Personal loans are unsecured loans that individuals have used to serve a lot of purposes without worrying about losing any property because it doesn’t require collateral. Unfortunately for those who had Capital One in mind, it does not offer personal loans but you don’t have to worry because we have taken it upon ourselves to rescue as this article will provide you with alternatives to the capital one personal loan.
What Are The Types Of Loans Offered By Capital One?
Capital One is an American bank holding company that specializes in credit cards, auto loans, savings accounts, retail banking, and small and commercial business financing but not personal loans at least not anymore.
Here is an outline of the type of loans offered by Capital One:
1. Commercial lending
Capital one offers a wide range of solutions to commercial financing which includes real estate, asset-based lending, and so on.
2. Small business lending
Capital one provides lending products, loans, and even credit lines to small businesses although not in all parts of the U.S.
3. Auto loans
Capital one helps individuals find the perfect loan through the auto navigator program. For instance, it can help you choose a car from several dealers nationwide and also optimize the loan process without running a hard check on your credit report.
Best Alternatives To Capital One
Not being able to get a personal loan from Capital One shouldn’t be a thing of worry as there are numerous options or alternatives to choose from. Below are some of our best options for individuals with good, fair, and even bad credit to compare and choose from.
1. Marcus by Goldman Sachs
If you are looking for a personal loan for debt consolidation and direct payment then Marcus is the place to go. Some of the company’s features include competitive interest rates on its personal loans which means borrowers with an excellent credit score get the lowest interest rates, the company doesn’t charge extra fees (prepayment, late, origination, or sign-up fee) the only money to be paid is the money you borrowed and the interest on it.
Prequalification is also available as they allow you to check the estimated rates and loan amount without affecting your credit score in any way.
Marcus requires a good credit score of 660 and even higher which means you might be needing a fair credit or better one in order to qualify for a personal loan. The loan amount available is within the range of $3,500 to $40,000 with a loan term of 3 to 6 years and an annual percentage rate (APR) of 6.99% to 19.99% when you apply for autopay. Personal loans from Marcus can be used for a lot of things such as home improvement, vacation, moving or relocation expenses, debt consolidation, and so on.
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2. PenFed personal loans
PenFed loans are best for people who just want to borrow or lend small amounts of money, the only thing about it is you will get your loan directly in the form of a small cheque. Just like Marcus, PenFed can be used for so many personal purposes, and unlike Marcus by Goldman Sachs they don’t offer a discount on autopsy.
Loan amounts are within the range of $600 to $35,000 with a flexible loan term of 1 to 5 years and interest rate that can range from 5.99% to 17.99% ( though not all applicants might qualify for the lowest interest rates) with no origination fee and early payoff penalty. Although they charge a late payment fee of $29.
In order to qualify for penFed personal loans, the borrower must have a good or an excellent credit score. They also allow you to apply with a co-borrower and you can get a credit union membership. Loans can also be picked up at physical branches.
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3. PNC Bank Personal Loans
Another alternative to Capital One personal loans is the PNC bank which is one of the few banks that offers personal loans and you need not be worried about collateral because the loans do not need to be secured by collateral. Personal loans from PNC Bank have one of the lowest and friendliest interest rates, however, the rate terms might vary based on your ZIP location, and to know what the rates in your location might be you can just input your ZIP code on their website.
To qualify for the PNC Bank personal loan, a borrower is required to have at least a good credit score which will give you more edge for a longer prepayment plan ( the higher your credit score the more likely you are to get a longer repayment term). Especially for people who prefer to have a smaller monthly payment even if it means paying more interest over time.
PNC Bank offers a loan amount starting at $1,000 to $35,000, a loan term of 60 months (5 years), and a fixed APR rate with no origination fee or prepayment penalties although you will be charged a sum of $40 for late payment and their loans can be used for anything of your choice aside covering the cost of college or refinancing student loan debts.
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4. American Express Personal Loans
American Express personal loan is a good alternative to Capital One personal loan and it can be a fast option for borrowers who need a swift approval as you are guaranteed a fast decision in a matter of seconds as long as they don’t require additional information. The only condition that comes with this is that you are expected to be an American Express cardholder before you can apply for the loan.
American Express has a fixed interest rate which can range from 6.91% to 19.97% and to get a better interest rate you will be needing a very good credit score. In essence, what we are saying is that the higher your credit score the lower the interest you will receive with other favorable loan terms.
And while American Express does not require an origination fee and prepayment penalties, it charges $39 for late payments.
Their loan amounts range from $3,500 to $40,000 with a loan term of 12 to 36 months (i.e 1 to 3 years) and can be used for different purposes such as home improvement expenses, vacation expenses, debt consolidation, and so on. The only thing is that you can’t use their loans to pay off any debts on American Express credit cards, secondary education expenses, real estate, business, securities, or vehicle payments( except if it is a down payment). Loans are usually dispersed within 3 to 5 business days.
5. Discover Personal Loans
Discover personal loans can be used for debt consolidation, weddings, vacation, and home improvement expenses which makes it a good alternative to Capital One alternative. Although there is no origination fee and prepayment penalties, it charges a sum of $39 for late payment whenever you don’t make an on-time payment each month.
Discover personal loans also offer a fixed APR of 5.99% to 24.99% which depends on your credit report. If you are approved for debt consolidation, Discover can pay directly to your creditors and all you have to do is link the credit card accounts, and provide them with the amount you would like to pay and the payment address information so Discover can make a direct payment.
Discover has seven different payment options which include mailing a check, phone, app, and so on. You can also receive your funds in one business day as long as your loan application does not have an error during submission otherwise you will be funded no later than a week after your approval.
Conclusion
So there you have it, a detailed list of a few alternatives to Capital One personal loans, however, it is not limited to just those listed above as we have other amazing options like Upstart, Upgrade, Fiona, SoFi, Avant, and so on. So do well to do more research in order to give you a wide variety to choose from.
Capital One might not offer personal loans anymore but you have so many personal loan alternatives that you can pick from. Irrespective of the one you go with, be it credit unions, online lenders, local banks, or peer-to-peer companies, there are chances that you will get the personal loan you need.
Frequently Asked Questions (FAQs)
This depends on the lender, some lenders don’t mind a fair credit while others might require you to have a good credit score. Banks, credit unions, and bigger online lenders require a good or excellent credit score in order to qualify for their loan. You can as well reach out to their customer service to be sure before applying.
Personal loan lenders may charge an origination fee or prepayment fee but most lenders do not and only collect interest aside from late payment fees.
An origination fee is a one-time fee you pay upfront that your lender deducts from your loan to cover the administration and processing costs. For instance, if there is a 5% origination fee and you are taking a loan of $1,000 it means you will receive a sum of $950 and $50 will go back to the lender. But it is advisable to avoid any form of the origination fee.
To maintain a good credit score you should focus on the two most important factors which are on-time payments and credit utilization.
References
- creditkarma.com – Capital One personal loan alternatives
- lendedu.com – Capital One Personal Loan Alternatives
- finder.com – 4 alternatives Capital One personal loans
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