PenFed and LightStream offer flexible personal loan products with attractive terms. Both are ideal for borrowers with good to excellent credit. However, they have some differences that set them apart. For example, PenFed operates as a credit union, so you must become a member to apply for a personal loan. LightStream, on the other hand, serves anyone who meets the eligibility guidelines.
PenFed vs. LightStream at a glance
PenFed and LightStream offer personal loans at competitive rates. Here’s an overview of what you need to know about each as you evaluate your options:
| Pen Fed | LightStream | |
|---|---|---|
| Bank rate score | 4.7 | 4.7 |
| Better for | Good borrowers who need a small loan | Loan consolidation and home improvement |
| Loan amounts | Up to $50,000 | $5,000 – $100,000 |
| APRs | 7.99% to 17.99% Fixed APR | 7.49% to 25.49% fixed APR (with Autopay) |
| Length of the loan | Up to 60 months | 24 to 144 months |
| Cost |
|
No |
| Minimum credit score | Not known | Not specified; only approves good to excellent credit profiles |
| Time for financing | One to two days | Same day financing available |
Personal loans from PenFed
Pen Fed
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Plus points
- No origination fees.
- Access to member benefits and discounts.
- Co-signers allowed.
Cons
- Membership required to accept loan offer.
- Eligibility guidelines are not announced online.
- Lower maximum loan amount.
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PenFed’s member benefits and discounts make this lender a standout option for those who meet credit union requirements. Additionally, the lender allows cosigners, which can help improve your chances of qualifying. However, you must qualify for membership to borrow from the lender, but the good news is that it’s quite easy to meet the criteria.
PenFed’s online experience provides a seamless, organized application process and allows for fast financing if you are approved. If you opt into the prequalification process (which allows you to see your potential offer without impacting your credit), you can view these offers directly on the dashboard. You can also apply for, accept or decline your loan offer and apply for membership, all in the same place. Although some approval requirements aren’t listed, you can use a cosigner to increase your chances if you’re not sure if you qualify. If you are pre-approved for financing, you can view loan offers directly from the dashboard.
PenFed’s loans are also among the most competitive in the market for creditworthy borrowers. In addition to not charging any fees – including an origination fee – the initial APR is relatively low compared to what other lenders offer.
LightStream personal loans
LightStream
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Plus points
- Offers loans for a wide range of needs.
- Same day financing.
- Rate Beat program.
Cons
- Specific financial requirements not disclosed.
- Online prequalification not available.
- Must have good to excellent credit history.
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LightStream is known for its fast financing time and unique Rate Beat program, which can save you money on interest if you qualify. However, it will be difficult to determine if you qualify for approval if you don’t have an established credit history and a great score.
LightStream, a division of Truist Bank, is a leader in online lending for many valid reasons. It offers loans for almost everything you can think of and features a tool that lets you search potential offers based on your loan type and amount. However, these are only possible estimates as the lender does not offer pre-approval. Lightstream is also highly regarded for its notable benefits and discounts. First, there are no fees charged, and the APR ranges are great for those with good credit. Additionally, if you get approved for an unsecured loan from one of the lender’s competitors, that’s the case Rate Beat program offers an APR 0.10 percent lower than the competing offer.
How to choose between PenFed and LightStream
Personal loans from both lenders are similar. Still, PenFed offers a competitive advantage if you’re looking for a small loan, while LightStream is more likely to get you the money you need.
PenFed is better for smaller loans
You can take out a free loan of less than $50,000 to get you back on track financially. While PenFed’s minimum loan amount isn’t listed, LightStream’s starts at $5,000, which is larger than most lenders and offers a maximum loan amount of up to $100,000.
That said, if you’re dealing with a financial emergency and need access to a smaller amount of cash, PenFed is the better choice. To qualify, you simply need to qualify for credit union membership.
LightStream offers faster financing times
If you need to borrow a larger loan and need the money as quickly as possible, LightStream may be better suited to your needs. The lender offers same-day financing, which is one of the fastest approval timelines among personal loan lenders.
Please note that LightStream only works with individuals with a good to excellent credit profile. If you need your money sooner rather than later, check your credit score before applying to speed up the approval process.
Compare lenders before applying
PenFed and LightStream are both viable options if you have a good credit score. However, choosing the best solution comes down to your unique financial needs and what you are looking for in a lender.
With both lenders you have the flexibility to choose a loan amount and terms that work for you. Still, some distinguishing factors can help you make an informed decision.
PenFed has a lower lending limit and shorter terms than LightStream, but funding times are slightly slower. However, if your credit isn’t quite up to par, you can apply for a co-signer to increase your chances of approval, while LightStream doesn’t offer this option. So if you need a large amount of financing quickly and have an excellent credit profile, LightStream may be a better fit for your needs.
Before going with one lender over another, do your research and research both lenders before applying. Also, shop around with one or two additional lenders to determine if there are better options available elsewhere.
