Discover may focus on debt consolidation but their personal loans have many different uses such as vacation and wedding expenses.
APR
6.99% – 24.99%
Loan Amount
$2,500 – $35,000
Term
36 to 84 months
Min score
720
Discover may focus on debt consolidation but their personal loans have many different uses such as vacation and wedding expenses.
APR
6.99% – 24.99%
Loan Amount
$2,500 – $35,000
Term
36 to 84 months
Min score
720
Unlike the other lenders on this list so far, Discover is one of the few companies that lend to residents of all 50 states. They also don’t charge an origination fee and have a helpful loan calculator on their website to help you get started. They have flexible repayment terms, fixed rates, and are have a staff of 100% US-based loan specialists available to help you.
You can use a Discover personal loan for various reasons, from financing a large purpose, such as home repairs or a wedding to debt consolidation. You can also use your personal loan to cover unexpected expenses, remodeling your home or purchasing a new vehicle.
The only trouble with Discover is that the application process is longer than others and they charge a pretty hefty late payment fee. They also don’t allow joint borrowers and the max amount able to be borrowed is less than many other places. The loan range for Discover is between $2,500 – $35,000 .
- Soft Pull Inquiry
- No Origination Fee
- Direct Payment to Creditors
- Competitive Interest Rates
- 30 Day Money Back
- Available in All States
- Longer Terms
- Longer Application Process
- Smaller Max Amount
- No Joint Borrowers
- Large Late Payment Fee
Can I get a Discover loan with a 600 credit score?
Although Discover does not disclose its minimum credit score requirements, generally speaking, you will need a good credit score.
However, this does not mean that you will be automatically declined if you have a score of 600. You may still qualidebt-to-income a good debt to income ratio and can meet the other requirement criteria.
Can I negotiate with Discover?
If you are struggling to make your repayments or want to organize your finances by making a settlement, you can call the Discover helpline.
Discover claims to be prepared to help you whether you have long-term hardship issues or a temporary financial setback. The bank has a variety of repayment assistance programs that could help you.
Can I pay off the Discover loan early?
Discover makes it easy to repay your personal loan early if you decide this is the best option for you.
Whether you want to pay off the entire loan early or make extra payments, this is possible, and you’ll incur no prepayment penalties or fees.
Does Discover offer more financial products besides personal loans?
Although Discover may be primarily known for its lending products, including credit cards, this bank does have a good variety of financial products.
In addition to various loans and credit card options, Discover has a checking account, savings accounts, and investment options with minimal fees and attractive rates.
Do Discover personal loans offer prequalification? (soft credit check)
Discover offers online prequalification, so you can check the rate you can qualify for when you apply for a personal loan.
This is a quick process that takes a matter of minutes, and Discover will only use a soft credit check that will not impact your credit score. A full credit check will only be necessary if you decide that you would like to proceed with your loan application.
Can I add a cosigner to Discover personal loan?
Unfortunately, Discover only offers unsecured sole personal loans. This means it is impossible to add a co-signer to your loan or add an additional borrower.
So, if you have a less-than-ideal credit score or other circumstances that may increase your rate, you cannot use a co-signer to negate these implications.
In this Review..
Requirements & Repayment Options
When it comes to personal loans, Discover has a relatively high minimum acceptable credit score, requiring you to have at least a 720 credit score to get your hands on these funds. To qualify for a loan, Discover requires borrowers to have a minimum household income of $40,000 per year. You don't need an existing account, but you can always explore the Discover banking option as well.
Compared to other lenders for excellent credit, the required score is quite high. For example, SoFi's minimum credit score is 680 .
If you want to use a Discover loan for debt consolidation, Discover will send funds directly to your creditors. You will need to use at least 70% of your loan for your existing creditors, or your final APR may be impacted.
If you fail to make a payment on time on a Discover personal loan, you will be charged a late fee. If you want to make a prepayment, however, there will be no fees. There is currently no way to get a discount if you automate your payments. You will be able to send payments directly to your creditors if you obtain a debt consolidation loan.
Discover Loan Pros & Cons
As we know, each lender has its own pros & cons – here are the relevant things we found for potential borrowers:
- Soft Pull Inquiry
Discover personal loans allow for an initial soft pull inquiry online so the borrower can get an idea of the options for which they may qualify.
- No Origination Fee
Discover personal loans has no origination fee and no prepayment penalties. These fees should always be considered in the cost of your loan. Many personal loan providers have large origination fees.
- Direct Payment to Creditors
Discover offers to send payments directly to creditors as part of their service. This way you know your new loan will go to pay down your current debt and not add to your overall debt.
