You may know LendingClub as a peer-to-peer (P2P) lending source for personal loans, but it can also help you with auto loan refinances. LendingClub offers a non-traditional approach to financing. Instead of private funding like a traditional bank, LendingClub connects individual lenders with individual borrowers to help with a variety of funding needs. LendingClub has a simple application process, and it claims to save borrowers an average of $80 per month.
LendingClub auto loan refinancing snapshot
$4,000 to $55,000
2.99% to 24.99%
|Minimum credit score||
|Time to receive funds||
Typically within 2 days
Pros and cons of LendingClub auto loan refinancing
Not every auto loan qualifies for a refinance with LendingClub, and if your credit isn’t good, it may not be the best option.
- No origination fees. Many lenders charge hefty loan origination fees — a fee that covers the processing costs for a new loan application — but LendingClub doesn’t charge these fees for an auto loan refinance.
- Apply online and receive an instant offer. Applying for a LendingClub auto loan refinance is simple and you can receive an offer with rates available to you in just a few minutes.
- High maximum APR. If your credit isn’t in the best shape, you may be stuck with a 24.99 percent APR.
- Not available for all cars. If you have a car that is older than 10 years old, you won’t qualify for a loan refinance with LendingClub. Your vehicle also must have less than 120,000 miles on it and not be one of the restricted makes or models.
- Vehicle state registration restrictions. LendingClub will only provide refinancing if your car is registered in one of 35 states.
Who is LendingClub best for?
A LendingClub auto loan refinance isn’t for everyone, but it may be best for those with an auto loan on a newer car and a high monthly payment.
Like most lenders, LendingClub will give you a better rate if you have a good credit score. A good credit score is typically considered 670 or higher. If your credit score has gone down or stayed the same since you got the original loan, refinancing with LendingClub may not be best.
However, if you still have a dealer auto loan with high rates and fees tied in, refinancing your loan with LendingClub may save you some cash. With no origination fees, the company would be able to help anyone with good credit and high payments or high rates on their current loan.
Types of auto loans offered
LendingClub offers P2P lending options for a variety of loan types. When it comes to auto loans, it only offers loan refinancing. LendingClub doesn’t offer auto loans to help with the initial purchase of a vehicle.
Interest rates and terms
APRs offered for LendingClub’s auto loan refinance product range from 2.99 percent to 24.99 percent based on the borrower’s credit and the loan being refinanced. Terms can range from three to five years.
How to apply for an auto loan with LendingClub
Applying with LendingClub starts on its website. There, you will need to fill in some personal info, like your full name, address and income. If you purchased a car with someone else, you will need their info too.
You’ll then need to fill out some details about your car, such as the VIN (vehicle identification number), year, make, model, color and trim level.
Have these documents handy to make the process go faster:
- Driver’s license.
- Vehicle registration.
- Proof of insurance.
- Documents that confirm income, like a pay stub.
Auto loan refinancing requirements
LendingClub has a few requirements for auto loan refinances. Before you apply, make sure you meet these basic qualifications:
- Vehicle must not be more than 10 years old.
- Vehicle must have 120,000 miles or less.
- Vehicle cannot be a Daewoo, Hummer, Isuzu, Nissan Leaf, Oldsmobile, Saab, Saturn, Suzuki or Volkswagen Diesel.
- Existing auto loan must be at least one month old.
- Existing auto loan must have at least 24 months remaining.
LendingClub offers a few options to help with your auto loan refinance questions. You can check out its help page to see if they have an answer to your question. If not, you can reach out via phone or email. Customer service is available between 6 a.m. and 5 p.m. Monday through Friday.
How Bankrate rates LendingClub
|Availability||3.5||LendingClub has a list of makes and a few models that are ineligible for refinancing, and has restrictions on age and mileage. It also doesn’t provide loans to borrowers who’s cars are registered in 15 states.|
|Affordability||3.6||No origination fee is a huge point in LendingClub’s favor, but its high maximum APR, stringent eligibility criteria and lack of discount for autopay knock it closer to the middle of the pack.|
|Customer Experience||4.4||LendingClub has an app, online access, a tight funding timeline and customer service available six days a week.|
|Transparency||5.0||Rates and fees are openly available on LendingClub’s website, and it allows for prequalification.|