Bank loan options if you’re interested in buying a new vehicle or expanding your business.
Although Capital One has a limited number of loan options, the low rates and variable terms make them competitive. Our guide discusses why an auto loan or business loan from Capital One might be good for you and what you’ll need to know before you apply.
What types of loans does Capital One offer?
Capital One has a few loan options for business owners and excellent rates for people looking to finance their next vehicle purchase.
- Business loans. You can build your business by taking out a line of credit or opting for an equipment, vehicle, real estate or installment loan from Capital One. Borrowing amounts typically start at $10,000
- Auto loans. Capital One funds auto loans between $4,000 and $40,000. You can use an auto loan to purchase a new or used car, or you can refinance a previous auto loan for a possibly lower interest rate.
What about other loan types?
As of November 2017, Capital One no longer offers home loans. This bank doesn’t offer personal loans or student loans either.
If you’re interested in an unsecured personal loan, check out our list of best Capital One personal loan alternatives to find another provider. Borrowing for school? Consider these three Capital One alternatives.
Why should I consider taking out a loan with Capital One?
Not only is Capital One a trusted bank, but it gives borrowers multiple options when it comes to checking on their loan status or paying down their debt.
- Simple interest on car loans. As you pay down the principal on your auto loan, the interest you’re charged each month is lower because of Capital One’s use of simple interest.
- Mobile app. Capital One has a mobile app to set up recurring payments and manage your accounts.
- Multiple payment methods. You can choose to make payments to your loan account online, through MoneyGram or Western Union, through the Capital One mobile app, over the phone or by mailing a cashier’s check, personal check or money order to Capital One.
- No prepayment penalties. Capital One doesn’t charge a fee when you choose to make additional payments. However, how your payment is applied will depend on when you send it in. To pay your next monthly payment, you must send in your payment within 30 days of the due date. Otherwise the additional payment will simply reduce your principal.
How much will it cost me to borrow from Capital One?
The fee schedule for a business loan from Capital One depends on the type of loan you choose to borrow and the terms outlined in your loan contract. Term loans typically have APRs from 5.9%–18.65%. You’ll need to apply and read your personalized offer to estimate how much you’ll end up paying for your business loan.
The cost of an auto loan depends on your APR and the amount you need financed. For example, if you take out an auto loan for $30,000 and have an APR of 8.25% for a term of 60 months, your monthly payment will be $612 and you’ll end up paying $36,713 over the course of your loan. Your prequalification offer should outline this information, but it may change depending on your credit when you submit a complete application.
Are Capital One loans safe?
Yes. Capital One has a secure encryption service to protect your information on the Capital One website. In addition, there is an entire page on security you can read to learn how Capital One works to protect you. It’s also easy to contact Capital One: Simply click Contact on the website’s top navigation bar, and you can find specific information for each of Capital One’s services.
How to apply for a loan from Capital One
Because auto loans and business loans serve different purposes, the application processes are quite different for each. If you’re applying for a business loan, visit your nearest Capital One location to discuss your loan options, as you won’t be able to apply online. If you’re applying for an auto loan, our review can walk you through the steps for prequalification.
Eligibility requirements for business loans:
- Be in business for at least two years
- Have a business checking account or open a Capital One business checking account
- Be a for-profit business
- Have no current tax liens on your business
- Live in an eligible state
Eligibility requirements for auto loans:
- Have a minimum monthly income of $1,500 to $1,800
- Your existing Capital One accounts are in good standing
- Be at least 18 years old
- Be a US citizen or permanent resident
Pros and cons
- Simple daily interest. There are a few ways interest can be calculated for auto loans, but Capital One chooses to use simple interest — meaning you’ll be paying less in interest as you pay off the loan principal.
- Variety of business loans. From financing equipment to buying real estate, Capital One has a variety of loan options for business owners looking to expand their operations.
- SBA options available. Looking for a longer loan term and lower interest rates? You can apply for an SBA 504 to finance equipment or real estate or an SBA 7(a) to increase capital for whatever your business needs.
- Find a car through Capital One. Capital One has over 12,000 dealers in its network to help you find a car and view its actual monthly payment and APR based on your prequalification offer.
- No personal loan options. Like many other banks, Capital One doesn’t lend personal loans. If you’re interested in funding a big event like a wedding or consolidating your debt, we have a list of loan alternatives.
- Home loans no longer offered. Although Capital One previously financed buying your home or drawing from its equity, this service isn’t available as of November 2017.
- More credit card options. Capital One is known for its credit cards. Unless you need an auto loan or have a specific business loan in mind, you’ll likely be better off applying for a credit card from Capital One or browsing your loan options elsewhere.
Compare more auto and business loan providers
Capital One has a a select number of loan options to cover basic business needs and personal car purchases. While you won’t be able to take out a personal or home loan through your Capital One account, the low interest rates and fixed terms available for its other loan options makes Capital One a competitive lender in the markets it chooses to work in.