If you already have an auto loan but are considering auto refinancing, LendingClub allows applicants to see two different loan terms and interest rates without a hard credit check.
That means borrowers can quickly determine if LendingClub can offer them a loan without worrying about any adverse effects on their credit scores.
The application process is fast, pain-free, and easy to understand. Lending Club lists out the APR, monthly payment, and loan term for you to compare to your current auto loan. There are some restrictions, but many borrowers can qualify with Lending Club who would typically be turned away by other auto refinancing companies.
If your monthly car payments have been taxing your bank account a bit too much, try Lending Club. With no hard credit checks before final approval, there’s no reason not to check them out.
LendingClub Application Requirements
There are a few requirements you, your car, and your existing loan will have to meet before Lending Club will refinance your vehicle.
You must have a minimum credit score of 510 and live in one of the following states:
- New Jersey
- New Mexico
- New York
- North Carolina
- Rhode Island
- South Carolina
- South Dakota
Unlike other auto loan refinancing companies, LendingClub doesn’t have a minimum monthly income requirement. Most companies like to see borrowers make, on average, at least $2,000 a month, but LendingClub does not have this restriction for its customers. This one aspect gives many borrowers who would generally be unable to refinance the potential to save money each month.
- Your car must be 10 years old or newer. If your car is any older, LendingClub unfortunately won’t refinance it.
- Your car’s odometer must have no more than 120,000 miles on it.
- The car must be for personal use only. If it’s a business car, it’s not eligible.
- The car cannot be an RV, motorcycle, commercial vehicle, or a salvaged vehicle.
- Auto refinancing is not available for diesel Volkswagens or Dodge Neons.
- Hummer, Pontiac, Saturn, Daewoo, Isuzu, Suzuki, and Oldsmobile vehicles are also not eligible for auto refinancing through LendingClub.
- The minimum loan amount is $5,000 and and max. is $55,000
- Your current loan must be at least one month old.
- Your current loan must have at least two years of remaining payments.
Types of Auto Refinance Loans Available
LendingClub refinances both new and used car loans. Just make sure you meet the requirements mentioned above for your loan and your car before you apply.
At the moment, Lending Club has not yet extended itself into the purchase loan market, but that may change in the future as the company has consistently expanded over the past several years.
Fees and Rates
Interest rates vary depending on your credit score. Currently, the lowest APR LendingClub offers is 3.49%; however, typically, only borrowers with excellent credit qualify for this interest rate. On the other hand, if you have poor credit, your interest rate could be as high as 24.99%.
To qualify for a better interest rate, LendingClub considers 720 or above excellent and 690 to 719 good. If you have a credit score lower than 690, LendingClub will still work with you, but remember that they only work with borrowers with credit scores of 510 or above.
If you know your credit scores are low, don’t forget you can see what LendingClub will offer you without having a hard credit check. It’s still very possible LendingClub can provide you with better conditions than your original lender.
As for fees, LendingClub does not charge any application fees, nor are there any prepayment penalties for paying off your loan early. This is in stark contrast to many other lenders who nickel and dime their customers.
One of the best ways to find a great auto loan lender is by reading third-party reviews. You can discover what actual customers are saying about them before you choose to do business with them. The Better Business Bureau (BBB) currently gives LendingClub a ‘C’; however, they have very few complaints. You will find mixed LendingClub reviews at other review sites as well.
LendingClub Application Process
You’ll find out if you qualify within minutes of applying. You don’t even need a social security number during the initial pre-qualification process, but you will need it later for final approval.
The overall process can be broken down into three steps:
The first step involves telling LendingClub a little bit about yourself. This step only takes a couple of minutes and is done entirely online. At this time, you’ll see what interest rates you would be offered by LendingClub. Then, compare the monthly payments to what you presently pay and see if the APR is, in fact, lower than your current auto loan.
Remember: they’ll give you two options to compare to your current plan. The terms (length of set payments) will likely be different, so it’s up to you to decide if you want a lower monthly payment or more money applied to the existing principal each month.
Confirm Submitted Information
Decide which offer you like best from LendingClub. Once you do, you’ll be asked to complete an online application form. A loan specialist will get in contact with you shortly after that to review your submitted information and might also ask you for additional documentation about either yourself or your car.
Auto Loan Refinancing
If the information you submitted is verified and your application is approved, LendingClub then pays off your previous lender. From then on, you will make your payments directly to them. Depending on the refinance option you chose, you’ll likely have lower payments each month and may own your car sooner than you would have if you had stayed with your original lender.
The great thing about LendingClub Auto is the ability to see what interest rate you would get with only a soft credit check. This means there’s no reason for anyone with an auto loan not to see what loan options they would get if they refinanced with LendingClub.
The loan range for an auto loan refinance is from $5,000 to $55,000. This is right on target for most people because the average new car loan is $31,099, and the average used car loan is $19,589.
LendingClub works with most borrowers. So even if your credit score is 510, LendingClub may work with you. Of course, you’ll pay a higher rate than your peers, but that rate will still likely be lower than what your original lender gave you.
Lastly, many lenders prefer to work through auto loan brokers (companies that connect borrowers with multiple lenders). With LendingClub, you’ll always work directly with your lender because they’re not representing anyone else. All communication you’ll receive will be straight from the source, meaning there’s no middleman. It’s just you and them.
LendingClub presents risk-free auto refinance loans to borrowers. So stop wondering if auto refinancing is for you and see for yourself. Pre-qualifying only takes a few minutes and will provide you with valuable information that could very well help you in the coming months and years ahead.
Just be sure to refinance early so you can start saving money sooner. If you refinance late during your loan term and you might be missing out on significant savings.
Check out our other auto loan reviews below to continue exploring your options.