Pros & Cons
- Applicants can pre-qualify with a soft credit check.
- Application process 100% online, including document upload.
- Social Security number not required to pre-qualify.
- Charges no origination fee.
- Borrowers can choose loan payment due date.
Not available in all states.
Has some vehicle restrictions.
Maximum refinance amount lower than other lenders.
Compare to Other Lenders
Although LendingClub is better known for peer-to-peer personal loans, it also offers auto refinance loans as a direct lender. LendingClub does not offer loans for purchasing vehicles.
LendingClub’s application process is completely online and enables borrowers to check rates with a soft credit check, which will not affect their credit scores. Applicants who qualify instantly see several pre-qualified offers with rates, terms and the resulting monthly payment. Unlike many lenders, LendingClub does not require a Social Security number to pre-qualify.
The number of pre-qualified offers shown depends on the applicant’s credit profile and vehicle details. Usually applicants see two offers, the first with a term matching the time remaining on their current loan. A second offer shows an extension of their current loan term by up to 12 months. While extending the term can lower the monthly payment, it can also cause a borrower to end up owing more than a car is worth, called being upside-down on a loan.
After an applicant selects an offer, LendingClub does a hard credit inquiry and may request additional information. Pre-qualification isn’t a guarantee of loan approval, and offer details can change after the hard credit inquiry. Pre-qualification does enable borrowers to see if refinancing can save them money, before they proceed with the loan. It’s also an opportunity to compare LendingClub loan rates with rates offered by other lenders.
LendingClub may be a good fit for those who:
Want to compare rates. Pre-qualification with a soft credit check will not affect an applicant's credit score.
Prefer an online application process. LendingClub’s application process is 100% online, including document upload.
Have fair credit. LendingClub has a lower minimum credit score requirement than many other lenders. Also, co-signers and co-borrowers are accepted, which can help a person who might not qualify alone.
LendingClub at a glance
More from LendingClub
LendingClub’s website has a resource center with information about auto refinancing and other lending topics.
LendingClub is considered a lending marketplace and peer-to-peer lender that allows individuals and financial institutions to invest in many of its products. The company offers several different types of loans, including auto refinancing loans, personal loans, medical financing options and business loans.
LendingClub auto loan rates
Lenders set their own qualification requirements, but the lowest rates are typically available only to borrowers with good or excellent credit (a FICO score of 690 or higher). With fair or bad credit, you won’t get the lowest interest rates, which means your monthly payment and total interest paid will be more.
You can check your credit score before applying for a car loan.
Loan example: According to NerdWallet's auto loan calculator that uses the VantageScore credit model, a borrower with a credit score of 501-600, a $10,000 car loan, a repayment term of 36 months, an interest rate of 12%, and a $0 down payment would have monthly payments of $332.
To review LendingClub, NerdWallet sent a survey to LendingClub requesting more than 60 data points and followed up with company representatives. This information was compared with other lenders that seek the same customer or offer a similar product.
Frequently asked questions
LendingClub is a peer-to-peer lending company headquartered in San Francisco. It has connected borrowers and investors since 2007. It also offers auto loan refinancing through direct loans.
LendingClub is accredited by the Better Business Bureau, where it has received an A- rating.
In July 2021, LendingClub agreed to pay $18 million to settle a lawsuit after the Federal Trade Commission alleged the company didn't disclose upfront hidden fees to loan applicants and told applicants loans were approved when they weren’t. In a blog post response, LendingClub stated they believed they “had not violated any law enforced by the FTC.” In this same post, they outlined steps taken in response to the litigation, including the removal of a “No Hidden Fees” statement from marketing materials.
LendingClub offers auto loan refinancing, but it doesn't offer auto purchase loans, lease buyout loans or cash-out refinancing.