What Are the Credit Score Requirements for a Capital One Auto Loan?

To qualify for a Capital One auto loan, you must have a minimum credit score of 500. Moreover, depending on the credit score, you also need a minimum monthly income of at least $1,500 to $1,800. U.S. citizens of all states except Alaska and Hawaii are eligible for Capital One auto loans.

Key Takeaways

• A Capital One auto loan will be an excellent option for you if you are looking for an auto loan without a hard credit inquiry
• The best part of a Capital One auto loan is, you can apply for this loan individually or jointly
• Capital One has a partnership with a wide array of dealers but there’s no option for another financing for private party purchases
• The Capital One auto loan has terms that range from 24 to 84 months
• When you apply for a Capital One auto loan, you have to provide some information like personal information, financial information, proof of residence and income, etc.

What is Capital One Auto Loan?

A Capital One auto loan is a type of loan that you can use to purchase a new vehicle, used vehicle, or refinance an existing loan. You can apply for a Capital One auto loan individually or jointly. If you have a poor credit score then you can jointly apply for this auto loan. The capital One Auto loan is for both new and used vehicles and you can only buy them from participating dealers. Thanks to Capital One’s Auto Navigator you can easily get yourself pre-qualified for a new or used car loan. It will take a few minutes to complete the assessment. When you apply for the loan and your application gets approval then the pre-qualification letter will help you bargain with a dealership. Below are the capital One Auto Loan Details:

Loan Amount Range	Starting at $4,000
APR	As low as 3.99 percent
Loan Term Length	36 to 72 months
Prepayment Penalty	None
Application Fee	None
Availability	48 States
Hard Credit Check	No
Refinance Min Credit Score	540
Refinance Loan	$7,500-$50,000
Purchase Min Credit Score	500
Min Purchase Loan	$4,000

How does Capital One Auto Loan Work?

Capital One auto loan has a simple process. This car loan works with certain dealerships. Capital One has a partnership with a wide array of dealers but there’s no option for another financing for private party purchases. Therefore, this auto loan might limit your options to buy from independent dealerships. You can easily find the dealer’s list on the Capital One website. Usually, the Capital One auto loan has terms that range from 24 to 84 months. Moreover, Capital Auto loan is available in the contiguous 48 states. Moreover, the interest rate of this loan is lower compared to other auto loans which are excellent. With a capital One Auto loan, you can buy used vehicles. But used vehicles must be the model year 2011 or newer and they must have less than 120,000 miles.    

Application Requirements of Capital One Auto Loan

There are quite a few requirements that you have to fulfill to become eligible for the Capital One auto loan. Capital One doesn’t disclose a minimum FICO credit score but your credit score must be at least 500 or above to qualify for the loan. Moreover, your minimum gross income should be at least $18,000 to qualify for this loan. So, when you are ready to apply for the Capital One auto loan, you have to provide the below information – 

• Personal Information: Address, Social Security Number, Email Address, Driving License Number, etc.
• Financial Information: Annual Gross Income, Contact number of the Employer
• Proof of Residence: A copy of a Utility Bill, Mortgage Statement, etc.
• Proof of Income: A Copy of a Pay Stub, Bank Statement, etc.

If you have a poor credit score then there is nothing to worry about because Capital One bank allows cosigners for this loan. If you have a poor credit score then a cosigner will increase your chance of being approved.       

Capital One Auto Loan Restrictions

There are some restrictions about what type of vehicle you can buy and from whom you can buy the vehicles. Let’s check them out below – 

Brands aren’t eligible for a Capital One Auto Loan

• Oldsmobile
• Daewoo
• Saab
• Suzuki
• Isuzu

Vehicles aren’t eligible for a Capital One Auto Loan

• Motorcycles
• RV’s
• Commercial vehicles
• Vehicles for business use
• Conversion, delivery, gray market, or lemon law vehicles
• Salvaged, rebuilt, or branded title vehicles     

Fees and Rates of Capital One Auto Loan

Capital One auto loan has the most competitive auto loan rates compared to other available loans. This loan has an APR as low as 3.39%. Moreover, the refinance APRs are also very low and it is from 4.07% to 24.99%. What interest rate you qualify for depends on your credit score. The better your credit score will be, the better the interest rate you may qualify for. Moreover, this auto loan doesn’t have any application fees. Below is the average interest rate for various credit scores to help you have a clear idea about the loan payments – 

New Car Purchase

• 501-600: 11.71% APR
• 601-660: 7.77% APR
• 661-780: 4.96% APR
• Above 780: 4% APR

Used Car Purchase

• 501-600: 16.89% APR
• 601-660: 11% APR
• 661-770: 6.36% APR
• Above 780: 4.66% APR      

How to Apply for Capital One Auto Loan

If you are applying for a new auto loan then you will know the pre-qualification result within minutes. On the other hand, if you apply for refinancing then you will get the pre-qualification result within a day. Now follow the below steps to apply for a Capital One auto loan – 

• First, open a browser on your computer
• Now visit the Capital One official website
• Then click on the “Get Pre-Qualified” in the Capital One auto loan section
• After that indicate whether you are applying on your own or with a joint applicant
• Next, fill in all the required information including the personal information
• Then, read agreements, terms, and conditions
• After that click “Submit Information”
• If you are pre-qualified then visit the dealer with the offer and hard negotiate
• Now reach an agreement with the dealer
• Finally, fill out the Credit Application and wait for the loan to be sanctioned

Pros and Cons of Capital One Auto Loan

Pros of Capital One Auto Loan	Cons of Capital One Auto Loan
Minimum credit score required	No rate discounts for automatic payment
Competitive interest rates	Can’t purchase a vehicle without a participating dealership
Low loan amount	Loan is not available in a few states
Easy loan application process	Social Security number required
Only soft credit check requires
No origination fee

FAQs about What Are the Credit Score Requirements for a Capital One Auto Loan

How hard is it to get approved for a Capital One auto loan?

It’s not difficult to get approved for a Capital One auto loan. If you can meet the minimum credit requirement of 500 then you can get a good deal from the Capital One auto loan.

Which credit bureau does Capital One use for auto loans?

Capital One uses the TransUnion credit bureau to access your credit history without hurting your credit.

Can I get a car loan with a credit score of 600?

Yes, you can get a car loan with a credit score of 600 but the loan will be more expensive. Usually, if you have a better credit score then you can get a car loan with a low-interest rate. If your credit score is low then the interest rate of your car loan will be high.

Does Capital One use Experian?

Yes, Capital One uses Experian. Unlike any other bank, capital One uses all three credit bureaus when they check the credit card application. Capital One bank uses Experian (36%), Equifax (32%), and TransUnion (32%).

Does Capital One do a hard pull?

No, Capital One doesn’t do a hard pull when you apply for an auto loan or want to increase your credit limit.

References:

https://www.businessinsider.com/personal-finance/capital-one-auto-loan-review#:~:text=A%20Capital%20One%20auto%20loan,scores%20as%20low%20as%20500.
https://www.capitalone.com/cars/learn/managing-your-money-wisely/what-credit-score-is-needed-to-buy-a-car/1145

Last Updated on November 10, 2022 by Magalie D.