LightStream denied me - what should I do?

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.

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of debt but you know for a fact that you don’t have other debts, it could mean something on your credit report is outdated or fraudulent.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 In these cases, LightStream made a decision based on inaccurate or outdated information.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).