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Refinancing your car loan can lower your monthly payment, and LendingClub's interest rates start at just 3.99%

LendingClub has been in the peer-to-peer lending marketplace since 2007.

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If your car payment feels too high and you've improved your credit score since you took out your auto loan, refinancing may be a smart option for you.

LendingClub offers auto loan refinancing with no origination fees and no prepayment penalties to qualified borrowers and has a straightforward application process.

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LendingClub has been around since 2007 and has been a major player in the peer-to-peer lending marketplace; it matches borrowers with investors for a mutually beneficial relationship. Borrowers can get the capital they need, and investors can earn money on their loan.

According to the company's website , LendingClub is committed to leveling the playing field so everyone can access a better financial future. The company aims to do this by keeping costs low and providing access to credit through easy-to-use technology.

LendingClub, while most well-known for its personal loans, also offers business loans, auto refinancing, and options to finance medical care. The company has served more than 3 million customers with over $50 billion borrowed.

Using LendingClub, you can refinance an auto loan of up to $55,000. Your car must be 10 years old or newer, have fewer than 120,000 miles, and be a personal-use automobile. Your existing loan must be at least a month old with a remaining balance of between $5,000 and $55,000, and you must have at least 24 months left on your loan period.

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If you qualify, you'll pay a fixed monthly rate for the life of your loan. However, LendingClub does not charge any prepayment penalties, so you can pay off your loan sooner without worry.

The Annual Percentage Rate (APR) on refinanced auto loans with LendingClub is between 3.99% and 24.99% as of December 2019. The APR you get approved for will depend on your credit as well as how much you want to borrow and your current debt obligations.

To apply, you'll fill out a form that includes your name, address, phone number, and annual income. If you applied for your original loan with someone else, you'll have to share that person's information, too.

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From there, LendingClub will perform a soft pull on your credit to look for any outstanding auto loans. If you have a qualifying loan, LendingClub will ask for more information about your car and provide one or more loan offers.

Once you've accepted an offer, LendingClub will request paperwork including proof of insurance, registration, and a copy of your driver's license. You'll also have to provide two personal contacts and complete a title transfer.

You'll upload these documents to LendingClub's website within 30 days, sign your loan documents online, then start making your payments directly to LendingClub.

LendingClub does not charge any application or origination fees for auto loans, but you may have to pay a title transfer fee to your state DMV. LendingClub will charge late fees if you miss a payment, though, so refer to your loan documents for the exact cost of late fees.

Refinancing is not available for Hummer, Pontiac, Saturn, Daewoo, Isuzu, Suzuki, or Oldsmobile vehicles, nor for diesel Volkswagen vehicles, Dodge Neons, or any commercial vehicles.

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LendingClub is a reputable lender with over a decade in business and overall positive customer feedback.

While its auto loan refinancing rates are reasonable, other lenders may offer lower rates. LendingTree , for example, offers auto loan refinancing rates starting at 2.89%, which is lower than than LendingClub's bottom rate of 3.99%. But you may not get the lowest rate from either lender, so always compare quotes to get the best offer.

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