LendingClub Auto Loans Review

As of 2020, Americans now carry a total of more than $1 trillion in car-related debt. It is for this reason why millions of people look into auto refinancing every year to extend their loan terms or secure more favorable rates from a different provider.

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    One established provider of auto refinancing loans is LendingClub, which offers a range of financial packages aimed at helping drivers reduce their monthly payments. Although originally established as a peer-to-peer lender of personal loans, LendingClub began to branch out into the auto loan sector a couple of years ago and has since gone on to provide refinancing across the U.S.

    As an online marketplace, LendingClub works by providing motorists with a refinancing plan offered by a different loan provider, rather than providing the loans directly. They work with a network of leading and boutique loan providers across the United States to provide an online platform that allows users to customize their refinance package based on their needs and current loan situation.

    LendingClub does not offer purchase loans or traditional car loans - only refinancing. If you're looking to manage your existing loan payments, read this in-depth review to find out if LendingClub auto refinancing loans are right for you. 

    LendingClub Financing Offers 

    LendingClub aims to help move customers into a more manageable repayment situation, either by offering an extended loan term or by finding a refinancing package that provides a lower APR than the one that the motorist is currently saddled with. The financial products offered by LendingClub have a wide range of rates, which largely seem to depend on the credit score of the applicant.

    The lowest possible APR offered via LendingClub is a respectable 3.99%.

    Credit Score

    However, you will likely only qualify for this rate if you have excellent credit, which is typically defined here as being over 690. The highest APR charged through LendingClub is 24.99%, which applicants with a very poor FICO score (typically below 600) may be offered.

    We should note that LendingClub does offer auto refinancing for those with bad credit, with their lowest accepted score being 510.
    If you are simply applying for prequalification, LendingClub will perform a "soft" credit check on you to find out your score, but this routine check will not affect your score in any way whatsoever.

    It is worth repeating that they only offer refinancing loans, not purchase loans.

    Loan Extension

    You must have an existing loan in order to qualify. LendingClub promises to at least match your current loan term, but they also guarantee that they will extend your term for another 12 months, provided you qualify.

    Lending Tree Auto Loans Overview

    APR
    3.99% - 24.99%
    Minimum requirements
    No minimum income requirement
    Soft Credit Check
    Yes
    Availability
    35 states
    Late Fees
    Yes

    How Much Can You Borrow?

    To refinance a loan with LendingClub, your outstanding balance on a current must be between $5000 and $55,000. 

    Types of Vehicles Are Eligible for a Financing Loan?

    There are a number of vehicles that are not eligible for LendingClub auto refinancing. Motorcycles, RVs, ATVs, salvaged cars, and any type of commercial vehicle or vehicle used for commercial purposes (such as a car that is used as a ridesharing vehicle) are not eligible for refinancing. 

    How Do I Qualify?

    How to Qualify for LendingClub Auto Loans

    While LendingClub offers auto refinancing to a wide range of motorists, there are some stipulations to be aware of. Here is what you need in order to qualify for a LendingClub auto loan.

    What Personal Criteria Should I Meet to Get a Loan?

    • You must be at least 18 years old.
    • Your current auto loan for refinancing must have at least 24 months of repayments left on it.
    • Your current auto loan must have been active for at least one month.
    • The outstanding balance on your existing auto loan must be between $5000 and $55,000.
    • Your vehicle must be less than ten years old, or less than nine years old if your credit score is lower than 630.
    • Your car must have less than 120,000 miles on the clock.
    • You must live in one of the following states: Alabama, Arkansas, Arizona, California, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Washington, and Wisconsin.
    • You must be a citizen or permanent full-time resident of the United States.
    • You must own a qualifying vehicle. Motorcycles, RVs, ATVs, salvaged cars, and commercial vehicles do not qualify for LendingClub refinancing.

    What Documents Should I Provide?

