LendingClub auto refinancing review
With Americans carrying over $1 trillion in car debt, you're not alone if you’re concerned about your car payments.
LendingClub’s auto refinances loans are one solution that could potentially help you save big on your car loan. It’s not available in all states or for all makes, however — not yet. Read on to learn how LendingClub could work for you.
Min. Loan Amount
Max. Loan Amount
3.99% to 24.99%
|Min. Loan Amount||$4,000|
|Max. Loan Amount||$55,000|
|APR||3.99% to 24.99%|
|Interest Rate Type||Fixed|
|Requirements||Car must be less than 10 years old with fewer than 120,000 miles. Current loan must have a balance between $5,000 and $55,000 and at least 24 months left in its term.|
First, am I eligible?
To apply with LendingClub, it’s not just you that must meet its criteria: Your car and your current loan also come with eligibility requirements.
To qualify you must be:
- At least 18 years old
- A US citizen, permanent resident or living in the US on a long-term visa
- A resident of one of the 32 states where it offers car refinancing
LendingClub auto refinancing is available to residents of:
- New Mexico
- New Jersey
- New York
- North Carolina
- Rhode Island
- South Carolina
- South Dakota
To qualify your car must:
- Be at most 10 years old
- Be your personal car
- Have under 120,000 miles
- Have up-to-date registration in your state, that isn’t due to expire in the next 30 days
- Be an eligible vehicle
LendingClub doesn’t refinance loans for the following vehicles:
- Chevrolet Express G-Series van
- Cross lander
- Nissan leaf
- Disel Volkswagen
- Commercial vehicles
- Salvaged vehicles
Your previous loan must:
- Have a balance between $5,000 and $55,000
- Be at least three months old
- Have 24 months or more left in its term
What are the rates?
LendingClub auto loans come with APRs that range from 3.99% to 24.99%. However, the lowest rates are only available to borrowers with excellent credit and strong personal finances. If you have fair credit or lower — that’s under 670 — you could have trouble qualifying for a better deal than you already have.
What makes LendingClub auto refinancing unique?
Auto refinancing is one of LendingClub’s newer services — this financing product has only been around since 2016. It’s intended to help Americans deal with the auto debt crisis by offering interest rates from 1% to 3% lower than what they’re paying on current auto loans. Of course, savings aren’t guaranteed — it determines your rate using your credit score and other factors.
It’s currently restricted to half of the country and specific vehicles. But that won’t always be the case. LendingClub intends to eventually make auto refinancing available to many more borrowers in the near future.
Does LendingClub offer other types of car loans?
Sort of. You can only use LendingClub auto refinancing to, well, refinance your existing car loan. If you’re looking for a loan to cover the cost of a new car, you can use a LendingClub personal loan for car financing, although you may want to look at specific car loans instead.
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What are the benefits of LendingClub auto refinancing?
- No application, origination or prepayment fees. The only fees you could pay are a DMV fee transfer a loan title and late fees, which are outlined in your loan agreement.
- Competitive rates. LendingClub’s 3.99% to 24.99% APRs could seriously help you save on your car loan, depending on your current rate.
- Easy-to-use website. Access to information can be the sign of a reliable lender. LendingClub makes it clear that terms and rates vary depending on the borrower, but it also gives you a ballpark range.
- No SSN needed to check rates. While you’ll need to provide a Social Security number during the application process, you can get a quote without entering that sensitive information online.
- Cosigners. You can bring on a cosigner to help you get an even better deal.
What to watch out for
- Not available in all states. LendingClub has rolled out car refinancing to 32 states and has plans to expand across the country.
- Restrictions on vehicles you can refinance. Eligibility depends on brands, commercial vehicles and accident history.
- Applying could affect your gap insurance. Whether your gap insurance is affected by refinancing depends on your provider. Consider talking with them before refinancing your car with LendingClub.
- It takes a while to get your money. It could take as long as 14 days to refinance your car. This is because there’s a lot of paperwork involved, some of which may even involve a notary.
- It’s hard to contact them if you don’t already have a loan. Most information is available online, but you’ll need to compete an annoying online form and wait for an email if you have even a quick question.
- Restrictions on loan terms. You can only take out a loan with your current term or 12 months longer — no more.
How do I apply?
The whole process of refinancing an auto loan with LendingClub can take up to 14 days. Here’s how to get started online.
- Go to the site, select your state and click Check Your Rate.
- Follow the steps to complete the forms with your personal information. This shouldn’t take more than a few minutes and won’t affect your credit score.
- If you qualify, LendingClub will contact you with two offers. Select the best offer for you and continue with the application.
- Get together and submit the requested documents. Most of these can be uploaded to your application, but some require snail mail.
- Sign the paperwork.
What documents do I need to apply?
You’ll need at least:
- A driver’s license. Make sure it’s current and valid in your state — for instance, LendingClub won’t accept a Mississippi license if you’re living in Montana.
- Proof of registration. Your car’s registration also must be current.
- Proof of insurance. Provide your full-coverage insurance card for the car you want to refinance.
You may also need:
- Title transfer documents. LendingClub might also ask you to sign a limited power of attorney form transferring the title to LendingClub. Some states also require you to have the form notarized. If required, LendingClub asks that you mail it in with a pre-paid mailing label.
- Personal references. You have the option of including personal references from friends, relatives and coworkers to strengthen your application. Limit one reference per household.
I got the LendingClub auto refinancing loan. Now what?
- Set up autopay. Now that your repayments are soon to be due, consider setting up automatic repayments. That way you won’t have to worry about making payments every month. Just make sure you set it up with an account that won’t be short on funds around the time your payments are due.
- Get in touch — and stay in touch. Keeping your lender up to date with your financial situation can help you avoid paying unnecessary fees over misunderstandings and even navigate rough patches.
What else does LendingClub offer?
LendingClub’s auto loan refinancing is just one of a few products you can get from this online peer-to-peer provider. It also offers:
- Personal loans. LendingClub offers personal loans up to $40,000 from 7.04% to 35.89%.
- Business loans. Established businesses can apply for up to $500,000 in small business financing.
- Patient financing. You can get a loan from LendingClub or through your healthcare provider to cover medical procedures.
LendingClub auto refinancing loans are limited, but they won’t be for long. Even if you don’t qualify today, keep it in mind as a future possibility.
But before you make any decision, compare your options and read the fine print to make sure you’re getting the best deal.
Frequently asked questions
Will applying affect my credit?
Prequalifying doesn’t affect your credit, but LendingClub will do a hard credit pull if you to select an offer and continue with the application. The hard inquiry can temporarily damage your personal credit score.
Can I refinance a joint car loan by myself?
No, both owners of the car will have to apply together if they want to refinance with LendingClub.
Is refinancing with LendingClub safe?
Yes. LendingClub does not give your personal information to anyone who doesn’t absolutely need to see it. Its website is encrypted and includes such security features as session timeouts and two-factor authentication for your protection.