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Discover Reviews

8.8

bestfor-icon Trusted full-service banking and financial solutions

lauren
Written by Lauren Le-Hair

About Discover | Read More

9.5

LS Score

10

Credibility

8

Support

8

Accessibility

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Opening Hours Opening Hours drop-down-btn
Mon–Fri 8am-12am
Sat-Sun 10am-6pm
Contact Information Contact Information drop-down-btn
  • (855) 361-3435
  • Headquarters: 2500 Lake Cook Road, Riverwoods, IL 60015
Social Media Social Media drop-down-btn
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Discover Personal Loans Review

Discover offers a great range of flexible personal loans with excellent customer support. Loans are available between $2,500 and $40,000. Discover offers excellent loan terms, but you’ll need a credit score above 660 to qualify for a personal loan. With so many different loan options, Discover Personal Loans should have a solution for your needs.

Discover Personal Loans Highlight

660

Min Credit Score

7.99-24.99%

APR. Fixed Rate

$3K-$40K

Loan Amount

36-84 months

Repayment terms

Yes

Soft Credit Pull

Direct

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

1 days

Funding Time

Pros & Cons

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  • con-icon No origination fees
  • con-icon Flexible repayment terms
  • con-icon Fixed rates
  • con-icon No variable rate APR
  • con-icon Discover does not offer secured or joint loans
  • con-icon No autopay discount

Loan Purpose

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  • Debt Consolidation
  • Home Improvement
  • Major Purchase
  • Medical Expenses
  • Relocation
  • Vacation
  • Wedding
  • Other

Loan Type

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  • Unsecured Personal Loans
  • Fixed-Rate Personal Loans
View rates

Discover Personal Loans Terms & Requirements

Discover has a great range of personal loans, but they are not available for all customers. To be considered for a Discover personal loan, you need to meet the following minimum requirements:

  • US citizen or permanent resident
  • At least 18 years old
  • Minimum household income of $25,000
  • A credit score of at least 660

Discover doesn’t publicly state what its required debt-to-income ratio is. Yet, as with every loan company, the higher your income and credit rating, the more chance you will have of getting a loan. Discover’s loan terms are competitive in the marketplace. Standard loan terms are:

  • Loan amounts of between $2,500 and $40,000
  • A loan is available for many uses, including debt consolidation, home improvement, major purchases, and vacations.
  • Fixed interest rate from 7.99% to 24.99% APR.

Discover personal loans are available for repayment between 36 and 84 months. This is longer than average compared to other personal loan companies, so if you want flexible loan terms repayable over a long period, Discover personal loans are a great option.

How to Apply

Choose the right type of loan for you and apply within minutes. Here’s what you’ll need:

  • Income and employment details for verification.
  • Bank account and routing numbers for direct deposit.
  • Creditor balances and account information if consolidating debt.

After submitting your application, a loan specialist may contact you to verify your information and confirm the final details.

 

Step 1

After completing this first form, we were directed to a second page where we had to enter our employment details alongside our SSN, date of birth, and citizenship status. After hitting continue on the second form, the soft credit pull was initiated, and we were presented with the selection of loans and rates available to us. 

This stage took less than five minutes, and then we could see the range of available loan rates. We selected our loan, uploaded our personal information to verify our income and identity, and linked our bank account to receive the loan funding. At this point, Discover ran a hard credit check to initiate the final approval process.

We passed the hard credit pull and were sent the loan terms by Discover. We accepted these terms, signed the loan agreement, and received the personal loan the next day. The process was incredibly quick, taking 24 hours from application to funding. 

Qualification Requirements

To qualify for a personal loan with Discover you need:

  • A minimum credit score of 660
  • Be least 18 years of age
  • Be a US citizen or permanent resident
  • A household income of at least $25,000

Required Information

When applying for a personal loan from Discover, you must provide the following required information to complete the application process.

  • Name
  • Address
  • Date of birth
  • Social Security Number
  • Phone number
  • Email address
  • Monthly income details and proof of income
  • Employment history
  • Bank account details
  • Housing details

Application Steps & Time Frames

The application process for a Discover personal loan was as quick and easy as any personal loan available today. The initial form took less than five minutes. Once the final loan was approved, funding arrived in our account in less than one day.

