Capital One Personal Loan Alternatives

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Updated on Thursday, December 13, 2018

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If you need cash to make a big purchase or to pay down debt, a personal loan can quickly deliver the funds you need — possibly with a fixed term and interest rate, as well.

You can use a personal loan for a variety of purposes, such as to:

  • Consolidate your debt
  • Manage a large expense, such as moving or planning a wedding
  • Cover unexpected costs, such as medical or legal bills

Personal loans are popular with consumers seeking access to cash. In the fourth quarter of last year, 4.6 million personal loans were issued, the highest levels since 2015, according to a study by credit reporting agency TransUnion. Consumers are borrowing larger amounts as well, with the average unsecured loan hitting $7,986 in Q1 2018, up about $300 from a year before.

While one popular financial company, Capital One, no longer offers unsecured personal loans, many banks, credit unions and online lenders still do. However, the terms can vary depending on the lender and your financial position.

If you’re in need of a personal loan, consider the following options.

Alternatives to Capital One personal loans

Consumer have many options for a personal loan. Many banks and credit unions offer personal loans, as do online lenders such as SoFi, LendingClub and Earnest. Here’s what you need to know about the different kinds of lenders you may encounter on your search for a personal loan.

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Personal loans from online lenders

As more consumers get comfortable with e-commerce and online lending, the online banking sector has burgeoned into a fast-growing marketplace.

Online lenders offer consumers the convenience of browsing for loans and obtaining rate quotes on their own schedule. No more scheduling appointments with loan officers at banks and listening to their pitches. With sophisticated apps and websites, online lenders make it easy to apply for a personal loan and submit necessary documents.

While some consumers may worry about entering personal information online and uploading pay stubs and bank accounts, reputable online lenders offer strong web security. To get more comfortable with an online lender, consumers can look for reviews online and also search with the Better Business Bureau or states’ attorney’s offices. Also, online lenders are subject to the same federal oversight as traditional lenders, which should give consumers some added confidence.

How MagnifyMoney Gets Paid

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Company
APR
Terms
Credit Req.
LendingTree

As low as 2.49%

24 to 60

months

Minimum 500 FICO®

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on LendingTree’s secure website

LendingTree is our parent company

Advertiser Disclosure

Disclaimer


As of 17-May-19, LendingTree Personal Loan consumers were seeing match rates as low as 2.49% (2.49% APR) on a $20,000 loan amount for a term of three (3) years. Rates and APRs were based on a self-identified credit score of 700 or higher, zero down payment, origination fees of $0 to $100 (depending on loan amount and term selected). Terms Apply. NMLS #1136

3.99% - 19.99%*

with AutoPay

24 to 144*

months

Not specified

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on LendingTree’s secure website

Advertiser Disclosure

*Your loan terms, including APR, may differ based on loan purpose, amount, term length, and your credit profile. Excellent credit is required to qualify for lowest rates. Rate is quoted with AutoPay discount. AutoPay discount is only available prior to loan funding. Rates without AutoPay may be higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 3.99% APR with a term of 3 years would result in 36 monthly payments of $295.20.
SoFi

5.99% - 18.28%*

24 to 84

months

680

Minimum Credit Score

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on LendingTree’s secure website

Advertiser Disclosure

Fixed rates from 5.99% APR to 18.28% APR (with AutoPay). SoFi rate ranges are current as of October 5, 2020 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.
Marcus by Goldman Sachs®

6.99% - 19.99%

36 to 72

months

Not specified

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on LendingTree’s secure website

Advertiser Disclosure

Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions.

5.99% - 29.99%

36 or 60

months

640

Minimum Credit Score

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on LendingTree’s secure website

Advertiser Disclosure

The Annual Percentage Rate (APR) is the cost of credit as a yearly rate and ranges from 5.99% to 29.99%, which may include an origination fee from 0.99% - 6.99% that is deducted from loan proceeds. Any origination fee on a loan term 4-years or longer will be at least 4.99%. The loan term and the APR offered will depend on your credit score, income, debt payment obligations, loan amount, credit usage history and other factors. Additionally, the APR offered is impacted by your loan term and may be higher than our lowest advertised rate. Requests for the highest loan amount may result in an APR higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest rate.

