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LendingClub Review

Wednesday, June 29th

2022 Auto Loan Company Reviews

LendingClub Review 3.5 Star Rating

LendingClub

3.5 Star Rating
  • Fixed-rate loans from $1,000 to $40,000
  • Minimum loan amounts vary by state
  • Competitive APRs
  • Origination fees ranging from 3% to 6%
  • All loans have repayment terms of at least 36 months

If you ever considered getting an auto loan with LendingClub in the past but were less-than-thrilled with their peer-to-peer lending format, it's time to give this company another look. Since our last review, LendingClub has done a major overhaul of their business model: they now operate like a traditional bank, with no need to rely on individuals and institutions to invest in each borrower. That makes the experience of getting an auto loan much more predictable here.

Straightforward application process

To apply for a car loan with LendingClub, you'll start by entering the amount of money you want to borrow and selecting "car financing" in the dropdown box. (All loans are structured as personal loans, but putting in the appropriate answer to "What's the money for?" can help LendingClub match you with any offers that might be specific to buying a vehicle.) You can borrow up to $40,000 through this service, but minimum loan amounts are determined by state laws. You'll provide your name, address, date of birth and total annual income, so that LendingClub can verify your credit report. If they can't match your information to your credit history, you'll be asked to enter your full Social Security Number.

You'll pay origination fees and get average interest rates

If LendingClub offers you an auto loan, your rates and terms will be largely affected by your specific situation: how much you want to borrow, your credit score, how much you earn, and so on. You'll find interest rates here that are on par with most personal loan-based funding. LendingClub also charges a one-time origination fee of 3-6%, but they don't specify in advance whether that fee is rolled into your monthly payments or taken out of your loan payout. The lender discloses that their average car loan comes with an origination fee of 5% and an APR of 15.95%. All LendingClub loans have a repayment term of at least three years.

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BBB re-evaluation in progress

As mentioned earlier, LendingClub experienced a major shift over the last few years. At the time of this review, their listing with the Better Business Bureau was "NR" (Not Rated): it takes time for the BBB to gather information when such big changes happen. You can be reassured by the "A+" rating and accreditation of LendingClub's funding source, WebBank, in the meanwhile.

Recent customer feedback is overwhelmingly positive

LendingClub also offers live customer feedback on their website: over 57,000 reviews and counting. While there's no way to know which ones were used for auto loans, it's easy to see that people like what they get when using this company. The vast majority of LendingClub's most recent reviews are 4 and 5 stars, and quite a few of the clients leaving comments have used the service more than once. Regardless of the "NR" from the Better Business Bureau, there's plenty of evidence that LendingClub can be trusted with your car loan.

Better than many

Many happy customers

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.

All of LendingClub's changes add up to a new-and-improved ranking among providers of auto loans. We're confident that the BBB listing will soon match the positive recommendations from customer reviews elsewhere. As with any auto loan, we encourage you to read the fine print and understand the exact interest rates, fees and repayment terms you'll be getting. On the whole, though, there shouldn't be any nasty surprises here: LendingClub offers decent auto loans for most consumers.

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.

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.

The Best Auto Loan Companies Compare Auto Loan Companies Compare Auto Loan Company Reviews What are the best Auto Loan Companies Best Auto Loan Company Reviews

Auto Loan Company FAQ

Most auto loans are funded by smaller banks and credit unions. But, as you look for an affordable auto loan, you might see some familiar names like Capital One and Southeast Financial.
That depends on several factors, including your credit history and the amount you need to borrow. Searching for a car loan online gives you the advantage of comparison "shopping" for the best rate available to you.
No problem! There are many lenders that are willing to work with you even if your credit score isn't the best. You'll probably pay higher interest rates than a borrower with an 800+ credit score, but you'll still be able to get a loan.
When you request a rate quote online, most lenders perform a "soft pull" of your credit history: checking the information you provide against the credit bureaus' records to verify your identity. That doesn't affect your credit score. But, if you go through the entire process and actually submit a loan application, it'll temporarily lower your score.
You can get an auto loan without ever setting foot in a bank! Many of us have used a car dealer to obtain financing but, obtaining a car loan online is a smart and empowering option.
Auto loans are available in amounts ranging from $1000 to $100,000. To determine your eligibility for a loan, the lenders will take into account your credit history, current debts, and income.
Is 24 hours soon enough? While most auto loans take a few days to a week to be funded and deposited to your account, at least one lender has a one-day turnaround for most customers.
No, not when you choose a reputable provider! It's easy to find an auto loan from a lender with a strong reputation. Positive customer comments and a high rating from the Better Business Bureau are two indicators that the company is a trustworthy option for your loan.
Compare the Best Reviews

Continued from above...

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!

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