LendingClub offers an easy online process to refinance existing auto loans and potentially secure lower interest rates. With pre-qualification available, borrowers can check potential savings with no impact to their credit score.
Introduction to LendingClub
Founded in 2006, LendingClub is an online lending marketplace, historically connecting investors and borrowers directly for personal loans. In 2020, they transitioned to a more traditional model and now provide auto refinancing through LendingClub Bank.
While no longer peer-to-peer lending, the company still focuses on leveraging technology to provide fast financing solutions, now including helping drivers to refinance existing car loans.
LendingClub Auto Refinancing Loan Options
LendingClub auto refinancing loans offer:
- Loan amounts from $4,000 to $55,000
- Loan repayment terms of 36, 48 or 60 months
- Interest rates ranging from 4.99% to 24.99%
So borrowers can potentially secure lower interest costs compared to original dealer financing while customizing loan length to meet budget needs.
Qualification Requirements for LendingClub Refinancing
To qualify for auto loan refinancing from LendingClub Bank, the basic requirements are:
- Minimum age of 18 years old
- Credit score of 600+ (though rates vary considerably)
- Eligible vehicle that meets LendingClub criteria
Vehicle eligibility is restricted to passenger vehicles no more than 10 model years old with fewer than 120,000 miles. Certain makes/models are also ineligible.
Getting Pre-Qualified for LendingClub Auto Refinancing
LendingClub allows shoppers to easily check potential savings by:
- Entering some basic personal and vehicle details
- Agreeing to a soft credit check
- Viewing available refinancing rates
If satisfied with the options, borrowers can proceed to submitting the full application without further credit checks. If not, there is no obligation or impact.
Extra Features Offered by LendingClub
Along with easy pre-qualification and completely online applications, LendingClub auto refinancing includes:
- No loan origination fees
- Quick funding in as little as 2 days
- Option for early payoff without penalty
So the process is seamless and borrowers have flexibility after securing the refinanced loan.
How LendingClub Compares to Other Lenders
RateGenius – Also offers loan comparison shopping but serves more states and has higher maximum amounts. RateGenius also allows co-borrowers.
Upstart – Better option than LendingClub for borrowers with credit scores under 600. But has higher starting rates and restricted vehicle model eligibility.
Pros and Cons of LendingClub Refinancing
- Prequalify without credit score impact
- Online process with fast decisions
- No origination or prepayment fees
- Not available in 9 states
- Maximum refinance amount of $55,000
- Restrictions on vehicle age and mileage
Contacting LendingClub’s Customer Service Team
LendingClub offers customer support by:
- Phone and email, with extended weekday and Saturday hours
- Detailed FAQs and contact form on website
- Secure messaging via online account portal
For eligible borrowers, LendingClub provides a fast and seamless way to refinance existing auto loans online in just minutes. While vehicle restrictions do apply, pre-qualification lets shoppers preview potential savings with no credit impact. Overall, LendingClub earns 4.5 out of 5 stars from Bankrate on great availability within limits, solid affordability, smooth customer experience, and excellent transparency.
Frequently Asked Questions About LendingClub Auto Refinancing
What auto makes/models are ineligible for LendingClub refinancing?
Restricted vehicles that do not qualify include: Aston Martin, Ferrari, Lamborghini, Lotus, Maserati, Bentley, Bricklin, Daewoo, Delorean, AMC Gremlin, Mercury vehicles, and various commercial vans.
Can I add a co-borrower when applying for LendingClub auto loan refinancing?
Yes, LendingClub allows joint applicants on a single auto refinance loan application. This can help improve chances of approval and/or loan terms if the co-borrower has a stronger financial profile.
What states does LendingClub provide auto refinancing in?
LendingClub is able to refinance auto loans in 41 states and Washington D.C. Restricted locations not currently served include Alaska, Hawaii, Maine, Mississippi, New Hampshire, North Dakota, Vermont, West Virginia, and Wyoming.
Is there a loan prepayment penalty for LendingClub auto refinancing?
No, LendingClub allows borrowers to pay down principal early or pay off auto refinance loans completely without any prepayment penalties. This allows saving interest expenses over the full original repayment terms.
What is the maximum monthly payment when refinancing with LendingClub?
While not formally published, the maximum payment is driven mostly by the spread of loan amount, interest rate, and repayment timeline selected by the borrower when taking out the LendingClub auto refinance loan.
In another related article, Overview of Consumers Credit Union Auto Loans