Updated: October 29, 2024
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Upstart and LightStream are great personal loan options if you need money quickly — but the best depends on your needs and circumstances. Although both providers offer fast turnaround times after application, Upstart is likely the choice for those with less-than-stellar credit. Those with good credit may find LightStream ideal.
MoneyGeek's detailed and up-to-date information on prominent personal loan lenders in the U.S. can help you compare lenders and discover the best option for your needs.
LightStream and Upstart are two popular personal loan providers in the U.S., offering quick funding to those with good and bad credit, respectively.
It’s essential to consider various factors when choosing a lender — APR, repayment terms, loan amount and time to receive funds should all align with your financial needs.
Your credit score can affect your eligibility with some lenders.
Upstart has no credit score requirements, while LightStream offers a better repayment range and APR. Nevertheless, the better lender for you will depend on your needs and circumstances. Before choosing between Upstart and LightStream, it’s crucial to dive into each lender’s APR, credit score requirements, loan amount and repayment terms.
A personal loan from Upstart is a great fast-funding option for borrowers with poor or limited credit.
Upstart is a lending company that offers fast approval and funding times to borrowers with little to no credit histories. The company has a unique underwriting model, using artificial intelligence (AI) to evaluate applicants. This technology allows Upstart to approve and fund applicants more quickly.
Although Upstart is ideal for low-credit-score borrowers who need money fast, it may not be the best option for those who need more than $50,000 or less than $1,000. Additionally, it does not allow co-signers to help you improve your APR, a disadvantage if you have a less-than-ideal credit history.
Pros
Cons
LightStream personal loans provide fast funding to borrowers with good credit or who need large loans.
LightStream’s personal loans are perfect for those looking to quickly finance more expensive projects or purchases. It offers loans up to $100,000 and same-day funding after application approval. LightStream loans can be used for home renovation, debt consolidation, auto financing and more.
However, LightStream may not suit all borrowers. For instance, the company only accepts applicants with a minimum credit score of 660, which means those with bad or no credit should look elsewhere. Additionally, LightStream is not for you if you’re looking to borrow less than $5,000.
Pros
Cons
Lender | APR Range |
|---|---|
Upstart | 3.22% to 35.99% |
LightStream | 4.49% to 20.49% |
The annual percentage rate (APR) is the percentage of interest a borrower will pay on their loan in a given year, plus any additional costs and fees from the lender. Although Upstart has the lower starting APR among the two providers, LightStream has a significantly lower APR maximum. This is something to keep in mind since APRs often fluctuate.
You also aren’t guaranteed to get the lowest available APR. Your APR depends on numerous factors, such as your credit score, loan type, loan amount and the lender’s underwriting model.
Upstart uses AI technology to go beyond credit scores when assessing potential borrowers, allowing it to accept borrowers with little to no credit. On the other hand, LightStream uses the traditional underwriting methods, basing your loan’s APR mainly on your credit score.
LightStream has a smaller APR range — 4.49% to 20.49% — compared to Upstart. Having a smaller range means that borrowers will likely pay less in interest and associated fees over the life of the loan.
However, it’s important to note that a low APR is not the only thing borrowers should look for in a lender. Other factors include the lender’s repayment term, loan amounts and credit requirements.
Lender | Credit Score |
|---|---|
Upstart | 300 |
LightStream | 660 |
Your credit score often plays a significant role in whether you can get a loan and what your terms will be. Generally, a higher score can help you secure better loan terms, such as a more favorable APR. You can only build your credit over time through consistent financial practices, like paying your monthly credit card statements in full.
Upstart and LightStream have different underwriting methods, which affect their minimum credit scores. Instead of relying on FICO scores, Upstart uses AI computation to determine borrowers' likelihood of upholding financial obligations. This means that applicants with bad or no credit may be accepted (but will still be subject to unique terms).
Conversely, LightStream requires a minimum credit score of 660. Although this requirement may be higher, it does offer a more desirable APR range and higher loan amounts in return.
Thanks to its unique AI-based underwriting model, Upstart has more flexible credit score requirements than most lenders. However, it’s important to note that individuals with a low credit score are still subject to higher interest rates or less-than-ideal terms. Thus, borrowers should ensure their loan’s terms are affordable and suitable to their needs.
Lender | Loan Amount Range |
|---|---|
Upstart | $1,000 to $50,000 |
LightStream | $5,000 to $100,000 |
The loan amount range is the minimum and maximum amount a provider is willing to lend to a borrower. Between Upstart and LightStream, the latter has a higher maximum — allowing borrowers to get up to $100,000. Therefore, LightStream would be ideal for large purchases like home renovations or a car. Conversely, Upstart personal loans can finance more minor expenses, under $5,000.
