This review of the Capital One loans will help you learn about the loan offers from this bank. Basically, you will get to know about both pros and cons of different types of the loans, as well as their requirements. At the end of the article, you will find links to useful budgeting tools that will help you manage your loan.
Types of Capital One Loans
Capital One provides different types of products, including mortgage loans, auto loans, and credit cards. Unfortunately, there are no personal loans on offer, but we have found good alternatives if you need financing for personal purposes. Overall, our review shows the rates and requirements for mortgage and auto loans, as well as alternatives to personal loans from Capital One.
Capital One Mortgage Loans: Rates and Review
Interest rate (APR): Not known.
Required credit score: Not known.
Required minimal monthly income: Starting at $2,000 per month.
Where the loans are available: Connecticut, Delaware, Louisiana, Maryland, New Jersey, New York, Texas, and Virginia; mortgages are available online in other American states.
Most suitable for: customers seeking to purchase or refinance a home purchase.
When it comes to mortgage loans from Capital One, there is a disadvantage that can be noticed from a first sight: there is an obvious lack of information from Capital One about such loans. The bank keeps such information undisclosed until you apply for a mortgage, and that’s clearly a lack of transparency. But let’s review the Capital one mortgage loans in detail.
First of all, one must point out that Capital One doesn’t disclose the APR and required credit score for mortgage loans. Besides, there are only 8 American states and Washington, D.C., where you can apply for a mortgage in a branch of this bank. The Capital One mortgage loans typically come with a requirement of minimum down payment of 3%.
As a matter of fact, this bank offers the following types of mortgages:
- 15- and 30-year mortgages with fixed rates on home purchases or refinancing.
- 5/1 and 7/1 adjustable rate mortgages, which are also known as ARMs.
Depending on the type of a loan and your purchase/refinancing needs, a mortgage can vary in terms of the APR and the total loan sum. Overall, Capital One offers mortgages of up to $2,5 million. When the applications are reviewed, the bank considers the following factors of the applicants: credit score, credit history, the overall financial picture, as well as income and down payment.
When looking for a mortgage, there may be several reasons to get a mortgage loan from Capital One. First of all, this bank has a large variety of tools and educational materials on the matter of mortgages – they will help you to manage your mortgage loan effectively (you can find them here). Additionally, it is worth to point out that the bank provides 24/7 customer service, free rate quotes, and pre-qualification applications.
On the other hand, there are several notable disadvantages as well. Among the most important things, one may mention the fact that this bank doesn’t offer that wide variety of mortgages to the customers. Besides, the bank falls short in the availability of Federal Housing Administration loans: the bank provides it only in the 8 American states and Washington D.C. mentioned above.
To sum up, you can definitely apply for a mortgage loan for Capital One, if it matches your needs. However, a lack of transparency and mortgage options makes this offer from Capital One not that much appealing. But we highly recommend you to take advantage of useful tools and tips for mortgage management – the ones you can find on the Capital One website – in either case.
Capital One Auto Loans: Rates and Review
Interest rate (APR): starting from 3.99%.
Required credit score: from 500 to 850.
Required minimal monthly income: between $1,500 and $1,800 per month.
Where the loans are available: in every American state except for Hawaii and Alaska.
Most suitable for: customers seeking to get an auto loan with no impact on a credit score.
Among a large variety of financial products that are offered by Capital One, one is able to find auto loans as well. Luckily enough, Capital One is far more transparent about car loans than about the mortgage loans that we have just disclosed above. In this part of the review, we will walk through these capital loans.
In the first place, one has to mention that Capital One allows you to buy both new and used cars with an auto loan. You can also apply for this loan in order to refinance the loan on the car you already have.
An obvious advantage of Capital One is that this bank doesn’t make a hard credit check of your application. This means that even if you will be declined to get a loan, your credit score will not be worsened. This feature allows Capital One to stand among other banks that provide auto loans.
