Discover personal loans may be perfect for folks with top-notch or fair credit who need a decent-sized personal loan. They offer strong interest rates and adaptable loan conditions.
Discover Personal Loan Features
- Long 84-month period;
- Three options for repayment help;
- High scores of customer satisfaction;
- No origination fees;
- Perfect for debt consolidation;
- Competitive interest rates.
- Low available loan amounts;
- Charges a $39 penalty for late payments;
- Harder eligibility requirements;
- No co-borrower permitted.
What Can Discover Personal Loans Be Used for?
You can apply for Discover personal loans to consolidate your debt. Here are other ways to use them:
- Fixing or upgrading your home;
- Paying medical fees;
- Settling past-due taxes;
- Large events like weddings.
When you get a debt consolidation loan, 70% of the loan goes to your debtors. Discover manages this for you. Then, you make monthly payments to Discover.
How Do Discover Personal Loans Work?
Fill out a form on their website to check your rate. The application requires sharing details about your job, income, and banking. Keep track of your loan status online. Most often, Discover can give you a decision the same day. After you agree to the loan terms, you might get the money the next business day.
What Are Discover’s Loan Terms & Fees?
Discover provides personal loans that have a fixed rate. These loans can be anywhere between $2,500 and $40,000. The terms for repayment can be 36, 48, 60, 72, or 84 months. The lowest fixed annual rate on these loans is 6.99%. The highest could be 24.99%, which depends on how good your credit score is.
Discover won’t impose fees for loan origination, application process, or early repayment. But, there could be a $39 late payment fee if you delay beyond the due date. If needed, borrowers can adjust their payment dates twice. These changes should happen 12 months apart during the loan repayment period.
Discover Personal Loan Requirements
The company has guidelines to ensure you’re financially stable. Let’s look at these for a typical loan:
- Required Credit Score: A minimum credit score of 660 is usually needed. It shows you are reliable with credit based on your past.
- Yearly Income Threshold: You need an annual income of at least $25,000. It can be solo or household income combined.
- Living Status Rules: To qualify, you should be a U.S. citizen or permanent resident. Also, you need to be 18 years or more.
- Needed Paperwork: Invitation ID: Some banks streamline the process with this. Not all have it, though.
- Income Proof: Tax returns can prove your household’s total earnings.
- Employment Proof: To confirm a steady income, you must prove employment.
- Banking Information: You need routing and account numbers to repay the loan. To merge your debts, you’ll need to show some info. It includes who you’re in debt to, current balances, and account numbers.
- An active email is a must. It’s for talking with lenders. It also helps you apply online.
- A proven home address is needed, primarily for paperwork and mail.
How to Get a Personal Loan from Discover
Discover’s application process for a personal loan is easy — just follow the steps below.
- Prequalify for a personal loan. It will let you check your eligibility without a hard credit hit (which will impact your credit score). Prequalifying doesn’t guarantee that Discover will approve you, but it may give you an idea of what APRs you might qualify for.
- Discover will first ask for your name and contact information during the process. You’ll also need to specify how much money you’d like to borrow, what you need it for, and how long you need to repay it (your loan term). Then, you’ll need to provide your employment information, basic financial information, and Social Security number (for a soft credit pull). At that point, Discover will let you know if you qualify and at what rate.
- Fill in the loan application form. If you like what you see in your Discover prequalification, it’s time to apply for a Discover bank personal loan officially. In addition to the information above, you may need to provide supporting documents such as pay stubs, bank statements, tax documents, and a copy of your government-issued ID. Discover conducts a hard credit check to verify loan eligibility. This check may slightly lower your credit score.
- Finalize your loan request. Finishing your loan process involves signing an online contract. That’s why having online access is crucial for applying with Discover. Agreeing to electronic updates about your loan is also required. If these steps aren’t completed, Discover won’t release your funds.