State Availability

- Available in all states

Discover Mortgages Review

Among the many products offered by Discover, one of the most competitive is its mortgage loan options. Discover provides home equity loans as well as mortgage refinancing. While this is a limited mortgage offering, both are offered at very competitive rates, with a range of repayment terms from 10 to 30 years. It also provides loans with no origination or closing fees, which is unusual in the market. The main drawback is that Discover does not offer mortgage purchase loans. Full details of mortgages offered by Discover are shown in the table below.

As well as offering mortgage loans and refinancing options, Discover allows you to tap into your home’s equity. You’ll typically be able to get up to 90% combined loan-to-value and as much as $300,000 through a home equity loan.

The fixed repayment terms can vary from 10 to 30 years, and Discover does not charge closing fees. This review will take you through everything from the application process, qualifying requirements, and more.

Discover Mortgages Highlight

680

Min Credit Score

Yes

Soft Credit Pull

Direct

Lender Type

None

Underwriting Fee

None

Other Fees

None

Origination Fee

None

Prepayment Fee

6-8 Weeks

Funding Time

684042

NMLS

Mortgage Refinance

6.29-8.15%

APR. Fixed Rate

$35K-$300K

Mortgage Amount

Home Equity

7.85-12.24%

APR. Fixed Rate

$35K-$300K

Mortgage Amount

Mortgage Type

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  • Mortgage Refinance
  • Home Equity Loan
View rates

Discover Mortgages Terms & Requirements

Discover offers its mortgage customers no fees, low fixed rates, and outstanding customer service. The company aims to make the application process as easy to navigate as possible, with 24/7 help available if you need it. If you want to apply for a home equity loan or mortgage refinance with Discover, here are the key terms to bear in mind:

Mortgage Requirements

  • A minimum credit score of 680.
  • Debt to income ratio lower than 43%.
  • Must have sufficient equity in your home.

Mortgage Terms

  • Only mortgage refinance and home equity loans are available.
  • No origination, application, or appraisal fees charged.
  • Low, fixed rates.
  • Loans of between $35,000 and $300,000 are available for up to the value of 90% of your home.

Repayment Terms

  • Repayment terms of 10, 15, 20, and 30 years are available.
  • Repayments are to be made monthly.

Not having fees to pay is a big bonus, as most other mortgage providers charge these. In general, the mortgage terms offered are fair and competitive in the current marketplace.

Home Equity Loans Terms & Requirements

Discover will allow people to tap into their home equity in return for making fixed monthly repayments. The number of years that you have to repay the money starts at 10 years and can go as high as 30 years. Discover has useful calculators on its website to help you figure out what will be your best option. 

You’ll have the ability to get a home equity loan of between $35,000 and $300,000, while Discover does not charge any fees at all from start to finish. The fixed rate that you have to pay on the borrowed sum is between 7.85% and 12.24% APR, which is very competitive in the space today.

How to Apply

Applying for a home equity loan or mortgage refinance with Discover Home Loans is relatively straightforward:

  1. Basic information: Apply online or by phone to explore your loan options, then upload the necessary documents. Afterwards Discover will verify your initial eligibility.
  2. Information processing: Discover collects information about your home from other sources and then send your completed application for final approval.
  3. Loan closure: Discover will reach out to set up your closing and arrange for the loan funds to be transferred to your accounts.
Screen 1

Home screen - get started

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Personal info

We wanted to apply for a home equity loan, and we did so online. Getting started was easy, and the Discover home loans webpage is very informative.

After clicking “Get Started”, we had to put in some basic information, including details of how much we wanted to borrow and the property information. We next had to include personal details, including name, email address, and income.

The next stage was to verify our identity as required by federal law. Therefore we had to insert our name, date of birth, and SSN. After this stage, we were presented with a series of loan options available to us. We selected the loan option we wished to claim and uploaded all relevant documentation to prove our identity, home ownership, and income.

