Capital One is one of the biggest names in finance, particularly in the lending space. Many people are able to take advantage of Capital One credit cards or even investment services. The company is well known for extending credit options to those who wouldn’t otherwise qualify.
But did you know that, in addition to credit cards, there are also Capital One auto finance and refinance options? The company has expanded its offerings to include car purchases, so if you’re shopping for a new car, Capital One may be a viable option for you.
Capital One Auto Finance and Refinance
Even if you don’t have great credit, you can buy a car. There are buy here pay here sites, and groups like RoadLoans who will help you finance an auto despite your low FICO score. However, because these companies cater to people with poor credit, the interest rates are usually pretty high.
Capital One auto finance and refinance loans are also available to people with lower credit scores than the usual. But the interest rates are a bit better. In fact, you can get a loan with an interest rate as low as 3.89%. That’s a good rate by any standard, even if your credit is perfect.
When you finance a car through Capital One, your car will have to meet certain criteria. You must purchase it through an approved dealership, and it’s got to be a newer model with relatively low mileage. Aside from those restrictions, you can purchase any auto you like. Whether you’re looking for a car, truck, van, crossover or anything else, Capital One can finance you.
So now you know that Capital One auto finance and refinance options are available to you. What do people think of the loans, the application process and the terms of the loan? Let’s take a look at what people are saying.
Capital One Application Process
The Capital One application process is short and sweet. First, you can visit the Capital One website and prequalify. This won’t affect your credit score, but will let you know whether you’ve got a good chance of being approved for an auto loan through the company.
Simply enter your name and social security number as well as a bit of employment information and you’ll quickly learn whether you qualify. If you’ve got very poor credit, or if you have outstanding balances with Capital One, you probably won’t be eligible. But if you’ve got “okay” credit and have a good (or non-existent) relationship with Capital One, you’re in good shape!
Once you’re prequalified, you’ll complete a slightly more involved application, and will finish up your paperwork. Bring your approval letter to one of the partner dealerships and you’re ready to begin car shopping!
Sound easy? It really is. So what do people think of Capital One auto financing? Let’s see what the reviews say.
Capital One Auto Finance and Refinance Reviews
As with any loan, there’s a broad spectrum of applicants who take advantage of Capital One auto finance and refinance products. Some have great credit, while others do not.
As you might expect, there’s also a broad range of reviews of the service. Most notably, there are the reviews regarding customer service. We’ll just be honest: they’re not great. People said that when it was necessary to call in to the company for customer service matters, they were on hold for an extraordinarily long time. Once the calls were answered, customer service was impolite and didn’t have knowledge of the products.
Customer service complaints extended beyond phone calls, too. There were customers who claimed their payments weren’t posted on time, and this impacted their credit score. Others said they attempted to qualify for financing over the phone and couldn’t understand the rep with whom they spoke.
That said, there were some highly positive reviews of Capital One. Most people said the online application process was quick and easy, from internet to dealer. One customer even said she changed her address with a representative on the phone, only to receive a housewarming bouquet several days later.
Customer service is important, of course. But the loan terms are what matter most. Generally speaking, Capital One customers were happy with the products. Many consumers who didn’t qualify elsewhere were able to finance a vehicle at a low rate through the company, and most were happy with the ease of payments and the interest rate they qualified for.
Capital One Refinancing Loans
If you’re not shopping for a new car but instead want to refinance your existing loan, Capital One may be a good option for you. That’s particularly true if you originally qualified for a “bad credit loan” but your credit situation has changed.
Many people who have bad credit choose to finance vehicles through “buy here pay here” dealers. These dealerships are notorious for extremely high interest rates and unmanageable bi-weekly payments. In short, they’re a recipe for repossession.
Capital One can help. Refinancing with Capital One will allow you to convert to a monthly payment schedule, which is more manageable for most people. You’ll also likely qualify for a lower interest rate than the (sometimes as high as 24%) interest rate you got through the buy here pay hear dealer.
As you make your car payments through the higher interest lender, that lender will report to the credit bureaus. That can improve your credit score, enabling you to qualify for a loan through Capital One.
People who were in exactly this situation were very impressed with the improvement to their financial picture once they refinanced. Whereas they had previously been paying as much as $600 each month on their car note, they were able to lower their payments by as much as $200 by refinancing.
Capital One auto finance and refinance products are not a great deal different from other top lenders. However, if you are working on bringing up your credit score and you are in need of a car, we’ve found Capital One is a viable and accessible option.