Good for: Refinance applicants who want to see two different loan term options
Lending Club, known for peer-to-peer lending for personal loans, also offers traditional auto refinancing. With no effect on their credit score, applicants can see two loan terms and the corresponding rates to determine what best fits their budget. The company does not offer purchase loans.
Lending Club is a good fit for those who:
- Might want to extend their loan term to lower their monthly payment
- Want to avoid a hard credit pull before seeing the rates they qualify for
- Prefer a direct refinance loan from an established online lender
Lending Club at a glance
|APR*||3.49% - 24.99%
|Loan amount||$5,000 – $55,000|
|Minimum requiremetns||Credit score: 510|
|Hard credit check with application?||No|
Lending Club review details
Although Lending Club is known for peer-to-peer personal loans, its auto refinance loans are direct loans. Rate shoppers can get pre-qualified offers in minutes with only a soft credit inquiry, which won’t lower their credit score. Depending on their credit profile and vehicle details, “qualified applicants” will see a term-match offer, a term-extension offer or both, according to Abigail Edelman, a marketing director for Lending Club.
A term-match offer gives you the same term as the current length remaining on your loan, while a term-extension offer gives you a longer period, up to 12 months more than your remaining term, to repay the balance. NerdWallet generally doesn’t recommend extending an auto loan term if possible, because you run the risk of becoming upside down on the loan (owing more than the car is worth).
If you select an offer, a hard credit pull will be necessary before the loan is finalized.
Car Loan Rates
The lowest APR offered by Lending Club is 3.49%, but this will only be available if you have excellent credit — rates may be as high as 24.99%. Lenders can set their own requirements, but excellent credit is generally considered 720 or better, while 690 to 719 is generally considered good. Lending Club offers loans to borrowers with credit scores as low as 510; however, it has more stringent requirements for borrowers with scores below 630.
Remember that with average or below-average credit you won’t get the lowest interest rates, which means your monthly payment and total interest paid will be more. If you know your credit score, you can get an idea of the rate you might qualify for.
Applying to Lending Club
- No Social Security number required for pre-qualification
- Decision for pre-qualification within minutes; more information and hard pull required for final approval
- No application fee or prepayment penalty; late fees may apply
- Allows co-signers
- Maximum vehicle age: 10 years
- Maximum vehicle mileage: 120,000 miles
- Loan terms: match current loan term or extend it by 12 months
- Current loan: open for at least two months, with at least 24 months remaining
- Ineligible vehicles: RVs, motorcycles, commercial vehicles, salvage-title vehicles and certain makes and models, including Hummer, Pontiac, Saturn, Daewoo, Isuzu, Suzuki, Oldsmobile, diesel Volkswagens or Dodge Neons.
- Available in Alabama, Arkansas, Arizona, California, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Louisiana, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Washington and Wisconsin.
How Lending Club compares
Compared with other online auto refinance lenders we reviewed, Lending Club’s minimum credit score and income requirements are on the low end of the spectrum. Lending Club also has a more narrow loan amount range than many other lenders. The chart below shows how Lending Club compares with other auto refinance lenders. Some companies provide loans directly, while others may shop for loans for you from a network of lender partners.
|Company||Minimum credit score||Minimum monthly income||Maximum vehicle age/mileage||Hard pull?||Get started|
|MyAutoloan ||500||$1,100||10 yrs / 125,000 mi||Yes|
|OpenRoad Lending||500||$1,500||10 yrs / 150,000 mi||Yes|
|Lending Club||510||None||10 yrs / 120,000 mi||No|
|RateGenius||525||$2,000||10 yrs / 150,000 mi||Yes|
|CarFinance.com||525||None||8 yrs / 100,000 mi||Yes|
|IFS||550||$1,500||10 yrs / 100,000 mi||Yes|
|Capital One||560||$1,500 - $1,800||7 yrs / No restriction||No|
|Clearlane||600||$1,800||10 yrs / 100,000 mi||No|
|Autopay||600||$2,000||11 yrs / 125,000 mi||No|
|Consumers Credit Union||640||$500; $2,000 preferred||No restriction||Yes|
|Company||Min credit score, monthly income||Get started|
$1,500 - $1,800
|Consumers Credit Union||640|
$500; $2,000 preferred
More from Lending Club
Lending Club features a blog with information about auto refinancing and other lending topics. The company also offers an assortment of other types of loans, including business and personal loans, as well as medical financing options. As a peer-to-peer lender, Lending Club allows individuals and financial institutions to invest in many of its products.
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