Getting a car loan often requires shopping around to find the best rate and terms. Two popular auto lenders to consider are myAutoloan and LightStream.
But how do you choose between them for your next auto financing? This comprehensive guide compares myAutoloan and LightStream on key factors like rates, fees, qualifications, and more.
A Brief Comparison Table
| Category | myAutoloan | LightStream |
| Loan Model | Loan marketplace | Direct lender |
| Rates | 2.49% – 9.99% APR | 3.49% – 7.89% APR |
| Minimum Credit | 500s or below 600 | 660 |
| Loan Amounts | $5,000 – $55,000 | $5,000 – $100,000 |
| Loan Fees | May have lender fees | No fees |
| Funding Time | Up to 7 days | As fast as 1 day |
Overview of myAutoloan
myAutoloan is an online marketplace connecting borrowers with lenders offering auto refinance and purchase loans. They make it easy to compare personalized loan offers from their network.
Some key features:
- Online loan marketplace for auto refinance & purchases
- Loans from $5,000 to $55,000
- Network of lenders compete for your business
- Soft credit pull pre-qualification
- Fast online application and decision process
myAutoloan itself is not a direct lender. But their marketplace provides a simple way to find and compare offers from legitimate lending partners.
Overview of LightStream
LightStream is an online lending division from SunTrust Bank and offers direct auto loans for purchases and refinancing. Known for flexible terms and providing “no fee” loans.
Some key features:
- Direct auto lender for purchases and refinancing
- Minimum loan amount $5,000
- No application or origination fees
- Fixed interest rates from low 3% APR
- Fast funding in as little as 1 business day
As a direct lender, LightStream provides the full loan themselves rather than matching borrowers with outside partners.
Comparison Between myAutoloan and LightStream
Interest Rates and Fees
myAutoloan Rates
- Interest rates from 2.49% to 9.99% APR
- Rates depend on lender and applicant’s credit
LightStream Rates
- Fixed interest rates from 3.49% to 7.89% APR
- Lower rates with excellent credit score
Fees
myAutoloan lenders may charge origination fees from 1% to 5% of loan amount. LightStream has no origination, application, or prepayment fees.
For the lowest rates and zero lender fees, LightStream comes out ahead. But for those with lower credit, myAutoloan may secure better rate offers through their wider lender network.
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Loan Amounts
- myAutoloan: $5,000 to $55,000
- LightStream: $5,000 to $100,000
Both lenders accommodate loans amounts for typical auto purchases. LightStream also goes higher for borrowers needing larger luxury vehicle loans.
Loan Terms
- myAutoloan: up to 72 months
- LightStream: 24 to 84 months
myAutoloan offers loan terms up to 6 years from their lending partners. LightStream goes slightly longer at 7 year terms for certain applicants. Overall term length options are similar.
Qualification Requirements
myAutoloan works with a network of lenders with varying approval criteria. They offer pre-qualification without a hard credit check.
LightStream requires:
- Minimum credit score of 660
- 5 years of credit history
- History of managing revolving accounts responsibly
- Debt-to-income less than 50%
For borrowers with excellent credit, LightStream offers their lowest rates. But those not meeting their criteria still have options through myAutoloan’s wider lender network.
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Application Process and Funding Speed
myAutoloan allows submitting basic information for a soft pull pre-qualification to view estimated rates. Their full application only takes a few minutes and funding can be within 1-7 days once approved.
LightStream has a fast online application taking around 5 minutes. Approved loans fund incredibly quickly – within 1 business day in most cases. For fastest funding, LightStream can’t be beat.
Additional Auto Loan Products
LightStream focuses specifically on direct auto lending for purchases and refinancing, so they don’t offer other loan products.
myAutoloan’s lending network provides other loan types beyond auto loans. This includes personal loans, student loan refinancing, mortgages, and business loans.
Customer Support and Satisfaction
myAutoloan and LightStream both receive positive reviews for helpful customer service and a smooth borrowing experience. Response times and issue resolution tend to be quicker with LightStream’s direct model vs going through myAutoloan’s partners.
Pros And Cons Of myAutoloan And LightStream
myAutoloan Pros
- Soft credit check pre-qualification
- Access to nationwide lender network
- May approve lower credit scores
- Also offers other loan types
Cons
- Not a direct lender
- Actual lender rates and fees can vary
- Customer support goes through partners
LightStream Pros
- Fast funding in as little as 1 day
- Fixed rates from just 3.49% APR
- No loan fees whatsoever
- Exceptional customer service
Cons
- Minimum 660 credit score
- Late fees higher than some lenders
- No pre-qualification step
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Frequently Asked Questions (FAQ)
Yes, myAutoloan can be considered trustworthy. They are an online loan marketplace, not a direct lender, but they work with legitimate lenders and operate as an LLC under state regulations. myAutoloan also maintains an A+ rating with the Better Business Bureau. As with any lender, reviewing loan terms closely is advised.
myAutoloan works with a network of lenders that may provide loans to those with credit scores in the 500s or below 600. However, interest rates are lower with higher credit scores. Their lender network looks at your full credit profile, not just the score, but a 600+ score is recommended for the best offers.
No, myAutoloan is not a direct lender. They operate an online lending marketplace, matching borrowers to auto loan offers from their network of lenders across the country. So the loan you end up with will ultimately be from one of myAutoloan’s lending partners, not myAutoloan themselves.
Yes, myAutoloan does a soft inquiry (which does not impact credit) for pre-qualification. This allows you to view estimated loan offers before completing the full application. Only once you formally apply and select a lender will a hard inquiry be done by the partner lender.
Watch the video to know more about LightStream!
Verdict
Here are some key considerations when deciding between myAutoloan and LightStream:
- Credit score – LightStream better for scores of 660+; myAutoloan for lower scores
- Fast funding – LightStream fastest; myAutoloan up to 7 days
- Fees – LightStream has zero fees; myAutoloan allows partner fees
- Loan sizes – LightStream goes up to $100k; myAutoloan up to $55k
- Customer service – LightStream generally quicker and smoother
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In summary:
- LightStream best for those with good credit needing funds fast and no fees
- myAutoloan better for pre-qualification and applicants with lower credit scores
Pre-qualifying with both can help you determine the better lending option for your situation.
