Complaint Review: Lightstream - Atlanta Georgia
Where I live homes are cheap. Remodeled homes, that are beautiful go for as little as $40,000. Houses like mine that need a little TLC can go as low as $10,000. Since I'm related to the current owner, I was able to get it for $7000. I asked Lightstream for a $12,000 loan for the home, and the additional $5,000 to the $7000 cost was for repairs. They rejected this loan, while hurting my credit with a hard pull for the following reasons.
1. You Don't Make Enough/Don't Have Enough Equity
A. Equity: The current tax value of the home is $17,500 in Greenwood County Kansas. $5,500 more than I'm asking. If for the HIGHLY UNLIKELY reason I could not make payments occured. It would be exceptionally easy to sell the home, pay the loan, and PROFIT from it. I also have a 2015 Corolla I could sell for more than I owe. I also have a 2001 Corolla that could account for at least 1/3 of the loan.
B. Income: I make approximately $29,500 a year. The rent in the house I want to buy is $150. I asked (again) for $12,000, in a 5 year period. The payment on this amounts to around $150 more than I spend on rent. The cost of living here is exceptionally low. My total living expense (including rent which would be replaced by the payment of the loan) is $1200. My monthly income AFTER taxes is between $1800-$2100 at my current pay rate. My expenses WITH the loan would be $1400 MAXIMUM. Leaving me $400-600 to put in savings a month. My TAX RETURNS would pay nearly half of the loan in the 5 year period by themselves. This is Bogus.
C. The amount of my newer car was the same price. I did put 10% down, however; I made significantly less money at that time. My credit history was 2 1/4 years shorter. My credit score was lower (but still excellent)
2. Too Much Debt As Stands.
This is only somewhat understandable. I owe $6000 yet on my car, and another couple thousand on my credit cards, which I am right in line to wipe the owed balance on my cards out. My payment history will also show I have a habit of making LARGE payments on these cards. IE: Letting the balance get to $1200, and paying it off all at once. My car payment is a measely $190 monthly, and I am mostly paying on principle at this point.
3. Lack Of Credit History
A. I have over six years of credit history.
B. My credit history will show minimal inquiries, minimal new accounts, 100% on time payments, a vehcile loan that was paid off years ago, and a credit score of 778 that has been excellent for years.
In conclusion, 2 of the 3 reasons for rejecting me were completely bogus. By not disclosing they had ridiculous standards for a VERY SMALL LOAN, I feel I have been misled, and the ease of getting the loan was falsely advertised. With the additional inquiry (hard pull) on my report it will be more difficult to negotiate reasonable APR rates with other lenders which strongly effects the quality of my life.
This report was posted on Ripoff Report on 06/10/2020 01:26 PM and is a permanent record located here: https://www.ripoffreport.com/report/lightstream/atlanta-georgia-loan-reasons-1496216. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content
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