Truist vs. LightStream: Which Personal Loan Is Right for You?
Updated: July 25, 2023
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Truist, created when SunTrust and BB&T merged, offers personal loans from $3,500 to $50,000. LightStream is Truist’s online consumer lending division and offers loans up to $100,000.
To help you better understand the differences between Truist and LightStream, MoneyGeek evaluated their interest rates, minimum credit score requirements, pros, cons and more.
Truist or LightStream: Overview
The following sections illustrate the differences between Truist and LightStream personal loans in terms of APR ranges, loan disbursement times, loan amounts, minimum credit score requirements and repayment terms.
Truist and LightStream disburse funds quickly but have significantly different requirements. Truist doesn’t require a minimum credit score, while LightStream requires a credit score of at least 660.
Truist
LightStream
APR Range
Truist personal loan APRs range from 8.14% to 18.99%, while LightStream personal loans have APRs from 4.49% to 20.49%. Both lenders offer broad APR ranges, but Truist has the edge due to its lower maximum rate.
The annual percentage rate (APR) refers to the interest rate every borrower must pay yearly on a personal loan. Factors like credit score and risk profile affect your APR. Other variables like loan type, repayment term and size also affect the APR.
Obtaining the lowest possible interest rate is ideal, but the APR is one of many elements to consider when choosing a personal loan lender.
In the APR analysis, Truist wins because of its lower APR range. However, the lender will only offer low APRs to those with good credit. The lower your APR, the lower the total cost of your loan.
MoneyGeek suggests shopping around and gathering quotes to find the lowest APR for your needs.
Minimum Credit Score
Truist does not require a minimum credit score. So, if you have a poor credit score, you may still apply and qualify for its loan offers. On the other hand, LightStream requires a credit score of at least 660.
Your credit score indicates how well you manage your debt obligations. Credit bureaus assign you a number from 300 to 850 based on your credit report and history. The higher the number, the better your creditworthiness. Banks and lenders use credit ratings to set APRs, loan terms and to determine whether they’ll grant you a loan.
Most banks and lenders usually qualify applicants with a credit score of at least 670. If your credit score is around 670 and above, you’ll likely be considered an attractive candidate and receive quick approval.
Different factors affect your credit score, including the number and type of credit accounts you have, credit history, outstanding liability and payment history. Applying for new credit may also affect your score.
Truist wins this round. This lender has no minimum credit score requirements and allows borrowers with poor credit histories to apply for personal loans.
Remember that a low credit score can affect your APR, leading to a higher loan cost. So, consider additional factors when choosing the right lender for your preferences and profile.
Loan Amount Range
The loan amount range is the minimum and maximum amounts you can borrow from the lender. Always apply for the amount you need, never more. For example, LightStream loans begin at $5,000, so Truist might be a better choice if you need less.
Although lenders have different maximum loan amounts, not everyone will qualify for these. Factors affecting lender decisions regarding loan amounts include repayment terms, credit score and other lender-specific factors.
Truist and LightStream offer different loan amount ranges, and the best one for you will depend on your needs. Always know the exact amount you need before choosing a lender.
Smaller loans are optimal for minor home repairs. However, a more comprehensive loan range is ideal for those who intend to fund more significant expenses like debt consolidation, home renovations and education.
Repayment Terms
A loan repayment term is the length of time the borrower has to repay the loan. Long-term loans can last up to 84 months, while short-term loans may range from one to two years. Truist offers repayment terms of six months to a maximum of five years. In contrast, LightStream offers terms of two to seven years.
Typically, the longer the repayment period, the lower the monthly payments, but the higher the interest payments. Getting a personal loan with the shortest repayment period and affordable installments is ideal. The best repayment terms for you will depend on your needs and preferences.
Remember, debt-to-income ratio, credit score and monthly income affect your loan terms.
Truist has the edge over LightStream in this category due to its flexible repayment terms of six to 60 months. Interest rates are generally lower for shorter repayment periods, although the monthly payments are higher.
The best repayment period and other factors affecting your loan terms depend on your needs.
Time to Receive Funds
Lenders have different timeframes for releasing loan funds. Truist releases funds the same day your application is approved if it’s a banking business day. Otherwise, you get the funds the next banking business day. LightStream releases the funds within the same day.
Applying for a loan online is quick and easy and can result in speedier disbursement. Most lenders let you check whether you prequalify before you apply without affecting your credit score.
LightStream assures same-day funding and will suit borrowers who need emergency funds. Truist also releases funds the same or the next day. However, always consider the scope of factors when evaluating a loan and lender, not just loan disbursement speed.
Final Thoughts
Truist and LightStream are great choices for personal loans. Both offer the opportunity to get the funds on the same day. However, each has unique features that may attract different types of borrowers.
If you are worried about your poor credit, you may fare best with Truist since it doesn’t require a minimum credit score. Borrowers with fair credit can benefit from LightStream’s higher maximum loan amount.
LightStream is your ideal choice if you need funds quicker due to its same-day disbursement.
Key points:
- Truist offers lower APR ranges and is better for those with a poor credit score.
- LightStream is optimal for borrowers who want longer payment terms or need to borrow larger amounts.
Frequently Asked Questions About Personal Loan Lenders
To guide you in making an informed decision, we answered these most commonly asked questions about personal loans.
Lenders require proof of identification, pay stubs, employment history and credit records.
You can check your credit score by visiting the Annual Credit Report website. You can also call or submit a form in person.
Truist and LightStream conduct hard credit inquiries.
No, rates vary depending on the lender and your unique profile.
It depends on the lender. Some lenders charge application, late payment, origination and prepayment fees.
Applying online saves time and may speed up your approval and funding.
Generally, yes. However, some lenders charge a prepayment penalty.
sources
- Truist. "Personal Loans and Lines of Credit: Apply Now | Truist." Accessed September 19, 2022.
- LightStream. "Debt Consolidation Loan | LightStream." Accessed September 20, 2022.
The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.
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