- Competitive Interest Rates
Interest rates are competitive and rates are not as high as those of many other lenders for personal loans.
- 30 Day Money Back
“Discover Personal Loans strives to offer the lowest rate possible for personal loans. As a result, our loans include a 30-day money-back guarantee. If you decide within 30 days that you do not want your Discover Personal Loan, simply return the funds via check (including any amounts paid directly to your creditors). You will be charged zero interest.”
- Available in All States
Many personal loan providers are not licensed or available in all states.
- Longer Terms
Discover personal loans offer longer terms, up to 84 months, which is much longer than many other providers.
- Longer Application Process
Discover personal loans turnaround can be longer than many other personal loan providers. Most loans will require you to call in and talk to a Discover representative.
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- Smaller Max Amount
Discover personal loans’ max amount is smaller than many other personal loan providers.
- No Joint Borrowers
Discover does not allow for joint borrowers.
- Large Late Payment Fee
Discover personal loans have a late fee of $39, which is higher than most other providers.
Customer Experience
Discover's website is very clear and easy to use, and it provides you with a lot of useful information when you need it. Questions are usually answered in the FAQ section, but the customer service team is available seven days a week.
You can access a wealth of financial education content as well as a useful mobile app. Discover offers a 30-day money-back guarantee, allowing you to return your loan within 30 days and pay no interest.
Discover ranks 3rd in the study and got 877 out of 1000 possible points in the JD power 2020 research, higher than industry average.
Discover | |
|---|---|
iOS App Score | 4.9 |
Android App Score | 4.6 |
BBB Rating | A+ |
WalletHub Rating | 4 |
Contact Options | phone |
Availability | 24/7
|
What Can a Discover Personal Loan Be Used For?
Discover personal loans can be used to pay for debt consolidation, vacations, wedding expenses, or home improvements. They cannot be used for any post-secondary education expenses.
- Home Improvement – Discover personal loans can be used for home repairs or renovations. The advantage of using a Discover personal loan for home improvement is the promptness of receiving the funds.
- Debt Consolidation – Discover personal loans focus on helping borrowers pay down debts. Debt consolidation loans with Discover require 70% of the loan to be paid to the creditor directly. If you don’t, the rate may be higher. If 70% of the loan does not go to the creditor, it could even result in a decline.
- Vacation – A Discover personal loan for vacations offers a way to get money for your vacation without having to deal with credit cards or worry about every dime during travel. This includes everything from family vacations to international travel and cruise vacations.
- Wedding Expenses – Using Discover personal loans for an engagement ring will reduce the overall cost of one of the biggest purchases of your lifetime. You can also use Discover personal loans for wedding expenses, including your reception and honeymoon.
How to Apply For a Personal Loan With Discover
- 1.
The minimum application requirements are that the borrower must be a US citizen or a permanent resident who is at least 18 years of age and makes at least $25,000 a year. Discover aggressively markets their personal loans, mailing out millions of invitations to apply.
- 2.
They have a large customer base, marketing to those who use Discover credit cards or other banking products. You do not need an invitation to apply. You can apply online or by phone.
- 3.
Even if you apply online, you will have to speak to a Discover representative. You can do a soft pull online to see what kind of rate Discover will offer to you. You will need basic personal information such as income, employment and banking information.
- 4.
If you are planning to consolidate debt, Discover will require creditor information, including balances and account numbers.
- 5.
The application process for Discover personal loans usually takes 1 to 7 days. In some cases they will require additional information in order to verify identification and/or income.
Discover Personal Loan FAQs
Is Discover a good place to get a loan?
Discover allows customers to use loans for almost any purpose. Discover has a completely digital application process, speeding up approval. You can expect to receive the funds typically within one business day.
However, to qualify, you need an excellent credit score, so it may not be the best option for a lot of consumers. If you're still not sure, you can always keep comparing personal loan lenders ot take a look on our picks for the best personal loan for good credit.
Does Discover check your bank account?
Discover requires that applicants have a minimum household income. However, the lender does need to verify the income you specify on your application. This can be done by submitting recent bank statements, or pay stubs.
They may also contact your employer to verify your employment status. In some circumstances, Discover may use a third party, such as your bank to confirm your income information.
Is Discover better than FIGURE?
FIGURE offers larger sums for personal loans with far longer terms, making them a good choice for debt consolidation loans. The rates are also lower. Just bear in mind that if you take a loan with a longer term, even if the rate is lower, you will pay more in the long term.
