Clark Galvan
LendingClub offers auto loan refinancing services for personal vehicles that are 10 years old or newer, have under 120,000 miles on them, and have a remaining balance of between $4,000 and $55,000. The company does not, however, offer personal loan refinancing services for its own loans. That means you can't use a LendingClub loan to pay off another LendingClub loan and get a lower interest rate. If you're looking to refinance a personal loan, you can do so with a new loan or a balance transfer credit card from a different lender.
| Characteristics | Values |
|---|---|
| Can you refinance a LendingClub personal loan? | Yes, but not with another LendingClub loan. |
| How to refinance a LendingClub personal loan | Use a new personal loan or a balance transfer credit card from a different lender to pay off your remaining LendingClub balance. |
| When to refinance a LendingClub personal loan | When it saves you money, i.e., when your new loan or credit card has a lower APR than your old loan. |
| How long does it take to get the loan? | A few business days after approval. |
| Auto loan refinancing through LendingClub | Your vehicle must be for personal use only, 10 years old or newer, under 120,000 miles, and your existing auto loan must be open for at least one month, have a balance between $4,000-$55,000, and at least 24 months of payments remaining. |
| Auto loan refinancing impact on credit score | Checking your rate will not impact your credit score, but accepting an offer will trigger a hard credit check, which may or may not impact your credit score in the short term. |
What You'll Learn
- LendingClub does not offer refinancing services for its own loans
- Refinancing a personal loan can hurt your credit score in the short term
- You can refinance a LendingClub personal loan using a new loan or balance transfer credit card
- Your credit score affects your interest rate
- You can refinance your car loan with LendingClub Bank
LendingClub does not offer refinancing services for its own loans
LendingClub does, however, offer auto loan refinancing for your car loan. The process is fast and simple, and you can complete the application in minutes. To qualify, your vehicle must be for personal use only, 10 years old or newer, have under 120,000 miles on the clock, and your existing auto loan must be open for at least one month, have a balance between $4,000-$55,000, and at least 24 months of payments remaining.
LendingClub Bank cares about your financial health and offers several ways for you to make your monthly auto loan payments, so you can choose the method that works best for you. A statement will be mailed to you every month that shows the payment amount and due date. You can also make extra payments or pay off your loan early without any fees.
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Refinancing a personal loan can hurt your credit score in the short term
LendingClub does not offer personal loan refinancing services for its own loans. In other words, you cannot use a LendingClub loan to pay off another LendingClub loan and get a lower interest rate. However, you can refinance a LendingClub personal loan using either a new personal loan or a balance transfer credit card from a different lender.
To limit the impact on your credit score, try to submit all your applications within a short period, ideally within 14 days. Most credit scoring models treat loan inquiries between a 14-day to 45-day period as one inquiry, minimizing the negative impact on your credit score. Applying for different loans over a period of several months, on the other hand, could have a lasting negative effect on your credit score.
In the long run, refinancing a personal loan can have a positive impact on your credit score if you make on-time payments. As you start repaying your new loan, your on-time payments can help you build a positive credit history, which can increase your credit score over time.
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You can refinance a LendingClub personal loan using a new loan or balance transfer credit card
Yes, you can refinance a LendingClub personal loan using a new loan or a balance transfer credit card from a different lender. By paying off your remaining LendingClub balance with a new, lower-interest loan or credit card, you will shift what you owe to the new lender and save money on finance charges.
Before you refinance your personal loan, consider whether it's the right time. Your credit score, for example, will affect your interest rate. If your credit score has improved since you took out your current loan, it may be a good idea to refinance, as you may be able to get a lower interest rate. This will reduce the total cost of the loan.
It's also worth noting that LendingClub does not offer personal loan refinancing services for its own loans. In other words, you can't use a LendingClub loan to pay off another LendingClub loan and get a lower interest rate in the process.
If you're looking to refinance your car loan, LendingClub Bank offers a quick application process to get you the best rate possible. You can check your rate without affecting your credit score, and if you qualify, you'll receive up to two offers.
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Your credit score affects your interest rate
Your credit score is a snapshot of your overall credit health, and it plays a significant role in determining the interest rate you'll be offered by lenders. A higher credit score indicates a lower risk of defaulting on a debt, which is more desirable for lenders. As a result, lenders may offer a lower interest rate to borrowers with higher credit scores.
When you apply for a new loan or other forms of credit, your credit score will influence not only whether your application is approved but also the interest rate you'll be charged. Lenders use risk-based pricing to set interest rates, taking into account your credit score and credit report, which provide insights into your past credit management. A good credit score can help you secure more favourable loan terms, including lower interest rates.
For example, if you're applying for a fixed-rate 30-year mortgage of $200,000, a credit score in the highest category (760-850) could result in a lender charging you an interest rate of 3.307%, with a monthly payment of $877. On the other hand, a lower credit score in the range of 620-639 might lead to an interest rate of 4.869%, increasing your monthly payment to $1,061. In this scenario, the lower credit score would cost you an additional $184 per month, or $66,343 over the life of the loan.
It's important to note that while your credit score is a significant factor, it's not the only one considered by lenders. They also review your credit report for negative items, such as foreclosure, bankruptcy, or collection accounts. Additionally, your credit score can change over time, and improving your credit habits can positively impact your score. Checking your credit score regularly and taking steps to improve it can put you in a better position to secure more favourable loan terms.
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You can refinance your car loan with LendingClub Bank
Yes, you can refinance your car loan with LendingClub Bank. The process is fast and simple, and you can do it all online. LendingClub Bank offers a quick application process to get you the best rate possible and ensure your auto refinance runs smoothly.
To qualify for auto loan refinancing through LendingClub, your vehicle must be for personal use only, 10 years old or newer, have under 120,000 miles on the clock, and your existing auto loan must be open for at least one month, have a balance between $4,000-$55,000, and at least 24 months of payments remaining.
You can check your rate through LendingClub as many times as you like, with no impact on your credit score. Once you have found the best offer for you, you can complete a simple, secure online application. LendingClub will then let you know what documents to send them, such as your driver's license, vehicle registration, and proof of insurance.
On average, members who refinance their car or truck with LendingClub Bank lower their payment by about $43 per month.
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Frequently asked questions
Yes, you can refinance a LendingClub personal loan using either a new personal loan or a balance transfer credit card from a different lender. However, LendingClub does not offer personal loan refinancing services for its own loans.
You can refinance your LendingClub personal loan by paying off your remaining LendingClub balance with a new, lower-interest loan or credit card. This will shift what you owe to the new lender and save you money on finance charges.
You should refinance your LendingClub personal loan if it saves you money. Your new loan or credit card should ideally have a lower APR than your old loan. You can qualify for a lower APR if your credit score and overall financial situation are better than when you got the first loan.
To check if you qualify for a lower APR, you should check your credit score. Checking your credit score will help you see if you can get approved with your current score or if you need to spend time improving it.
To qualify for auto loan refinancing through LendingClub, your vehicle must be for personal use only, 10 years old or newer, have under 120,000 miles, and your existing auto loan must be open for at least one month, have a balance between $4,000-$55,000, and at least 24 months of payments remaining.
