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Discover Reviews

8.8

bestfor-icon Full-service banking solution

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 $35,000. As the loan terms offered by Discover are excellent, personal loans are only available to people with good to excellent credit. If your credit rating is above 660 and you are looking for a personal loan, it is definitely worth you checking out Discover. Very few loan purposes are ineligible, so a Discover personal loan should meet 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

Yes

Other Fees

None

Origination Fee

None

Prepayment Fee

7 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 cosigned loans available
  • con-icon No secured or joint loans available
  • 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 $35,000
  • A loan is available for many uses, including debt consolidation, home improvement, major purchases, and vacations.
  • APRs are variable and change often. Check in with customer service to get the latest rates.

A maximum personal loan of $35,000 is on the lower end compared to competitors. Other personal loan companies are available that will offer up to $50,000.

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 a personal loan repayable over a long time period, Discover personal loans are a great option.

How to Apply

You can apply for a Discover personal loan via phone call or online application. We applied online as Discover’s website offers a simple application process. We selected “Check Your Rate” and were forwarded to a simple form to start the process. Discover starts with a soft credit pull, so the pre-qualification process does not affect your credit rating.

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

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

Required Information

If you decide to apply for a personal loan from Discover, you will need to provide the following information to complete the 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, and the credit pulls results came back instantly. 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.

Discover Mortgages Highlight

620

Min Credit Score

$35K-$300K

Mortgage Amount

10, 15, 20, or 30 years

Repayment terms

Yes

Soft Credit Pull

Direct

Lender Type

None

Underwriting Fee

Yes

Other Fees

None

Origination Fee

None

Prepayment Fee

4-6 Weeks

Funding Time

684042

NMLS

Mortgage Refinance

$35K-$300K

Mortgage Amount

Home Equity

$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 620
  • 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 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.

How to Apply

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.

Screen 1

Home screen - get started

Screen 2

Personal info

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 Discover mortgage loan, you must meet the following requirements:

  • US citizen or permanent resident
  • A minimum credit score of 620
  • A minimum debt-to-income ratio of 43%
  • Must have steady verifiable income

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 our current housing situation

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 2 weeks for a final decision. There is then another 1 to 2 weeks to wait for closing. In total, it will take 4 to 6 weeks to complete a mortgage loan with Discover, which is longer than average.

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 Student Loans Review

As you would expect from one of the most prominent financial institutions in America, Discover offers a vast range of student loan options. Private student loans are available for undergraduates, graduates, and postgraduate students, and Discover also provides student loan refinancing.

Discover student loans offer flexible repayment options for borrowers struggling to make repayments and great rewards for students who achieve good grades. However, few repayment terms are available, and the APR offered is averagely positioned in the market.

Discover Student Loans Highlight

5.49-15.99%

APR. Fixed Rate

6.12-16.97%

APR. Variable Rate

$1K-$100K

Loan Amount

15-20 years

Repayment terms

No

Soft Credit Pull

Direct

Lender Type

None

Other Fees

None

Origination Fee

None

Prepayment Fee

3 days

Funding Time

Student Loan Refinance

Min 5.99%

APR. Fixed Rate

5.49-9.49%

APR. Variable Rate

$5K-$150K

Loan Amount

Pros & Cons

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  • con-icon No fees of any kind, including origination, prepayment, and late fees
  • con-icon 0.25% autopay discount available
  • con-icon Great options available should you be struggling with repayments
  • con-icon Cashback rewards available for high-performing students
  • con-icon No soft credit pull is available
  • con-icon No indication of qualifying criteria for a student loan, such as credit score
  • con-icon Very few repayment durations are available
  • con-icon Average APRs available

Student Loan Type

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  • Private student loans
  • Student loan refinance
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Discover Student Loans Terms & Requirements

Discover does not publish detailed information on what is required to be eligible for a student loan. Most Discover loans require good to excellent credit ratings, and it is safe to assume that Discover student loans have the same criteria. We do know that the following is required to be considered for a Discover personal loan:

  • Must be a US citizen or permanent resident
  • Must attend or have attended a school authorized to receive federal aid

Yet, you don’t need to have completed your college degree to qualify for a Discover loan, so it could be a good option for people who did not graduate.

