LendingClub: 2023 auto loan review

LendingClub auto loans are best for a seamless application

Securing a better auto loan by refinancing can decrease your monthly and lifetime costs. If an easy application is your top priority, consider LendingClub. The lender boasts an easy-to-navigate website where you can check your rate in minutes through prequalification and compare different rate options.

LendingClub pros and cons

Not every auto loan qualifies for a refinance with LendingClub, and if your credit isn’t good, it may not be the best option. 

Do you qualify?

LendingClub has a few requirements for auto loan refinances. Applicants should be at least 18 years old with a vehicle that meets these basic qualifications:

LendingClub versus RateGenius

If you reside in one of the states that LendingClub does not serve, consider checking out RateGenius, which functions as a refinancing loan marketplace. RateGenius boasts a high funding maximum of $80,000. Like LendingClub, it also allows you to add a co-signer. A co-applicant can greatly improve your likelihood of acceptance if you do not have strong credit. 

LendingClub versus Upstart

Upstart is a great option for a borrower who is looking for a seamless online experience but has a lower credit score. Upstart uses factors outside of traditional underwriting to determine risk in its borrowers. But funding is not available as quickly, which makes it a poor option for those in a financial pinch. Compare both options before picking one.

What we like and what we don’t like

LendingClub makes it easy to check your approval odds, but limitations apply that could make you ineligible for auto refinancing. 

What we like

• 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.
• Prequalification: Borrowers can explore potential rates following only a soft credit pull, which does not negatively impact your credit score. 

What we don’t like

• 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: Refinancing is unavailable to consumers in Alaska, Hawaii, Maine, Mississippi, New Hampshire, North Dakota, Vermont, West Virginia and Wyoming. 

How to contact LendingClub

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 5 a.m. and 5 p.m. PT Monday through Friday and 8 a.m. and 5 p.m. PT on Saturday.

Auto loan types offered 

LendingClub ended its peer-to-peer lending program in 2020 but still offers a variety of loan types. When it comes to auto loans, it only offers loan refinancing — not new or used car loans.

Refinancing  

• Amounts: $4,000-$55,000
• Terms: 36, 48 or 60 months  
• APR: 4.99%-24.99%

For borrowers looking to refinance their current vehicle loan, LendingClub claims it saves customers an average of $78. Especially if you initially signed off with dealership financing, you may well find more competitive rates through LendingClub or a similar lender comparison site. 

How to apply for a loan with LendingClub

Applying to refinance with LendingClub starts on its website. You will need to fill in personal info, like your full name, address and income. You will also need to provide information about your current auto loan, including the vehicle identification number, year, make, model, color and trim. If you’re deemed eligible, the next step is to upload the requested documentation to verify the information included in your loan application and receive your final loan approval.

Features and additional perks

Outside of the seamless online application, LendingClub offers a few perks for its borrowers, including the ability to pay off your loan early without any additional cost and no origination fees. 

Fees and penalties 

Drivers refinancing with LendingClub should prepare to cover the cost of transferring their vehicle title. You may also encounter late payment fees.