How Discover Compares to Other Personal Loan Companies
Each personal loan provider offers unique rates, loan amounts, and features, so comparing different options is beneficial. Usually, a loan with the lowest annual percentage rate (APR) is the best. However, let’s see the comparison with other companies:
Discover vs. Upgrade
Like Discover, Upgrade personal loans can be beneficial. These personal loans are designed for people with fair credit scores. Also, it is suitable for consumers who want to consolidate their debts and improve their credit simultaneously. But it is compared to lenders who prefer borrowers with good or excellent credit scores (690 or above).
Upgrade’s more flexible lending conditions amplify their services. With features like rate cuts, direct payments to lenders for debt consolidation loans, and extended payback terms for home improvement loans. These benefits are unusual for bad credit lenders. They usually accept credit scores of 629 or below.
Discover vs. SoFi
SoFi’s loans tick all the boxes of a top-notch lender: they offer a wide range of loan amounts and adaptability in repayment terms. Unlike Discover, they provide unique offerings like gratis career and financial guidance, safeguard against unemployment, and discounted estate planning. These loans are versatile, suitable to consolidate debt, support adoption or IVF treatment processes, or bankroll travel and weddings.
Although SoFi doesn’t hold any mandatory fees, they might propose an option to pay for an origination fee. The fee, which can reach up to 6% of the loan amount, appears designed to secure a lesser interest rate.
Discover vs. OppLoans
OppLoans are short-term loans provided by Opportunity Financial, also known as OppFi. Those who borrow from OppLoans aren’t subject to a harsh credit review. Even though these personal loans are marketed as favorable substitutes to payday loans, they come with a 160% APR.
BadCredify does not advise going for loans with more than 36% annual percentage rates. It applies unless you tap into all other possible sources.
At BadCredify, we scrutinize and score personal loan offerings from over 35 digital and financial establishments. We compile over 50 pieces of information from each lender, verifying product details from company websites, earnings documents, and public records. We also explore the lender’s preliminary qualification process and communicate with the company personnel. BadCredify’s editorial team conducts thorough vetting and provides annual updates; however, we also make necessary adjustments during the year.
Lenders get stars from us for showcasing customer-oriented features like soft credit checks, attractive interest rates, nil fees, clear rates/terms, convenient payment plans, swift fund allocation, reachable customer support, credit bureau reporting, and financial guidance. Those lenders get less stars who may challenge timely loan repayment. It can happen due to high APRs (over 36%), under-evaluation of repayability, and lack of credit growth assistance. Regulatory action by bodies like the Consumer Financial Protection Bureau is also considered. We apportion importance to these aspects based on their relevance to consumers and the significant effect they have on their experience.
Frequently Asked Questions
It hinges on your finances and your loan’s purpose. If you miss one payment, your credit score could drop by 180 points. So, you should be sure you can repay your loan. Discover personal loans can be a boon, providing you fully grasp their operation and eventual cost.
Discover holds a top A+ rank from the Better Business Bureau. Yet, it scored a low 1.8 out of 5 stars on Trustpilot, daily reviews numbering 200. In 2022, Discover attracted 56 personal-loan-related grievances to the Consumer Financial Protection Bureau. These are chiefly related to securing the loan or payment troubles. In response, Discover addressed all complaints punctually, providing explanations for 50, nonmonetary resolutions for five, and a monetary solution for one.
Your credit score for getting a Discover personal loan must be at least 660.
It’s not hard to get a personal loan with Discover. But you’ll need at least a 660 credit score and a household income of not less than $25,000. It’s wise to examine different personal loan choices for your unique credit score.
Discover’s customer service has the highest rate from BadCredify. You can reach out to Discover’s loan experts at 866-248-1255. Call between 8 AM and 11 PM, Eastern Time, from Monday to Friday. Or, between 9 AM and 6 PM on weekends. You can also dial Discover’s Customer Advocacy Group at 302-328-3300.
Filling your application fully and correctly could grant you approval on the same day! If Discover approves, they might deposit your funds the very next day. It depends on when you apply and whether you choose a direct deposit.
Discover personal loans can’t cover car costs if it’s new because of the car price. But if it’s a used vehicle, Discover loans are suitable for this purchase.