Best Egg loans are unsecured personal loans made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC. Equal Housing Lender. "Best Egg" is a trademark of Marlette Funding, LLC. All uses of "Best Egg" on this site mean and shall refer to "the Best Egg personal loan" and/or "Best Egg on behalf of Cross River Bank, as originator of the Best Egg personal loan," as applicable. Loan amounts generally range from $2,000-$35,000. Offers up to $50,000 may be available. Residents of Massachusetts have a minimum loan amount of $6,500; New Mexico and Ohio, $5,000; and Georgia, $3,000. For a second Best Egg loan, your total existing Best Egg loan balances cannot exceed $50,000. Borrowers should refer to their loan agreement for specific terms and conditions. Your verifiable income must support your ability to repay your loan. Upon loan funding, the timing of available funds may vary depending upon your bank's policies.

To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you.

10.68% - 35.89%

36 or 60

months

Not specified

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on LendingTree’s secure website

9.95% - 35.99%*

24 to 60**

months

580

Minimum Credit Score

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on LendingTree’s secure website

Advertiser Disclosure

*If approved, the actual loan terms that a customer qualifies for may vary based on credit determination, state law, and other factors. Minimum loan amounts vary by state.

**Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33.

Based on the responses from 7,302 customers in a survey of 140,258 newly funded customers, conducted from August 1, 2018 - August 1, 2019, 95.11% of customers stated that they were either extremely satisfied or satisfied with Avant. 4/5 Customers would recommend us. Avant branded credit products are issued by WebBank, member FDIC.

18.00% - 35.99%

24 to 60

months

Not specified

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

Not all applicants will qualify for larger loan amounts or most favorable loan terms. Loan approval and actual loan terms depend on your ability to meet our credit standards (including a responsible credit history, sufficient income after monthly expenses, and availability of collateral). Larger loan amounts require a first lien on a motor vehicle no more than ten years old, that meets our value requirements, titled in your name with valid insurance. Maximum annual percentage rate (APR) is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Depending on the state where you open your loan, the origination fee may be either a flat amount or a percentage of your loan amount. Flat fee amounts vary by state, ranging from $25 to $400. Percentage-based fees vary by state ranging from 1% to 10% of your loan amount subject to certain state limits on the fee amount. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan. OneMain loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z, such as college, university or vocational expenses; for any business or commercial purpose; to purchase securities; or for gambling or illegal purposes.

Borrowers in these states are subject to these minimum loan sizes: Alabama: $2,100. California: $3,000. Georgia: Unless you are a present customer, $3,100 minimum loan amount. Ohio: $2,000. Virginia: $2,600.

Borrowers (other than present customers) in these states are subject to these maximum unsecured loan sizes: Florida: $8,000. Iowa: $8,500. Maine: $7,000. Mississippi: $7,500. North Carolina: $7,500. New York: $20,000. Texas: $8,000. West Virginia: $14,000. An unsecured loan is a loan which does not require you to provide collateral (such as a motor vehicle) to the lender.
PenFed Credit Union

6.49% - 17.99%

60

months

Not specified

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on PenFed Credit Union’s secure website

7.98% - 35.99%

36 or 60

months

600

Minimum Credit Score

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on LendingTree’s secure website

Personal loans from traditional banks

Banks with physical branches could be a good option for borrowers. If you aren’t comfortable applying online for a loan, for example, you could go in to your local branch and speak with a representative about your options.

There could be advantages to applying for a loan with a bank that you already do business with, too. Banks may offer incentives to their banking customers seeking personal loans, such as preferential rates if you enroll in autopay, are an existing customer or have a checking or savings account. However, this perk isn’t exclusive to banks with brick-and-mortar locations — though it could be a selling point.

You may be able to use your existing savings account as collateral for a secured personal loan, which could offer better terms than a traditional personal loan. Perhaps the biggest advantage of taking out a loan at your local branch, though, is having someone to work with in-person. You could make payments in person and have a go-to banking rep to answer your questions. That’s something online lenders can’t offer. (Though a credit union can.)

It’s worthing noting that some banks, such as US Bank, will only extend personal loans to existing banking customers.

Here are terms you may find from lenders in MagnifyMoney’s personal loan marketplace:

  • Rates: You can find rates as low as 2.49%.
  • Term length: Personal loan terms range from 12 to 60 months.
  • Borrowing limits: Borrow from $2,000 to $100,000.

Personal loans from credit unions

Another popular option is to get a personal loan from a credit union. These are nonprofit financial cooperatives whose members own the institution.

Credit unions typically charge lower fees and offer higher savings rates than for-profit banks. You may also find personal loans with lower interest rates. But to take advantage, you’ll need to be a member with an existing account.

Credit unions may be more willing than other lenders to extend a loan to someone with a lower credit score.

