Many people find out about LightStream while looking for a personal loan. The relatively new company is making waves in the lending sphere, offering competitive rates and borrower-friendly fee structures. For those with several years of credit history, LightSteam, which is part of Truist, could be a solid fit.
But before you decide to apply, you need to make sure this lender is right for you. Get started by taking a look at how LightStream loans work.
What Are LightStream Auto Loans?
LightStream offers several kinds of loans, including auto loans. In many ways, this program is more flexible than you’ll find elsewhere. LightStream doesn’t require appraisals. Additionally, there aren’t any age or mileage restrictions.
The reason LightStream can work a little differently is that it doesn’t use the traditional collateralized approach to vehicle loans. Instead, it remains a personal loan, giving you the ability to technically use the funds however you’d like. Essentially, you’d get to become a cash buyer, as LightStream deposits cash into your account that you can spend instead of coordinating with car dealers directly.
Are LightStream Loans Legitimate?
LightStream is a legitimate loan company. Generally, the company lives up to its claims, offering interest rates lower than those of many competitors and not including fees you often find in the personal loan space. While your qualifications determine the rate that applies to your loan, it’s possible you can secure a rate that’s better than what you may find elsewhere.
However, it’s important to note that, as with many other major lenders, some scammers masquerade as LightStream loans. Some evidence of that is seen in customer reviews of the company; some reviews discuss being scammed by someone who pretended to represent LightStream, not an actual employee.
Can You Refinance a Loan with LightStream?
You do have the ability to refinance a loan with LightStream. If you have a current loan elsewhere, you can secure a LightStream loan and use the funds to pay off the other lender, effectively transferring the debt to LightStream. Just bear in mind that LightStream won’t handle those payoffs for you, so make sure you’re ready to move the cash as needed to tackle an existing debt.
Additionally, you can pay off a LightStream balance with a new loan, either from LightStream or with another company. If you use another company, that lender may be able to pay off LightStream directly during the process, which can simplify the transition. If you’re using LightStream, you’ll need to manually pay off the original loan.
How Does Interest Work on LightStream Loans?
One benefit of using LightStream is the straightforward approach to interest. The company only offers fixed rates, making repayment and interest costs predictable over the entire life of the loan. When it comes to accrual, interest accrues daily. The amount is based on the remaining unpaid principal balance of the loan.
As you submit a payment each month, that money does two things. First, it covers the cost of interest accrued that month. Second, it pays off a portion of the remaining principal balance. As a result, you’ll never pay interest on your interest charges as long as you make timely payments.