    If this is your first time applying for LendingClub auto refinancing, you will need to have some basic personal information and documentation at the ready.
    Here is all of the information you will need to apply: 

    • Your name, address, and contact information
    • Proof of ID
    • Proof of US Citizenship or US permanent residency, such as a Green Card
    • Your driver's license
    • Information on your monthly income - for the full qualification you may need to provide pay stubs 
    • Vehicle information, including the make, model, age, and mileage
    • Information about your current loan, including the provider, the term, and the APR 

    With this information at the ready, you should be able to complete the 3-step application process in just a few minutes. Note that you do not need a social security number (SSN) in order to apply.

    LendingClub Fees

    LendingClub does not charge any origination fees, application fees, or prepayment penalties. Missed payments may be subject to lateness fees, which will vary in size according to the original provider.

    How to Apply for a Loan?

    The application process for LendingClub auto refinancing can be done entirely online within minutes. Note that you can apply for prequalification before making a formal application. While prequalification does not mean that you have been accepted for a loan, it does give you an idea of what you are most likely to qualify for and the kinds of rates and terms you should expect.

    If you wish to make a full application with the expectation of receiving a firm offer for refinancing, the process is similar to prequalification, except you will need to submit to a "hard" credit check that may affect your score. While the actual process of applying is simple, some users may be surprised at the length of the turnaround time.

    Existing and previous customers have reported that it can take up to 15 business days between an application being made and being accepted with a refinancing offer in place. If this is the case with you, remember to keep paying off your current loan on its existing terms until your refinancing loan is in place. 

    How to Apply for a Loan?

    As we've touched upon, the online application process for LendingClub auto loans is straightforward and swift. Here is a step-by-step guide to applying:

    • Use the drop-down menu on their website's homepage to select "Refinance My Car"
    • Click "Check Your Rate"
    • Fill out all of the information in the order described above
    • Click the box stating that you submit to a credit check
    • Click submit

    This is the process for prequalification. Once you have received a prequalification quote, you can apply formally.

    This process involves all of the same information listed above, with the only difference being that you will submit to a "hard" credit check. Your prequalification rate should arrive in minutes, while your formal qualification may take several days. 

    What Payment Methods Are Supported? 

    You can pay via online banking and debit cards, as well as via check. Read their website for the full low-down on accepted payment methods.

    Can I View Loans Online?

    Yes. You can view, manage and make payments entirely online. Simply log into your account to view your loans

    What is the Estimated Time for Pre-Qualification and Loan Sanction?

    While pre-qualification is often within 24 hours, loan sanction can take up to 15 working days to come through. 

    Pros and Cons

    Pros

    • Some of the most competitive interest rates on the market right now, especially if you have a good credit score. LendingClub's stated goal is to ensure all customers secure interest rates that are at least 1-3% lower than what they are currently paying.
    • An easy application process that does not require you to upload any personal documentation for prequalification.
    • No fees. Lack of prepayment penalties means you can save serious money by paying off your loan in advance.
    • Very easy to extend your existing loan term by up to 12 months.
    • Co-borrowing is allowed. It can secure you a better rate if your co-borrower has a higher credit score.
    • Low monthly income requirements.

    Cons

    • The 15-day turnaround time for formal qualification is much longer than one would expect in the current market.
    • Extensive vehicle restrictions. Check the website to see which brands and models of car they do not provide refinancing for.
    • Not available in all 50 states. 

    Is LendingClub Right for You?

    LendingClub is ideal for the motorist who would prefer to pay less on their auto loans by extending their loan terms. It is also better for those who would prefer to receive a direct refinancing loan from a reputable vendor. If you are looking for purchase loans, LendingClub is not for you.

    Take a look at the rest of our reviews to compare LendingClub to other providers or even find one that suits you better.

    Get Financed 

    LendingClub allows you to reduce your monthly payments and ensure you pay less in the long-term with their generous refinancing offers. They are a no-nonsense company and are ideal for anyone just looking to pay less without going through the hassle of negotiating.