The application process took 30 minutes, and approval of the application took just under two weeks. A contact from the bank stayed in touch with us to keep us updated on the application’s progress.

Discover has an excellent website that is easy to use and apply from. While not the quickest application process we’ve seen, it was undoubtedly straightforward and we’d recommend it to those looking for mortgage refinancing.

Qualification Requirements

To be eligible for a home equity loan or mortgage refinance from Discover, you must meet the following requirements:

  • US citizen or permanent resident
  • A minimum credit score of 680
  • A minimum debt-to-income ratio of 43%
  • Must have steady verifiable income and employment
  • History of responsible credit use

Required Information

We had to provide all of the following information when applying for a mortgage loan with Discover:

  • Name
  • Address
  • Date of birth
  • Social Security Number
  • Phone number
  • Email address
  • Monthly income details and proof of income
  • Employment history
  • Details of current housing situation

Required Information for Home Equity Loan

Once you have accepted the initial quote for a home equity loan from Discover, you must upload certain documents to verify the information you provided in the form. This can be done online if you wish; usually, the required documents are self-explanatory.

Other options will be faxing or mailing copies of the respective documents. You might be asked for additional documents in certain rare circumstances, as outlined in the table below.

Required documents

Government-issued ID, current mortgage billing statement, homeowners insurance policy, recent paystubs, tax returns

Application Steps & Time Frames

One of the few areas where Discover does not excel is the speed of the mortgage application process. The initial application process can take 1 to 2 weeks, followed by up to 4 weeks for a final decision. There is then another 1 to 2 weeks to wait for closing. In total, it will take 6 to 8 weeks to complete a mortgage loan with Discover, which is longer than average.

Here’s a quick breakdown of the main steps and how long they will take: 

  1. Submitting your application and uploading documents (1-2 weeks)
  2. Discover processing your application and making a decision (4 weeks)
  3. Closing the loan and receiving the funds (1-2 weeks)

State Availability

Available - Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming

Not Available - Iowa, Maryland

Discover Online Banking Review

As part of the Discover financial network, Discover Online Bank offers extensive banking services to customers. These include checking accounts, savings accounts, CDs, money market deposits, IRA CD accounts, and IRA savings accounts. Discover Bank also guarantees no fees except a $30 service charge for each outgoing wire transfer and plenty of free ATMs.

Discover Online Banking is available in all 50 states. Ultimately, if you are looking for an online bank to meet your banking needs, you should look at what Discover offers.

Discover Online Banking Highlight

No minimum

Min Deposit

60,000+ fee-free ATMs

ATM Network

Yes

Other Fees

Online Banking Savings

No minimum

Min Deposit

Max 4.20%

Min APY Savings

Online Banking Checking

No minimum

Min Deposit

Pros & Cons

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  • con-icon Great selection of online bank accounts
  • con-icon Accounts are free from fees
  • con-icon High savings account and CD APY
  • con-icon Cashback on debit card purchases
  • con-icon No physical branches
  • con-icon No reimbursement on out-of-network ATMs
  • con-icon Min deposit of $2,500 to open CD account
  • con-icon No specialty CDs or brokerage accounts

Account types

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  • Checking
  • Savings
  • Certificates of Deposit (CD)
  • Money Market Deposit Account (MMDA)
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APY's

The APY rates for Discover Online Bank accounts areas follows:

  • Checking account: Not disclosed.
  • Savings account: 4.20% APY.
  • CD account: Rates range from 2.00% – 4.50% for terms ranging from 12 months to 10 years.
  • Money market account: 4.00% APY for balances under $100,000 and 4.05% APY for balances over $100,000.

Features Benefits & Rewards

  • Fee-free banking: Aside from the $30 wire transfer fee, no fees are associated with the accounts.
  • Cashback: 1% cashback on checking accounts for up to $3,000 in monthly debit card purchases.
  • Get paid early: Get your paycheck up to two days early when you set up direct deposit.
  • Fraud protection: Features and tools to help protect your checking account from fraud.
  • Digital wallets: Link your debit card with digital wallets and earn rewards.
  • Fee-free ATMs: Easily access your cash from one of the 60,000+ fee-free ATMs.
  • Add cash without fees: Add cash to your account at any Walmart in the US.
  • Overdraft services: Overdraft protection options are available. Requires a second account.

