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LendingClub Review

Friday, December 2nd

2022 Car Loan Refinance Reviews

LendingClub Review 3.5 Star Rating

LendingClub

3.5 Star Rating
  • Refinancing available for cars with outstanding balances of $5,000 to $55,000 and at least 24 months of remaining payments
  • Cars must be 10 years old or newer and have under 120,000 miles
  • No origination fees or prepayment penalties
  • Low APR interest rates
  • Not available in all states or for all makes/models of vehicles

LendingClub has gone through some changes in recent years: while they used to be a peer-to-peer borrowing and investment platform, essentially crowdfunding all types of loans, they are now structured more like a typical financial institution and fund all loans on their own. That's worth knowing, because you may find wording as you browse the site that still makes reference to "lenders" or "lending networks" . (At the time of this review, their main article explaining auto refinancing hadn't been updated to reflect the new structure, for example.) You'll have a more streamlined borrowing experience now, but don't expect to get multiple offers for your refi loan.

Watch out for excluded states and vehicles

We also had to read the fine print to learn that LendingClub doesn't offer auto refinancing across the board. Their loans are only available in 35 states; notable in the list of exclusions are New York, Colorado, and DC. There are also several vehicle makes that won't be eligible for a refi loan here, including Hummer, Saab, Suzuki and Nissan Leaf, as well as any domestic truck designated as a "3500" or with a payload capacity of a ton or more.

No SSN required to get refi loan quotes

To get a refi quote, you'll start by choosing your primary goal: getting the lowest possible monthly payment or lowering your interest rate. (You can also choose "just curious" .) When we chose the latter, we were taken to a surprisingly-simple quote application: no Social Security Number required, just our name, address, phone number, birthdate, and annual individual income. Unfortunately, we were given an unexplained error page when we applied and got no quotes for our auto refinance loan rate. That may be due to the fact that we opted for the "just curious" setting; you may need to play with the settings to get a quote specific to your car loan and borrowing goals.

Best Car Loan Refinance Providers

Lots of positive recent feedback from clients

How about LendingClub's reputation? Their restructuring led to a change in their rating from the Better Business Bureau, from "A" to "Not Rated" , in order to give the BBB time to gather more feedback before evaluating the new-and-improved service. Looking at the most recent reviews from clients using LendingClub for a variety of loan types, we were pleased to see that the vast majority give the company a rating of 4 or 5 stars. While most of them made no reference specifically to auto refinancing, it's encouraging to see repeat borrowers among the reviews.

Worth considering for car refinancing

Is LendingClub a good choice for auto refinancing loans? Maybe. They'll need to keep expanding the states where they offer financing if they want to compete with other lenders, because too many potential customers are excluded by their 35-state service area. And, the jury's still out as far as the BBB listing goes, waiting to be updated after the company's move away from peer-to-peer funding. But, we wouldn't be surprised to see LendingClub move up in our rankings in the future, based on the ample positive, recent feedback from people who have used them to get loans.

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

With interest rates dropping like crazy, you're smart to think you might be able to save some money with a new loan. Whether you choose to keep your monthly payments the same and shorten your loan term or lower your payments and spend your cash on other necessities, it's almost a guarantee that refinancing will be a good decision.

In the past, most people would go to their bank or credit union to get a car loan refi. After all, it's comfortable, familiar, and easy to set up with checking or bank accounts that are already established there. But, that's not the best idea if you want the nation's top rates and terms for car loan refinancing. Your hometown bank doesn't need to compete with other lenders for your business: they already have it!

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

Money-wise consumers look to the internet for the best deals, and car loan refinancing is no different. There's no need to accept the first loan offer you see if you can get quotes from several financial institutions at once. Most online lenders have rates and terms that will easily beat anything you find locally, with all the convenience of a completely-online application and approval process. Save money while sipping coffee at home in your pajamas? Why not!

Looking at the available options for car loan refinancing online, it can be hard to tell different lenders apart. Which one should you use, not just to get an initial rate quote but ultimately to finalize your new loan? Here are several ways you can evaluate each choice to find the car loan refinancing that's right for you:

  • Vehicle Eligibility. Most lenders won't refinance a loan on a car that is more than 10 years old or over a certain mileage, usually between 120,000 and 150,000. Some even have make/model restrictions that may prevent your car from qualifying. Fortunately, most cars will be eligible for loan refinancing with the majority of lenders on the market today.
  • Personal Eligibility. What is required of you as a borrower to qualify for a refinanced car loan? You may need a certain minimum credit score or monthly income amount.
  • Referral Service or Direct Lender. You'll find two approaches to car loan refinancing: get a new loan right from the financial institution, or work with a platform that lets you get quotes from more than one lender at a time. Either option is good, but referral services give you access to smaller banks and credit unions that often offer more competitive rates on refinanced loans.
  • Reputation. What have other car owners said about their experience when refinancing their car loans with a given lender? Was the process smooth or aggravating? Were there any surprises? Has the Better Business Bureau rated the company?

TopConsumerReviews.com has evaluated and ranked the best providers of car loan refinancing available today. We're confident that this information will help you get the rates and terms you're looking for to save money on your car payments!

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