1. What is Capital One Personal Loan?

Capital One offers personal loans primarily to existing credit card customers. These loans typically have higher interest rates compared to traditional personal loans, as they are focused on credit card debt consolidation.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( P \) — Principal loan amount (USD)
• \( r \) — Monthly interest rate (annual rate ÷ 12, in decimal)
• \( n \) — Number of months in loan term
• \( PMT \) — Monthly payment amount (USD)

Explanation: The formula calculates the fixed monthly payment required to pay off a loan with interest over a specified term.

3. Understanding Loan Payments

Details: Each payment consists of both principal and interest. Early payments are mostly interest, while later payments apply more to principal.

4. Using the Calculator

Tips: Enter the loan amount in USD, annual interest rate (typically 10-25% for Capital One), and loan term in months (usually 12-60 months).

5. Frequently Asked Questions (FAQ)

Q1: Why are Capital One personal loan rates higher?
A: These loans are primarily for credit card debt consolidation and are typically offered to customers with existing credit card balances.

Q2: What credit score is needed?
A: Capital One typically requires good to excellent credit (FICO 670+) for their personal loans.

Q3: Are there origination fees?
A: Capital One personal loans generally don't have origination fees, unlike some other lenders.

Q4: Can I pay off the loan early?
A: Yes, Capital One doesn't charge prepayment penalties, so you can pay off the loan early to save on interest.

Q5: How does this compare to credit card interest?
A: Even with higher rates, personal loans often have lower rates than credit cards and fixed repayment terms.