LendingClub offers auto refinancing applicants the option to view two loan terms and rates without a hard credit check.
Want to make sure you get the best auto loan?
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 inquiry before final approval, there’s no reason not to check them out.
Exploring LendingClub’s Auto Refinance Services
LendingClub is a popular online marketplace that connects borrowers with investors who are willing to fund their loans. Founded in 2006, the company has since become a leader in the peer-to-peer lending industry.
LendingClub’s auto refinance product allows borrowers to refinance their existing auto loans with the goal of lowering their monthly payments, reducing their interest rates, or both. By refinancing with LendingClub, borrowers can potentially save hundreds or even thousands of dollars over the life of their loan.
LendingClub’s auto refinance process is largely online and can be completed from the comfort of your own home. Before applying, carefully consider whether refinancing is the right choice for your financial situation and to compare rates with other lenders to ensure that you’re getting the best deal.
What You Need to Apply for LendingClub Refinancing
There are a few requirements you, your car, and your existing loan will have to meet before Lending Club will refinance your vehicle.
Borrower Requirements
You must have a minimum credit score of 510 and live in one of the following states:
- Alabama
- Arkansas
- Arizona
- California
- Delaware
- Florida
- Georgia
- Idaho
- Illinois
- Indiana
- Kansas
- Louisiana
- Maryland
- Michigan
- Minnesota
- Missouri
- Montana
- Nebraska
- New Jersey
- New Mexico
- New York
- North Carolina
- Ohio
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Washington
- Wisconsin
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.
Car Requirements
- 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 loans are 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.
Loan Requirements
- The minimum loan amount is $5,000 and the 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.
Currently, 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.
Breakdown of LendingClub’s Refinancing Costs
At LendingClub, the interest rates for auto refinancing are closely tied to your credit score. The most favorable rate, currently at 4.99% APR, is typically available to borrowers with excellent credit, defined as a score of 720 or higher. On the other end, those with lower credit ratings might see rates as high as 24.99%.
LendingClub’s policy is inclusive, offering opportunities for those with credit scores starting at 510. This inclusivity means that even with a lower credit score, you have the chance to refinance your auto loan.
An added benefit is LendingClub’s soft credit check feature, which allows you to explore potential rates without impacting your credit score. This can be particularly helpful if you are comparing refinancing options or if you’re cautious about affecting your credit rating.
In terms of fees, LendingClub stands out from many competitors. They do not charge any application fees, and there are no penalties for paying off your loan early. This approach not only simplifies the refinancing process but also can lead to cost savings, making LendingClub a potentially more attractive option for borrowers looking to refinance their auto loans.
LendingClub Reviews
LendingClub’s auto refinance product has received a mix of reviews from customers. Many borrowers have reported successful experiences with the company. They reported that the application process was straightforward and that they were able to receive a lower interest rate. Other users have praised the helpfulness and professionalism of LendingClub’s customer service team.
However, some customers have had negative experiences with LendingClub. Some have reported difficulties with the application process, citing issues with verifying their identity or income. Others have reported long wait times for loan approval or dissatisfaction with the interest rates offered.
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.
How to Apply for Auto Refinancing with LendingClub
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:
Pre-Qualify
The first step involves telling LendingClub a 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.
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.
Unique Benefits of Choosing LendingClub for Auto Refinancing
The great thing about LendingClub 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.
Bottom Line
LendingClub presents risk-free auto refinance loans to borrowers. 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, you might miss out on significant savings.
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