Discover Personal Loans Review 2024

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Why Trust Us

Primary data sources usedInvestopedia collected key data points from several lenders to identify the most important factors to borrowers. We used this data to review each lender for fees, accessibility, repayment terms, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right borrowing decision for their needs.

Pros Explained

  • Fast funding times: If you’ve fulfilled all the application requirements, you could receive the money in as little as one business day. 
  • Direct payment to creditors for debt consolidation: If you’re borrowing to consolidate debt, Discover can simplify the process by sending the loan funds directly to your creditors. 
  • Flexible repayment terms: With a Discover personal loan, you can select loan terms ranging from three years (36 months) to seven years (84 months).
  • Option to pre-qualify online or over the phone: Discover makes it easy to check your rates through pre-qualification, a simple process that won’t ding your credit or show up as a negative item on your credit report.

Cons Explained

  • Borrowing limit maxes out at $40,000: Some other lenders offer personal loans up to $100,000 or even more, but Discover sets a relatively low borrowing limit.
  • No opportunities for interest rate discounts: While some lenders offer a rate cut to existing customers or borrowers who opt in to automatic payments, Discover doesn’t offer rate discounts. 
  • No option to add collateral or co-signer to loan: Discover personal loans are unsecured, so you alone must meet underwriting requirements for credit and income to qualify. There’s no option to add a co-signer or apply for a joint personal loan. 
  • May charge a fee for late payments: Discover may charge a fee of $39 if you don’t make your loan payments on time; not all lenders charge late fees these days, and this is a bit higher than most lenders that do charge.

Discover lets a borrower pay off a personal loan over the course of 36 months to 84 months.

Types of Personal Loans Offered by Discover

Discover offers unsecured personal loans, meaning these loans don’t require you to apply with collateral. Instead, Discover reviews your credit, income, debt-to-income ratio, and other factors when evaluating your loan application. Borrowers with the strongest credit will get the best rates, while weaker-credit borrowers will get worse rates or will not qualify. 

You can use a Discover personal loan for almost any legal purpose, including: 

  • Debt consolidation
  • Home improvement
  • Hospital bills
  • Wedding costs 
  • Vacation funds
  • Auto repairs
  • Small business expenses
  • Veterinary bills 
  • Financial emergencies 
  • Adoption expenses
  • In vitro fertilization (IVF) costs

According to Investopedia’s 2023 Personal Loan Borrower survey, debt consolidation is the most common reason cited for getting a personal loan. Paying for home improvements and large purchases were the next two most common reasons.

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There are some restrictions on how you can use the loan proceeds. You can’t use a Discover personal loan to pay for higher education expenses, or to pay off secured debt or a Discover credit card. If you’re using a Discover personal loan to consolidate debt, you can only consolidate unsecured debt—an auto loan or home loan, for instance, wouldn’t be eligible.

Time to Receive Funds

Discover can approve your loan the same day you apply as long as your application is not missing any information. If you apply on a weekend, you might have to wait until the next business day to receive a decision.

Once your application is approved, Discover can distribute the funds as soon as the next business day via an electronic ACH transfer. If you ask to receive your funds by check, the process will take a little longer. 

To avoid delays and ensure your loan is processed quickly, follow all the application instructions, review the forms for typos, and double-check that your bank account numbers are accurate.

Borrower Requirements

Discover reviews your credit, income, debt-to-income ratio, and other factors when evaluating you for a personal loan. Its minimum required credit score is 660, and its minimum required annual income is $25,000 for an individual or household. You’ll also need to be a U.S. citizen or permanent resident who’s at least 18 years old to get a Discover personal loan.

Discover Personal Loan Features

  • Debt consolidation assistance: Discover makes it easy to consolidate debt by sending your personal loan funds directly to your creditors. After your debts are paid off, you’ll start paying back your new personal loan, ideally at a lower interest rate than you had before. You can’t use a Discover personal loan to directly pay off a Discover credit card or any secured loan.
  • 30-day loan guarantee: If you change your mind about your loan, Discover lets you return the full amount within 30 days without any interest charges or penalties. 
  • Mobile app: You can manage your personal loan on Discover’s mobile app.
  • Option to apply online or over the phone: Discover lets you pre-qualify and apply for a personal loan on its website or over the phone.

Co-Signers and Co-Applicants

Discover does not allow co-signers or co-applicants for its personal loans. You’ll need to meet the lender’s underwriting requirements for credit and income on your own to qualify for a personal loan.

Can You Refinance a Personal Loan With Discover?

Discover lets you refinance an unsecured personal loan from Discover or another lender, which may be appealing if rates have dropped or your credit score improved since you initially took out the loan. Lowering your interest rate can save you money over the life of your loan. You also can choose new repayment terms. 

Customer Service

Customer service is available by phone for personal loan applicants and borrowers.

MediumContactWhen
Telephone (applicants)(866) 248-1255Weekdays, 8 a.m. to 11 p.m. ET
Weekends, 9 a.m. to 6 p.m. ET
Telephone (general questions/loan payments)(877) 256-263224/7 for loan payments

Customer Satisfaction

Discover draws mixed opinions about its customer satisfaction.

  • Trustpilot: Discover earns only 1.8 out of 5 stars on the Trustpilot review site.2
  • J.D. Power: With a score of 769 out of 1,000, Discover ties for third place among personal loan providers in the J.D. Power 2023 U.S. Consumer Lending Satisfaction Study.3

How to Qualify For and Apply for a Discover Personal Loan

Here are the steps to take for seeking a Discover personal loan:

  1. Get pre-qualified: Share a few details about how you plan to use the loan, how much you want to borrow, and some personal details to begin the pre-qualification process.
  2. Review your loan offers: Discover will provide you with a few loan offers; choose the one that meets your needs.
  3. Complete an application: You’ll be asked for details such as date of birth, Social Security number, street address, income and employment details, bank account and routing numbers (for direct deposit), and balances and account information for creditors (if you’re consolidating debt). For this part of the process, you may need to have documents on hand like bank statements, credit card statements, income tax returns, and pay stubs.
  4. Get funded: If you’re approved, officially, Discover will pay your creditors directly (if you’re getting the loan for debt consolidation), or send it directly to your bank.

Discover allows you to pre-qualify for a personal loan. As a result, you can check interest rates without affecting your credit score or seeing an inquiry show up on your credit report.

Other Banking Services and Loans Offered by Discover

Discover provides the full suite of banking services:

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