Discover personal loans can be a low-cost option for funding expenses, including debt consolidation and major purchases. With no origination fees and competitive personal loan rates, the Discover personal loan can be an affordable way to borrow.
But is it right for you? Find out if this financial tool is for you with this Discover personal loans review.
Discover personal loans review
Borrowers can use Discover personal loans for a wide range of purposes while keeping loan costs and monthly payments affordable.
Personal loans from Discover offer funds from $2,500 up to $35,000. They also have flexible repayment terms from 36 months (three years) up to 84 months (seven years). Various repayment term lengths can help you balance debt payoff goals with monthly costs.
A few reasons why you may benefit from a Discover personal loan:
- You’re interested in debt consolidation. Discover personal loans have competitive interest rates when compared to high-interest debts like credit cards. Borrowers also have the option to pay out loan funds directly to creditors.
- You want low loan costs. Discover personal loans do not have origination fees, application fees, or prepayment penalties. Discover also offers competitive personal loan rates.
- You have good credit. You’ll need a solid financial history to get a Discover personal loan. Your chances of approval will be best with an excellent credit score near or above 700.
- You want to track credit. Discover gives borrowers free access to the FICO score so you can monitor it.
How can you use Discover personal loans?
Discover personal loans can be used for many purposes, such as:
- Life events like weddings and vacations.
- Major purchases like furniture or energy-efficient home upgrades.
- Consolidating high-interest debt.
Discover personal loans might provide the most benefits when used to consolidate debts. They can replace several high-interest debts with a single, lower-cost loan to both simplify debts and save on interest.
What’s more, borrowers can have Discover fund personal loans directly to creditors, so they don’t have to rely on their own discipline to ensure the funds are used wisely.
No matter what your purchase or financial need is, always make sure you need to take out a personal loan — and can afford to — before doing so.
Discover personal loan fees and interest rates
When it comes to cost, Discover personal loans are a competitive option for borrowers. There are few fees and no loan origination fee. This is significant given that many loan origination fees can range from one to five percent on many personal loans.
A loan origination fee can ultimately make a loan more expensive. On a $10,000 loan, for instance, a five percent origination fee would be a high $500. Borrowers getting a Discover loan won’t face this fee, however.
There are also no application fees or prepayment penalties. In fact, the only Discover loan fee you might face is the $39 late payment fee, which is easily avoided by meeting the due date each month.
Getting your Discover personal loan rate
Discover personal loans also have competitive rates, but they aren’t the absolute lowest out there. We’ve seen personal loans rates offered by other lenders start below the 6.99% APR offered by Discover (as of April 2017).
The actual personal loan rate you’re offered by Discover and other lenders will depend on factors such as:
- Your credit score
- Personal income
- Reason for getting a personal loan
Discover lets you fill in a pre-approval form to perform a soft credit check (which won’t affect your score) to see what kind of rates you’d qualify for.
The best way to compare your actual costs is to get a free rate quote from Discover and several other lenders. Then, compare the personal loan offers you’re pre-approved for and find the best option for you.
Even after you apply and get approval for a Discover personal loan, you’re not locked into the arrangement. Discover has a 30-day, money back guarantee to protect you in case you find another loan option you’d prefer.
Essentially, if you return the full amount of loan funds via check to Discover within 30 days, your loan will be canceled, and you’ll face no interest.See If Discover Personal Loans Are Right For You
Financial and credit score requirements for Discover personal loans
Discover states that its personal loans are “an ideal solution for people with good credit and a strong financial history.”
So what does that mean exactly? Discover sets its FICO score minimum at 660, but most applicants who get approved have scores in the mid-700s.
You will need to have a solid credit history with few derogatory marks, such as delinquencies or defaults. Discover looks at information on your credit reports like recent credit activities and credit inquiries, too.
If you don’t have good or excellent credit, you might be out of luck with Discover personal loans. The lending requirements are fairly strict, and co-signers are not allowed.
Other minimum requirements Discover applicants must meet to qualify for a personal loan include:
- 18 years old or older
- U.S. citizen or permanent resident
- Minimum household income of $25,000
How to apply for Discover personal loans
To get started, visit the Discover personal loans site and click “Get Started.” This will take you to a preview page that outlines the process to apply for a Discover personal loan, which is:
- Get pre-approved for a personal loan and get a rate quote.
- Review your personal loan offers, accept one, then complete a full loan application.
- Upon approval of your application, you can sign the loan agreement and receive your funds.
Getting a Discover personal loan quote
To get a personal loan quote, you will have to enter some preliminary information (pictured below). This will include the personal loan amount you plan to borrow, how you’re planning to use the loan, and your preferred loan term.
You’ll also be asked to provide identifying information like your name, birthdate, and contact information.
Enter your address, phone number, and email address. Then you can continue to the next page, which asks about employment, income, and financial situation.
You will need to complete the following fields (pictured below):
- The nature of your employment, including part-time or full-time, self-employed, or not employed.
- Your employer and occupation.
- Your total annual income. You also have the option of adding additional household income.
- Your monthly rental or mortgage amount.
- Whether you have a savings or money market account.
- Your Social Security number and date of birth.
Once you have completed these fields, you can hit “Continue.” Discover clarifies that getting a rate quote won’t affect your credit score.
Next, you can review your disclosures and consent forms. If you agree to them, you can submit the form and see if you’ve qualified for a Discover personal loan.
Applying for your Discover loan
Once you’ve submitted your rate quote, Discover will tell you whether you qualify for a personal loan. You’ll also see the personal loan rates you qualify for. If you like what you see, you can move forward with the process and submit a full application.
Discover will ask for additional information to verify your financial information. You will need to provide recent pay stubs or bank account statements as proof of income. And Discover will verify your employment status. Discover might also call you to review application information.
You can upload relevant documents and complete a Discover application. Discover will process your application and ensure you meet the qualification requirements to approve you (if you qualify).
You’ll then accept your terms and choose how you’d like to have loan funds disbursed, usually to your bank account, or as payments to your creditors for debt consolidation loans.Sign Up for Discover Personal Loans Today
Discover contact information
- Monday to Friday, 8 a.m. to 11 p.m. EST
- Saturday to Sunday, 9 a.m. to 6 p.m. EST
Interested in a personal loan?Here are the top personal loan lenders of 2018!
|Lender||Rates (APR)||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|7.39% - 29.99%||$1,000 - $50,000|
|5.37% - 14.24%1||$5,000 - $100,000|
|8.00% - 25.00%||$5,000 - $35,000|
|4.99% - 16.24%2||$5,000 - $50,000||Visit Citizens|
|5.99% - 35.89%||$1,000 - $40,000||Visit LendingClub|
|5.25% - 14.24%||$2,000 - $50,000||Visit Earnest|