You could be out of work and need to cover rent, or maybe you just have high-interest debt you want to refinance more cheaply. If you run into situations like these, it might be time to start looking for a personal loan.
Some people look to Capital One or other large U.S. banks, but many of them don’t offer unsecured personal loans. So what are some Capital One personal loan alternatives? And what is an unsecured personal loan anyway?
Capital One personal loan alternatives
While Capital One does offer auto loans and a variety of credit cards — from cash-back and travel rewards cards to secured cards for people building credit — it doesn’t offer unsecured personal loans.
Personal loans, which come as either secured or unsecured loans, can be used for anything you want. The difference is that secured loans require collateral, or something you offer as security. For example, if you can’t pay back a secured loan on time, a lender can seize the collateral, such as your car or home.
Unsecured loans are a little harder to get because your credit score is taken into consideration. On the upside, they generally have lower interest rates than credit cards.
While some of the big banks like Capital One don’t offer unsecured loans, there are many other options.
Of course, you’ll first need to determine if a personal loan is right for you. It’s still a loan, so you’ll need to be sure you’ll be able to pay it back. But if you decide it’s the best move for you, then you have lots of Capital One personal loan alternatives from which to choose.
Banks that offer personal loans
Although not all banks offer personal loans, there are a few that do. Before you can borrow, you might need to be a customer with an active checking or savings account.
Big banks often allow for high borrowing limits, but they don’t always have the lowest rates. So if you’re looking for a large loan, one of these banks might be able to meet your needs.
At Citibank, loans range from $2,000 to $50,000, with an APR as low as 7.99% as of April 19, 2018. You’ll need to meet minimum income and credit score requirements to be considered.
Among the big banks, you have a good shot at getting a personal loan at Wells Fargo. It doesn’t require you to have an account before applying, but it does offer deals if you already bank there. Depending on your credit score, you could get an interest rate as low as 6.99%. Loans range from $3,000 to $100,000.
Smaller national banks, including SunTrust and PNC, also offer unsecured personal loans. But since they’re not as big as other national banks, you might not have a branch near you. If you have statewide or local banks, you should contact them to see if they offer personal loans.
Here are some of the big banks that offer personal loans:
|Bank||Borrowing amounts||APRs||Repayment terms|
|Citibank*||$2,000 – $50,000||7.99% – 17.99%||1 – 5 years|
|Wells Fargo||$3,000 – $100,000||7.24% – 24.24%||1 – 5 years|
|Citizens Bank||$5,000 – $50,000||5.99% – 18.99%||3 – 7 years|
*These are the borrowing amounts for the U.S. states in Citibank’s “SD/National Region.” The APR range assumes a $10,000 loan. Please check Citibank’s website for information for your specific location.
Personal loans from credit unions
Credit unions are a great opportunity for you to get a personal loan without going through a big bank. Many times, credit unions are more flexible than banks when it comes to qualifying for personal loans, especially if your credit is poor.
Since credit unions tend to be local, offers vary depending on the institution and location. But some credit unions offer better personal loans than others.
They also have payday alternative loans, which are great options for small loans and low fees. Keep in mind that you usually need to be a member of a credit union before qualifying for a personal loan from it.
Here are some of the top credit unions that offer personal loans:
|Credit union||Borrowing amounts||APRs||Repayment terms|
|First Tech Federal Credit Union||$500 – $50,000||8.75% and higher||Up to 7 years|
|PenFed Credit Union||$500 – $25,000||6.49% and higher||3 – 5 years|
|Alliant Credit Union||$1,000 – $50,000||5.99% and higher||1 – 5 years|
Online personal loan lenders
Sometimes you don’t need to be in a physical bank to apply for a personal loan. You can compare personal loan rates to see the ones for which you qualify. There are some lenders that have APRs that are much lower than traditional banks.
If you’re considering an online lender for a personal loan, know your limitations.
For example, if you’re looking for a small loan — say, around $500 — you should skip online lenders. Most don’t provide loans for less than $1,000 or $2,000. Also remember that your credit score is vital to the approval process, so if you can’t get one on your own, consider getting a cosigner.
Many of these lenders do offer competitive interest rates and an easy online application process. Some even approve your application and provide funds in as little as one day. And online lenders also give you the convenience of accessing your loan wherever you are, not wherever they are.
Here are seven leading online loan companies:
|Lender||Borrowing amounts||APRs||Repayment terms|
|LendingClub||$1,000 – $40,000||6.16% – 35.89%||3, 5 years|
|Upstart||$1,000 – $50,000||7.73% – 29.99%||3, 5 years|
|Avant||$2,000 – $35,000||9.95% – 35.99%||2 – 5 years|
|Earnest||$2,000 – $50,000||6.99% – 18.24%||1 – 3 years|
|Payoff||$5,000 – $35,000||8.00% – 25.00%||2 – 5 years|
|SoFi||$5,000 – $100,000||6.26% – 14.87%||3 – 7 years|
|FreedomPlus||$10,000 – $35,000||4.99% – 29.99%||2 – 5 years|
Find the right personal loan for you
Although you might be disappointed to learn Capital One personal loans don’t exist, you can see that there are many other lenders that offer this product. Getting a personal loan can be a great help, whether you need one to pay your monthly bills or your credit card debt.
Make sure you’re ready for the application process by determining how much you need beforehand. Check your credit score to see if you have the chance to get a personal loan. Then, get an idea of your interest rates and repayment terms.
The more prepared you are before applying, the more likely you are to get the loan you want.
Rebecca Safier contributed to this article.
Note: Student Loan Hero has independently collected the above information related to unsecured personal loans. None of the financial institutions have provided or reviewed the information shared in this article.
Interested in a personal loan?Here are the top personal loan lenders of 2018!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.16% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. The origination fee ranges from 1% to 6% and the average origination fee is 5.49% as of Q1 2017. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer.
7 Important Disclosures for Earnest.
8 Important Disclosures for Avant.
* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.
** 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
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.
|7.73% – 29.99%||$1,000 - $50,000||Visit Upstart|
|6.26% – 14.87%1||$5,000 - $100,000||Visit SoFi|
|6.99% – 35.97%*||$1,000 - $50,000||Visit Upgrade|
|8.00% – 25.00%2||$5,000 - $35,000||Visit Payoff|
|4.99% – 29.99%3||$10,000 - $35,000||Visit FreedomPlus|
|5.99% – 18.99%4||$5,000 - $50,000||Visit Citizens|
|15.49% – 34.49%5||$2,000 - $25,000||Visit LendingPoint|
|6.16% – 35.89%6||$1,000 - $40,000||Visit LendingClub|
|6.99% – 18.24%7||$5,000 - $75,000||Visit Earnest|
|9.95% – 35.99%8||$2,000 - $35,000||Visit Avant|