Best Reviews TopConsumerReviews.com Best Auto Loans Best Reviews
Best Reviews
      September 30, 2020

Home  >  Auto Loans  >  LendingTree vs LendingClub

Best

Auto Loans

  1. Credible
  2. LendingTree
  3. My Auto Loan
  4. Auto Credit Express
  5. CARCHEX
  6. OneMain Financial
  7. LendingClub
  8. Road Loans
  9. Instant Car Loan

Your Information Is Secure
Worry Free Car Care Manual Newsletter

Compare Products

  • Select any 2 companies in our reviews to compare them head-to-head!

Latest Reviews

Auto Loans

Babysitters

Christmas Cards

Credit Counseling

DUI Lawyers

Fruit Clubs

Home Brew Beer Supplies

Homeschool Supplies

Music Publishing

Senior Care

 

Individual Reviews

Upstart

Credible

LendingTree

My Auto Loan

Auto Credit Express

CARCHEX

OneMain Financial

LendingClub

Road Loans

Instant Car Loan

 

Related Articles

Are Auto Loans Through A Car Dealer A Good Idea?

Auto Loans Versus Auto Leases

How Much Car Can You Afford?

How Your Auto Loan Can Be Affected By Your Credit Rating

What To Look For When Shopping For An Auto Loan

 

Our professional reviewers evaluate products and services independently, but Top Consumer Reviews may earn money when you click on the links on our pages. Learn more.

Better Business Bureau Reliability Seal

LendingTree vs LendingClub

Best Auto Loans

To help you find the Best Auto Loans, TopConsumerReviews.com provides you with an in-depth comparison of LendingTree and LendingClub.

To see ALL of our reviews for the Best Auto Loans, please Click Here

Where can you get the best auto loans? You're right if you suspect that the answer to that question is "not necessarily at the dealership".

You might initially be lured in by a dealership's attractive 0% financing offers - but unless you've got extremely good credit, you're not going to qualify. And, in the excitement of getting your new (or new-to-you) car, you could wind up with interest rates on your car loan that are even higher than what you'd get elsewhere.

Continue reading below reviews

Best Reviews

2020

Auto Loan Reviews

4 stars
Lending Tree

LENDINGTREE

Visit Site

BBB Rating:

A+, accredited since 2019

LendingTree is an online loan marketplace for all kinds of borrowing needs: small business loans, credit cards, auto loans and more. They're also considered a pioneer in the peer-to-peer lending industry, having started matching borrowers and investor-lenders back in 1998 as an alternative to bank-only financing.

Multiple loan offers

When you apply for an auto loan using the LendingTree service, your application is used to generate multiple offers from numerous lenders in their network. LendingTree doesn't spell out how many partners they use - possibly because those relationships are constantly expanding - but we were able to find a long list in their Automotive Lender Reviews section. We love that you can read detailed information, ratings and customer feedback on all of them before you even fill out the online form.

Auto loan providers

Here's a sampling of the auto loan providers you could be matched with:

  • RefiJet
  • Capital One Auto Finance
  • Auto Approve
  • iLendingDirect
  • rateGenius
  • Gravity Lending
  • AUTOPAY
  • LightStream
  • Southeast Financial
  • Tresl

Both buying and refinancing

You've got options for both buying and refinancing a vehicle with LendingTree. You'll have to click on "More Loan Options" to get to the link specific to Auto Loans, and that's where you'll specify if it's a purchase, refinance or lease buy-out. Next, select your preferred loan term (1-7 years). Enter any down payment you'll be making (and, by the way, LendingTree says you'll get a better offer if you do!) and your requested loan amount. You're also asked to provide a tentative idea of the make of the vehicle you're buying, so that you can have manufacturer-specific financing offers too - but you're not locked into it.

Best Auto Loans

Standard information

The rest of the information is standard: your income, housing situation, address, and just the last four digits of your SSN to verify your identity before getting your list of loan offers.

Compare each loan offer

Once you have the offers in hand, you'll have to compare each auto loan and decide which lender and terms are the best fit. You're under no obligation to choose any of them, and if you allow more than 30 days to pass without selecting one, you'll have to apply again.

