Personal Loans

Capital One Loans Review

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 4 minute read

Capital One, perhaps the most well-known bank holding business in the United States, is known for its credit cards, auto loans, banking, and even savings accounts.

The slogan “Capital One: What’s in your wallet?” is used to promote all of its products and services.

People are becoming increasingly more interested in personal loans, so it’s logical to wonder if Capital One provides them.

Personal loans, which are typically unsecured, are taken by people with fair to excellent credit to address unexpected or incidental needs and, in certain situations, to consolidate debt into a single, straightforward payment.

According to the response to that query, that is no longer the case.

Personal loans are one of the few products not available thru the Capital One wallet, despite the wallet’s extensive lending capabilities.

Is it still possible to obtain a personal loan now that Capital One no longer provides them, particularly if Capital One was formerly your favorite lender?

No.

Capital One may still be your first choice for an emergency cash infusion, even if you don’t have a personal loan, because the holding company offers a diverse selection of great lending options.

The following section will go over Capital One’s exceptional loan options.

Capital One provides what kinds of loans?

Maybe there’s a new baby in the house. A car accident or car repairs are two things that come to mind. A down payment on the home of your dreams is a financial gift.

To make restitution for earlier errors and consolidate credit card debt into a single, lower-interest-bearing monthly payment,

There are numerous reasons, both big and small, why someone might desire to use a personal loan to improve their financial status, such as debt consolidation or home renovation. Personal loans are merely one of the options open to borrowers in these circumstances.

Here are a few of the best personal loan options offered by Capital One, one of the most respected companies in the lending industry.

Capital One Credit Cards

Capital One differs from other credit card issuers in that they are willing to deal with a much broader range of credit scores than many other credit card issuers.

Indeed, Capital One provides excellent credit card options for people with fair to exceptional credit.

Capital One, for example, provides the Capital One Secured Mastercard to clients who have low credit or are just starting to build their credit.

Advantages of Capital One’s Secured Mastercard include:

  • No Annual Fee
  • No Foreign Transaction Fee
  • Credit Line of Up to $1000 depending on initial deposit

In turn, here are some drawbacks to the Capital One Secured Mastercard:

  • High APR
  • No Rewards

But unlike some other credit card companies, Capital One allows:

  • The security deposit on their Secured Mastercard to be paid in installments.
  • The opportunity to upgrade as credit scores improve or as a credit history is built.
  • Access to a higher credit line for those with poor to no credit than what’s offered by most other credit card companies

Capital One credit cards aren’t just for those with bad credit, though. They also offer a full selection of unsecured credit cards with great rewards programs, such as:

All of this adds up to make any of Capital One’s excellent credit card options an excellent alternative to a personal loan, especially for persons with bad or no credit.

Capital One also has a lot to offer in terms of quick cash for car-related expenses.

Capital One Auto Loans

You can apply for a loan in order to purchase a new or used car with Capital One.

Pros:

  • You can quickly and easily pre-qualify online, with only a soft credit check.
  • You can choose your own payment due date.
  • No origination fee.

Cons:

  • Not available nationally; some state residents are ineligible for this loan type.
  • Must purchase your vehicle at a qualifying dealership, which limits your choice.

Capital One Commercial Loans

The final type of loan that Capital One offers are commercial loans.

Advantages of a Capital One commercial loan over others:

  • Capital One will set up a merchant lending program for businesses that want to be able to offer their own customers a loan.
  • Good customer reviews.
  • APR range starts at 5.9%.

And the disadvantages of this loan type from Capital One:

  • APR for some commercial loans can reach 18.65%, which is comparatively pricey.
  • Can be very difficult to obtain.

Bottom Line

Capital One only offers auto loans, credit cards, and commercial lending. This credit union will no longer provide personal loans, regardless of your credit report.

You can get either an unsecured Mastercard or a secured Mastercard through Capital One, depending on credit scores. Not all applicants will be eligible for an unsecured credit card.

The secured Mastercard has higher than average interest rates on your credit card debt, which might make it undesirable for those that are trying to build or rebuild credit.

Additionally, for auto loans, your auto loan amount and interest rate will depend on your credit history as well.

Frequently asked questions

Can you get a Capital One credit card with bad credit?

You can only get a secured credit card with bad credit through Capital One. You will need a minimum of fair credit to qualify for one of their unsecured credit cards.

Is Capital One an online lender?

Yes. You can get pre-qualified for auto loans, a credit card, or a commercial loan through their online site.

Are there any personal loan alternatives to Capital One?

You can get an unsecured personal loan from various places, such as a competing financial institution. Big banks will give out unsecured loans, depending on your credit score. You can always check in with your local bank to see if you qualify for one of their unsecured personal loans.

Some banks might require that you have a checking account open with them before filling out a loan application, usually depending on the loan amounts being sought and the loan purpose.

You can also shop around with other online lenders to see if they offer personal loans.

Personal loans are usually only available to those with better than fair credit, or that have enough collateral to cover the loan. Each personal loan will have different loan terms, depending on who has given you the line of credit.

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