Capital One Loans Review & Best Alternatives

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Capital One does not currently offer any unsecured personal loans, although they do have other loan products to consider. If you want a credit card, auto loan, or commercial lending solution, then they might still be the right lender for you.

Unfortunately, if you need quick loan funds for unexpected expenses, you won’t get any help from contacting Capital One. Instead, you need to find a different lender who does offer personal loans and see if you meet their eligibility requirements.

With a personal loan in hand, you can cover your moving expenses, pay for a vacation, or handle your home improvement project with ease, but not just any lender will do. In order to get the best experience possible, it’s definitely worth looking for a trustworthy lender who can provide the total amount of money you need.

Capital One Loan Products in 2021

Although Capital One personal loans are not available, they do have many other loan products, such as:

Credit Cards

Whether you are looking to rebuild your credit, want unlimited travel rewards, or just need to cover a big purchase, Capital One likely has the right credit card for you. They have both secured and unsecured cards for borrowers with credit scores in the fair to excellent, or 570 to 850, range.

Their most popular credit cards include:

  • Quicksilver
  • Venture
  • Savor
  • Platinum
  • Journey

They have business-minded credit cards, like the Spark Business card, too, which offer big travel rewards and other bonuses for their regular use.

Auto Loans

If you want a Capital One personal loan so you can buy a car or refinance your auto loan, then you’ll like their auto loan products. Before you start your search for the perfect car, you can get funding through their site by using the Auto Navigator system. Within just a few minutes, this system will let you know if you’re pre-approved for an auto loan, all without impacting your credit score.

They also allow you to refinance your current auto loan to get a better rate and save at least $50 per month. Like the Auto Navigator system, you just input your information into their pre-qualification tool to see if you are eligible for a lower rate and better terms.

Commercial Lending

Business owners can look beyond Capital One personal loans and explore their commercial lending products instead. Their offerings include corporate credit cards, lines of credit, and term loans. They can also set up merchant lending programs for your business if you’d like to extend loan opportunities to your customers.

If any of these solutions will resolve your financial woes, then they are well worth exploring. You can simply fill out an application on Capital One’s site to see if you qualify.

Pros and Cons of Capital One Loan Products

As long as you do not need a Capital One personal loan, this lender can provide the products you need to tackle big purchases and handle other expenses. They are not for everyone, however, so it’s important to weigh the pros and cons before applying for any of their lending solutions.

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Pros

When it comes to credit cards and other loan products, Capital One is a leader in the banking industry. They have a long track record of excellence, starting with the creation of Signet Bank in 1988. They now have over 750 branches open across the United States and beyond plus 2,000 ATMs.

When you apply for an auto loan, credit card, or commercial lending product from this bank, you can count on:

  • Quick and easy application process for all their banking and loan products
  • Ability to manage your Capital One bank accounts and loan products through their online portal
  • Credit cards for all credit scores, including fair scores in the 570 range
  • Minimal fees and great rates designed to help you best manage your finances
  • Flexible terms on their auto loans and commercial lending products

Beyond all that, Capital One is constantly refining their banking and lending solutions to meet all their customers’ expectations. So, although they do not currently offer personal loans, they could add that product to their lineup in the future if there’s enough demand.

Cons

Despite the benefits, Capital One is not the perfect lender for every borrower. Explore these potential drawbacks to see if they’re deal breakers as you look for your ideal lending solutions.

  • Auto loans do not allow purchases of pre-2011 vehicles or from private sellers
  • Auto purchases only approved through partner dealerships located across the US
  • Not all Capital One loan products are available in every state
  • Loan terms not made readily available until after you submit your application

If you are okay with these drawbacks, you can look to Capital One for everything but personal loans. You can even open checking and savings accounts to manage all your money through one convenient system.

Top Alternatives to Capital One Personal Loans

Personal loan funds allow you to take care of unexpected expenses of all kinds, including relocation costs, medical bills, and special occasions. Specialized loan products, on the other hand, are only available for authorized uses, like business expenses and vehicle purchases. Even credit cards have their limits in what they can cover, especially if you’re trying to manage a rather big expense.

Thankfully, you do have other lenders to consider since Capital One personal loans are not available. You could go with:

Local Banks

Many local banks offer unsecured personal loans to people with good to excellent credit scores. The most popular banks offering $1,000 to $100,000 personal loans include Wells Fargo, Citibank and PNC. Depending on your credit score, your loan may come with a 5% to 25% interest rate.

The bank may require that you open a checking or savings account with their company before applying for a personal loan. You can review their terms either on their websites, calling the customer service team, or by going into your local branch to talk to a representative directly.

Credit Unions

If you’re a member of a local credit union, like BECU, Navy Federal, and Alliant, you can apply for a personal loan through that organization. You will usually need to maintain at least a savings account to remain a member of their bank while paying back your personal loan.

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Credit unions usually offer lower interest rates and consider people with bad to fair credit scores. You can ask for anywhere from $500 to $50,000 dollars and expect an interest rate in the 10% range, if not better.

Other Lenders

As people look for ease of use and convenience in all they do, online lenders are becoming more and more popular every year.

In this realm, your options include:

  • Marcus by Goldman Sachs
  • LightStream
  • SoFi
  • Upstart
  • Payoff
  • Best Egg
  • Upgrade

Online lenders typically consider applicants with bad to excellent credit scores and simply adjust the interest rate to account for the perceived risk.

Most personal loans issued through online lenders land in the $1,000 to $100,000 range, while interest rates are anywhere from 6% to 36%. Unlike banks and credit unions, you do not have to use their banking products, if offered, to apply for and manage your personal loan.

When considering alternatives to Capital One personal loans, you need to thoroughly review the terms established by each lender. Otherwise, you could end up stuck with a loan that doesn’t work for your needs.

Customer Service Quality

If you can skip the personal loan and resolve your financial difficulties with a different product from Capital One, you’ll be delighted with their quality of customer service. They have a dedicated support department for every banking and lending solution they offer. So, when you call in to talk to their representatives, you can count on them knowing how to resolve your concerns and answer all your questions.

If you prefer to find answers on your own, you can review their FAQ pages built for each of their products. The FAQ pages let you know how to update your personal information, make payments, pay off the loan balance, and much more. You can even figure out how to choose between their different types of loans, although Capital One personal loans are not covered since they do not offer any at this time.

As a customer of Capital One, you also get access to their intuitive online system for the management of your bank accounts, credit cards, and loans. Through that portal, you can set up automatic payments, make one-time payments, and otherwise manage your accounts.

If you prefer to manage your account on the go, you can use their mobile app instead. Upon logging into the app, you can instantly see your balances, review transactions, and manage your funds. You can also use their Creditwise system to see your current credit score and review the scoring factors used to find that figure.

Bottom Line

While Capital One personal loans are not available at this time, their other banking and lending products may work well for your needs. You can also consider the alternatives to zero in on a solution designed to help you resolve your current financial challenges. As you do your research, you can reduce your risk of going with a lender who won’t live up to your expectations in the end. So, take the time to look through all your options to greatly benefit from practicing your due diligence.

Maria Abendroth

Marie Abendroth is a skilled content strategist and SEO copywriter with a focus on helping people improve their personal finances and overcome their barriers to success. In her articles, she provides up-to-date info that can help everyone better understand how to invest in a better future.