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[n64coder]

I'm in the market to get a new car and went to www.bankrate.com to see what loan providers are out there and their rates. The best interest rate is provided by LightStream at 1.74%. The next best is PenFed (Pentagon Federal) at 1.99%. The rest of the banks were in the 3% range. I'm familiar with PenFed but have no experience with LightStream.

I filled out the online application process and after a few hours, I was approved for the loan at 1.74%.

The shocking part is that the loan is unsecured. Usually auto loans are secured by the car but there's no requirement in my case.

Here's some info from their website:

LightStream is the personal loan division of SuntTrust Bank, a Fortune 500 company with over $175 billion in assets. LightStream offers unsecured loans with rates as low as 1.99% APR (with AutoPay on a new auto). SunTrust Bank has an A+ rating with the BBB and an EE (stable) rating with Standard & Poors.

How Does LightStream Work?
LightStream's unsecured loans provide customers with good-to-excellent credit with a fast and simple source of credit with fixed competitive rates and flexible terms. There are no fees, charges or prepayment penalties. The entire application is done online and can be completed within the same day, as long as all conditions are met.

Although LighStream loans can be used for most things, borrowers do have to specify the reason as interest rates do vary depending on the purpose of the loan. Purposes include car loans, home improvement, boat loans, horse loans, aircraft financing, debt consolidation and almost anything else.

What Are LightStream's Interest Rates?

Interest rates range from 1.74% to 14.99% APR with AutoPay depending on the loan amount, term, credit rating and purpose of the loan. For instance, a loan for a new vehicle of $25,000 or more with a loan term of 24 to 60 months will have interest rates as low as 1.99% to 6.54% APR. Personal loans for purposes other than an auto purchase will have interest rates ranging from 2.99% to 14.99% APR with AutoPay.

Rates under the invoicing option are 0.50% higher. To illustrate, Monthly payments for a $10,000 loan at 5.79% APR with a term of 3 years would result in 36 monthly payments of $303.27.

How Much Money Can I Borrow from LightStream?
LightStream loan amounts range from $5,000 to $100,000. A 60-month loan of $100,000 with a 9.99% interest rate would have monthly payments of $2,124 while the same loan with a 1.99% interest rate would be $1,752 a month.

What Is LightStream's Application Process Like?
LightStream's application process is fast and easy to complete. To qualify you need good credit and sufficient income and assets to cover your existing debt and requested loan amount. The application takes only a few minutes to fill in and the information is confirmed electronically, so there's no paperwork to mail or fax.

How Is LightStream Better than Other Lenders?
- LightStream allows borrowers with strong credit to borrow funds for purchases that usually require collateral, such as a vehicle or boat.

- Its interest rates are competitive even when compared with traditional secured bank loans.

- The application process is fast and paperless and borrowers can often receive approval and their funds within the same day.

- You can fund your loan today if today is a banking business day, your application is approved, and you complete the following steps by 2:30 p.m. Eastern time: (1) review and electronically sign your loan agreement; (2) provide your funding preferences and relevant banking information, and (3) complete the final verification process.

So does anyone have experience with them?

 

[The Big Rig]

I got my car loan with them. My parents did the same with their cars. They're legit, and usually require pretty decent credit to get approved.

 

[Ron Mexico]

Did a little research on it-- it's an interesting concept. Their underwriting requirements are likely obscenely high (680 is mentioned on their site, I imagine 740+ is the reality), DTI would need to be obscenely low. Essentially, my thought is they're looking to appeal to the upper-most crust of borrowers, lending at low margins with a low approval rate, then referring those who didn't qualify into more profitable offerings.

I would also imagine their collections efforts (if needed) are...aggressive.

 

[ElectricBlanketFire]

Yes, we used them for our last auto loan as leverage.

 

[n64coder]

Glad to hear that there are some positive experience. I was trying to look to see if there was a catch or if it was a scam where they wanted your bank experience to be able to get money out.

 

[v0yce]

Yup got one a few years ago.

I was leary too since there weren't a lot of user stories but the few I saw were positive. Only catch seems to be you have to have a high credit score.

It's been great.

 

[dallow_bg]

Was looking for a horse loan.

 

[TarpitCarnivore]

Interest rates range from 1.74% to 14.99% APR with AutoPay depending on the loan amount, term, credit rating and purpose of the loan. For instance, a loan for a new vehicle of $25,000 or more with a loan term of 24 to 60 months will have interest rates as low as 1.99% to 6.54% APR.

Those are pretty big gaps and in some cases you can get dealer financing for less if there is a special going on.

 

[voodoojohn]

Why wouldn't you get your financing through the dealer? Every manufacturer seems to be offering 0-1% for 5+ years these days.