What LendingTree's auto refinance tool does
LendingTree is a loan marketplace where you enter your car loan details once, and multiple lenders see your information and send you rate quotes. You do not go to each lender separately — LendingTree collects quotes from banks, credit unions, and online lenders in one place so you can compare them side by side.
The tool is free to use. LendingTree makes money when you accept a loan offer, not from you directly. You are not required to take any of the quotes you receive, and getting quotes does not lock you into refinancing.
Auto refinancing means replacing your current car loan with a new one, usually at a lower interest rate or with different terms. If you refinance successfully, you pay off the old loan with money from the new lender and start making payments to the new lender instead.
Key Takeaways
- LendingTree sends your information to multiple lenders at once, so you see competing offers without filling out separate applications for each one.
- The quotes you receive are based on a soft credit pull, which does not affect your credit score, but the actual loan will involve a hard pull that does.
- You can compare interest rates, loan terms, and monthly payments across lenders before deciding whether to move forward with any offer.
- LendingTree does not make the loan or handle your money — the lender you choose does all of that, including paying off your current loan.
How to use LendingTree for auto refinancing
Start by going to LendingTree's website and selecting the auto refinance option. You will enter basic information: your current loan balance, the interest rate you are paying now, your vehicle's year and make, your credit range (if you know it), and your contact details.
LendingTree then sends your information to lenders in its network. Within minutes to a few hours, you will see quotes from lenders willing to refinance your loan. Each quote shows the interest rate offered, the loan term (how many months to pay it back), and what your new monthly payment would be.
You can review all the quotes without any obligation. If one looks good to you, you click through to that lender's process. From that point forward, you are working directly with the lender, not with LendingTree. The lender will do a full credit check, verify your income, and confirm details about your car and current loan.
What information you need before starting
Have your current car loan paperwork nearby. You will need your loan balance (what you still owe), your interest rate, and the original loan amount. If you do not have the paperwork, you can log into your lender's website or call them to get these numbers.
You will also need your vehicle identification number (VIN), which is on your registration or dashboard. LendingTree uses this to confirm the car's year, make, and model. Have your contact information ready — phone number and email address — because lenders will reach out to you with their offers.
If you know your credit score or credit range, that helps, but it is not required. LendingTree will ask you to estimate your credit (excellent, good, fair, or poor) if you do not know it. This estimate helps lenders decide whether to send you a quote.
Understanding the quotes you receive
Each quote shows three key numbers: the interest rate, the loan term in months, and the estimated monthly payment. The interest rate is what matters most — a lower rate means you pay less total interest over the life of the loan. A shorter term means you pay off the loan faster but your monthly payment will be higher.
The quotes are based on information you provided, not a full credit check. This is called a soft inquiry and does not show up on your credit report or lower your score. However, when you actually explore with a lender, they will do a hard inquiry, which does appear on your credit report and can lower your score by a few points temporarily.
Lenders may also include fees in their offers — origination fees, processing fees, or prepayment penalties. Read the full offer details to see what fees, if any, are included. Some lenders charge nothing; others build fees into the loan.
What happens after you choose a lender
Once you select a lender and submit a full process, the lender will verify your information. They will pull your credit report, confirm your income (usually by asking for recent pay stubs), and verify details about your car and your current loan. This process typically takes a few days to a week.
If the lender approves you, they will send you loan documents to sign. These documents spell out the interest rate, term, monthly payment, and any fees. Read them carefully — the rate and terms should match what was quoted, but confirm before signing.
Once you sign, the lender pays off your old loan directly. You will receive a payoff confirmation from your current lender, and your old loan account will close. You then start making payments to your new lender according to the new loan schedule.
When refinancing makes financial sense
Refinancing saves you money when the new interest rate is lower than your current rate. Even a 1 percent drop can save hundreds of dollars over the life of the loan. However, if you have only a few months left on your current loan, refinancing may not be worth it because you will not have time to benefit from the lower rate.
Your credit score also affects the rate you receive. If your credit has improved since you took out the original loan, you may now may have access to for a better rate. If your credit has declined, refinancing may not help — you might not receive better terms than you already have.
Consider how long you plan to keep the car. If you are selling it or trading it in soon, refinancing does not make sense. Refinancing is most useful if you plan to keep the car for at least another year or two.
Risks and things to watch for
Refinancing resets your loan term. If you refinance a loan you have been paying for three years into a new five-year loan, you extend the total time you are paying. Even with a lower rate, you might pay more total interest if the new term is much longer. Always compare the total interest you will pay, not just the monthly payment.
Multiple hard inquiries in a short time can lower your credit score. If you submit applications to several lenders outside of LendingTree after getting quotes, each process triggers a hard pull. However, credit scoring models treat multiple auto loan inquiries within 14 to 45 days as a single inquiry, so explore to a few lenders in quick succession does not hurt as much as it might seem.
Some lenders charge prepayment penalties if you pay off the loan early. If you think you might pay off the car loan ahead of schedule, ask whether the new lender charges a penalty for doing so.
Frequently Asked Questions
Does getting quotes from LendingTree hurt my credit score?
No. LendingTree uses a soft credit pull to show you quotes, and soft pulls do not affect your score. However, when you actually explore with a lender, that lender does a hard pull, which can lower your score by a few points temporarily. Multiple hard pulls within 14 to 45 days typically count as one inquiry for scoring purposes.
What if I do not want to refinance after seeing the quotes?
You are under no obligation to move forward. You can straightforward ignore the quotes or decline them. There is no penalty for using LendingTree and deciding not to refinance. Your credit score is not affected by receiving quotes.
Can I refinance if I still owe more than the car is worth?
Yes, but it is harder. When you owe more than the car's value, you are "underwater" on the loan. Some lenders will still refinance you, but they may offer a higher interest rate or require a larger down payment. LendingTree's quotes will show you what is available in your situation.
How long does the refinancing process take from start to finish?
Getting quotes through LendingTree takes minutes to hours. Once you explore with a lender, approval typically takes three to seven business days. After approval, the lender pays off your old loan, which can take another few days. Total time from process to first payment to the new lender is usually one to two weeks.
What if my current lender charges a prepayment penalty?
Your current lender may charge a fee if you pay off the loan early. When the new lender pays off your old loan, that counts as early payoff and may trigger the penalty. Ask your current lender whether you have a prepayment penalty before you refinance. If you do, factor that cost into whether refinancing still saves you money.