LightStream’s powersports originations are growing, as the lender continues to raise consumer awareness about its unsecured loan offering, Business Development Officer Todd Nelson told Powersports Finance.
While Nelson declined to offer origination numbers, he said LightStream’s portfolio — which includes home improvement, auto, and powersports loans — has grown by $5 billion in the past three-and-a-half years.
Unsecured loans “give our customers a lot of flexibility,” he said. “People buying powersports vehicles may not be aware that financing is available through LightStream. Most people think that powersports financing is only offered at dealerships. Few — if any — other lenders provide [unsecured loans].”
LightStream, headquartered in San Diego, is the online lending division of Atlanta-based SunTrust Banks. LightStream’s loans can range from $5,000 to $100,000 with terms between 24 and 84 months.
Despite amped up competition in the market, LightStream is sticking to its underwriting strategy. “We have established underwriting policies that work for our business and our customers,” Nelson said.
LightStream has a typical minimum Fico score of 680. However, a high Fico score is only one indicator for a “good-credit applicant we may approve,” he said. “We evaluate every application based on an individual’s unique credit profile. What we look at most closely is an individual’s overall financial history, which should show strong credit performance over time.” This includes several years of credit history, payment history with few — if any — delinquencies, stable income, and more.