LightStream does a hard pull of the applicant’s credit report for every LightStream personal loan application. LightStream does this in order to get a full look at the prospective borrower’s credit history and make an approval decision. A hard credit check does have a temporarily negative effect on the applicant’s credit score. However, the score typically drops just 5 - 10 points. So it’s easy to bounce back in a few months – especially for people who get approved for a loan and start making timely payments.
It’s not unusual that LightStream does a hard pull. Most personal loan providers will use a hard pull during their approval process. The exceptions are some extremely expensive bad-credit lenders, such as payday lenders or auto title lenders.
Some lenders will do a soft credit check, which doesn’t hurt your credit score, as part of a “pre-qualification” process. But LightStream does not offer pre-qualification. And even people who are pre-qualified for other loans still need to apply and go through a hard pull before they can get the loan.
LightStream reportedly requires a credit score of 660 or higher for approval. So if you don’t want to waste a hard pull on a long shot, check your credit score for free and make sure it’s at least 660 before applying.
Applicants need a minimum credit score of 660 to get a personal loan from LightStream. That means the LightStream personal loan credit score requirement is in the fair-to-good credit range, which is on par with most other major personal loan companies.
LightStream’s requirement is relatively easy for most people to meet. The … read full answeraverage credit score is above 660. However, a credit score of 660 will not guarantee that you can get a personal loan from LightStream. One of the other major factors is your income. LightStream does not disclose a minimum. But you will need a steady source of income to get approved. In addition, LightStream will consider other factors such as your recent credit inquires, existing debts, number of open credit accounts and more.
It’s also important to note that while a credit score of 660 gives you a decent chance to be approved for a loan from LightStream, a score that just barely qualifies for approval will likely result in a high APR. LightStream offers loans with APRs as low as 3.99% in some cases. But their highest APR is 17.29%. People with a score of only 660 are likely to get a rate at the top of that range. In addition, while LightStream offers loans ranging from $5,000 to $100,000, people with credit scores right on the borderline of approval will have a difficult time getting approved for high loan amounts.
If LightStream denied you, the first step is to figure out why exactly. That’s easy to do. The letter that LightStream sends after a denial should list the reasons. Reasons that LightStream might deny applicants include too little credit history or too low of a credit score, high amounts of debt, low income, a lot of recent credit inquiries, accounts in collections, or bankruptcy. The letter should also include instructions on how to request a free credit report, to which you are entitled every time you’re denied for a loan. You can go over the credit report to see your situation in greater detail.… read full answer
The next step is to determine whether the reason LightStream denied you was legitimate or not. For example, if they cited high amounts of debt but you know for a fact that you don’t have other debts, it could mean something on your credit report is outdated or fraudulent. In that case, it’s extremely important to dispute inaccurate information or suppress fraudulent information. Another possible situation is that you entered information incorrectly on the application. Or, your financial situation might have changed (e.g. you got a raise after submitting your application). In these cases, LightStream made a decision based on inaccurate or outdated information.
If you believe your LightStream application deserves reconsideration, you should call the company at 866-635-1330. Once you’re connected to a representative, tell them that you recently submitted an application and were denied because of a mistake or misunderstanding. There’s no guarantee that LightStream will reverse the denial. But it certainly doesn’t hurt to try.
If you’re not able to get approved after LightStream reevaluates your application, or if the reasons you were denied in the first place are legitimate, the next step is to try to improve your credit standing. WalletHub has a helpful guide on how to do so, and can offer personalized advice on how to improve your score if you make a free account. And if you’re desperate for a loan, you could apply with a lender with a lower minimum credit score requirement. Some examples are LendingPoint (minimum score of 585) and Avant (minimum score of 600).
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