Personal loan applications are approved or denied based on a number of factors. All lenders have their own unique underwriting requirements, but these usually include information from the applicant’s credit profile and other factors that demonstrate the ability to repay the loan, such as income. Meeting the requirements below will not guarantee approval, but they can help you decide if a personal loan is right for you.
Credit score requirements
To qualify for a LightStream loan, applicants must have a minimum FICO credit score of 660. What’s more, a strong applicant will have several years of credit history, including multiple account types—credit cards, auto loans, and mortgage debt, for example—as evidenced by their credit profile. While a good credit score may be enough to get approved, the lowest rates require excellent credit.
Unlike many other online lenders, LightStream does not have a pre-qualification process. Therefore, potential borrowers must submit a formal application and submit it to a tough credit check to see if they qualify and, if so, at what rate.
To be approved, LightStream requires loan applicants to have sufficient and stable income to pay off existing debt obligations and the new LightStream loan. In addition to income requirements, LightStream evaluates applicants based on their liquid assets, cash advances on real estate, retirement savings, and revolving credit card debt. However, keep in mind that LightStream does not take into account the income derived from the marijuana industry.
These factors, along with the purpose of the loan, help determine the applicant’s debt-to-income (DTI) ratio and likelihood of approval.
Co-signatories and co-applicants
LightStream does not allow co-signers, but potential borrowers can submit a joint application. Unlike some lenders, joint applicants do not need to live at the same address as the primary applicant.
Prospective borrowers must indicate at the beginning of the application process that they will submit a joint application and provide details about both applicants in the online application. LightStream will then balance each applicant’s credit, income, and other details equally when evaluating the application.