LendingClub is an online lender that provides loan and banking products to consumers and businesses. It offers personal, business and auto refinance loans. If you’re looking to refinance your car loan, LendingClub offers a fully online process. You can check your rate online and receive multiple refinance loan offers to choose from.
In this LendingClub auto refinance review, we'll explore the lender's range of loan repayment terms, pricing, customer satisfaction and accessibility.
LendingClub auto refinance pros and cons
- 100% online application process
- No origination, application or prepayment fees
- Accepts borrowers with low credit scores
- Low maximum loan amount of $55,000
- Not available in all states
- Restricts certain car makes and models
100% online application process
LendingClub’s auto refinance loan application process is entirely online. You can start the process by filling out the pre-qualification form on the company’s website to check your rate. If eligible, you’ll receive multiple offers. Once you choose your loan, LendingClub looks for investors to fund it. When you’re required to upload documents for loan approval, you can photograph the physical copies on your phone and upload them to the LendingClub website.
No origination, application or prepayment fees
LendingClub doesn't charge an origination or application fee on auto refinance loans. It also charges no penalties if you pay off your loan early.
Accepts borrowers with low credit scores
LendingClub offers auto refinance loans to borrowers with credit scores as low as 510. This allows LendingClub to provide access to car refinance opportunities to borrowers who may not qualify for loans with other companies.
Low maximum loan amount of $55,000
The maximum loan amount offered through the LendingClub auto refinance program is $55,000, which is lower than some other auto refinance companies offer. This can be limiting for those who need to borrow a larger sum of money to pay off their existing car loan.
Not available in all states
LendingClub doesn't offer auto refinancing in Alaska, Hawaii, Maine, New Hampshire, North Dakota, Vermont, West Virginia, Wyoming, Washington, D.C. and the U.S. territories. Residents of these states and territories must choose a different company for their car loan refinancing needs.
Restricts certain car makes and models
LendingClub has a list of car makes and models that do not qualify for refinancing. The excluded vehicles include the Chevrolet Express G-Series Van, Cross Lander, Daewoo, Hummer, Isuzu, Mercury, Nissan Leaf, Oldsmobile, Pontiac, Saab, Saturn, Suzuki, Aston Martin, Maserati, Ferrari and Lamborghini.
LendingClub auto refinance offerings
Auto loan refinancing helps borrowers save money by replacing their existing car loan with one that has a lower interest rate, lower monthly payment or different term. LendingClub claims its auto refinance customers save an average of $78 per month compared to the loan they had with their previous lender. The following sections examine the lender's auto refinance product in more detail.
Auto loan refinancing
LendingClub allows borrowers to refinance loans between $4,000 and $55,000, with loan terms lasting 24 to 84 months. To evaluate a customer's creditworthiness, LendingClub looks at the following factors:
- Credit score
- Credit history (e.g., payment history, credit utilization ratio, age and number of accounts, etc.)
- Loan-to-value ratio (the ratio of the amount owed on the loan to the value of the vehicle)
- Loan term (length of the loan)
- Vehicle age
LendingClub has a minimum credit score requirement of 510. While the lender states that it will refinance most vehicle makes and models, it also mentions that you may have to meet all or some of the following requirements, depending on your credit:
- You must be 18 years or older.
- The car must be titled and registered in the state where you live.
- There must be at least 24 months left on your existing loan term.
- The existing loan must have already been open for at least one month.
- The vehicle must be for personal use, have fewer than 120,000 miles and be 10 years old or newer.
In addition, LendingClub doesn't provide refinancing for motorcycles, ATVs, RVs, salvaged vehicles or commercial vehicles.
LendingClub’s auto refinance process
The first step in the auto refinance process is to fill out the online form to check your rate. You must input your personal information — including your credit score and annual income — as well as details about your vehicle and current loan. This pre-qualification process includes a soft inquiry on your credit report and doesn’t require your Social Security number.
Once LendingClub assesses your details, it may provide several refinancing loan offers based on your creditworthiness and current auto loan situation. If you select one of the options, you will then need to provide any additional documents requested by the lender, including the following:
- Driver’s license
- Vehicle registration
- Proof of insurance
- Income and other verification documents
The lender will also make a hard inquiry into your credit report. Once approved, LendingClub will send you the appropriate closing documents, which you can sign and submit to the lender electronically. While the pre-qualification process only takes minutes, the entire loan process may take up to 15 business days.
LendingClub auto refinance pricing
To see the interest rate you may be eligible for, you can complete the pre-qualification process on LendingClub’s website. One beneficial feature of LendingClub's pricing is the absence of a loan origination fee or prepayment penalty. These common fees can add significant costs to your loan and prevent you from paying off your balance early. That said, the lender mentions that you may pay fees for transferring your title or making a late payment.
LendingClub auto refinance financial stability
LendingClub was incorporated in 2007 and now has more than 4.7 million members who use its banking or loan services. Its auto refinance product launched in 2016 initially in California but expanded to other states later on.
According to LendingClub’s full year 2022 report, the company’s total assets increased 63% year over year to $8.0 billion. None of the major business credit rating agencies (Fitch, Moody’s and Standard & Poor's) have rated Lending Club.
LendingClub auto refinance accessibility
LendingClub offers auto refinance options in 42 states. The company has no physical branches, so those who prefer in-person interactions must work with a different lender.
LendingClub's website is easy to navigate and provides details on its auto refinancing loan products. The lender's online platform walks through the application process step-by-step, allowing you to track your loan progress. It also provides an auto refinance calculator to see how much you could save by refinancing.
LendingClub auto refinance customer satisfaction
The company is accredited by the Better Business Bureau (BBB) and holds an A+ rating. LendingClub customer reviews are generally positive across customer review websites. Satisfied reviewers were impressed with LendingClub’s quick and easy process. Some negative reviews note a glitchy system and customer service response issues.
LendingClub auto refinance FAQs
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How do I know if my LendingClub loan is approved?
How we evaluated LendingClub auto refinance
To evaluate LendingClub's auto refinance offering, we looked at the following criteria:
- Loan terms: We examined the length of the loan terms offered and the type of payment structure available.
- Customer reviews: We analyzed customer ratings on LendingClub's website and other review platforms.
- Fees & rates: We reviewed the fees charged by LendingClub and the interest rates they offer customers with various credit scores.
- Ease of use: We looked at how easy it is to apply for a loan and manage your account with LendingClub.
- Customer support: We analyzed the range of types of customer service options provided by LendingClub.
- Eligibility requirements: We examined the eligibility requirements for getting a loan with LendingClub, such as credit score and income level.
- Vehicle requirements: We evaluated the type and age of vehicles eligible for refinancing through LendingClub.
Summary of Money's LendingClub auto refinance review
Whether you are just learning how to refinance a car or are already searching for the best auto refinance company, it's important to research and compare options to ensure you're getting the best deal. LendingClub stands out for its lack of standard lender fees and generally positive customer reviews.
The company can provide you with multiple loan options to help you find the best deal. While LendingClub’s low maximum loan amount and restricted vehicle types may not be ideal for everyone, its relaxed minimum credit score requirements make it an option worth considering for many borrowers.