According to our FIGURE personal loan review, Figure is also more flexible in terms of its lending requirements. You can qualify for a loan with a FICO score of 680, but you will need to have a debt-to-income ratio of less than 40%.
So, if you are in need of a debt consolidation loan, FIGURE does make a better option compared to Discover.
Is Discover better than Upstart?
Like FIGURE, Upstart has a higher borrowing limit compared to Discover. You can also use the loan for a variety of purposes. Another key difference is the rates, which are far higher compared to Discover.
Upstart requires a credit score of at least 600, so it is easier to qualify for a loan, but you do need to demonstrate that you have a regular income or are in full-time employment.
Upstart can also deliver approval and your funds within one day. So, if you are in need of a quick loan and don’t have a great credit rating, Upstart is likely to be the better choice.
Is RocketLoans better than Discover?
Discover offers more attractive rates compared to Rocket Loans rates. However, you do need to have excellent credit with a score of 720 or more. You can use the proceeds of the loan for almost any purpose and the application process is fully digital. Like Rocket, if you’re approved, you can expect to receive your funds in one business day.
While these are attractive terms, if you have a credit score of less than 720, Rocket Loans may be a decent alternative.
Is Citibank better than Discover?
Discover offers loans with a lower maximum and very similar rates to Citi loan. You can use the proceeds of your loan for almost any purpose. The application process is fully digital, which does speed up approval. You can expect to receive your loan funds within one business day.
However, this does come at a cost. You must have a credit score of at least 720. So, unless you have an excellent credit score, Citibank could be a better option.
Alternative Small Personal Loans to Consider
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|  | |
|---|---|---|---|
APR Range
The annual percentage rate (APR) is the total annual cost of borrowing money. This rate includes the interest rate as well as any additional finance charges. When you take out a personal loan, for example, you may be required to pay loan origination fees.
| 8.49% – 35.99%
| 5.40% – 35.99%
| 8.49% – 17.99%
|
Term
The term of your loan is the amount of time you have to repay it. For example, if you get a 24 months personal loan, the loan term is 24 months.
| 24 – 84 months
| 36-60 Months
| 12 – 60 months
|
Loan Amount | $1,000 – $50,000
| $1,000 – $50,000
| $600 – $50,000
|
Minimum Score | 620
| 600
| 700
|
Funding Time | Within a day of approval
| 1-2 Days
| N/A |
Review Personal Loan Top Lenders
Avant
Best Egg
CitiBank
Credible
Discover
Figure
FreedomPlus
Payoff
LendingPoint
LendingTree
Marcus
OneMain Financial
RocketLoans
SoFi
Upgrade
Upstart
Wells Fargo
Compare Alternative Lenders
Discover vs Axos vs Marcus
Marcus is a Goldman Sachs offshoot who is one of the best in the business. It is best suited to people with good credit and those who want repayment flexibility. Discover is another high-quality lender known for its low origination and fats funding fees. Axos is an online bank that caters to people with excellent credit and aims to process funds quickly.
Read Full Comparison: Axos Vs Marcus Vs Discover: Which Personal Loan Suits You Best?
Discover vs SoFi
SoFi has a reputation for being one of the best in the business, with no fees, a wide range of loan options, and a flexible set of repayment terms.
Discover is another high-quality lender that does not charge origination fees, has a wide range of repayment options, and can provide funding the same day. This article will compare and contrast the similarities and differences between SoFi and Discover.
Read Full Comparison: SoFi Vs Discover: Which Personal Loan Suits You Best?
Discover vs Upgrade vs Payoff
Over the years, Discover has earned a good reputation for not charging origination fees, offering flexible repayment options, and providing quick funding. Upgrade has been in the personal loan business for many years, serving over 500,000 customers and originating $7 billion in loans. It gives you quick access to funds as well as flexible repayment terms.
Finally, Payoff is a financial wellness company that wants its customers to have a positive relationship with money.
Read Full Comparison: Upgrade Vs Payoff Vs Discover: Which Personal Loan Suits You Best?
Discover vs Citi vs Wells Fargo
Discover is an online lender with a good reputation that does not charge origination fees. It also provides same-day funding and a variety of excellent repayment options. Citibank is one of the largest financial service providers in the United States today. For many years, the New York-based company has provided personal loans.
It is an excellent choice for those looking for no-fee personal loans as well as access to autopay discounts. Finally, Wells Fargo, like Citi, is a well-established financial services powerhouse in the United States. It is an excellent choice for those seeking large loans with a high degree of flexibility.
Read Full Comparison: Citi Vs Discover Vs Wells Fargo: Which Personal Loan Is Better?
