iLending Reviews: Can You Refinance Your Auto Loan for Less?

Buying a car should be exciting. But many buyers get trapped with predatory auto loans at sky-high interest rates.

Used car dealerships often partner with predatory lenders. These lenders target people with poor credit. After a few months, you realize your payments barely touch the principal.

iLending helps consumers refinance unfavorable auto loans. The company acts as a broker, connecting you with banks and credit unions that offer better terms.

But iLending isn’t a lender itself. You need to understand how the process works before you apply.

How iLending Works

iLending connects you with credit unions and banks to refinance your auto loan. The goal is securing lower interest rates and better repayment terms.

However, not everyone qualifies. You need decent credit and equity in your vehicle.

If your credit score is poor or you owe more than your car’s worth, refinancing becomes difficult. You’ll need to address these issues first.

Requirements for Refinancing Success

iLending provides helpful guidance on its website. Here are the key insights:

• Wait at least six months after buying your car
• Allow your credit score time to recover from the initial purchase
• Pay off any negative equity before applying
• Keep current on all other debt payments
• Build your credit score to improve your chances

If your car loan exceeds the vehicle’s value, you must pay the difference first. Otherwise, lenders won’t approve your refinancing application.

Working with our partner Cambridge Credit Counseling can help you create a plan to improve your credit before refinancing.

iLending’s Better Business Bureau Rating

The BBB gives iLending an A+ rating. The company maintains accreditation with an impressive 4.75 out of 5 stars.

These ratings come from 908 customer reviews. That’s strong for a financing organization.

As of April 2023, 63 complaints exist against the business. Most complaints involve unexpected credit pulls.

Common Customer Complaints

People using Credit Karma or Lending Tree sometimes find iLending on their credit reports. These pulls happen after requesting auto refinancing quotes.

Other complaints involve add-ons tacked onto new auto loans. One customer discovered nearly $6,000 in extras, including:

• Extended warranty coverage
• Gap insurance protection
• Tire and windshield protection plans

iLending responded to complaints and offered to remove unwanted add-ons. You just need to contact them directly.

Real-World Example

Alexa has a used car loan with Pred Bank for $10,000. Her interest rate is 15.99%. She improved her credit score to 700 through consistent payments.

Her car is currently worth $9,000. Alexa pays off the $1,000 difference between her car’s value and the balance.

She refinances with iLending’s help. The broker finds her a new loan for $9,000 at 5.99% interest.

Alexa saves thousands of dollars in interest over the loan’s life.

Preparing for Multiple Credit Pulls

iLending submits your application to several different lenders. Each lender may pull your credit report separately.

Multiple credit inquiries can temporarily lower your credit score. However, credit bureaus typically count multiple auto loan inquiries within 14-45 days as a single pull.

You can minimize credit pulls by working directly with your bank or credit union. These institutions already have your financial history and may offer competitive rates.

Is iLending Right for You?

iLending is a legitimate broker that helps people escape predatory auto loans. The company has strong BBB ratings and mostly positive reviews.

Read through the FAQs on iLending’s website before applying. Understanding the process helps you avoid surprises.

If you have good credit and equity in your vehicle, iLending can connect you with better financing. You could save thousands in interest over your loan’s life.

But if your credit needs work, focus on improving your score first. Consider working with our partner Cambridge Credit Counseling to create a debt management plan that reduces your payments while rebuilding your credit.

Alternatives to Auto Loan Refinancing

Refinancing isn’t your only option for managing auto loan debt. You have several alternatives worth considering.

You can negotiate directly with your current lender for better terms. Some lenders offer hardship programs that temporarily reduce payments.

If you’re facing a lawsuit over unpaid auto debt, you need to respond quickly. Ignoring legal action leads to default judgments and wage garnishment.

You can also explore selling the vehicle if you’re underwater on the loan. Sometimes cutting your losses makes more financial sense than continuing to pay.