Our experts answer readers’ personal loan questions and write unbiased product reviews (here’s how we assess personal loans). In some cases, we receive a commission from our partners; however, our opinions are our own.
The bottom line: Discover Personal Loans is a strong option for borrowers with good credit, and offers a 30-day money-back guarantee if you’re dissatisfied with your loan or find a better rate. However, if you’re late on making a payment, you may be charged a hefty $39 late fee. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
Who are Discover Personal Loans Best For?
Discover is a solid option for borrowers who want to avoid origination fees. Borrowers with excellent credit may also qualify for the lender’s competitive minimum rates. It’s a pick on our guide to the best debt consolidation loans, and we especially like the money-back guarantee feature. If you need a home improvement loan, it could also be a good option, though keep in mind the largest amount you can take out is $40,000.
However, if you’re hoping to enlist a co-signer to help you qualify or net a better rate, you’ll have to look elsewhere. Discover doesn’t allow co-signers.
Discover Personal Loan Features
Regular APR: Discover Personal Loan – Regular APR
Loan amounts: Discover Personal Loan – Loan Amount Range
Fees: Discover Personal Loan – Fees Display
Discover Personal Loan Pros and Cons
Discover Personal Loan Pros
No origination or prepayment fees. While some lenders charge an origination fee, which comes out of your total loan proceeds, Discover won’t hit you with that fee. There’s also no cost for paying off your loan early. Low minimum APR. Discover Personal Loans has a relatively low minimum APR of 6.99%, which is one of the more favorable rates out there. However, you’ll only be eligible for that rate with an excellent credit score. Consider more options for the best low interest personal loans. Thirty-day money-back guarantee. You can send back your funds by check if you decide within 30 days of receiving your loan that you no longer want it. You won’t be charged any interest.
Discover Personal Loan Cons
Low maximum loan amount. You can only borrow a maximum of $35,000 with Discover. If you need money for a bigger project, other lenders will allow you to borrow more.Unable to add a co-borrower to your application. If your credit isn’t in the best condition and you want to add a co-borrower to increase your chances of approval, you won’t be able to do so with Discover.Late fee. Discover may charge a late fee of up to $39, so if you’re worried about potentially missing a payment, the lender might not be the best choice for you.
How to Apply for a Discover Personal Loan
1. Estimate your monthly payments. You can use Discover’s calculator to estimate what your monthly payments would be depending on your loan amount, credit score, and interest rate. Make sure you can fit these payments into your budget.
2. Prequalify for a loan. You’ll need to send in basic information, such as your name, address, income, Social Security number and birthday to see what rate you’ll get. PNC will perform what’s known as a soft credit check, which will not affect your credit score.
3. Send in an application. You may need to also give the lender W-2s, pay stubs, and bank statements to confirm the information you gave provided. When you submit your application, Discover will conduct a hard credit check, which may temporarily lower your score.
4. Accept your loan terms and plan for repayment. After you sign the document accepting your loan terms, your loan will be approved and funded, possibly as soon as the next business day. Budget for your loan payments — late payments may add significant costs to your loan.
Quick tip: You can check prequalified offers from multiple lenders in a loan marketplace to ensure you find the best rate available.
Discover Personal Loan Frequently Asked Questions
Is Discover legit?
Discover Personal Loans is a legitimate financial services company with an A+ rating from the Better Business Bureau. However, a top-notch BBB rating doesn’t guarantee a positive relationship with Discover, so look over reviews on the internet and ask friends and family about their experiences with the company.
What credit score is needed for a Discover personal loan?
Discover does not publicly disclose its credit score minimums. However, the higher your credit score, the more likely you are to net a lower rate.
Are rates on Discover personal loans fixed or variable?
Discover’s personal loans, like the vast majority of personal loans on the market, are fixed-rate. This means you will pay the same amount every month for a set term length.
How fast is a Discover loan processed?
If your Discover personal loan application is approved, you can get the funds as soon as the next business day.
Discover Debt Consolidation Loans
You can use a Discover personal loan for a wide range of purposes. One of the most common reasons borrowers use personal loans for is debt consolidation. If you have an excellent credit score and can qualify for the lowest interest rates with no more than $40,000 of debt to consolidate, a Discover debt consolidation loan might be right for you.
Compare Discover Personal Loans
Discover Personal Loan vs. Prosper Personal Loan
You can borrow up to $40,000 with Discover, which is equal with Prosper’s maximum loan amount. If you need a larger personal loan, another lender, like LightStream Personal Loan – Editorial Name Only or SoFi Personal Loan – Editorial Name Only might be a better option.
Prosper Personal Loan – Brand Name will charge you an origination fee between 2.41% to 5% of your total loan amount, while Discover doesn’t charge an origination fee.
Discover Personal Loan vs. PNC Personal Loan
PNC’s maximum loan amount is $35,000, slightly less than Discover’s. PNC’s terms are between 6 to 60 months, while Discover’s range from 36 to 84 months. If you want a shorter term length — and to save money on overall interest in the process — PNC Bank Personal Loan – Brand Name may be the choice for you.
Neither PNC nor Discover charge origination fees.
A distinguishing feature of Discover is its 30-day money-back guarantee on its personal loans. If you decide within 30 days of receiving your loan that you no longer want it — perhaps you found a better rate elsewhere — you can return the funds via check and won’t be charged any interest. Neither Propser nor PNC has that perk.
Why You Should Trust Us: How We Rated Discover Personal Loans
We rate all personal loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:
Interest rate (20% of rating)Fees (20% of rating)Term lengths and loan amounts (15% of rating)Funding speed (15% of rating)Borrower accessibility (15% of rating)Customer support (7.5% of rating)Ethics (7.5% of rating)
Each category’s weighting is based on its importance to your borrowing experience. Rates and fees have the most direct impact on the overall cost of your loan, so we weigh those the most heavily. Customer support and ethics are still very important parts of the borrowing experience, but do not directly tie to a personal loan’s terms, so they have less of an impact on the overall rating.
See more on how we rate personal loans >>