Discover Personal Loans
Discover is a credit card brand launched by Sears in 1985. It has since expanded into other financial areas, such as bank accounts and loans.
In terms of personal loans, Discover is a direct lender known for offering flexible loan terms, a strong customer experience, and excellent customer support. In exchange for such fantastic perks, they generally only look at borrowers with higher credit.
Discover Financial Loan Types and Terms
|Loan types||Debt consolidation/refinancing, auto repair, medical expenses, purchases.|
|Repayment terms||36, 48, 60, 72 and 84 months|
|Minimum credit score||660|
|Lender type||Direct lender|
|Good for||Personal spending, debt consolidation/refinancing, fast funding|
Discover is Good For
- Personal spending
- Debt consolidation and refinancing
- People who need funds fast
Discover Personal Loans Pros & Cons
- Wide range of repayment options
- Intuitive website and mobile app
- 30-day loan money-back guarantee
- No origination fees
- Strong customer support
- Rates are less competitive than other lenders
- No cosigned, joint, or secured loans available
- No autopay discount
You can apply for a Discover personal loan in two ways:
- Over the phone by talking with a loan specialist
- Online via the loan application
Applying online is much more common, so we’ll cover that.
First, you can check your possible rates and terms before applying by filling out a quick prequalification form. Discover will do a soft pull on your score, which doesn’t cause score damage.
Discover will then tell you your estimated rate, terms, and monthly payment amount.
If you like what you see, you can apply. Discover’s application doesn’t take long — you’ll just need to provide basic information about income, employment, and your bank account for funding purposes.
Discover will do a hard credit pull. Their specialists will call you if they need additional information.
If Discover approves you, they’ll send you the loan terms. Accept these if you like them, and Discover will send your funds as early as the next business day.
Discover often approves people the day they apply, making the company an excellent option for fast funding.
Now, if you receive a prequalification invitation in the mail or over email from Discover, you’ll want to provide that on your application. That’ll maximize your approval chances for the terms offered.
Terms & Requirements
Discover offers some excellent terms and perks, but it also requires a high credit score. See more details below.
Here’s what Discover asks of you:
- US citizen or permanent resident at least 18 years old
- Minimum household income of $25,000
- 660 credit score
Discover doesn’t publish a debt-to-income ratio requirement. However, the greater your income, the better terms you’re likely to qualify for. Additionally, you can obtain a personal loan if you’re unemployed, provided you meet the above eligibility requirements.
Discover asks for your bank account to deposit the money. If you’re getting a personal loan for debt consolidation or refinancing purposes, you can tell Discover to send your loans directly to your creditors instead.
Either way, you can’t receive loan proceeds by check or prepaid card.
Here are Discover’s typical loan terms:
- APR: 6.99%-24.99%
- Loan amount: $2,500-$35,000
- Use: Any personal use
Discover offers loans due in 36, 48, 60, 72, and 84 months. Many competitors provide loans as short as two and three years, making Discover about average in this regard. However, fewer competitors offer personal loans as long as 84 months.
This might make Discover a good option for people who need larger loans for things such as heavy debt consolidation or paying for a wedding.
Privacy & Security
Discover has built an excellent reputation over the years regarding privacy and security since they now offer a wide range of consumer financial services.
It uses SSL to encrypt your sensitive information online and in the mobile app. Plus, everything on your account is password protected whether you’re using a browser or the app.
One of Discover’s big selling points is its customer support. It employs a team of US-based loan specialists available seven days a week to answer any questions you have regarding loans — whether it’s applying for a new loan or managing an existing one. In particular, you can reach them Monday-Friday 8 am – 11 pm ET, and Saturday-Sunday 9 am – 6 pm ET.
Discover lets you apply for your loan directly over the phone if you’d like as well.
Discover also has an FAQs page with plenty of answers covering everything from loan uses to income and employment verification to repayment and more.
Discover stands out from the competition with reasonable rates, flexible repayment terms, and fast application/funding. It even offers a 30-day money-back guarantee if you decide you no longer need your loan and didn’t opt to send the money directly to creditors.
The lending requirements aren’t the easiest to qualify for (especially the credit score), though. Plus, Discover only offers unsecured, non-cosigned loans, and there’s no autopay discount.
Still, these aren’t huge drawbacks when you consider the benefits and the company’s strong customer support. Discover is an excellent personal lender overall if you qualify.
2500 Lake Cook Rd
Riverwoods, IL 60015
Personal loans address:
P.O Box 30954
Salt Lake City, UT 84130-0954
Loan approval is subject to confirmation that your income, debt-to-income ratio, credit history and application information meet all requirements. Loans are unsecured. Loans are fully amortizing personal loans as long as you pay on time. You must have a minimum household income of $25,000 to be considered for a Discover personal loan. A Discover personal loan cannot be used to pay for post-secondary education or to pay off a secured loan. Your APR will be between 6.99% and 24.99% based on creditworthiness at time of application for loan terms of 36-84 months. For example, if you get approved for a $15,000 loan at 6.99% APR for a term of 72 months, you’ll pay just $256 per month for a total amount of $18,432. Our lowest rates are available to consumers with the best credit. Many factors are used to determine your rate, such as your credit history, application information and the term you select. We may charge a fee if your payment is late.