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Caribou vs LendingClub

Thursday, April 18th

2024 Car Loan Refinance Reviews

Caribou Review 4 Star Rating

Caribou

4 Star Rating
  • Fully online process for refinancing car loans
  • Works with a network of lending partners
  • Available to residents of most states (excluding MD, MS, NE, NV, WV)
  • Loan terms may include a processing fee of $399 to $499
  • Formerly known as MotoRefi
  • "A+" rated and accredited by the BBB
  • Hundreds of five-star reviews from clients

Caribou, formerly known as MotoRefi, offers a convenient and fully online process to help you find the right refinanced car loan. Partnering with institutions like GreenState Credit Union and Beneficial State Bank, Caribou's lending network aims to save you an average of $115 per month on your car payments. While they charge lenders a processing fee of $399 to $499 (which may be passed along to you), Caribou is upfront with that (somewhat unpleasant) detail, and their soft credit pull allows for easy prequalification without the need for your SSN. With nearly 700 five-star reviews and an "A+" rating from the BBB, Caribou has earned a solid reputation for its hassle-free refinancing process and personalized customer service. Despite those potential processing fees passed on by lenders, Caribou's commitment to transparency and customer satisfaction makes it a strong contender for your auto loan refinancing needs, earning it an excellent rating.

LendingClub Review 3.5 Star Rating

LendingClub

3.5 Star Rating
  • Refinancing available on vehicles 10 years old or newer, under 120,000 miles, with at least 24 months remaining on the current loan
  • Loan amounts between $4,000 to $55,000
  • Average savings of $78/month on refinanced loans
  • No origination fees or prepayment penalties
  • Available to residents of all states except AK, HI, ME, NH, ND, VT, WV, WY (DC also excluded)
  • Funded $90B+ in loans for over 4 million members since 2007
  • "A+" rated and accredited by the BBB
  • Tens of thousands of 5-star reviews

When considering LendingClub for your car loan refinancing needs, you'll find it's evolved from its roots as a peer-to-peer lending platform to a full-fledged bank, having facilitated over $90 billion in funds for more than 4 million individuals since 2007. LendingClub isn't available in every state or on every vehicle, so keep an eye on the eligibility criteria. However, if you qualify, the application process is straightforward, with a soft credit check involved. Once you've accepted a loan, expect the process to take up to 15 business days. LendingClub boasts an average savings of $78 per month for their customers. While interest rates range can vary, the lack of origination fees offers a cost-saving advantage. With numerous positive reviews praising their fast funding and user-friendly process, LendingClub stands as a solid choice for car loan refinancing, despite some limitations in eligibility and interest rates compared to competitors.

Where's the Best Place to Refinance Your Car Loan?

Imagine this: you've got a car, and you've got a loan to pay for it. But what if you could find a better deal, a way to pay less each month or even pay off your ride sooner? That's where refinancing comes in.

Maybe when you first got your loan, your credit score wasn't so hot, and you ended up with a not-so-great interest rate. Or maybe the economy has shifted, and interest rates have dropped since you first signed on the dotted line. Whatever the reason, if you can snag a lower interest rate by refinancing, you could end up saving some serious money in the long run.

The Best Car Loan Refinance Providers Compare Car Loan Refinance Providers Compare Car Loan Refinance Reviews What are the best Car Loan Refinance Providers Best Car Loan Refinance Reviews

