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

FAQs

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

If you have a consistent monthly income and don't mind being limited to participating dealers, Capital One may be a good choice for an auto loan. It's possible to get prequalified with a soft credit check. And the Auto Navigator tool can come in handy if you're on a tight budget.

Capital One doesn't share specific credit score requirements. But it does state that to be eligible for a loan or refinancing, you must: Make at least $1,500 per month.

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.

It's extremely rare to be denied a car loan after preapproval, but it can happen. Lenders may include terms that allow them to back out of an agreement. Some disreputable dealers may offer you one rate, then tell you that the offer fell through after you've decided to buy the car.

You must not have 3 or more open Capital One Auto Finance accounts or an aggregate limit over $100,000 with Capital One. There is a minimum monthly income requirement of $1,500, and your income must be sufficiently greater than your monthly debt obligations and living expenses.

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.

Which Credit Bureau Does Capital One Use? Capital One appears to pull from any of the three major credit bureaus: Experian, Equifax and TransUnion.

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.

Your credit score is crucial to determine your eligibility for a no down payment car loan. Most lenders require a FICO credit score of at least 680 before you can qualify. If your credit score falls below 680, improve your credit score before you apply to help you qualify in the future.

The credit scores and credit reports you see on Credit Karma come directly from TransUnion and Equifax, two of the three major consumer credit bureaus. They should accurately reflect your credit information as reported by those bureaus — but they may not match other reports and scores out there.

What is a good credit score on Credit Karma? ›

For FICO, credit scores from 670 to 739 are considered to be good, 740 to 799 are very good and above 800 are exceptional.

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.

Generally, lenders want a borrower seeking a car loan to have a debt-to-income ratio (DTI) no higher than 46%. Ideally, your DTI should be 35% or less. A DTI that's 50% or higher may signal to lenders that you won't be able to fit a car payment into your budget.

A borrower with a poor credit history or negative financial situations, such as bankruptcies or repossessions, will have a harder time getting approved for a loan—even with a good co-signer.

It's a good idea to get preapproved for a car loan so you can gauge how much you're eligible to borrow and ensure that you get the best terms possible. You may also be able to get more negotiating power if you decide not to use the dealer to arrange financing.

Avoiding a hard credit check: Capital One pre-approval results in a soft credit check, which won't affect your credit scores. Once you decide to apply, there will likely be a hard credit check, which can result in a temporary dip in your credit scores.

If you apply by phone or online, you'll typically get a response within 60 seconds. If you submit a paper application, it will take longer. But no matter how you apply, Capital One generally notifies applicants of the decision in writing within seven to 10 days of receiving the application.

If your credit score is below 670, it could be hard to approved for a traditional car loan. If you can wait to buy a car for a few months, work on raising your score. Focus on making on-time payments in full on revolving debt like credit cards.