Fees and interest rates vary by lender

What about fees and APRs? Because those can vary so widely across LendingTree's partners, they only offer a frequently-updated average so that you can get a general idea. At the time of this review, their clients were seeing rates as low as 3.49% APR on a loan of $20,000 with a three-year term. Those clients usually had a credit score of at least 700, had no down payment, and were charged origination fees up to $100. If you'd like to see the most recent numbers, you'll find those on LendingTree's Disclosures page.

Thousands of 5-star reviews

This loan referral platform is "A+" rated and accredited with the Better Business Bureau, and the company has garnered thousands of five-star reviews from people who've successfully used it to get funding for various purposes. We found very recent comments from clients who got their auto loans through LendingTree and said that not only did they get the lowest rates, they also had their funds deposited the next day.

Few complaints

The only complaints we found described getting too many phone calls, texts and emails from lenders. That seems to be the case with most similar services - after all, you're providing your contact information so that lenders can contact you, and unfortunately they can sometimes be quite persistent.

More success with good credit

It's also important to point out that most LendingTree clients who wind up with funded loans tend to have higher-than-average credit scores. That doesn't mean you shouldn't try and get matched with an auto loan provider here if your credit history isn't the best, but keep in mind that you might need to work with one of the lending services in our review that specifically helps people in your situation.

One of the best

LendingTree is one of the industry's best options if you want competing offers on your auto loan. They give you lots of insight into the lenders in their network, and they make it a breeze to find multiple options with just one online form. All of these reasons have kept LendingTree towards the top of our rankings among providers of car financing.

Visit Site
3 stars
LendingClub

LENDINGCLUB

Visit Site

BBB Rating:

No Rating, accredited since 2008

LendingClub takes care of financing the purchase of a car through personal loans up to $40,000 - in other words, once you get the money, you can use it however you like. This peer-to-peer lending platform has served more than three million customers, with over $50 billion borrowed since LendingClub got its start in 2007.

Browse the resources

If taking out a loan is new to you, it's a good idea to browse the Resources link on the LendingClub site. There, you'll find articles on borrowing, debt, and many other relevant subjects; calculators to help you determine your credit utilization; plus, you'll even get some guidance regarding leasing vs. buying your car.

Getting started

Let's say you decide to go for it and apply for a personal loan for your vehicle purchase. First, you'll enter the purpose of your loan and enter the amount you plan to borrow. You won't find "buy a car" on the list, so you might want to select "Buy something special". From there, you'll be asked to indicate if you're including a co-applicant, your birthdate, individual income, name, address, and phone number.

Won't impact your credit score

That information won't impact your credit score, but you'll have to enter your Social Security number if the details you gave aren't enough for LendingClub to find your credit report. Once you've finished answering these questions, you'll be able to see the loans being offered (if any). If you choose one and complete the loan acceptance process, you could have the money deposited to your bank account in as little as four days.

Best Auto Loans

Transparent fee disclosures

In the past, LendingClub had been taken to task for not openly disclosing their fees and interest rates. We were glad to see that's no longer the case: you can easily find that information on their site. At the time of this review, for example, their rates ranged from 10.68% to 35.89% APR, with one-time origination fees between 2-4% of your total loan amount. But, we did see two different ranges for those origination fees: 2-4% at the top of the site, and 1-6% further down in the FAQ. All loans through LendingClub have terms of at least 36 months, and in some states you'll have minimum/maximum loan requirements.

Refinancing requirements

If the purpose of your auto loan is to refinance your current terms, you'll find some slight differences. First, there's no origination fee charged by LendingClub. Second, unlike a personal loan used for buying a car, a refinance loan has some extra requirements; you may be asked to send in documents about your car. Finally, your current loan has to meet their eligibility requirements. These include an outstanding balance of $5,000 to $50,000 with at least 24 payments remaining, on a car that is for personal use only, 10 years old or newer and under 120,000 miles.

Pending government action

LendingClub has a "No Rating" status with the Better Business Bureau. Although this financial service has accreditation from the BBB, a pending government action (related to LendingClub's previous issues with not openly disclosing fees) keeps the company from having an actual rating there. We also weren't thrilled to read through some of the hundreds of complaints filed with the BBB, many of which had legitimate concerns about payments not being recorded properly (and the subsequent negative impact on borrowers' credit scores), inaccurate payoff information being given by LendingClub representatives, and so on.

