Which has the better personal loan?

Banks can be a good starting point when browsing for personal loans. This is especially true if you’re already a customer, as you may be eligible for more favorable rates.

M&T Bank is a regional option, available in several East Coast states. LightStream started as Truist Bank’s online division and now lends nationwide. Both lenders offer competitive personal loan rates, low fees, and a quick application process — but they serve very different consumer needs. The lender that’s best for you depends on your credit history and borrowing needs.

M&T Bank vs. LightStream at a glance

While both M&T Bank and LightStream have similar loan terms, M&T Bank has more competitive rates. LightStream, however, lets you borrow more, plus its loans are available nationwide.

M&T Bank personal loans

LightStream personal loans

How to choose between M&T Bank and LightStream

M&T Bank and LightStream are both good options with minimal fees. If you’re an existing customer or live in a serviced area, you may be able to score a lower rate with M&T Bank. If you’re looking for a larger loan, LightStream may be a better option. Regardless of the lender you choose, remember that borrowers with excellent credit get the best rates.

APR range

M&T Bank should be your first choice if you have good-to-excellent credit because of its low maximum APR. You may qualify for a slightly lower starting rate with LightStream, but at the risk of receiving an APR over 20 percent. Because of this, M&T Bank’s low rates and minimal fees may wind up costing you less, especially if you don’t need to borrow more than $50,000.

LightStream offers a generous rate discount worth 0.5 percentage points for enrolling in automatic payments. The lender is also one of the few that offers to beat any competing rate by 0.10 percentage points. So, if you’re approved for a lower rate with M&T on a loan with identical terms, it may be worth asking LightStream to beat it.

Minimum credit score

LightStream requires good-to-excellent credit to qualify for a personal loan. You must also have at least a few years of history on your credit reports, and your debt-to-income ratio must be sufficiently low.

M&T Bank doesn’t disclose its credit score requirements for personal loan applicants, so it’s hard to know whether you’ll qualify for a loan from this bank. And since M&T doesn’t offer personal loan prequalification, you’ll have to formally apply and accept a hard credit inquiry to determine your eligibility.

Repayment terms

Both lenders offer repayment terms as long as 84 months (seven years), but generally, you must borrow a significant sum to qualify for such a long repayment term. With M&T, for example, you must borrow at least $15,000 to receive a term longer than five years. If you plan to use the funds for home renovation, LightStream may extend your term to 12 years — but keep in mind that the amount of interest you’ll pay over such a long term will be very high.

On the other end of the spectrum, M&T offers shorter repayment term options (as short as one year), if you want to pay off your debt quickly.

Loan amount

One of LightStream’s main benefits is its large loans. While you will need to meet more strict eligibility requirements to qualify for a loan over $50,000, having the option to borrow $100,000 is rare.

M&T Bank only offers loan amounts of up to $50,000. But they do offer smaller loan amounts than LightStream. For borrowers seeking a small personal loan, M&T Bank offers amounts as low as $2,000.

Fees

LightStream is a top lender in the personal loan space, and its lack of fees appeals to many people. LightStream doesn’t charge origination fees, but you won’t even pay a fee if you make a late payment or have a payment returned for insufficient funds. (Although the lack of fees is a great perk, you should always aim to make your payments on time and in full. Late payments will be reported to the credit bureaus and can wreak havoc on your credit score.)

M&T Bank also doesn’t charge origination fees, but you can expect to pay a penalty for late or returned payments.

Bottom line: Which lender is better?

M&T Bank and LightStream are competitive lenders in today’s market. Although LightStream has a higher maximum APR, it stands out from the competition by offering same-day funding, large loans and its signature Rate Beat program. M&T Bank has lower rates, but it’s unclear what boxes you’ll need to tick to qualify.

Since neither lender offers prequalification, it may make more sense to compare rates from other lenders first. That way, you’ll know what to expect before applying and can make an informed decision based on the other loan offers you receive.

Compare lenders before applying

If you’re looking for a lender offering large personal loans or personal loans with longer repayment terms, LightStream and M&T Bank aren’t the only options. Consider these alternative personal loan lenders: