Navy Federal vs. LightStream: Which Personal Loan Is Right for You?

Navy Federal offers loans for various purposes, including personal expenses, home improvement, debt consolidation and more. However, since it’s a credit union, its loans are limited to its members. On the other hand, LightStream is the online lending arm of Truist Bank. The lender offers auto loans, debt consolidation loans, refinancing and more.

Deciding between these lenders can be confusing. To help you, MoneyGeek analyzed the essential details of Navy Federal and LightStream using the most up-to-date information. Our guide shares important information on both lenders so that you can decide which one is the best fit for your needs.

MoneyGeek compared Navy Federal and LightStream in terms of their APR ranges, credit score requirements, loan amounts, repayment terms and funds disbursement time. Our research can help you determine the best option for your funding needs.

We found Navy Federal to be more flexible and convenient for borrowers as it doesn’t have a minimum credit score requirement and offers flexible loan repayment terms. It also has a lower APR than LightStream. However, LightStream offers a high maximum loan amount, which makes it easy to fund large purchases or any emergency need.

Navy Federal charges an APR ranging from 7.49% to 18% for its loans, while LightStream's APR ranges from 4.49% to 20.49%. This shows that LightStream charges a higher APR than Navy Federal.

The annual percentage rate shows how much you will have to pay for a loan. APR includes various fees and costs, including the interest rate, origination fees, discounts and any other fees. The lenders determine your APR after analyzing your credit score and assessing if you will be able to repay the loan easily. Besides these factors, lenders also consider your loan type to determine your rate.

The Navy Federal vs. LightStream comparison shows that LightStream requires borrowers to have a good credit history, with a credit score of 660. However, Navy Federal doesn’t have a minimum credit score requirement for its loans.

A borrower’s credit score helps lenders understand if they will be able to repay the loan easily. It shows your creditworthiness represented by a numerical value. Borrowers with good credit scores might be able to get faster approvals and save money by qualifying for a lower interest rate.

Essential factors like your loan payment history, previous debt, length of credit history and other details have an impact on your credit score. You can improve your credit score by making loan payments on time.

With Navy Federal, borrowers can get a minimum loan of $250 and a maximum loan of $50,000. On the other hand, LightStream offers a minimum loan of $5,000 and a maximum loan of $100,000.

A lender’s loan amount dictates how much money it lets you borrow. You should always opt for a lender that allows you to borrow sufficient money for your financial needs. To choose the ideal lender, you must first know how much money you need.

However, it’s not guaranteed that you will get the desired loan amount because lenders also consider factors like your credit score, loan purpose, repayment terms and other details to determine how much they will let you borrow.

Compared with LightStream’s loan repayment terms, Navy Federal stands out as it offers borrowers a flexible repayment term ranging from 12 months to 180 months.

A repayment term tells you how long it will take to repay the loan to the lender. Lenders usually offer a repayment term of 12 to 24 months for short-term loans. However, the borrower can repay long-term loans for up to 84 months with some lenders.

Many factors affect your loan’s repayment term. These factors include your credit score, monthly income, debt-to-income ratio and other essential details. It’s best to analyze your financial situation first to see which repayment term will suit you.

When you apply for a LightStream personal loan, you might be able to receive the funds on the same day. If it is a Navy Federal loan, you might get it on the next day.

Many factors can affect how long your lender takes to disburse loan funds. For instance, lenders will approve and release the funds much faster if you apply online. Other factors like the type of loan and processing fee payment may also affect the disbursement time. The best way to get fast approvals is to complete the application carefully and attach relevant documents.

MoneyGeek’s analysis shows Navy Federal outshines LightStream in various categories, including APR range, repayment terms and credit score requirements. On the other hand, LightStream offers a higher maximum loan amount and same-day funding.

Choosing one lender over the other might seem challenging. However, it’s essential to know that the best lender for you will depend on the purpose of getting a loan. Before you finalize a lender, you should analyze your financial needs and situation.

Navy Federal is a credit union that only offers loans to its members with a military background. Thus, if you have such a background and want a loan with a low APR and flexible repayment terms, this lender will be the best fit for your needs.

On the other hand, LightStream will suit borrowers looking for a loan to fund a significant expense or who want funds to cover an emergency or immediate need.

Keep in mind these recommendations are based on a general borrower profile. Do your own due diligence to find the ideal lender for your needs.

The following frequently asked questions will clear up any confusion about personal loan lenders and their requirements, helping you choose the best lender based on your needs.