Car Loan Refinance FAQ

Unless you got a really great deal when you bought your car, you're probably paying a high interest rate on your loan. Refinancing is a great idea if interest rates have dropped since the time you made your purchase, saving you hundreds (or thousands!) of dollars over the lifetime of your loan.
Eligibility requirements vary based on the lender and your state of residence. Most financial institutions require that your car be 10 years old or newer and have less than 150,000 miles - though you may find that some lenders have more stringent requirements. Some vehicle makes, such as Hummer, Saab and Isuzu, may be excluded from refinancing offers as well.
That depends. If you can get a new loan at a lower interest rate, chances are good that you'll save money on your monthly payments. But, if you refinance into a loan with a much longer repayment term, do the math to make sure you're not paying more in the long run. Also factor in any fees that may be charged for your new loan, because they will cut into your savings.
Probably not at your local bank! While it's tempting to go with the simplicity of refinancing through the financial institution you've always used, they're not going to compete for your business: they already have it! A better method is to look at your options online, where it's easy to get car loan refinancing offers from several lenders at once. Plus, internet-based lenders often have less overhead, which translates into lower rates for your refi.
Absolutely. For many smaller banks and credit unions, online lending lets them reach customers they might not find otherwise - which equals greater savings for you. Of course, it's important to do your homework and make sure that any service you use for your car loan refinancing is reputable and will protect your personal information, especially if you are required to enter your Social Security Number for identity verification. A strong rating from the Better Business Bureau is a solid way to establish that a service is legitimate.
Sometimes. Beyond the interest you'll pay on any loan, you may find origination fees or other costs for processing your application, updating your title, and so forth. Read the fine print before you commit to a lender for your auto refinancing.
Not necessarily, but it helps. As with any type of borrowing, higher credit scores usually translate into lower interest rates. And, some lenders have a minimum credit score of 580 (give or take) to be eligible to apply for auto refinancing loans.
Instead of applying directly with a single financial institution, you can use a referral platform to get quotes from multiple lenders at once. These services use vetted partners in their network, using your application to match you with banks and credit unions willing and able to fund your auto refinance loan. From there, the experience varies: some referral providers require you to re-enter all of your initial application information directly with the lender you select, while others streamline the process and transfer your details to the lender you've chosen. Be aware that you may get multiple emails, texts and phone calls from interested lenders when you provide your information to a referral platform!
Compare the Best Reviews

Continued from above...

Like anything in life, there are pros and cons to consider. On the upside, refinancing could mean lower monthly payments, which can free up some cash in your budget for other things, like saving up for a rainy day or treating yourself to a fancy coffee every now and then. Plus, if you can get a lower interest rate, you'll pay less in interest over the life of your loan, which means more money in your pocket.

But there are downsides too. Refinancing usually means extending the length of your loan, which could mean paying more in the long run, even if your monthly payments are lower. And if your credit score has taken a hit since you first got your loan, you might not qualify for a better rate anyway. Plus, there are often fees involved with refinancing, so you'll want to make sure the potential savings outweigh the costs.

All pluses and minuses aside, it's a smart idea to start your car loan refinancing online. Instead of driving down to your local bank or credit union, you can compare rates and apply for refinancing right from the comfort of your couch. Plus, online lenders often have lower overhead costs than traditional brick-and-mortar banks, which means they can sometimes offer better rates and terms.

When it comes to comparing different sites for auto loan refinancing, there are a few criteria you'll want to keep in mind:

  • Interest rates and terms. The whole point of refinancing is usually to get a better rate than you currently have. But don't stop there - be sure to look at the terms of the loan as well. How long will you have to pay it off? Are there any fees involved? And don't forget to read the fine print - you'll want to make sure there are no sneaky clauses that could come back to bite you later on.
  • Referral platform or direct lender. Some sites you'll visit serve as a referral platform, helping you check out your options with different banks and credit unions all in one shot. Others will offer to lend you the money directly. Make sure you know what you're getting before you start entering your SSN and other sensitive data.
  • Reputation. Is it a trustworthy service? Has it been rated by the Better Business Bureau? Are car owners like you getting good refi rates and excellent customer service?

Ultimately, the decision of which site to use for auto loan refinancing will depend on your individual circumstances. Maybe one lender offers a slightly lower interest rate, but another has better customer service or more flexible repayment options. To help you do your homework and crunch the numbers, the experts here at Top Consumer Reviews have rated and ranked some of today's most popular options for car loan refinancing. At the end of the day, those car payments are your hard-earned money, so why not make it go a little farther with a better loan?

The Best Reviews of Car Loan Refinance Providers