What Online Lender Offers the Best Personal Loan Rate

LightStream is the online lender that offers the lowest interest rate on personal loans. The typical APR of a LightStream loan starts from 3.09% to 14.24% when you select autopay. For those who don’t want to choose autopay, the APR starts from 3.59% – 14.74%. The interest rate of a LightStream loan depends on what you use the loan for. Of the other lenders we examined including LoanMoz, Prosper, Quick Loans, Citi Loans, Marcus there was no other lender that based the interest rate on the loan purpose.

The lowest interest rate can be assigned to a borrower who take out the loan to purchase a car provided that he has a high credit score. If you apply the loan for home improvement purpose, you will get an APR starting from 4.99%. Home improvement loan can have the repayment term extended up to 12 years.

The APR starts from 5.49% for loans taken out to consolidate other debts. LightStream has a rate beat program where it promises to give you an interest rate that is 0.10% lower than the competitor’s interest rate if you can find a competitor that has approved a fixed rate loan with similar term/

Most loans on LighStream have a repayment term that last from 2 – 7 years. Longer loan term works for big loans taken to fund a large project. It helps to make the monthly payment cheaper so that it is more affordable for you to pay back the large loan amount. However, you must understand that longer loan term also means you pay interest in the end.

To qualify for a LightStream loan, you must have a minimum 660 credit score and a long credit history. In addition, your annual income must be at least $50,000. If you are a military member, you can apply for a loan from LightStream with interest rate in the limit stated on The Military Lending Act.

When applying, you will be asked to enter the loan purpose. After selecting the loan purpose, it will show you the range of interest you will possibly receive. LightStreams accepts applications that use a co-signer to sign up. You also have to submit documentations like driver’s license, income proof, resident permit, and bank account.

It takes about 1 day for LightStream to review your application and approve it. After approved, they will send an email to inform you about it and you can expect to see the funds in your bank account 7 days. LightStream reports to the two credit bureaus which are Equifax and Experian.

Apart from charging the lowest interest, Light Stream also waive a few fees such as origination, prepayment and late fees. With LightStream, you can borrow a loan with minimum amount of $5,000 and up to $100,000. You must be at least 18 years old or meet the age minimum requirement of your state to apply for a loan.