LendingClub Auto Loan Review: Process, Eligibility, APR and More!
LendingClub auto refinance is a financing company that usually offers peer-to-peer lending. However, it also has refinancing options for both new and used vehicles. It’s a great option for those who want quick approval and funding without too much delay. LendingClub is one of the best options for you to refinance your car loan. They provide their customers with a simple application process where they can easily check their rates after registering their information online, such as your car model, your current loan, and your credit score. In this LendingClub auto loan review, we review the process of borrowing an auto loan from LendingClub, the APR you'll need to pay, the eligibility, the terms required, and much more.
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Quick Stats
LendingClub at a Glance
With its headquarters in San Francisco, LendingClub is best known as a peer-to-peer, online lending platform that offers different types of loans, including business and personal loans. Even though you cannot get a new auto loan from LendingClub, the company could help you refinance an existing auto loan. The company is accredited by the Better Business Bureau (BBB) and has earned an A- rating.
LendingClub claims that it gives offers in just a few minutes after the customer fills out the application process that is easy and simple and that requires no origination fees and does not impose any prepayment penalties in the event that you decide to pay the loan off faster. However, it is worth mentioning that the Federal Trade Commission filed a complaint against the company last year and accused it of engaging in deceptive practices.
The Process of Refinancing with LendingClub
LendingClub offers to refinance your old auto loans to help you save money. You can save a lot of money by refinancing with LendingClub, especially if you have a good credit score or have increased your credit score since taking out your original auto loan. On average, the company's customers save $3,000 after refinancing.
If your financial situation has worsened since you've borrowed your auto loan, you can further extend your loan, which may lower your monthly payments. In general, a long-term auto loan can be somehow risky. That is because you could end up owing more money than what the car is worth.
There are some things you must have in order to qualify for refinancing with LendingClub, including:
- The model of your vehicle needs to be less than 10 years old and must have fewer than 120,000 miles.
- Your vehicle must be driven for personal use and not for business purposes.
- You must have a minimum credit score of 600.
- Your current loan needs to have a balance between $5,000 and $55,000.
- Finally, your current loan must have been initiated at least one month ago and have at least 24 months of remaining payments.
The following is how you get to refinance your auto loan with LendingClub:
- First, you need to check your rate. You do this by telling LendingClub some info about yourself and your car. If you qualify, you will be getting multiple options for auto refinancing to help you save money.
- Pre-qualifying includes doing a soft credit check, which does not in any way affect your credit score. After that, you need to confirm your details.
- Next, you can choose the option that you like best and complete an easy application online. You may need 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 process is done online, so you don’t have to go to any dealership or bank to complete the process. As for the APR, rates on auto loans through LendingClub range from 3.99% APR to 24.99% APR and depend on credit score, credit history, and percentage of total outstanding debt in relation to income.
LendingClub Auto Refinance Features and Benefits
The following section contains a brief description of all the benefits and features you will be getting by refinancing your auto loan with LendingClub.
Check Rates Instantly
After you put in your info, things like your current loan, the model of your car, and your credit score, you will then immediately be given some of the best available auto loan rates. This step makes it very easy to shop around, and you don’t have to wait for long to get approved.
Whether you're refinancing your auto loan because you need money fast or because of any other reason, LendingClub is a perfect choice because there is not much waiting involved in the process.
Comparison shopping is very important, as you should never just go with the first option you find. You need to be as thorough as possible while researching to make sure you make a well-informed decision and find the best deal.
Flexible Loan Terms
LendingClub offers you flexible terms and great rates with which you can pay less than what you’re already paying. They offer a wide range of loan terms that you can choose from, so you can customize your monthly payments according to your needs.
If you get to lower your monthly car payments, this can help you save money to put away for emergency savings. You will not need to pay anything to be able to apply for a loan. Additionally, there are no prepayment fees; this means you will not be penalized in case you pay off your loan faster than you have agreed on.
Many lenders impose hidden fees or excess fees that may range somewhere in the hundreds, so it is great to find a lender with no hidden fees.
Zero Origination Fees
Origination fees are fees that go towards the expenses related to processing the loan. This fee can cover anything from customer service, to looking for an finding background info, verifying your info, and many other services.
Origination fees are usually 1% to 8% of the total loan, which is a lot of money! The good news is that LendingClub has no origination fees. This means no money is wasted on secondary things.
Pre-Qualify with ease
With LendingClub, it will be very easy to pre-qualify online and to shop around with so many loan options within minutes. Pre-qualification is when you get an estimation of what you should expect to be allowed to borrow. Pre-qualification helps you take a look at many different loans to make a well-informed decision.
By going through the pre-qualifying process, you will be able to narrow down what loans you choose to apply to.
LendingClub Customer Service
LendingClub offers various customer support options to help their clients out with their questions and issues. They offer customer support through phone, email, and website resources. You can reach out to the LendingClub customer support team by emailing them at [email protected]. They are also available through their toll-free phone number at 888-845-0010. LendingClub also has a Frequently Asked Questions (FAQs) section through which you can explore the different quick answers they provide and see if you can find a solution for your issue before contacting the customer support team. Their working hours are Monday through Friday, from 6 a.m. to 5 p.m.
Bottom Line on LendingClub
LendingClub is not an auto loan direct lender; rather, it offers to refinance your already existing auto loan. Their APR rates are a bit higher than other lenders on the market. However, the process is easy and fast, and we recommend it to anyone in need of fast money in a short time. They have a lot of versatile features that make their services special, including flexible terms, easy pre-qualification, no origination fees, and instant rates.