What iLending car refinancing is
iLending is an online platform that lets you refinance an existing car loan — meaning you replace your current loan with a new one, usually at a different interest rate or term. The company handles the process and paperwork online rather than requiring you to visit a bank or credit union in person. If approved, iLending pays off your old loan and you begin making payments to the new lender instead.
Refinancing makes sense when you want to lower your monthly payment, reduce the total interest you pay over the life of the loan, or shorten how long you owe money on the car. It can also help if your credit score has improved since you took out the original loan, which often means you may have access to for better rates.
Key Takeaways
- iLending refinances existing car loans through an online process; you do not need to visit a physical location.
- Your new interest rate depends on your credit score, income, the car's age and mileage, and how much you still owe compared to what the car is worth.
- The refinancing process typically takes one to two weeks from process to funding, though this varies by lender.
- You will need your current loan documents, proof of income, and details about the vehicle to start the process.
- Refinancing costs money upfront — origination fees, title transfer fees, and other charges — so calculate whether the savings justify the cost.
How the iLending refinancing process works
You start by entering basic information on iLending's website: your name, the vehicle details (year, make, model, mileage), and your current loan balance. The platform then shows you estimated rates based on that information. These are not final offers — they are a starting point to help you decide whether to move forward.
If you want to proceed, you submit a full process. This includes your Social Security number, employment history, income, and details about your current loan. iLending pulls your credit report at this stage. You will also need to upload documents: your driver's license, proof of income (recent pay stubs or tax returns), and your current loan documents.
Once iLending receives everything, a loan officer reviews your process. If approved, you receive a formal loan offer showing the interest rate, monthly payment, loan term, and all fees. You review and sign the paperwork electronically. iLending then contacts your current lender, pays off the old loan, and sends you the new loan documents. Your first payment to the new lender is typically due 30 to 45 days after funding.
What affects your interest rate and approval
iLending, like all lenders, bases your rate on several factors. Your credit score is the biggest one — a higher score usually means a lower rate. Your income and debt-to-income ratio matter because the lender wants to know you can afford the new payment. The age and mileage of the vehicle affect the rate because older cars are riskier to lend against. The loan-to-value ratio — how much you owe compared to what the car is worth — also plays a role.
If you have a very old car, very high mileage, or owe significantly more than the car is worth (being "upside down" on the loan), iLending may decline your process or offer a higher rate. Some lenders, including iLending, have minimum and maximum loan amounts and may not refinance vehicles older than a certain year.
Fees and costs to understand before you start
Refinancing is not free. iLending charges an origination fee, which is a percentage of the new loan amount — this typically ranges from 0% to around 5%, though the exact amount depends on your situation and the lender. You may also pay a title transfer fee (charged by your state), a recording fee, and possibly a document preparation fee. Some of these fees are rolled into your new loan balance, meaning you pay them over time with interest. Others are due upfront.
Before you commit, calculate whether the monthly savings justify these costs. If your new payment is $50 lower per month but you pay $800 in fees, you need 16 months of savings just to break even. If you plan to sell or trade in the car within a year, refinancing may not make financial sense.
Timeline from process to first payment
The entire process usually takes one to two weeks, though this can vary. The first few days involve submitting your process and documents. iLending then reviews your file, which typically takes two to three business days. Once approved, you sign the loan documents electronically — this can happen the same day or within 24 hours.
After you sign, iLending contacts your current lender and arranges the payoff. This step can take several days because the old lender must confirm the exact payoff amount and coordinate with iLending. Once the old loan is paid off, your new lender funds the loan and sends you the final documents. You should receive notice that the refinance is complete, and your first payment to the new lender will be due about 30 to 45 days after funding.
When refinancing makes sense and when it does not
Refinancing is worth considering if your credit score has improved since you took out the original loan, if interest rates have dropped, or if you want to change your loan term to lower your monthly payment. It also makes sense if you have a high interest rate on your current loan — sometimes people with poor credit histories are charged rates of 10% or higher, and refinancing to even 7% or 8% saves real money.
Refinancing usually does not make sense if you are close to paying off the current loan, if you plan to sell the car soon, or if the vehicle is very old or has very high mileage. It also may not help if your credit score has not improved or if interest rates have risen since you borrowed. In those cases, the new rate may not be much better than your current one, and the fees eat into any savings.
What documents you need to have ready
Before you start an process with iLending, gather these documents: your driver's license or state ID, recent pay stubs or tax returns showing your income, and your current car loan documents (the promissory note or loan agreement). You will also need the vehicle identification number (VIN), which is on your registration or dashboard, and an estimate of the car's current mileage.
If you are self-employed, have variable income, or receive income from sources other than a W-2 job, have those documents ready too — bank statements, profit-and-loss statements, or benefit letters. The more organized you are when you start, the faster the process moves.
Frequently Asked Questions
Will refinancing hurt my credit score?
A hard credit inquiry (which iLending performs) temporarily lowers your score by a few points, usually five to ten. However, refinancing can improve your score over time if it lowers your overall debt or improves your payment history. The temporary dip is normal and recovers within a few months.
Can I refinance if I still owe more than the car is worth?
Some lenders, including iLending, will refinance vehicles where you owe more than the car's value, but you may face a higher interest rate or stricter terms. The exact policy varies, so check with iLending directly about your specific situation.
What happens if my process is denied?
If iLending denies your process, you can ask why — common reasons include a credit score that is too low, income that is too low relative to the loan amount, or a vehicle that is too old or has too much mileage. You may be able to reapply later if your situation improves, or explore refinancing through a credit union or bank instead.
Do I need to have the car paid off to refinance?
No. Refinancing is specifically for loans you still owe money on. The new lender pays off the old loan and gives you a new one. You cannot refinance a car you own outright.
Can I change my loan term when I refinance?
Yes. You can refinance into a shorter term (paying off the car faster) or a longer term (lowering your monthly payment). A longer term means you pay more interest overall, while a shorter term costs less in interest but has a higher monthly payment. iLending will show you options during the process process.