Discover Personal Loans Review: An Affordable Way to Borrow

Discover personal loans review

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.
Check Out Discover Personal Loans Today

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:

  1. Get pre-approved for a personal loan and get a rate quote.
  2. Review your personal loan offers, accept one, then complete a full loan application.
  3. 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.

Discover personal loans

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.

Discover personal loans review

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

Want to get in touch with Discover? You can reach a customer service specialist at 1-866-248-1255 during the following hours:

  • Monday to Friday, 8 a.m. to 11 p.m. EST
  • Saturday to Sunday, 9 a.m. to 6 p.m. EST

You can also reach out to Discover on social media, via the Discover Facebook page or on Twitter @Discover.

Interested in a personal loan?

Here are the top personal loan lenders of 2018!
LenderRates (APR)Loan Amount 
1 Includes AutoPay discount. Important Disclosures for SoFi.

2 Important Disclosures for Citizens Bank.

SoFi Disclosures

  1. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Finance Lender Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)
  2. Personal Loans: Fixed rates from 5.49% APR to 14.24% APR (with AutoPay). Variable rates from 5.29% APR to 11.44% APR (with AutoPay). SoFi rate ranges are current as of December 1, 2017 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 5.29% APR assumes current 1-month LIBOR rate of 1.34% plus 4.20% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

Citizens Bank Disclosures

  1. Personal Loan Rate Disclosure: Variable rate, based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of August 1, 2017, the one-month LIBOR rate is 1.23%. Variable interest rates range from 6.02% – 15.97% (6.02% – 15.97% APR) and will fluctuate over the term of your loan with changes in the LIBOR rate, and will vary based on applicable terms and presence of a co-applicant. Fixed interest rates range from 5.99% – 16.24% (5.99% – 16.24% APR) based on applicable terms and presence of a co-applicant. Lowest rates shown are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
  2. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with Citizens Bank at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, Citizens Bank checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  3. Automatic Payment Benefit: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount.
7.39% - 29.99%$1,000 - $50,000Visit Upstart
5.29% - 14.24%1$5,000 - $100,000Visit SoFi
8.00% - 25.00%$5,000 - $35,000Visit Payoff
5.99% - 16.24%2$5,000 - $50,000Visit Citizens
5.99% - 35.89%$1,000 - $40,000Visit LendingClub
5.25% - 14.24%$2,000 - $50,000Visit Earnest
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Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print, understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.