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LendingClub Review

Thursday, May 30th

2024 Car Loan Refinance Reviews

LendingClub Review 3.5 Star Rating


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

As implied by its name, LendingClub initially operated as a peer-to-peer lending platform, facilitating loans between individuals. However, since its inception in 2007, LendingClub has evolved into a fully-fledged bank, moving away from its reliance on peer lending. This shift in approach has proven successful, with over 4 million individuals accessing more than $90 billion in funds through the platform.

Not available for every vehicle

You'll have to meet a few criteria to be eligible for car loan refinancing through LendingClub. First, your vehicle has to be 10 years old or newer and under 120,000 miles. Also, your existing loan has to have a balance between $4,000 to $55,000, with at least 24 months of remaining payments. And, there's a list of makes that aren't eligible for refinancing, some you'd expect (like Aston Martin, Maserati) and some that might surprise you (like Isuzu, Daewoo, Suzuki).

Or in every state

Finally, LendingClub isn't available everywhere: at the time of this review, residents of Alaska, Hawaii, Maine, New Hampshire, North Dakota, Vermont, West Virginia, and Washington DC were excluded from applying for vehicle refinancing. Wyoming was also on the no-go list, but LendingClub indicated that they were working on expanding their service into the state in the near future.

Best Car Loan Refinance Providers

You won't have to sort through tons of offers

Now that that's covered, are you ready to start? Because LendingClub funds its auto loan refinancing by itself, you won't have to sift through multiple offers from various lenders. However, you will probably get a couple of options to choose from, once you fill out the initial application (which will involve a soft pull on your credit). That could be a longer loan term to reduce your monthly payments, or a shorter repayment term to drop your total interest paid over the course of the loan.

Up to 15 business days to complete the refi

Once you've accepted a loan offer, expect the process to take up to 15 business days. You can help make the process go more smoothly by uploading any requested documents (like proof of insurance) into your dashboard. You'll also have a few steps to take in order to upload your title, and pay attention to whether or not your state requires you to have the documents notarized.

Rates are just average, but you won't pay origination fees

LendingClub's car loan refinancing saves their customers about $78/month, on average. Of course, whether that's true for you will depend on your circumstances and the loans for which you qualify. On the plus side, LendingClub doesn't charge any origination fees: that will save you some money over some of the alternative sources of refinancing on our list. At the time of our evaluation interest rates were not the highest we've seen, but certainly not the lowest either.

Best Car Loan Refinance Providers

Enthusiastic feedback from clients

Customers rave about their experiences with LendingClub, with over 4,500 individuals on Trustpilot awarding the service a flawless 5-star rating. Many of these reviewers are repeat customers who have found immense value in LendingClub's hassle-free loans. They compliment the platform for its fast loan funding, easy application process, and competitive rates and terms compared to other lenders. The Better Business Bureau also recognizes LendingClub's excellence, with a perfect "A+" rating and accreditation. LendingClub promotes transparency by displaying all feedback, and yet even their own platform boasts an impressive average rating of 4.83 out of 5 stars across nearly 70,000 unfiltered and authentic reviews. While we couldn't find any that were specific to car loan refinancing, it's easy to see that this company is doing right by its borrowers.

Great for car loan refinancing if you qualify

At the end of the day, LendingClub comes in as above-average for refinancing vehicle loans. There are the obvious drawbacks (like the states whose residents aren't eligible and the 10-year age limit on the vehicle), but they're well-balanced by the upsides (such as the tens of thousands of happy customers). While you might want to look at LendingClub's higher-ranked rivals on our list first, this is still a solid place to get car loan refinancing if you qualify.

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!
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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?

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