Capital One is a popular institution due to its wide range of financial products and credit cards.
It also offers funds for purchasing a new or used car, or you can even refinance your current loan.
Let’s find out more about Capital One’s auto loan option and whether it will fit your needs!
Features Of Loan
The Capital One auto loan has several important features. If you want to purchase a new or used car, you need to have a minimum credit score of 500 and you can get a minimum loan of $4,000. Furthermore, you need to have a minimum monthly income between $1,500 and $1,800.
The auto loan is available in all states except Hawaii and Alaska. Furthermore, the loan repayment term ranges from 24 months up to 84 months for purchasing a new or used car. If you want to refinance your current auto loan, you can do so by extending it by one year.
Benefits
One of the main highlights of Capital One’s auto loan is that it does not require a hard credit check upfront. This means that you can pre-qualify for your auto loan, whether it is for purchase or refinancing, without affecting your credit score.
This benefit recommends Capital One for everyone who wants to compare their options without affecting their credit score. Another great benefit is that there is no application fee.
A credit score higher than the minimum can also earn you a better APR, with 720 considered to be excellent credit and 690-719 being in the good range. You can earn a rate of 8.2% on new cars and 11.2% for used cars. However, keep in mind that your final APR depends on the vehicle chosen and your credit score.
Who Is Eligible?
Anyone who has a minimum credit score of 500 for purchase and 540 for refinance can qualify for Capital One’s auto loan. You also need to earn a minimum monthly salary of $1,500 – $1,800, depending on your credit.
Unfortunately, if you live in Alaska or Hawaii, you are not eligible for this auto loan.
Furthermore, there are also a few other restrictions. You can choose a vehicle that is a maximum of 10-12 years old, depending on your state, with a maximum mileage of 120,000.
Capital One’s auto loan is not valid for people who want to purchase the following makes: Daewoo, Oldsmobile, Saab, Suzuki, or Isuzu. Lastly, you need to make sure that you want at least $4,000 in order to buy a used or new car, minivan, truck, or SUV that is available at one of their participating dealerships.
How To Apply
First, you need to pre-qualify in order to apply for an auto loan. You can do so without any risks to your credit score by clicking here and following the indications on the website. For refinancing loans, this is where you can fill in your information.
Note that pre-qualification does not guarantee the terms of the offer. If successful, the website will redirect you to a search tool to help you look for your desired car at one of the partner dealerships.
Once you pre-qualify and have chosen your car, you need to take your offer to the dealership, as the application for the auto loan cannot be done online. At the dealership, they will run a hard credit check, and you will need to complete the actual credit application.
Thus, we can conclude that pre-qualification does not offer a guarantee of your credit terms or that you will actually get the auto loan.
The final terms depend on the hard credit check at the dealership. Capital One’s pre-qualification helps you get an insight into what credit score you have and your options, details that you will also share with the dealership.
You can also estimate your monthly car payments and check that the amount meets your budget before going to the dealership.
Summary
All in all, the Capital One auto loan is ideal if you want to check potential rates and terms without affecting your credit score. This is also a well-established institution that has a broad range of partnerships with different dealerships, so you can choose from many models.
If all of this sounds great to you, it’s time to reach out to Capital One and complete your pre-qualification in no time!
There are risks involved when applying for and using credit. Consult the institution’s terms and conditions page for more information.