In regards to the Capital One auto loans, there are differences in terms of whether you need a loan for a purchase or refinancing. If you need a loan to buy a car, you may expect to have the interest rate of 3.99% (if you have an excellent credit score), a required credit score of at least 500, and a minimum loan amount of $4,000. When it comes to refinancing an existing loan, the APR can be anywhere between 4.1% and 24.99%, the loan amount can be anywhere between $7,500 and $40,000, and the minimal credit score has to be at least 560.
As you could read above, the best auto loan rates from Capital One may be as low as 3.99%. But you can expect to get such rates only if you have a good (from 690 to 719) or excellent credit score (from 720 to 850). Otherwise, expect the APR to be much higher. For instance, customers with a poor or fair credit score usually get 8.2% APR on new cars and 11.2% APR on used cars.
You can pre-qualify for a car loan on the website of Capital One. If you are approved, you can use the bank’s tool (on the Capital One website) and find some of the worthwhile card offers. Once you have done that, you can visit a local branch of the bank, bring that offer with you, and submit an application for a car loan.
There are certain requirements and conditions of applying for a car loan from Capital One:
- Pre-qualified offers are valid for 30 days.
- The final APR depends on the type of a vehicle and a credit application.
- You will have to be a subject to a hard inquiry either at the dealership or when selecting a refinancing option.
- You are allowed to add co-applications.
- Even though there is no application fee, you may be asked to pay late fees.
On the other hand, there are certain restrictions on Capital One auto loans:
- Maximum vehicle age for refinancing: 7 years.
- Maximum vehicle age for purchase: from 10 to 12 years, depending on the state of the vehicle.
- Maximum vehicle mileage for purchase: No more than 120,000 miles.
- The terms of loans: you can get an auto loan for a purchase on the term from 24 to 84 months; you can also extend your current loan (refinancing) up to 12 additional months.
- Excluded vehicles: Isuzu, Suzuki, Daewoo, Saab, and Oldsmobile.
To sum up, Capital One offers competitive rates and conditions on its auto loans. The process of getting an auto loan is very simply and won’t harm your credit score even if you get declined. If you are seeking where to get an auto loan, Capital One may be a good place to go.
Capital One Personal Loans: Best Alternatives
Unfortunately, Capital One doesn’t offer personal offers to its customers – similar to many large banks do. Above, we have just reviewed mortgage and auto loans from this bank, and you can opt to apply for them. At this point, we will simply describe the best alternatives to Capital One loans.
Credit cards from Capital One. If you are seeking where to get financing for personal purposes, the easiest way to get a loan would be to apply for a credit card from Capital One. If your credit score is good enough, you will get a card with a high credit limit and sound bonuses, and this will allow you to get financing. Moreover, there are cards with a 0% intro APR period on purchases, which basically provides you with an interest-free loan.
PNC Bank. This bank offers one of the most reasonable terms and rates on personal loans on the market. This lender provides its customers with an opportunity to get a personal loan of up to $100,000 for a term of up to 15 years, but this stands true only for secured loans. If you want an unsecured loan, you can expect the maximum sum of $35,000. The loan rates of this bank start from 5.99%.
Pentagon Federal Credit Union. If your credit score is anywhere between fair and average, this credit union is the best place to go. Even though the maximum loan may be of $25,000, the loan rates start only at 6.49% (yet, may reach 18%). In order to qualify for a loan from this credit union, you need to become its member. However, anyone can become a member of this CU.
Citizens Bank. This bank is a great place to go for existing customers with a good-to-excellent credit score. The bank offers unsecured loans on a sum of up to $50,000, and you can receive up to 0.50% off the loan rate with an autopay discount and a loyalty program. The loan rates are similar to the ones offered by PNC Bank and start at 6%.
Capital One Loan Calculator
Apart from providing different types of loans on generally good terms, Capital One also offers useful tools and tips for effective loan management. For instance, this page allows you to take advantage of the car loan calculator. You should simply enter your loan amount in the first field, your estimated APR in the second field, and the term length in the last field. After it, you will get to see an average monthly payment.
But there are plenty of other useful budgeting tools from Capital One, and you can find on this webpage. After all, we highly recommend you to take advantage of the educational materials from Capital One and learn how to manage your online with efficiency: visit this page.