LightStream Auto Loan Review 2025

LightStream auto loan terms and requirements

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About LightSteam auto loans: a closer look

LightStream offers loans that can be used for new and used car purchases, refinancing a car or buying out a lease. LighStream’s auto loans are unsecured, which means the car is not used as collateral, so there are no vehicle restrictions, such as mileage or age maximums.

To get an unsecured loan with a competitive interest rate from any lender, a borrower typically must have good or excellent credit. Financing a car through LightStream is no exception. The company has a minimum credit score requirement of 660 on the FICO score model, although a LightStream representative says credit score isn't the only indicator of whether a loan is approved. LightStream also takes into consideration credit history, assets, debt-to-income ratio and other information that would show an applicant’s strong financial position.

LightStream stands out from other lenders by offering a program to beat competitors’ loan rates on unsecured loans. If you are approved for an unsecured loan with the same terms but a lower rate than what LightStream offered, the company will reduce your offered rate by 0.10 percentage points. There are additional terms to qualify for the reduced rate, so not all borrowers will qualify.

When reviewing and rating auto lenders, NerdWallet writers gather information about customer experience, transparency, loan affordability, loan requirements and flexibility. LightStream scores high for affordability, with no origination or late payment fees and a rate discount for automatic payments. Rates for unsecured loans tend to be higher than for loans secured by a vehicle as collateral, but LightStream rates are still competitive, especially with the autopay discount.

Do you qualify for a LightStream auto loan?

Here are LightStream's borrower requirements to qualify for an auto loan. Note that meeting these requirements doesn’t guarantee approval.

Other LightStream auto loan details

• Pre-qualification and preapproval. Does not offer.

• Upfront fees. Does not charge an origination or document processing fee.

• Interest rate discounts. 0.50% APR discount with automatic payments.

• Refinancing time restrictions. There is no waiting period to refinance. If approved for a LightStream loan, funds will be deposited into your checking or savings. You can use that money to pay off the original auto loan.

• Deferred payments. Does not offer.

• Selected payment due date. Borrowers can select their payment due date after signing the loan agreement.

• Late payment grace period and fee. Does not charge a fee for late payments.

• Hardship plans. Does offer hardship options. Did not provide details but said repayment plans are managed on a case-by-case basis.

• Contacting LightStream. During the application process, borrowers can reach LightStream by email. Customer service hours are Mon-Fri, 9:30 a.m.-7 p.m. and Sat, noon-4 p.m. ET.

• Mobile app to manage account. None.

Back to About LightStream

LightStream may be a good fit for those who:

• Have good or excellent credit. LightStream offers competitive rates for borrowers with good or excellent credit, and a rate discount is available when borrowers opt into automatic payments.

• Like maximum flexibility. Financing through LightStream means you won't have vehicle restrictions, such as make, model, mileage or where you can purchase.

• Don't want to use a car as collateral. When you finance a car with an unsecured loan, the lender does not hold the title or act as a lienholder. You own the car, so there's no risk of repossession. Also, the loan process is usually faster. If approved, LightStream borrowers can receive loan funds into their bank account as soon as the same day they apply.

Before you apply to LightStream

Check your credit. You can get your free credit report on NerdWallet or at AnnualCreditReport.com. If you find errors, file a credit dispute to correct them before you apply for an auto loan.

Figure what monthly payment you can afford. For purchase loans, use an auto loan calculator to determine what APR and repayment term you need to get monthly car payments that fit your budget. When you know your maximum car payment, a car affordability calculator can help you determine a realistic car price. For auto refinance loans, use an auto refinance calculator to see your monthly payment and determine what APR and term you need to make refinancing worthwhile.

Gather your documents. LightStream requires the following to submit an initial application: Social Security number or ITIN, address, time at address, phone, email, citizenship status, birthdate, employment status, employer name, income, housing status and housing payment amount. Further into the loan process, you might be asked about additional income sources, such as retirement or disability benefits, and assets.

How to apply for a LightStream auto loan

1. Complete a loan application on LightStream's website. LightStream auto loan applications are only taken online. From the LightStream home page, select "Apply Now." You'll first be asked if you're applying jointly or individually, the primary purpose of your loan (new car purchase, used car purchase, refinancing or a lease buyout), the amount you want to borrow and your preferred loan term. You’ll then be able to preview an estimated APR and payment range for the loan amount and term you requested.

2. Finish and submit your application. LightStream requires a hard credit pull upfront, which can slightly lower an applicant’s credit scores, so it may not be the best option for someone just shopping rates and not ready to move forward with a loan. If you want to move forward, provide additional information, such as your name, address, Social Security number, income and employment and select submit. Because of the hard credit inquiry, LightStream has enough information to allow an approval decision the day an application is submitted in most cases. After you accept your final loan terms, funds can be deposited directly into your checking or savings account.

Back to About LightStream

How do we review direct lenders for auto loans?

NerdWallet's review process surveys companies that offer any combination of new car purchase loans, used car purchase loans, auto refinance loans (traditional and/or cash-out) and lease buyout loans. These companies include direct lenders and aggregators; the latter group doesn't have in-house loan products but matches borrowers to third-party lenders within a network. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.

Our survey for direct lenders has different questions than the survey for aggregators, but each includes more than 60 data points. NerdWallet independently confirms product details and, when necessary, follows up with company representatives. At least two writers and an editor verify the facts for every lender review to ensure data are accurate.

To receive a star rating, a lender must respond to NerdWallet’s annual auto loans survey. Star ratings are then assessed from poor (one star) to excellent (five stars).

For more details about the categories considered when rating direct lenders and our process, read our full methodology.