LightStream, a division of SunTrust Bank, is an online lending company that provides loans for used car purchases.
LightStream used car loans are installment loans that allow you to finance the purchase of a used car. The loans are unsecured, which means that you don’t need to provide collateral to secure the loan. Instead, the loan is based on your creditworthiness and ability to repay the loan.
LightStream offers competitive rates and flexible terms, making it a popular choice for those in the market for a used car.
Features of LightStream Used Car Loans
- Loan Amounts and Terms: LightStream offers loans for used cars starting at $5,000 up to $100,000, with repayment terms ranging from 24 to 84 months. The loan amount and terms you qualify for will depend on your credit score, income, and other financial factors.
- Competitive Interest Rates: One of the main benefits of LightStream used car loans is the competitive interest rates they offer. Rates start at 2.49% for borrowers with excellent credit, making them one of the most affordable options available.
- Unsecured Loans: LightStream used car loans are unsecured, meaning that you do not need to provide collateral such as a down payment or the car itself. This makes the loan application process faster and easier, with less paperwork and fewer requirements.
Benefits of LightStream Used Car Loans
- Flexible Terms: LightStream offers flexible terms for their used car loans, allowing you to choose the repayment term that suits your financial situation. This means you can opt for a shorter term to pay off the loan quickly or a longer term to reduce monthly payments.Additionally, LightStream offers a Rate Beat program, which means that if you find a lower interest rate with another lender, LightStream will beat it by 0.10 percentage points.
- Low Interest Rates: LightStream offers some of the lowest interest rates in the market for used car loans. This can save you a significant amount of money over the loan term, compared to other lenders with higher interest rates.The interest rates are competitive, and there are no fees or prepayment penalties. This means that you can pay off the loan early without incurring any additional costs.
- No Fees: LightStream does not charge any fees for their used car loans, including application fees, prepayment penalties, or origination fees. This means that you won’t be hit with any surprise charges throughout the loan term. LightStream’s no-fee policy can eventually save you hundreds or even thousands of dollars in fees that other lenders may charge.
- Fast Funding: If you need to purchase a used car quickly, LightStream’s fast funding can be a major advantage. The application process is straightforward and can be completed online. You can receive a decision within minutes of applying, and if approved, the funds can be deposited into your bank account as soon as the same day.With same-day funding available, you can take advantage of deals or auctions and make a purchase without waiting.
Disadvantages of LightStream Used Car Loans
- Credit Score Requirements: LightStream requires a minimum credit score of 660 for used car loans, meaning that borrowers with lower scores may not qualify. This can be a drawback for those with poor credit or a limited credit history.
- Income Requirements: In addition to credit score requirements, LightStream also has income requirements that borrowers must meet to be eligible for a used car loan. This can make it difficult for those with lower incomes to qualify.
- No Preapproval needed: LightStream does not require preapproval for their used car loans, meaning that you must apply for the loan and go through the approval process before knowing if you qualify. This can be inconvenient if you are still in the market, shopping around for the best loan terms and want to compare offers from multiple lenders.
How to Apply for a LightStream Used Car Loan
To apply for a LightStream used car loan, you must meet the following requirements:
- Be at least 18 years old
- Have a valid Social Security number
- Have a good credit history
- Have sufficient income to repay the loan
To apply for a loan, you will need to provide personal information, including your name, address, and contact information. You will also need to provide information about the used car you want to purchase, including the make, model, and year.
Once you have submitted your application, you will receive a decision within minutes. If approved, you can sign the loan documents electronically, and the funds will be deposited into your bank account.