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Lending Club Auto Refinance Loans: 2018 Review

Feb. 11, 2018
Auto Loans, 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.
4.0 NerdWallet rating

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

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 requiremetnsCredit score: 510
Hard credit check with application?No
Availability32 states
*APR is used to evaluate the true cost of borrowing money and includes the interest rate.

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

Restrictions

  • 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.


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
Clearlane
3.0 NerdWallet rating
600$1,80010 yrs / 100,000 miNo
Autopay
3.0 NerdWallet rating
600$2,00011 yrs / 125,000 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
Clearlane
3.0 NerdWallet rating
600

$1,800
Autopay
3.0 NerdWallet rating
600

$2,000
Consumers Credit Union
3.0 NerdWallet rating
640

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

None

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.

Shopping for an auto loan

 

More from NerdWallet

See more car loan providers
See more auto loan refinance options
See whether auto loan refinancing is right for you


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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