Opening an Account With Discover

As expected for an online-only bank, Discover has an easy, streamlined process to open a new account. You can apply on your desktop or mobile device.

The process is as follows:

  1. Provide a few basics like address and Social Security Number.
  2. Make a deposit now or later.
  3. Confirm details via email.

If you have trouble, customer service is available by phone 24/7.

Step 1

Basic info

Step 2

Final questions

Step 3

Consent and disclosure

When applying, we were greeted with an initial screen where we had to input our name, SSN, and date of birth. We also had to answer a security question, which was followed by details of our address and citizenship. Finally, we had to answer questions about the nature of how the account would be used and funded.

At this point, we could choose the account that we wanted. We selected the 1-year CD due to the excellent rate. We were offered to open more CD accounts, but we declined. At this stage, we had to sign multiple disclosures, including one stating that we were happy to receive documents electronically.

We signed all the disclosures and then selected our deposit method into the CD we had set up. We immediately deposited funds into our new account, and the CD was set up. The process was easy, taking less than 15 minutes in total.

The process is similar to that of opening other account types with Discover Online Bank.

Overall, the experience was good and as easy as expected from a leading online bank.

State Availability

- Available in all states

Discover Certificate of Deposit Review

Discover Bank offers highly competitive CD rates that consistently rank among the highest in the industry among online banks. Their CD term options span from three months to 10 years, providing customers with a wide range of choices to match their financial goals. It’s worth noting that the minimum deposit requirement of $2,500 for their CDs might be a substantial entry barrier for some potential investors. Discover CDs are fee-free.

Discover Certificate of Deposit Highlight

$3K

Minimum Deposit

$1

Minimum Balance

None

Monthly fee

Yes

Daily Compounded Interest

Yes

Early withdrawal penalty

Pros & Cons

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  • con-icon Daily compounding interest.
  • con-icon Many term options.
  • con-icon Start accruing interest immediately.
  • con-icon $2,500 minimum deposit.
  • con-icon No bump-up or no-penalty CD options.

Account types

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  • 3-Month APY 2.00%
  • 6-Month APY 3.90%
  • 9-Month APY 4.00%
  • 12-Month APY 4.10%
  • 18-Month APY 3.80%
  • 24-Month APY 3.60%
  • 30-Month APY 3.50%
  • 3-Year APY 3.50%
  • 4-Year APY 3.40%
  • 5-Year APY 3.40%
  • 7-Year APY 3.40%
  • 10-Year APY 3.40%
Get Rates

Discover Certificate of Deposit Terms & Requirements

  • Minimum opening deposit: $2,500
  • Term lengths: 3 months to 10 years (12 different term options)
  • Interest compounding: Daily
  • Interest crediting: Monthly
  • Other fees: None
  • Automatic renewal: Your CD will automatically renew at the end of the term unless you take action to close it or change the term.
  • Grace period: If you withdraw money from your CD outside of the grace period, you will incur a penalty. The grace period is 9 days after the maturity date.
  • Early Withdrawal Penalty: Depends on term of CD (See chart below)

 

How to Apply

Qualification Requirements

To open a Certificate of Deposit (CD) with Discover, the qualification requirements are:

  1. Minimum Deposit: A minimum deposit of $2,500 is required to open a CD account.
  2. U.S. Residency: You must be a U.S. citizen or resident alien with a valid Social Security number or Taxpayer Identification Number (TIN).
  3. Age Requirement: You must be at least 18 years old to open a CD account.
  4. Identification and Banking Details: Valid identification, such as a driver’s license or passport, is required, along with bank account information for funding the CD.

These requirements allow you to securely open and manage a CD with Discover, offering guaranteed interest returns over a fixed term.

