Big banks aren’t your only option for getting the funds you need.
Like several other large banks, Capital One doesn’t offer personal loans. To make sure you can still pay for that dream wedding venue — or any other large personal costs — we take you through your other options. Set on sticking with Capital One? Read on to learn if it has another product that could help cover your expenses.
Why doesn’t Capital One offer personal loans?
Loans have never been Capital One’s strong point, so it shouldn’t come as much of a surprise that it doesn’t offer personal loans anymore. It discontinued its mortgage program in 2017 and it looks like it also stopped issuing personal loans recently — it still has a personal loans customer service line, but only for current borrowers.
This could be part of a larger trend of big banks moving away from lending in general since the 2008 financial crisis. It also could be that Capital One just wants to focus on what it’s best known for: credit cards. Or, it’s possible the bank shifted its focus to experiments like the Capital One Cafe, a sort of combination of a coffee shop and local bank branch meant to appeal to millennials.
3 best Capital One personal loan alternatives
So you need a personal loan. Capital One can’t help — and the other banks you have in mind might not be able to either. You might want to consider applying for a personal loan through an online lender. They tend to come with simpler applications and can get you your money a lot faster. We take a look at three online loan options: LendingClub, Even Financial and Prosper.
Best for a simple, quick application: LendingClub
LendingClub is a pioneering peer-to-peer (p2p) lender that offers financing funded by investors. The application is simple: You can complete it in a matter of minutes before getting a quote of your potential rates that won’t affect your credit score. It typically takes no more than a few days to a week to get your money.
LendingClub is one of the few lenders that offers personal loans as small as 1000 and you can use your loan for almost anything. The only restriction is that you can’t use your LendingClub loan to cover school-related expenses. And you’re out of luck if you live in Iowa or West Virginia — LendingClub doesn’t offer loans in those states.
- How much you can borrow: 1000 to 40000
- APR: 6.16%–35.89%
- Loan terms: 3 to 5 years
- Eligibility: You must be over 18 years of age, a permanent resident of the US or an American citizen, have a verifiable bank account and have a steady source of income.
Best for quickly comparing loan offers: Even Financial
Even Financial also isn’t your traditional lender. In fact, it isn’t a lender at all — it’s a connection service. How does it work? Fill out and submit a quick application to get rate quotes from multiple lenders that you might qualify with.
If you’re in a rush, Even Financial can help you make sure you’re getting a competitive loan by making comparison a two-step process. If you have an unusual request or have trouble finding a loan you can qualify for, Even Financial might also make your search for financing a lot easier. Its partners offer loan amounts ranging from 1000 to 100000 and accept credit scores as low as 580.
- How much you can borrow: 1000 to 100000
- APR: 4.99%–35.99%
- Loan terms: 2 to 7 years
- Eligibility: Must have a minimum credit score of 580+. Must be 18+ years old and be an American citizen or permanent resident.
Best for financing medical bills: Prosper
This p2p lender is often compared to LendingClub — they both contributed to the rise of p2p lending in the US. But on top of offering personal loans, Prosper also operates a healthcare lending program that partners with medical providers to offer specialized financing up to $100,000 for those with excellent credit.
It does, however take a bit longer to process — you might not get to sign your loan documents until seven days after you apply. Prosper personal loans are also not available in North Dakota, Iowa or West Virginia.
- How much you can borrow: 2000 to 40000
- APR: 6.95%–35.99%
- Loan terms: 3 to 5 years
- Eligibility: Must be 18+ years old, an American citizen or US permanent resident and have a 640+ credit score.
Does Capital One offer any similar loans?
Not really. Capital One offers loans for purchasing vehicles and financing businesses. The only loan Capital One offers individual borrowers is a car loan — which is great if you need a new vehicle but not good for much else. It does, however, offer several different business loan options like working capital, equipment and even SBA loans. But that’s also not helpful unless you were looking for a personal loan for business use.
If you really don’t want to go anywhere but Capital One, you might be able to get a new credit card instead. Capital One offers credit cards for students, travelers, foodies, people of all credit types and more.
Since credit cards tend to have higher rates than personal loans, you might want to save it for smaller expenses or costs you know you can pay off quickly. If you have excellent credit, you might want to consider applying for a new card with a 0% introductory rate like the Quicksilver Rewards card.
Compare more personal loan options
Like with many other big banks, Capital One personal loans are no longer an option. You might want to consider going with an online lender instead or sticking to one of Capital One’s other credit products.
Want to learn about more lenders — or how personal loans work in general? Check out our personal loans guide, where we break everything down.
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