How LendingClub Auto Refinance Works
First, you check your rate. You tell LendingClub information about yourself and your vehicle. If you qualify, you will immediately get multiple auto refinancing options to help you save money.
When you pre-qualify, they will only do a soft credit check, which doesn’t affect your credit score. Next, you confirm your details.
You choose the option that you like best and complete an easy application online. You may have to give more personal information at this point, depending on the option you’ve chosen.
Lastly, LendingClub pays off your previous lender if you get approved for the new loan.
All of this is done online, so you don’t have to go to any dealership or bank to complete the process.
LendingClub Auto Refinance Features and Benefits
Check Rates Instantly
Upon putting in your information, such as your current loan, your car model, and your credit score, you will immediately be given some of the best auto loan rates around. This makes it very easy to shop around, and you don’t have to wait.
You may be refinancing your auto loan because you need money fast, and in that case, it’s a real benefit that you get your rates instantly.
Shopping around is important because you never want to just go with the first option you see. You want to be as thorough as possible to make sure you get the best deal out there for you.
LendingClub has flexible terms as well as great rates that can help you pay less than you’re already paying. They have a wide array of loan terms to choose from, so you can customize your monthly payments.
Lowering your monthly car payments can help you have money to put away for emergency savings. Their APR goes as low as 3.99%, which is hard to beat. You don’t have to pay to apply for a loan, and there are no prepayment fees either, which means you won’t be penalized for paying off your loan early.
A lot of lenders have hidden fees or excess fees that range in the hundreds, so it is refreshing to have a lender with no hidden fees.
No Origination Fees
An origination fee is a fee that goes towards the expenses for processing your loan. This can cover customer service, finding background information, verifying your information, and more.
Origination fees can be 1% to 8% of the total loan. That’s a lot of money! Luckily, LendingClub has no origination fees. This means more money in your pocket to spend on other things.
With LendingClub, you can easily pre-qualify online and be able to shop around with an assortment of loan options in just minutes.
Prequalification is when you get an estimate of what you may be able to borrow. It helps you look at different loans and have a ballpark number of what they would be.
By pre-qualifying, you can narrow down which loans you want to spend time applying to. When you pre-qualify, they only do a soft credit check, so it won’t affect your credit score the way a hard pull would.
How to Qualify for LendingClub Auto Refinance
First, you need to have a minimum credit score of 640. 640 is considered a Fair FICO Score and is below average, so you don’t need incredible credit to get LendingClub Auto Refinancing.
You can also have a co-signer which helps improve your odds. The lower your credit score is, the higher your rates will be.
Your vehicle can only be 10 years old and have 120,000 miles on it. You don’t need a social security number to pre-qualify.
You will have a hard credit check upon final approval. There is no application fee or prepayment penalty.
What Vehicles are Eligible for LendingClub Auto Financing?
Your vehicle can only be 10 years old and have less than 120,000 miles on it. You are not eligible if you have an Oldsmobile, Suzuki, Isuzu, Daewoo, Saturn, Pontiac, or Hummer.
Salvage titles are not eligible. Commercial vehicles, motorcycles, and RVs are not eligible. If you live in West Virginia, Vermont, South Dakota, North Dakota, New Hampshire, Nevada, Mississippi, Maine, Iowa, Hawaii, Connecticut, Colorado, or Alaska, your vehicle is not eligible.
LendingClub Auto Refinance Restrictions and Requirements
Your loan term must match your current loan term or extend it by a year. Your current loan must have been opened for at least a month and have at least 2 years left on it. The maximum vehicle mileage is 120,000 miles.
Oldsmobiles, Suzukis, Isuzus, Daewoos, Saturns, Pontiacs, Hummers, and salvage-title vehicles are ineligible. Other ineligible vehicles include RVs, motorcycles, and commercial vehicles.
LendingClub Auto Refinance Fees
There is no origination fee. An origination fee is also known as a processing fee. It also pays for customer service.
There is also no application fee or prepayment penalty. A prepayment penalty is a fee you must pay if you pay off your loan early.
It encourages people to stay in their loans, which helps the company make money off your interest.
There are late fees. Also, when you pre-qualify, it doesn’t affect your credit score since it’s only a soft credit check.
How Do LendingClub Auto Loans Compare to Other Auto Lenders?
#1. Caribou vs. LendingClub Auto Refinance
Neither Caribou nor LendingClub has prepayment fees. Caribou has a one-time $399 fee, which LendingClub doesn’t have.
LendingClub has a minimum credit score of 640, while Caribou has a minimum credit score of 650.
Caribou also has a minimum annual income of $24,000, while LendingClub doesn’t have a minimum income.
Caribou is not a direct lender. It connects you with lenders with who they partner with. LendingClub has late fees, and for Caribou, their late fees depend on which lender you choose.
>> More: Caribou Review
#2. LendingClub Auto Loans vs. Tresl Auto Loans
Tresl has a minimum credit score of 580, while LendingClub has a minimum credit score of 640. That means Tresl will accept people with worse credit than LendingClub will, although their terms will likely not be favorable.
They are available in all 50 states, which LendingClub is not. With both companies, you can pre-qualify with a soft credit check.
Neither Tresl nor LendingClub has application fees. For both Tresl and LendingClub, the maximum vehicle age is 10 years.
Tresl accepts vehicles with up to 150,000 miles on them, but LendingClub only accepts up to 120,000.
>> More: Tresl Auto Loans Review
#3. Auto Approve vs. LendingClub
Auto Approve helps find you the best lender. Neither LendingClub nor Auto Approve charge application fees, and they both have fast approval times.
Auto Approve refinances SUVs, trucks, motorcycles, RVs, boats, and ATVs, while LendingClub does not.
Auto Approve has a minimum credit score of 580, while LendingClub has a minimum credit score of 640.
The car age for both Auto Approve and LendingClub can only be 10 years. Auto Approve will accept vehicles with less than 150,000 miles, but LendingClub will only accept vehicles with less than 120,000 miles.
>> More: Auto Approve Review
What Credit Score Do You Need to Qualify for LendingClub Auto Refinance?
You need a credit score of 640 to apply for LendingClub Auto Refinance. This is a fair credit score, which is below average.
If you don’t qualify for LendingClub Auto Refinancing, you can take the time to improve your credit score before applying by improving one, or multiple, of the aforementioned aspects of your credit report.
Bottom Line: LendingClub Auto Refinance Review
LendingClub is a very good place to refinance your auto loan.
They have specific requirements surrounding credit scores, vehicles, and states you can live in, but if you meet the requirements, then they are probably your best bet, with unmatched flexibility and no prepayment penalties, no application fee, and no origination fee.
LendingClub auto refinancing is high quality and can help you save hundreds a month.