Early Withdrawal Penalty

CD Term Penalty Amount
Less than 1 year 3 months simple interest
1 year to < 4 years 6 months simple interest
4 years to < 5 years 9 months simple interest
5 years to < 7 years 18 months simple interest
7 years to 10 years 24 months simple interest

State Availability

- Available in all states

lauren
Written by Lauren Le-Hair linkedin-icon

As an experienced content writer, Lauren's passion for the finance sector is only exceeded by her love of writing. With years of experience writing for financial websites, she has honed her expertise and developed a deep understanding of the industry. Lauren specializes in delivering top-quality, specialized content with an expert tone of voice and a unique flair, leveraging her extensive knowledge and expertise. In addition, she holds a First Class Bachelor's degree from Staffordshire University.

faq-icon

FAQ’s

Is Discover a trustworthy company?

Yes, Discover is one of the largest financial companies in the US and has an A+ rating from the Better Business Bureau. Discover also uses cutting-edge technology to ensure all personal data is kept safe.

Where can I get a Discover account?

Discover’s products are available in all 50 states in the US.

Does Discover offer good rates?

Yes, Discover is known for its competitive rates across all products.

What financial products does Discover offer?

Discover offers credit cards, online banking services, personal loans, and home loans. Discover stopped offering student loans as of Jan 31, 2024.

Customer Support

As you would expect from a large financial institution, Discover places high importance on excellent customer service. The overwhelming majority of Discover’s online reviews are positive, and there are many ways that you can get in touch with Discover’s customer care team, including phone, email, live chat, or social media. 

Discover offers live US-based customer service anytime by messenger app or phone. You can reach a live agent anytime by calling 1-800-347-2683. Certain specialized customer service agents may not be available 24/7.

Privacy & Security

Discover has built an excellent reputation over the years regarding privacy and security since it now offers a wide range of consumer financial services. The company 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.

Discover also offers enhanced account verification features. The Discover team will send you a verification code via call, text, or email if you log into your account from an unrecognized device. Enter this code to confirm your login. You can check out Discover’s Privacy Policy for more information on how they protect you and your data online.

In Conclusion

Ultimately, Discover is a huge financial institution offering various products to meet your financial needs. The only fees listed on their website are a $30 outgoing wire transfer fee and a $20 currency exchange charge for wire transfers received in a foreign currency.

If you want an online bank with a rock-solid reputation, excellent customer service, and competitive rates for all products, Discover could be a good choice.

Brand Disclaimer

This Online Privacy Notice (“Notice”) describes how Discover Financial Services and its subsidiaries* (collectively, “Discover”, “our”, “us”, or “we”) collect, retain, use, process, share, and transfer your information on Discover.com and the other websites where this Notice appears (“Website”), within the Discover mobile apps (“Mobile Apps”) (together with Website, “Online Services”), as well as when you interact with us on social media sites and apps, through emails, and advertisements displayed through online services operated by us or nonaffiliated third parties.

By using our Online Services or interacting with us online, you agree and consent to the terms and conditions of this Notice. For more information about privacy as it applies to your financial account, please see the Consumer Privacy Notice for the Discover product(s) you have.

*Discover Bank, DFS Services LLC, PULSE Network LLC, Diners Club International, Ltd., DFS Corporate Services LLC, DFS International Inc., Discover Products Inc., The Student Loan Corporation, Discover Ventures Inc., Discover Home Loans, Inc., Discover Services Corporation, and their affiliates and subsidiaries, including companies related by common ownership or control with a Discover or DFS name and financial companies such as GTC Insurance Agency, Inc.

Personal Loan Disclosure:

Your APR will be between 7.99% 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 13.99% APR for a term of 72 months, you’ll pay just $309 per month.
You must have a minimum individual or household annual income of $25,000, be over 18 years of age, and have a valid US SSN to be considered for a Discover personal loan. Loan approval is subject to confirmation that your income, debt-to-income ratio, credit history and application information meet all requirements.

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. State restrictions may apply.

For debt consolidation, even with a lower interest rate or lower monthly payment, paying debt over a longer period of time may result in the payment of more in interest. A Discover personal loan is intended for personal use and cannot be used to pay for post-secondary education, to pay off a secured loan, or to directly pay off a Discover credit card.

If your application is approved, we will send funds after you accept the loan. Your bank or creditor may take more days to process the funds.