It’s best to choose a lender whose range encompasses your loan needs rather than opting for multiple small loans from different lenders. This way, it’s easier to keep track of your overall debts and payments.
With personal loans ranging from $5,000 to $100,000, LightStream has a much wider loan amount range. However, whether this will work for you depends on your needs. If you must finance something under $5,000, Upstart is the better choice.
Loan amount is just one factor among many. As always, take a comprehensive look at a potential lender before deciding.
Lender | Repayment Terms |
|---|---|
Upstart | 36 to 60 months |
LightStream | 24 to 84 months |
The repayment term, sometimes known as the repayment period, dictates how long you will have to pay off a loan. Typically, a shorter repayment term correlates with lower interest rates. But this can still depend on your credit score and other factors.
Whether you want a shorter or longer repayment term, LightStream has a more flexible range than Upstart — two to seven years compared to three to five, respectively. However, remember that a longer repayment window has its drawbacks. Namely, you will pay more interest with a long repayment period, even if your APR is low. Keep this in mind when evaluating a lender's repayment term.
LightStream offers more flexible repayment terms, meaning borrowers will have more leeway in determining how long they want to repay their loans. However, whether you get this flexibility will also depend on your credit score — if you have a score on the lower end of the spectrum, you may have to stick to the terms your provider sets. You’ll also want to remember that longer repayment terms mean paying more interest over time. A shorter repayment window is advisable if you can swing the higher monthly payments.
Lender | Time to Receive Funds |
|---|---|
Upstart | Next day |
LightStream | Same day |
Both Upstart and LightStream provide funds at a faster rate compared to traditional lenders. Conventional lenders typically take anywhere from a few days to a few weeks. Conversely, Upstart can provide funds the next business day after signing your personal loan agreement, whereas LightStream can deliver the funds the same day.
If you have good credit and are in dire need of a loan, LightStream may be the better option. However, Upstart's next-business-day funding is equally suitable. Since there's not much difference here, which lender is best for you will depend on other factors, such as the repayment terms, APR and your approved loan amount.
The faster a lender releases your funds, the earlier you can use them — this is ideal if you are experiencing a financial emergency. LightStream provides funds lightning-fast on the same business day after signing. Upstart’s funding time isn’t far off — sending your funds the next business day. Although quick loan disbursement is great, it shouldn’t be your only deciding factor.
Although both Upstart and LightStream offer personal loans with fast funding times, LightStream still comes out triumphant as the best personal loan lender of the two. This estimation is thanks to its lower APR range, extended repayment period, higher loan amount limits and shorter time to receive funds.
One caveat is that LightStream follows the traditional underwriting method of heavily weighing borrowers' credit scores. On the flip side, Upstart's unique underwriting method makes it more suited to individuals who have new or bad credit. Although it offers a lower maximum loan amount and has a higher APR range, it may be the better option for those who require a loan but have difficulties meeting credit requirements.
Ultimately, the best personal loan provider will depend on your needs. Evaluate your situation to determine if you need a more extended repayment period or if you need a provider who won't penalize you for your credit history.
Taking out a personal loan requires due consideration. To help you with the process, MoneyGeek answered a few frequently asked questions about personal loan lenders below.
The requirements to apply for a personal loan can vary from lender to lender. However, most lenders require a completed loan application form, proof of identity, income verification and proof of address.
A full breakdown of your score can be obtained from TransUnion, Equifax or Experian. This can help you understand what your score is and why it is where it is.
Yes. Once you submit your application, most lenders will conduct a hard inquiry. This involves taking a full look at your credit history from one of the major credit bureaus and can lead to a temporary dip in your score.
No. The APR or interest rate given to you is unique, and lenders use different factors to determine your APR. This is why prior to applying for a loan, it’s important to compare lenders.
Yes, but the fees can vary from lender to lender. Typically, most lenders have a late payment fee or a prepayment penalty. There are also origination fees, application fees, returned check fees and payment protection insurance.
Being able to apply for a personal loan online grants you total convenience. You can apply for multiple loans without having to leave the comfort of home — no more long lines or having to talk to agents.
Yes, you are free to pay off your entire loan in advance. However, some lenders may impose a prepayment penalty fee.
About Christopher Boston
Christopher (Croix) Boston was the Head of Loans content at MoneyGeek, with over five years of experience researching higher education, mortgage and personal loans.
Boston has a bachelor's degree from the Seattle Pacific University. They pride themselves in using their skills and experience to create quality content that helps people save and spend efficiently.
The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.
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