In a Nutshell
- Marketplace model offers access to incredibly competitive rates
- Online payments simplify the process of keeping on top of loans
- Can take time to approve, match, and process a loan
- Rates and terms vary between lenders
An innovative online credit marketplace that helps borrowers uncover competitive rates to refinance their auto loan.
Lending Club: A Novel Approach to Lending
The first thing that stood out to us when reviewing LendingClub’s marketplace was the numerous advantages available for borrowers. Using their marketplace model, the company has already become a major player in the personal loans space. Now their newest venture is auto loan refinancing, which gives borrowers access to better rates and simple application process.
Lending Club at a Glance
LendingClub is America’s #1 credit marketplace, assisting customers with getting access to business loans, auto loans, personal loans, and even medical financing. The company was founded in 2007 by Renaud Laplanche, initially as a Facebook application. Since its inception, the company has facilitated over 2.5 million loans and investors have provided capital for over $31 billion in loans. At the end of 2016, LendingClub launched a new service focused on providing customers with access to auto refinancing solutions, using the credit marketplace model.
Suitable for Whom?
For borrowers with a wide range of credit scores, LendingClub offers customers the opportunity to get access to refinance their current auto loans and save on their monthly payments. The easy online interface makes it ideal for customers to compare rates and get an offer without having a hard credit inquiry that can impact their scores. Furthermore, potential customers can avoid dealing with bureaucratic red tape of traditional financing options.
We were impressed with the overall quality of LendingClub’s financing solutions. The company’s credit marketplace model means that customers can get access multiple loan offers and select the option most suitable for their needs. Qualified customers can refinance their auto loans for amounts ranging from $5,000 to $55,000. In addition, the company hosts great educational resources through their blog, updating it regularly with insightful articles on auto care, credit and personal finance related topics.
To make the refinancing process easier, LendingClub has designed a streamlined application and approval process, helping borrowers get access to financing as quickly as possible. If they qualify, customers will almost instantly be matched with several different loan options before choosing the one that fits their needs. Auto refinance loans through LendingClub don’t include an origination fee. This can be an ideal solution for customers who are looking to access better interest rates and save on their monthly car payment.
Highlights from our Lending Club review:
- Avoid complicated and lengthy applications
- Competitive rates for refinancing for all types of customers
- Brief time from application to funding
- Complete an application from your mobile device
- Simply checking your rate will not impact your credit score
Customers can easily access beneficial refinancing opportunities thanks to LendingClub’s fast online application. The company’s online platform asks borrowers for basic contact information as well as financial details including their car details, income level and employment status. There are some vehicle requirements for customers looking for auto refinancing which include:
- The car being financed must be 10 years old or newer, with less than 120,000 miles
- The vehicle must be a personal use car, which excludes RV’s, commercial vehicles, or motorcycles
Additionally, Lending Club will only offer refinancing for customers with the following loan conditions:
- A remaining debt of $5,000 to $55,0000
- The existing loan must have a minimum 24 outstanding payments
- The loan must have at least two payments made
For customers that meet these requirements, the next step following the initial application is to get offers. If they qualify, applicants can review a range of terms and rates, before selecting the optimal choice. Once selected, customers must submit additional supporting documents to be verified, which can easily be done from a mobile device. Once approved, their existing loan will be paid off and the balance transferred to LendingClub.
Loan Types and Terms
Auto refinancing loans through LendingClub focuses solely on refinancing existing loans. For customers who are looking to improve upon their current rates and save on their monthly payments, this may be an outstanding solution. The company’s platform offers customers the ability to obtain access to better rates thanks to a competitive model. The terms through LendingClub are flexible, although there must be 2 months of consecutive on-time payments and auto loans must still have at least 24 months of payments outstanding.
The loan amounts through LendingClub are also versatile, starting as low as $5,000 but reaching up towards $55,000 of existing debt. However, their platform generates the loan amount based on the customer’s current auto loan balance. Refinancing APRs can start as low as 3.49% and reach upwards of 24.99% after accounting for fees. Loans are issued by WebBank, which is FDIC-insured.
For customers seeking a loan to purchase a new or used car, potential borrowers can also take full advantage of personal loans through LendingClub, which offer similar loan amounts and feature the same credit marketplace model that promotes access to advantageous rates.
How Safe is It?
We were pleased to see that LendingClub takes great care to protect customers’ data. Because the company operates almost entirely online with sensitive information, they must operate at stringent security levels. LendingClub uses industry standard encryption protocols and secure web pages. Additionally, they have developed and implemented identity theft programs designed to protect customers from fraud. LendingClub does collect user information, but are very transparent about what data they collect and how they use it.
LendingClub’s online platform means that all payments can be handled electronically directly through their website. Customers can choose their method of payment. Borrowers can opt to set automatic monthly payments or even send checks by mail. Customers who select refinancing can generally choose the date they want to make their payment after their first payment is made. We appreciated that LendingClub does not penalize customers for paying their loans early.
Deep Dive into Pros and Cons
We were thoroughly impressed with several aspects of what LendingClub offers:
- The online credit marketplace model offers access to incredibly competitive rates and no red tape
- Customers can complete their application in a few minutes and see an offer they qualify for
- Loan terms are flexible and amounts are versatile enough to fit a wide range of financing needs
- Online payments simplify the process of keeping on top of loans
Help & Support
LendingClub has a US-based customer support team that can help answer any questions. Plus customers can take advantage of a broad knowledgebase for support, as well as email a customer support team member directly. We found that emails were responded to promptly with informative and courteous replies. We would have liked to see more options to reach the company such as live chat, but their knowledgebase covers most of the frequent questions asked by LendingClub customers.
Overall, we were impressed with the auto refinancing solution through LendingClub. Although the auto refinancing product has only been active for one year, the company has already created an outstanding platform for customers to find the rates and terms they deserve. Thanks to their excellent credit profiling system, LendingClub can easily provide access to applicable rates for a wide range of potential borrowers. With a simple application and excellent product, LendingClub presents an ideal solution for customers looking for an effortless and effective auto refinancing service.
71 Stevenson Street, Suite 300
San Fransisco, CA