Discover entered the financial world in 1985 with its Discover credit card. While originally a credit card company, Discover has branched out in the broader financial world by offering traditional banking services and financial products.
Discover personal loans are set apart by their low income requirements ($25,000 per year) and flexible payment schedules. However, they are offset by the relatively low loan amounts up to $35,000. There is also a Discover personal loans calculator provided so you can estimate your monthly payments. APR for Discover personal loans can fall anywhere between 5.99 - 24.99%, depending on your creditworthiness.
Read on to learn more specifics about Discover personal loans.
At Discover, you can get the following types of personal loans:
- Debt consolidation: If you are struggling with paying out your multiple credit card debts, high-interest loans, and other payments, then you can apply for a Discover debt consolidation loan. With this loan, you can consolidate all your existing debt into a single fixed monthly payment. Using personal loans for credit card debt you can net a lower interest rate on payments.
- Home remodel: Home remodels are typically very expensive. A home remodeling loan can give you the necessary capital to make repairs or renovations, which potentially can lead to an increase in the resale value of your home. Discover home remodeling loans are unsecured, meaning they have no collateral requirements.
- Wedding: Discover also offers wedding loans. As any other personal loan from Discover, wedding loans come with flexible repayment terms and a fixed monthly payment that will not change over the course of your loan term.
- Vacation: If you just want to get away for a bit, Discover offers personal vacation loans. Vacation loans, as any other type of loan from Discover, have flexible repayment terms and a 30 days window to return funds without any extra charge. You can get access to your vacation funds, or any loan type funds, in as little as one business day.
You can apply for the following types of loans: debt consolidation, home remodel, wedding, vacation.
|APR||5.99 - 24.99%
|Amount||$2,500 - $35,000
|Term||3 - 7 years
|Origination fee||No origination fee.
As you can see from the table the maximum loan amount is $35,000, and the APR starts at 5.99% for the best graded borrowers. The loan period varies from 3 to 7 years.
Discover Personal Loan: Pros and Cons
|Quick funding: With most Discover personal loans, you will get access to your funds within 1-2 business days.
||No co-signing/co-borrower option: Unfortunately, Discover does not allow co-signing or joint-loan options for personal loans.
|Flexible terms: Discover personal loans offer flexible payment terms of 36, 48, 60, 72, and 84 months with fixed interest payments.
||Low loan limits: Discover personal loans have lower cash limits than other lending institutions at $35,000 max.
|No origination fees: Discover does not charge any origination fees for personal loans. Typical origination fees are 1% to 10% of the total amount of the loan.
||Late fees: If you fail to make a monthly payment on time, Discover will charge a $39 late fee.
|Direct payment options: All Discover loans have the option to pay creditors directly. That way, you don’t have to worry about making the loan payments yourself.
||No autopay discount: Unlike many other lenders, Discover does not provide a discount on monthly payments when you switch to autopay.
|Free credit monitoring: All Discover personal loans also come with free FICO credit score monitoring.
|30-day guarantee: If you change your mind, you can cancel your loan within 30 days of its first funding and return the funds. You will not be charged any interest.
Applying for a Discover Loan
You can apply for a Discover personal loan on their website or by phone. You can fill out a form or enter an invitation code. To be eligible for a Discover personal loan, you must
- Have a household income above $25,000 per year
- Be at least 18 years old
- Be a US citizen or permanent resident
- Have a valid SSN
Discover does not disclose minimum credit requirements for personal loans, but based on our research from multiple third-party sources, you need a minimum score of at least 660 to be approved.
Discover has a simple 3-step process to apply for loans. First, you pick your loan amount and term. Discover will then check if you are eligible and present your loan rate. The pre-approval process is a soft credit check and won’t affect your credit score. Then you can review your terms and accept the loan. Once the terms are accepted, a hard pull will be performed.
Discover will contact you if they need any additional info. It takes about 2-3 business days for Discover to process a loan application.
Overall, Discover personal loans are a great choice if you do not need large loan amounts and may not have excellent credit. They have no origination fees, offer flexible repayment terms and can be used for a wide range of purposes. The main downsides are that you cannot co-sign a loan, Discover charges a late fee for any missed payments, and there is no autopay discount. However, if you are looking for a flexible personal loan with fixed payments, Discover personal loans are certainly a good choice.
What is the Discover customer service phone number?
The customer service number for Discover is 1-800-347-2683
. Discover customer service is available 24/7 for complaints and questions.
Are Discover personal loans legit?
Yes, Discover is one of the largest financial providers in the country. They offer a wide range of loan products, and the company has a good reputation.
Is it smart to get a Discover personal loan?
Yes, if you need to cover unexpected expenses or need a way to consolidate credit card debt, a Discover personal loan can be a great idea. Just make sure you stay up to date on payments because they do charge late fees.
Are Discover personal loans good?
Discover personal loans do not offer as high amounts as other lenders, but they have flexible payment terms and relatively low income requirements. They are a good choice if you need a smaller loan amount.