Capital One auto loans can help people with fair credit get approved for an affordable car - Business Insider

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Here's what to consider if you're thinking about a Capital One auto loan

A Capital One auto loan might be for you if you have a nonprime or subprime credit score. In these credit categories, borrowers may be rejected by many lenders or offered high interest rates.

Capital One works with borrowers with credit scores as low as 500. Auto loan interest rates at Capital One tend to start lower than the typical interest rates, and could help people in this credit category get lower interest rates, too.shows that people in the nonprime credit category get an average interest rate of 11.26% for a used car, and 7.65% for a used car. People with subprime scores tend to have even higher interest rates, at 17.74% for a used car and 11.92% for a new car.

Capital One auto loans could help borrowers with credit scores in these categories beat the average, since interest rates start relatively low at 2.99%.Shopping around for an auto loan and comparing offers is the best way to know that you're getting a good deal. With Capital One, it's easy to pre-qualify online and walk into a dealership with an idea of what you might pay.

If you pre-qualify in advance, you have more bargaining power with the dealership when it comes to talking interest rates. The interest rate on your auto loan is negotiable, and you could use your pre-qualification offer to beat an offer or be confident that you've got the best deal.

 

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