 
Capital One Auto Loans
Are you tired of walking or having to ask for a
ride everywhere you go? I understand being in that predicament as I
have been in it numerous times in my life. Many people find that
they are without a car because of their financial situation – no,
not the lack of a job – but the lack of a good credit history.
Credit reports have managed to control the lives of millions of
Americans as interest rates rise and salaries stay the same. If you
are held by the grip of bad credit, you have probably been told you
can never buy a house or a new car. But because so many people
suffer from bad credit, many agencies are relaxing their guidelines
to extend more people credit – Capitol One is one of those
companies. They offer Capital One Auto Loans to people with
less-than-perfect credit and many times, at lower interest rates
that auto dealers. Since I’d heard about them through friend, I
thought I’d do a little research to see what they offered.
About Capital One Auto Loans
Capital One Auto Loans are loans provided by
Capital One Financial Corporation, which is said to be one of the
world’s top issuers of MasterCard and Visa credit. These are the
guys that you often see on commercials saying that they will approve
anyone for credit, though you may have a high interest rate as a
repercussion of a low credit score. It appears that they extended
their credit resources to include auto loans. Now they are said to
be one of America’s largest online vehicle lenders and provide their
loans right through the Internet or directly through a car
dealership.
They explain that the reason they are so
popular is because their online process is speedy and easy. You
simply apply online, which takes a few minutes, and then only a few
minutes later you get an approval or decline. If you are approved,
they give you a “no-obligation Blank Check” that you can take to any
dealership of your choice. At the dealership you decide which car
you would like and then buy it by filling out the blank check. This
is essentially considered paying for the car in cash, which means
your obligation to the dealership has ended. Now you will deal
directly with Capitol One to repay the loan.
Capital One Auto Loans finance both new and
used cars as well as motorcycles (which some companies don’t
finance). You can work with either a dealership or private party;
refinance your car after originally financing it with a dealership,
or buy out a car you leased from a dealership.
Getting Started
They say the first thing you need to do when
looking to apply for Capital One Auto Loans is to check their loan
rates. You do this by clicking on the “rates” link on their website.
Once there, you select either “auto” or “motorcycle” to get an idea
of prospective interest rates determined by the length of your term,
whether the car will be new or used, if it is being purchased by a
person, or whether you’re refinancing or conducting a lease buyout.
After you’ve determined the rates, then you
calculate the tentative amount of the loan you should expect to pay
based on those rates and the amount you intend to take out, the
length of the term, your zip code and state.
After the loan amount is calculated, if it
sounds like something you’re interested in, you can take the next
step by apply for one of their Capital One Auto Loans online.
The Application Process
The next step in taking out one of their
Capital One Auto Loans is to actually apply online. The application
itself is only one page long and asks for the vital information like
name, address, phone number, date of birth and email address. Then
it goes into the validating your financial situation and credit by
asking for social security number, your house payment and how long
you’ve lived at your residence, and employment information. And
finally, they ask what type of loan you would like (for a car or
motorcycle), the loan amount requested, length of term requested,
how you want to be billed and how you would like to receive your
check.
How Much Money Should I Apply For?
They say the best way to ensure you will have
enough to pay for the car you want to request a loan for an amount
that is significantly higher than the sticker price on the car
(because you need to account for taxes and other fees). When you
actually pay for the car, whatever amount you write on the check
will be the amount of the loan you actually took out – in other
words, you only pay for the amount of the car, not the amount of the
loan you were approved for. So for example, let’s say you found a
car that you want with a sticker price $22,000. However, you applied
for $25,000. Once you pay the taxes and fees, you ended up spending
$23,500 for the car, so the amount you will owe back will be
$23,500, not $25,000.
After you submit your application, you will
only have to what a few minutes to get a response. If you are
approved, you don’t have to accept the offer (however, I don’t
recommend you go around applying for loans with no intention of
accepting as this action results in points on your credit). If you
do accept the offer, they will send you your blank check. Since they
don’t know how much you will write the check for, they won’t begin
the process of repayment until you sign the check over to a
dealership.
Now that you’ve learned a little bit about the
process behind applying for Capital One Auto Loans, hopefully you
will have a better idea of whether they’re right for you. If they
are, then I wish you all the best in applying for your loan and
buying your car, and if Capital One Auto Loans are not for you, then
I wish you a happy search in finding one that works for you.
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