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.
LightStream’s credit score requirement is 660 or higher, according to reports. That’s not something LightStream officially states. But it is the consensus among a number of third-party websites, based on the reports of users. A score of 660 is within the fair credit range, 20 points above where fair credit starts and 40 points below where good credit begins. The majority of other personal loan companies also require a credit score of 660 or above, but some offer loans to people with scores as low as 585.… read full answer
LightStream’s requirement is relatively easy for most people to meet. The average 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).
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub.
Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.