Many happy customers

However, when we looked beyond the BBB site - since people rarely go there to leave compliments, right? - we found not just thousands but tens of thousands of reviews from very happy clients. Some of those customers have used this platform multiple times for loans and appreciate getting funding when other personal and auto loan companies have turned them down.

Caution advised

We would advise some caution when using LendingClub for your auto financing. It seems like when everything goes as expected, they're a great service - but when there are problems, customers often have a hard time getting a quick, complete resolution. There are other sources of auto loans out there that work similarly to LendingClub, so you might want to look there first before committing to this company.

Visit Site

Continued from above

Savvy consumers know that the best way to get truly competitive rates on auto loans is by comparison shopping with online lenders. Even if you're just starting the research process, it only takes a few minutes to find out how much you're qualified to borrow and with what loan terms. With that information in hand, perhaps with a preapproval letter too, you'll be much more confident walking into the dealership and negotiating the best possible deal on the car itself.

Some providers of auto loans specialize in helping customers with less-than-perfect credit. These lenders can work with you to get a loan that you can afford, and they take into account your whole financial picture - not just your low credit score, previous late payments, or a bankruptcy in your past. Of course, if your credit history is excellent, shopping around for your auto loan online will likely turn up dozens of offers to choose from.

It's important to carefully consider several criteria when evaluating different online lenders. These factors include the following:

  • Reputation. A seemingly-great auto loan is a bad deal if the lender isn't trustworthy. What does the Better Business Bureau say about the company? Have other car shoppers had a good experience?
  • Functionality. How easy does the auto loan site make the borrowing process, from information-gathering to funding? Can you work through the steps of securing your loan quickly and intuitively?
  • Options. To whom does the lender cater (e.g. people with good/bad credit? New/used car shoppers?)? Do you have a wide range of loans to choose from, both with respect to interest rates and length of the loan period? Are there any perks or penalties in the fine print?

TopConsumerReviews.com has reviewed and ranked the best auto loan providers available today. We hope this information helps you get the right financing for your next vehicle purchase or refinance!

Auto insurance carriers have offered $10 billion in rebates during the pandemic, but customers still aren't happy - and they're looking to switch

Auto insurance providers gave billions in rebates and discounts to consumers due to the pandemic. However, customer satisfaction is low.

Published:  Tue, 29 Sep 2020 13:49:00 GMT



Why an 84-Month Auto Loan is a Clunker for Your Finances

That's a real possibility now, as more car dealerships and lenders offer 84-month auto loans. If obtaining any financing might be a struggle for you, a seven-year loan may seem like a great option.

Published:  Thu, 24 Sep 2020 14:42:00 GMT



Arizona auto dealer accused of bilking customers, lenders in loan and title scheme

An Arizona used car dealer who didn't pay off trades or transfer title to buyers said last year that if he were ripping off customers, he would be behind bars. Farhad Kankash, owner of Onyx ...

Published:  Fri, 25 Sep 2020 18:15:12 GMT



Car Loans Dodge Distress for Now

Auto credit measures at big banks are holding up during the pandemic even as stimulus measures fade. Still, the all-clear signal for borrowers and lenders hasn't yet sounded.

Published:  Thu, 17 Sep 2020 09:00:00 GMT



Fidelity Bank introduces auto loan package for health workers

To further complement its various interventions in support of the national efforts to reduce the negative impact of ...

Published:  Tue, 29 Sep 2020 11:12:00 GMT



Ally Increases Carvana Loan Purchase Commitment by $1 Billion, Increases Floor Plan Commitment to $1.25 Billion

TodayCarvana (NYSE: CVNA), a leading e-commerce platform for buying and selling used cars, announced a $1.0 billion increase to its current loan sale ...

Published:  Tue, 29 Sep 2020 14:37:00 GMT



Progressive: Car Insurance Review 2020

Progressive Car Insurance Aside from its commercials featuring upbeat cashier Flo, Progressive stands out in the very competitive car insurance landscape for diverse coverage, ample discounts, and ...

Published:  Tue, 29 Sep 2020 09:03:48 GMT



Share Us!   

Home      About Us      Terms & Conditions      Privacy Policy      Contact Us      Disclosure