply for membership all in the same place. Even though some of the approval requirements aren’t listed, you can use a co-signer to strengthen your odds if you’re unsure of your eligibility. If you’re pre-approved for funding, you can view loan offers directly from the dashboard.

    PenFed’s loans are also some of the most competitive on the market for creditworthy borrowers. In addition to not charging any fees — including an origination fee — its starting APR is relatively low compared to what other lenders offer. 

LightStream personal loans

LightStream

Rating: 4.7 stars out of 5
4.7
Learn more
  • Green circle with a checkmark inside

    Pros

    • Offers loans for a wide range of needs.
    • Same-day funding.
    • Rate Beat Program.
    Red circle with an X inside

    Cons

    • Specific financial requirements not disclosed.
    • Online prequalification not available.
    • Must have good-to-excellent credit history.

  • LightStream is known for its fast funding time and unique Rate Beat program, which could save you money in interest if you qualify. However, it’ll be hard to gauge your approval eligibility if you don’t have an established credit history and a stellar score. 

    LightStream, a division of Truist Bank, is a leader in the online lending space for many valid reasons. It offers loans for almost anything you can think of and features a tool that lets you sift through potential offers based on your loan type and amount. However, these are just possible ballpark estimates since the lender doesn’t offer pre-approval. Lightstream is also highly regarded for its standout benefits and discounts. For one, you won’t be charged any fees, and its APR ranges are stellar for those in good credit health. What’s more, if you get approved for an unsecured loan from one of the lender’s competitors, its Rate Beat program offers an APR .10 percent lower than the competing offer. 

How to choose between PenFed and LightStream

Personal loans with both lenders are comparable. Still, PenFed offers a competitive edge if you’re seeking a small loan while LightStream gets you the cash you need sooner.

PenFed is better for smaller loans

You can take out a fee-free loan under $50,000 to help you get back on track financially. While PenFed’s minimum loan amount isn’t listed, LightStream’s starts at $5,000, which is larger than most lenders and offers a maximum amount of up to $100,000.

That being said, if you’re dealing with a financial emergency and need to access a smaller amount of cash, PenFed is the better fit. You’ll just need to qualify for membership with the credit union to be eligible.

LightStream offers faster funding times

If you need to borrow a larger loan and need the funds as soon as possible, LightStream may be the better fit for your needs. The lender offers same-day funding, which is among the fastest approval timelines among personal loan lenders.

Just keep in mind that LightStream only works with individuals with good-to-excellent credit profiles. If you need your funds sooner than later, check your credit score before applying to expedite the approval process.

Compare lenders before applying

PenFed and LightStream are both viable options if you have a good credit score. However, choosing the best fit comes down to your unique financial needs and what you’re looking for in a lender.

You’ll have the flexibility of choosing a loan amount and terms that work for you with both lenders. Still, some distinguishing factors can help you make an informed decision.

PenFed has a lower loan limit and shorter terms than LightStream, but its funding times are a bit slower. However, if your credit isn’t quite up to par, you can apply with a co-signer to increase your approval odds, while LightStream doesn’t offer this option. So, if you need a large amount of funding quickly and have a stellar credit profile, LightStream is likely a better fit for your needs.

Before going with one lender over the other, be sure to do your research and look into both lenders before applying. Also, shop around with one or two additional lenders to determine if better options are available elsewhere.