LightStream Auto Purchase, Refinance and Lease Buyout Loans: 2023 Review

Full Review

LightStream offers new and used car purchase loans, refinance loans and lease buyout loans. It also offers purchase loans and financing for classic cars.

With a minimum credit score requirement of 660, LightStream auto loans focus on borrowers with good or excellent credit (690 or higher on the FICO score model). The company says that credit score is not the only indicator of whether a loan is approved. LightStream also looks closely at credit history, assets, income-to-debt ratio and other information that would show an applicant’s strong financial position.

The LightStream website provides a “find your rate” feature to check current rates. With this tool, a person can select an auto loan type, enter a loan amount, and see possible rates and estimated payments for various loan terms. The rates shown are for borrowers with excellent credit who opt for automatic payment. LightStream offers a 0.50 percentage point rate discount with automatic payment.

LightStream provides a fast and consumer-friendly loan process for borrowers with good or excellent credit. Auto loan applications are only taken online; they include enough information to allow an approval decision the day an application is submitted. LightStream requires a hard credit pull upfront, which can slightly lower an applicant’s credit score, so it may not be the best option for someone just shopping rates and not ready to move forward with a loan.

Once a loan offer is accepted, applicants can receive funds as soon as the day an application is submitted, if all paperwork is complete by 2:30 p.m. ET on a day when banks are open. Funds can be directly deposited to the borrower’s personal bank account or sent by wire transfer.

LightStream stands out from other lenders by offering a loan experience guarantee. If borrowers aren’t happy and have had a loan for less than 30 days, they can contact LightStream, complete a questionnaire and receive $100.

LightStream may be a good fit for those who:

• Have good or excellent credit: LightStream offers low rates for borrowers with good or excellent credit, and a rate discount is available when automatic payment is used.

• Like maximum flexibility: LightStream has no vehicle restrictions on make, model or mileage. Lightstream auto loans are unsecured, meaning the car is not used as collateral, and LightStream does not hold the title of the car while the loan is being paid off.

LightStream at a glance

• Application process

  • Origination fee: None.

  • Personal information needed: Social security number or ITIN, address, time at address, phone number, email address, citizenship status, birthdate, employment status, employer name, housing status, housing payment amount and other income, assets, savings and retirement.

  • Pre-qualification available: No.

  • Online, in-person or both: Process is 100% online, including document upload.

  • Approval speed: Same day if completed in time.

• Qualifications

  • Minimum FICO credit score: 660.

  • Minimum credit history: None.

  • Minimum annual gross income: None.

  • Maximum debt-to-income ratio: Did not disclose.

  • Bankruptcy-related restrictions: Borrowers cannot have a bankruptcy record within the last 5 years.

  • States covered: All states.

• Restrictions

  • Maximum vehicle age: None.

  • Maximum vehicle mileage: None.

  • Other vehicle restrictions: None.

  • Loan amount minimum: $5,000.

  • Loan amount maximum: $100,000.

  • Maximum loan-to-value ratio: Did not disclose.

  • Refinancing restrictions: Borrowers cannot submit an application until the original loan appears on a credit report. There is no wait period after the original loan appears.

• Other loan details

  • Loan terms: 24-84 months.

  • Rate discount: 0.5% if automatic payment is used.

  • Greater-than-minimum payments: Accepted and can be made by automatic payment.

  • Biweekly payments: No.

  • Late payment fee: No.

  • Prepayment penalty: No.

  • Co-borrowers allowed: Yes.

  • Co-signers allowed: Yes.

  • Payment options: By check through the mail or electronic ACH.

  • Selected payment due date: Can be selected when completing loan paperwork.

  • Cash-out refinancing: No.

  • Hardship plans: Yes. Each borrower’s hardship request is reviewed individually.

  • Existing loan payoff: Electronically with the previous lender.

• Customer service

  • Assistance provided: Customer service is available six days a week, and application processing assistance is available seven days a week.

  • Availability: Customer Service is available Mon-Fri, 10 a.m. - 8 p.m. and Sat, noon - 4 p.m. ET. Application processing is available Mon - Fri, 10 a.m. - 6 p.m. and Sat - Sun, 1 p.m. to 6 p.m. ET.

  • Contact options: Phone and email.

More from LightStream

Based in San Diego, California, in addition to new and used auto purchase and auto refinance loans, LightStream offers debt consolidation and personal loans.

LightStream also offers 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 offers will qualify.

» MORE: Auto loan refinancing lenders

LightStream auto loan rates

Credit requirements vary by auto lender, but LightStream’s lowest rates are typically available only to borrowers with good or excellent credit (a FICO score of 690 and above). With fair or bad credit you won’t get the lowest interest rates, which means your monthly payment and total interest paid will be more. You can check your credit score before applying for a car loan.

Loan example: According to NerdWallet's auto loan calculator that uses the VantageScore credit model, a borrower with a credit score of 300-499 (considered deep subprime), a $20,000 used car loan, repayment term of 72 months, interest rate of 18% APR and $0 down payment would have monthly payments of $456. One year later, if all payments were made on time, the borrower will have paid the loan down to a balance of $17,963. If the borrower is able to then refinance at 12% APR for the remaining 60 months, the payment would drop to $399 and result in interest savings of $3,394 over the life of the loan.

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).