Capital One® Finance Auto Loan Reviews 2024 | Intuit Credit Karma (2024)

FAQs

Is it hard to get approved for Capital One auto loan? ›

Capital One allows borrowers who don't have perfect credit to qualify for an auto loan, which may be appealing to many people. If you're unsure whether you qualify for an auto loan, you can go through the prequalification process without impacting your credit. If you do, you can move forward with the full application.

There's no specific credit score needed to buy a car. But auto loans will generally be more favorable when you have a credit score of 670 or higher, according to Experian. A good credit score can also result in better car loan terms.

But it's important to note that getting a pre-qualification doesn't guarantee that your loan will be approved. That's because the Capital One pre-qualification doesn't run a hard credit check. Instead, it only uses a soft inquiry to offer an estimate of the interest rates you might ultimately be approved for.

Capital One offers its borrowers new and used car loans, as well as the opportunity to refinance an existing loan. Of all its features, its starting annual percentage rate (APR) is the breakout star because it's so much lower than the competition, making it an excellent choice for those with strong credit scores.

Some common reasons for not getting approved for a credit card include: Having a low credit score. Having too much debt. Having too many hard inquiries on your credit reports.

You've missed payments or had a vehicle repossessed. If you've missed past payments on a previous auto loan or had a car repossessed, these issues can linger on your credit report, impacting your FICO score and potentially affecting your ability to get a loan. You've had too many hard pulls of your credit.

Capital One appears to pull from any of the three major credit bureaus: Experian, Equifax and TransUnion.

Most used auto loans go to borrowers with minimum credit scores of at least 675. For new auto loans, most borrowers have scores of around 730. The minimum credit score needed for a new car may be around 600, but those with excellent credit often get lower rates and lower monthly payments.

You'll rarely be denied an auto loan after initial approval unless your information has changed or there was a mistake. Reach out to the lender to learn why your loan application was denied.

Does Capital One pre-approval mean you'll get approved? ›

Getting pre-approved doesn't guarantee approval, but it can give you an idea of what cards you're likely to be approved for.

Pre-approval is a conditional approval given to you from a lender to finance the purchase of a car. For example, if you're pre-qualified or pre-approved, you may see estimated financing terms, including the financing amount or range, and/or APR.

People with excellent credit qualified for rates around 5.64 percent, while people with bad credit had an average new car rate of 14.78 percent. Rates for used cars were higher — 11.93 percent across credit scores. And the average rate for bad credit was a sky-high 21.55 percent.

We have a range of policies and programs to accommodate customer hardships. For customers who let us know they are being impacted, we are here to support and work with them. We are offering assistance to consumers and small business owners, including waiving fees or deferring payments on credit cards or auto loans.

Although pre-approval for mortgages and other loans may involve a hard inquiry, pre-approval for credit cards is usually a soft inquiry.

Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 69% of retail vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian. Meanwhile, low-credit borrowers with scores of 600 or lower accounted for only 14% of auto loans.