Capital One personal loans: 2024 review
Capital One services mortgages and auto loans, as well as personal and business lines of credit. However, it no longer offers personal loans. For borrowers who would like to apply for an unsecured personal loan, there are many alternative lenders to consider in today’s market.
Alternatives to Capital One loans
There are several additional personal loan options that are strong alternatives to a Capital One personal loan. While researching lenders, keep APR, loan terms and any additional fees in mind to ensure you’re getting the right loan for your budget.
| Lender | APR range | Loan amounts |
|---|---|---|
| SoFi | 8.99%-29.49% | $5,000-$100,000 |
| TD Bank | 8.99%-23.99% | $2,000-$50,000 |
| Avant | 9.95%-35.99% | $2,000-$35,000 |
SoFi
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An online lender, SoFi is focused on providing a strong customer experience. It offers flexible-use unsecured personal loans with repayment terms of up to seven years and generous loan amounts of up to $100,000. Additionally, SoFi doesn’t charge any mandatory fees for its loan products, making them low-cost. SoFi states it does not have a minimum credit score for approval, but you likely still need a healthy credit history to qualify.
Pros
- No mandatory fees.
- Large loan amounts.
- Unemployment protection.
Cons
- High minimum loan amount.
- Strong credit score required.
- No co-signer option.
TD Bank
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One of America’s ten largest banks, TD Bank is a recognizable name with over 1,100 locations in the eastern United States. Borrowers who appreciate the Capital One suite of banking products may also find much to appreciate about TD Bank.
Like Capital One, TD Bank also offers checking and savings accounts and credit cards. TD Bank’s personal loans range from $2,000 to $50,000, with repayment terms of three to five years. However, you’ll need excellent credit to qualify, as the lender’s minimum credit score requirement is 700.
Pros
- Low starting APR.
- Suite of banking products available.
- Prequalification available.
Cons
- Fewer terms offered.
- Strong credit score required.
- Limited availability.
Avant
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Avant offers personal loans with a minimum credit score requirement of 550. This alone makes it an ideal alternative for those with bad credit. Bad credit loan amounts range from $2,000 to $35,000, and borrowers can choose a repayment term between one and five years.
On the downside, the lender does have a higher interest rate cap and doesn’t offer joint loans, so if you have poor credit, you may end up with a hefty rate. Besides that, Avant loans aren’t available in every state, so you’ll need to make sure yours is serviced before applying.
Pros
- Bad credit accepted.
- Low minimum loan amounts.
- Fast funding.
Cons
- No co-borrowers.
- High maximum APR.
- Steep fees.
Why doesn’t Capital One offer personal loans anymore?
Capital One has stepped away from issuing personal loans in order to focus on other areas of business, including their credit cards, checking and savings accounts, auto loans and business lines of credit. Personal loans are, on the whole, a high-risk investment, and the company may have found other efforts to be more profitable.
Existing personal loan customers with Capital One may still reach customer service by phone at 877-383-4802 or by mail.
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