LendingClub Auto Loan Refinancing Review 2024 (2024)

Founded in 2006, LendingClub launched its auto refinancing product in 2016. While a LendingClub representative says that the company’s refinancing loans are available to 97% of the U.S. population, the company doesn’t offer these loans in Alaska, Hawaii, Maine, Mississippi, New Hampshire, North Dakota, Vermont, West Virginia or Wyoming.

Drivers can refinance auto loan amounts between $4,000 and $55,000. As of October 26, 2022, annual percentage rates (APRs) range from 2.99% to 24.99%. The APR you’ll qualify for will depend on several factors, including but not limited to your loan amount, repayment term length, loan-to-value (LTV) ratio and vehicle characteristics as well as credit usage and history.

Borrowers who refinance with LendingClub save an average of $86 per month, according to the company. However, keep in mind that the average LendingClub borrower has a FICO score of 700 and can likely qualify for decently competitive interest rates.

LendingClub requires a minimum credit score of 510, which can make the company a good choice if you have bad credit. Additionally, you can check your personalized rate with LendingClub with only a soft credit check that won’t hurt your credit score. Keep in mind that a hard credit check is required if you decide to proceed with the application.

Also note that you’ll likely need good to excellent credit to qualify for the most competitive rates—a good credit score is usually considered to be 670 or higher.

In addition to meeting credit requirements, your vehicle will also need to fit LendingClub’s eligibility criteria. To qualify, your vehicle must:

• Be for personal use only
• Be 10 years old or newer
• Have under 120,000 miles
• Not be a Hummer, Pontiac, Saab, Saturn, Daewoo, Isuzu, Suzuki, Oldsmobile or Nissan Leaf
• Be under an existing auto loan that’s been open for at least one month and has at least 24 months of payments remaining

Unlike some lenders, LendingClub doesn’t charge origination fees or prepayment penalties on its auto refinance loans. However, state and local title and registration fees could apply, which can be added to your financed amount.

Federal Trade Commission (FTC) Complaint

On April 25, 2018, the FTC filed a complaint against LendingClub, alleging that the company:

• Promised “no hidden fees” but deducted a hidden, upfront fee from loan amounts
• Misled consumers into believing their loans were approved and that funds were on the way when the company knew the loans would be denied

On July 14, 2021, LendingClub agreed to pay $18 million to settle the complaint, though the company also didn’t admit any wrongdoing.

To apply for a LendingClub refinance loan, follow these steps:

1. Check Your Rate

To see your personalized rates from LendingClub, navigate to LendingClub’s auto refinancing page, select your state from the dropdown menu and click on “Check Your Rate.”

Next, indicate what your refinancing goal is based on the options given—such as wanting to lower your car payment or interest rate—and provide your personal information as well as details about your vehicle and current loan.

LendingClub will then run a soft credit check, and if you’re eligible, you’ll get an immediate loan offer that’s good for 30 days.

2. Fill Out the Application

If you decide to proceed with LendingClub, you’ll need to fill out a full application, which you can do in just a few minutes on the company’s website. Approval typically takes between 24 and 72 hours after you’ve submitted the required information.

Keep in mind that LendingClub will perform a hard credit check when you submit an application. This could cause a slight but temporary drop in your credit score.

3. Manage Your Payments

If you’re approved, you can expect the loan to be funded in as little as two days, though it might take longer in some cases. LendingClub will pay off your previous lender, and you’ll then begin making payments to LendingClub. Be sure to continue making your payments in the meantime until the process is complete.

Related:Best Auto Loan Rates

If LendingClub denies your application, you’ll have to wait at least 30 days before you can reapply. In the meantime, be sure to check with the company to see why you were turned down. For example, you could be denied if you have too low of a credit score, insufficient income or too much debt. Depending on the reason, it could be a good idea to focus on improving these areas before reapplying.

You could also consider applying with a co-signer or co-borrower to increase your approval odds. Keep in mind that this person would share responsibility for the loan—meaning they’d be on the hook if you don’t make your payments. So before you ask anyone to co-sign a loan, be sure to consider how much you can reasonably afford. You can use our auto loan payment calculator to estimate what your monthly payments might look like.

Additionally, make sure to compare your options with as many auto loan refinance lenders as possible. While you might not qualify with LendingClub, you could be eligible with another lender. This will also help you find a good deal more easily.

As of October 26, 2022, LendingClub is Better Business Bureau (BBB) accredited with an A rating, and it has received a star rating of 4.58 out of 5 based on 2,214 customer reviews. It has closed 446 complaints in the last 12 months and 1,024 complaints in the last three years. Note that many of these customer reviews focus on LendingClub’s personal loans rather than auto refinancing.

Reviews are also largely positive on Trustpilot. As of October 26, 2022, the lender has earned a 4.8-star rating based on 4,287 customer reviews. Many reviews focus on customer service experiences, a lack of fees, a simple application process and fast lending decisions. On the other hand, some customers report issues with unhelpful customer service representatives, burdensome qualification requirements and delays during the approval process.

Like the BBB reviews, most of the TrustPilot reviews for LendingClub aren’t specifically concentrated on its auto refinancing loans.

We reviewed LendingClub based on 16 data points in the categories of loan details, loan costs, eligibility and accessibility, customer experience and the application process. We reviewed the lender based on the weighting assigned to each category:

• Loan cost: 30%
• Eligibility and accessibility: 25%
• Loan details: 20%
• Customer experience: 15%
• Application process: 10%

Within each major category, we also considered several characteristics including available loan amounts, repayment terms, interest rate ranges, applicable fees and available discounts. We also looked at minimum credit score requirements, maximum accepted mileages, whether the lender accepts co-signers or co-borrowers and the geographic availability.

Finally, we evaluated the provider’s customer support tools, borrower perks and features that simplify the borrowing process—like online application options, mobile apps and turnaround time.