With a personal loan from a credit union, members can usually choose between a secured loan and an unsecured loan. Some credit unions get creative with what they’ll accept for collateral. For instance, the Credit Union of Denver allows members to secure loans with vehicles such as ATVs, dirt bikes, jet skis, or titled trailers, including horse trailers or flatbed trailers.

Here are terms you may find from lenders in MagnifyMoney’s personal loan marketplace:

  • Rates: You can find APRs as low as 2.49%.
  • Term length: Personal loan terms range from 12 to 84 months.
  • Borrowing limits: Borrow up to $50,000.

How to compare personal loans

When you’re shopping for personal loans, consider taking these steps:

  • Check your credit report and report errors. Your credit report informs your credit score, which plays an important role in securing favorable rates and terms, as well which lenders you may be able to work with.
  • Shop around with lenders. Even if you’d prefer a brick-and-mortar bank, consider online lenders that may offers better terms. You may find the perks of a traditional bank aren’t worth a higher loan cost.
  • Get a breakdown of a lender’s fees. Ask about origination fees, charges for late or missed payments and penalties for early repayment.

Before tying down a lender, you should compare rates by getting pre-approved with different lenders. That way, you can make an informed decision before taking out loan funds. Here are some of the most common variables with a personal loan to compare:

APR: Short for annual percentage rate, this rate indicates how much a loan will cost you per year. It includes your interest rate and any associated fees from your lender. Your rate can be fixed or variable.

Term length: The period of time your loan must be repaid, including the interest. Personal loan terms typically run between one year and seven years.

Conditions: Personal loans can be secured loans, meaning they are guaranteed by hard assets or a bank account, such as a certificate of deposit (CD) or savings account, or unsecured loans, which are not tied to any collateral.

Borrowing limits: The amount of money you can receive from your personal loan. Different lenders may have different minimum and maximum borrowing amounts.

3 alternatives to personal loans

Sometimes, a personal loan isn’t the right fit for a consumer. Perhaps your credit score is low and that means you don’t qualify for an attractive interest rate. Or maybe the terms of the personal loans are too restrictive for your needs and budget. The good news is there are other forms of credit and ways to get you quick access to cash.

Personal line of credit

Along with personal loans, many banks and credit unions will extend their banking customers a personal line of credit.

Pros

  • You have to access to a pre-approved line of credit you can draw on when you need it.
  • Payments based on funds you access, not the full amount you qualify for.
  • You don’t need collateral because the line is tied to an existing bank account.
  • For an even lower interest rate, you can secure the loan with a bank account or CD.

Cons

  • When your draw period ends, you must repay the loan in full.
  • Rates and terms vary by lender, so shop around for your best deal.
  • It can take several days to get access to funds.

Intro 0% APR balance transfer credit card

Some credit card companies offer attractive introductory offers with 0% APR for a fixed period of time, usually 12 to 21 months. You can check out different options on MagnifyMoney’s credit card marketplace.

Pros

  • You get a grace period to pay off your balance without incurring interest payments.
  • Like a no-fee loan, these cards allow you to make purchases on credit while earning perks or rewards.
  • As long as you pay on time, you’ll avoid any interest charges or late fees.
  • Many cards come with no annual fee.

Cons

  • Once the introductory period ends, interest rates can skyrocket.
  • If you don’t pay on time and pay off the balance, you could face stiff fees and interest charges.
  • If you have weak or low credit, you may not qualify.

Home equity line of credit (HELOC)

If you own a property and you’ve paid down a sizable chunk of your mortgage, you may be able to tap into some of your equity in your home. Many lenders and mortgage companies offer home equity loans, or HELOCs.

Pros

  • HELOCs function similarly to a bank line of credit, but in this case, your equity in your property guarantees the loan.
  • During the draw period, make minimum monthly payments of both principal and interest.
  • Option to pay for major expenses, such as home renovations, vacations or other large purchases, or pay down debt.
  • Interest rates are generally lower than credit cards.

Con

  • When you reach the end of your draw term, you have to keep repaying loan, but no longer have access to funds.
  • Interest rates are often variable, which can add to your costs if rates go up.
  • Some banks may offer fixed rates for some or all of your balance, but that rate could be higher than the variable rate.

Conclusion

While Capital One no longer offers personal loans, they do still offer credit cards, savings and checking accounts and auto loans. For personal loans, consumers can inquire with many other traditional and online lenders.

Since personal loans are a popular offering, there should be plenty of competitive offers on the marketplace, providing borrowers with the greatest chances to find a personal loan that meets their financial capabilities and their needs.