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Key takeaways
- Best Egg is best if you have excellent credit and seek a smaller loan with shorter repayment terms to save on interest.
- LightStream is worth consider if you’re looking to cover the cost of home renovations or consolidate high-interest debt.
- Compare fees, terms and loan amounts to decide which is best or if you should seek alternatives.
LightStream and Best Egg have gained a trusted reputation in the consumer lending space. LightStream is an online lender that is a division of the National Truist Bank. At the same time, Best Egg has funded 1.1 million loans and has garnered a 95 percent customer satisfaction rating since its inception in 2014.
Both lenders are ideal for those with good to excellent credit, but the loans themselves aren’t a one-size-fits-all solution. Compare the lender details to decide which lender would be the best fit for your credit situation.
Best Egg vs. LightStream at a glance
Both lenders offer solid personal loans that can help in various financial situations. However, there are key differences that may impact your choice.
| Best Egg | LightStream | |
|---|---|---|
| Bankrate Score | 4.6 | 4.5 |
| Better for | Borrowers with fair to excellent credit | Debt consolidation and home improvement |
| Loan amounts | $2,000–$50,000 | $5,000–$100,000 |
| APRs | 6.99%-35.99% Fixed APR | 6.94%-25.29% Fixed APR (* with AutoPay) |
| Loan term lengths | 36–60 months | 24–84 months |
| Fees | Origination fee: 0.99%-9.99%, $15 late fee, $15 returned late payment fee | None |
| Minimum credit score | 600 | 695 |
| Time to funding | As soon as one business day | As soon as same day |
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Offering unsecured personal loans geared toward borrowers with excellent credit, Best Egg has gained a trusted reputation in the consumer lending space.
Borrowers with a FICO score of at least 600 can qualify, but those with a minimum score of 700 and an annual income of at least $100,000 will be offered the best rates and terms.
While the lender does have fairly wide credit criteria for approval, those with a solid, steady income who need to finance a larger expense will benefit most from a Best Egg personal loan.
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Pros
- Prequalification offered.
- Wide amount range.
- Lower credit minimum.
Cons
- Origination fee.
- No rate discounts.
- High credit and income needed for best rates.
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LightStream is an ideal option for consolidating large amounts of high-interest debt due to its low APR range and no fees. It also has a high minimum loan amount of $100,000, which gives borrowers with good to excellent credit the ability to organize multiple debts.
It also could benefit borrowers who are taking on a large home improvement project, as the lender offers flexible repayment lengths and a wide range of loan amounts.
Plus, LightStream’s Rate Beat program offers a 0.10 interest rate reduction from the rate you’re offered on any competing lender’s unsecured loan (given that you’re approved for that rate and loan amount).
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Pros
- No fees.
- Low maximum APR.
- Rate Beat program.
Cons
- Must have good-to-excellent credit.
- No prequalification offered.
- High minimum loan amount.
How to choose between Best Egg and LightStream
Best Egg and LightStream offer unsecured personal loans for borrowers with good to excellent credit and a steady income. Evaluate these factors to help you make the right decision for your financial situation.
APR range
LightStream features a slightly lower starting APR compared to Best Egg. But if you don’t have excellent credit, Best Egg has a higher APR maximum by 10 percent, making it the potentially more expensive option.
Minimum credit score
Best Egg is more accessible to borrowers with fair credit. You need a minimum credit score of just 600, but LightStream requires a 695. Be mindful that meeting the minimum could get you access to funds, but you’ll likely be limited to higher rates.
Repayment terms
Best Egg offers standard loan terms of 36 to 60 months. You get a bit more flexibility with LightStream, with terms ranging from 24 to 84 months, which could be more ideal if you want to pay the loan off sooner and save in interest. Or you could opt for an extended loan and get more affordable monthly loan payments.
Loan amount
Best Egg offers loans between $2,000 and $50,000. The maximum pales in comparison to LightStream’s cap of $100,000. Best Egg could work, though, if you seek a smaller loan since the minimum with LightStream is $5,000. It’s also worth noting that only the most creditworthy borrowers with a low debt-to-income ratio and a solid payment history will qualify for the maximum loan amount with LightStream.
Fees
LightStream takes the cake in this category, as borrowers enjoy a fee-free lending experience. However, Best Egg assesses origination fees, late fees and returned payment fees.
Bottom line: Which lender is better?
LightStream’s high loan amount, competitive APRs and Rate Beat program make this lender hard to beat. However, Best Egg offers prequalificaiton and more clearly lays out its eligibility criteria, so you won’t incur credit damage when getting your predicted rate and approval odds.
Compare more lenders before applying
Shop around and get rate quotes from more lenders that offer prequalification. That way, you’ll know you’re getting the best rate possible for your credit situation rather than going for the first lender that offers you a loan.
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