Personal loan applications are approved or denied based on a number of factors. All lenders have their own specific underwriting requirements, but these usually include information from an applicant’s credit profile and other factors demonstrating the ability to repay the loan, such as: B. Income. Meeting the following requirements doesn’t guarantee approval, but they can help you decide whether a personal loan is right for you.
To qualify for a LightStream loan, applicants must have a FICO credit score of at least 660. In addition, a strong applicant has several years of credit history, including multiple account types – such as credit cards, auto loans, and mortgage debt – as indicated by their credit profile. While good credit may be enough to get approved, the lowest rates require excellent credit.
Unlike many other online lenders, LightStream doesn’t have a prequalification process. Hence, prospective borrowers must submit a formal application and undergo a tough credit rating to find out if they qualify and if so, at what cost.
In order to gain approval, LightStream requires loan applicants for income that is stable enough and sufficient to repay both the ongoing debt and a new LightStream loan. In addition to income requirements, LightStream rates applicants based on their cash equivalents, cash deposits on real estate, retirement plans, and revolving credit card debt. Note, however, that LightStream does not take into account any income from the marijuana industry.
Together with the purpose of the loan, these factors help determine an applicant’s Debt to Income Ratio (DTI) and the likelihood of approval.
Co-signatory and co-applicant
LightStream does not allow co-signers, but prospective borrowers can file a joint application. Unlike some lenders, co-applicants do not have to live at the same address as the main applicant.
Potential borrowers must indicate at the beginning of the application process that they are making a joint application and provide information about both applicants in the online application. LightStream will then weight the creditworthiness, income, and other details of each applicant equally in evaluating the application.