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Clearlane Auto Refinance Loans: 2018 Review

Dec. 11, 2018
Auto Loans
NerdWallet adheres to strict standards of editorial integrity to help you make decisions with confidence. Some of the products we feature are from partners. Here’s how we make money.
We adhere to strict standards of editorial integrity. Some of the products we feature are from our partners. Here’s how we make money.
3.0 NerdWallet rating

Good for: Average-credit borrowers who want to see multiple offers without hurting their credit

Clearlane, powered by financial giant Ally, arranges auto loans for borrowers from its network of lenders. Clearlane handles loans for refinancing your existing auto loan as well as buying out your leased vehicle.

Clearlane

Clearlane is a good fit for those who:

  • Have fair credit: Clearlane works with borrowers with credit scores above 620 for refinance loans.
  • Want to shop lenders: You can fill out one application to check offers from multiple lenders.
  • Don’t want to impact their credit score: Clearlane doesn’t require a hard credit inquiry to provide pre-qualified loan offers.

Clearlane at a glance

APR*3.34% - 11.99%
Loan amounts$5,000 - $75,000
Minimum requirementsCredit score: 620 for refinance loans
Income: $1,800/month
Hard credit check with application?No
AvailabilityAll states except Nevada
*Annual percentage rate is used to evaluate the true cost of borrowing money and includes the interest rate.

Clearlane review details

To see if you pre-qualify for a loan, Clearlane offers an easy application process that takes only a few minutes. Your application is sent to banks, credit unions or finance companies, which each have slightly different standards for pre-qualification. You can then see multiple offers and annual percentage rates. Keep in mind that these rates are estimates that might change later.

Initially, there’s no impact to your credit, but once you select an offer, you’ll have to provide a Social Security number and the lender will do a hard credit pull, to determine your creditworthiness. This slightly lowers your credit score.

Although the application process is simple, Clearlane’s website contains very little information — such as vehicle restrictions, sample APRs or frequently asked questions. Additionally, while Clearlane has an “F” rating from the Better Business Bureau, its parent company Ally has an “A+” rating. Clearlane’s rating is, in part, because it didn’t respond to consumer complaints. Clearlane has just 12 complaints, relatively few compared with other lenders.

Car loan rates

The best APR offered by Clearlane’s lenders is 3.34%, although this rate is only for applicants with excellent credit. The maximum rate is 11.99%.

Borrowers with poor credit can expect to get higher APRs, meaning more expensive loans. Lenders set their own requirements, but in general credit scores are categorized as follows:

  • 300-629: Bad credit.
  • 630-689: Fair credit, also called “average credit.”
  • 690-719: Good credit.
  • 720 and up: Excellent credit.

Clearlane will work with borrowers seeking a refinance loan with credit scores as low as 620. Check your credit score to know where you stand before applying for a car loan. Shop around if you have bad credit; you’ll likely be offered high APRs and comparison shopping can help you save money.

Applying to Clearlane

  • No application fee; late fees vary by lender.
  • Co-signers are allowed.
  • Apply online or over the phone.

Restrictions

  • Loan terms: 24 to 84 months (NerdWallet doesn’t recommend loans over 60 months for new cars).
  • Maximum vehicle age: 10 years for refinance loans.
  • Maximum vehicle mileage: 100,000 miles for refinance loans.
  • Available in all states except Nevada.

How Clearlane compares

About half of the auto lenders NerdWallet has reviewed require a hard credit pull. Clearlane conveniently offers a pre-qualification process that doesn’t require your Social Security number and gives you a rough idea of the rate you might get from one of its lenders.

Clearlane offers a wide range of loan amounts and competitive APRs. However, the minimum credit score of 620 for refinance loans is a bit higher than other lenders, such as LendingClub, which requires a score of 510.

Additionally, other lenders have sites that provide financial advice and education for borrowers. By comparison, Clearlane’s website is bare bones. While it’s easy to navigate and explains the basics, it provides little information about rates and terms.


CompanyMinimum credit scoreMinimum monthly incomeMaximum vehicle age/mileageHard pull?Get started
MyAutoloan
3.5 NerdWallet rating
500$1,10010 yrs / 125,000 miYes
OpenRoad Lending
3.0 NerdWallet rating
500$1,50010 yrs / 150,000 miYes
Lending Club
4.0 NerdWallet rating
510None10 yrs / 120,000 miNo
RateGenius
3.5 NerdWallet rating
525$2,00010 yrs / 150,000 miYes
CarFinance.com
3.5 NerdWallet rating
525None8 yrs / 100,000 miYes
IFS
4.0 NerdWallet rating
550$1,50010 yrs / 100,000 miYes
Capital One
4.0 NerdWallet rating
560$1,500 - $1,8007 yrs / No restrictionNo
RefiJet
NerdWallet rating: not rated
580$2,00010 yrs / 200,000 miNo
Autopay
3.0 NerdWallet rating
600$2,00011 yrs / 125,000 miNo
Clearlane
3.0 NerdWallet rating
620$1,80010 yrs / 100,000 miNo
Consumers Credit Union
3.0 NerdWallet rating
640$500; $2,000 preferredNo restrictionYes
LightStream
5.0 NerdWallet rating
660NoneNo restrictionYes


CompanyMin credit score, monthly incomeGet started
MyAutoloan
3.5 NerdWallet rating
500

$1,100
OpenRoad Lending
3.0 NerdWallet rating
500

$1,500
Lending Club
4.0 NerdWallet rating
510

None
RateGenius
3.5 NerdWallet rating
525

$2,000
CarFinance.com
3.5 NerdWallet rating
525

None
IFS
4.0 NerdWallet rating
550

$1,500
Capital One
4.0 NerdWallet rating
560

$1,500 - $1,800
RefiJet
NerdWallet rating: not rated
580

$2,000
Autopay
3.0 NerdWallet rating
600

$2,000
Clearlane
3.0 NerdWallet rating
620

$1,800
Consumers Credit Union
3.0 NerdWallet rating
640

$500; $2,000 preferred
LightStream
5.0 NerdWallet rating
660

None

Shopping for an auto loan

 

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Auto Loans Ratings METHODOLOGY

NerdWallet’s auto loans ratings reward lenders offering the most transparency and consumer-friendly features. Ratings are based on weighted averages of several categories, including flexibility of loan options, clarity of borrower requirements, accessibility, speed of funding and fees. Using our editorial discretion, we also consider consumer reviews and complaints. These ratings are a guide, but we encourage you to shop around to find the lowest interest rate you can qualify for. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.

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