Co-signers are not required, but it is unlikely that many students will have the credit history to be accepted for a Discover student loan. Therefore, if you do not have a good or excellent credit history, it is recommended that you apply with a co-signer.

Discover offers several different student loans, each of which come with varying loan terms.

Undergraduate Student Loans

  • Fixed APR – 5.49% to 13.99%
  • Variable APR – 4.49% – 14.09%
  • Loan amount – $1,000 up to the cost of attendance
  • Loan term – 15 years

Graduate Student Loans

  • Fixed APR – 5.49% to 14.99%
  • Variable APR – 5.49% to 15.49%
  • Loan amount – $1,000 up to the cost of attendance
  • Loan term – 20 years

Student Loan Refinance

  • Fixed APR – 4.99% – 9.49%
  • Variable APR – 5.49% – 9.49%
  • Loan amount – $5,000 up to the cost of attendance
  • Loan term – 10 or 20 years

Discover’s APRs offered are average in the market, and having very few options for loan repayment terms is uncommon. However, Discover provides incredible flexibility to people finding it hard to make repayments, with various programs like forbearance and reduced payment plans to help you if you are struggling. Discover also offers a 0.25% discount if you enroll for payments via autopay.

How to Apply

Applying for a student loan from Discover can be done online via a desktop or smartphone. We used a desktop and headed to the graduate student loans page before selecting the “Apply Now” button. During this stage, we found a helpful button titled “What you’ll need to apply”, which details all of the required information for the application process.

We selected that we wanted to start a new loan application as a student.

We then selected that we were a new Discover customer, and we were prompted to enter personal details and the name of the school we were attending.

Screen 1

Student or a cosigner?

Screen 2

Returning customer?

Screen 3

School & personal details

After inputting these details and entering our SSN, we received a login and access code for Discover. We then had to enter further information about our degree, the amount we needed to borrow, our home address, and our financial background. Finally, we selected the rate required, and Discover initiated a hard credit check to see if we were eligible for a student loan. The hard credit check returned instantly, and we were eligible for a loan.

We then had to sign the Loan Agreement and Terms and Conditions, and the process was complete. The next step was to verify the loan with the college, at which point the college could forward the funds to our account.

Required Information

Discover helpfully publishes a complete list of required information at the start of the application process. To apply for a Discover student loan, you will need to provide the following information:

Students

  • Social Security Number
  • School information, including the field of study and academic period of enrolment
  • The loan amount requested, as well as any financial aid you expect to receive
  • Financial information, including income, monthly mortgage/rent payments
  • Permanent address and temporary/in-school address

Co-signers

  • Social Security Number
  • Loan amount requested
  • Employment information
  • Financial information, including monthly mortgage/rent payments
  • Permanent address

State Availability

- Available in all states

Discover Online Banking Review

As part of the Discover financial network, Discover online bank offers extensive banking services to customers. This includes checking accounts, savings accounts, CDs, money market deposits, and IRAs. Discover bank also provides its customers with low fees, plenty of free ATMs, and fee-free banking.

Prospective users from all 50 states can use Discover online banking, too. Ultimately, if you are looking for an online bank to meet all of your banking needs, you should look at what Discover has to offer.

Discover Online Banking Highlight

$3K

Min Deposit

60,000+ fee-free ATMs

ATM Network

None

Other Fees

Online Banking Savings

$3K

Min Deposit

1-3.5%

Min APY Savings

Online Banking Checking

$3K

Min Deposit

Pros & Cons

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  • con-icon Great selection of account types
  • con-icon Low-cost account options
  • con-icon Savings account APY rates are top-tier
  • con-icon No physical branches
  • con-icon Minimum of $2,500 for CDs

Account types

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

Account 1 Year 3 Year 5 Year
Savings Account 2.35% 2.35% 2.35%
Money Market Account 2.25% 2.25% 2.25%
CD 3.25% 3.40% 3.50%

Features Benefits & Rewards

  • No fees associated with the accounts
  • 1% cashback on checking accounts up to $30 a month

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, and we decided to apply through our desktop. We chose to apply for the 1 year CD to take advantage of the 3.25% APY.

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.

Step 1

Basic info

Step 2

Step 3

Consent and disclosure

At this point, we could choose the CD that we wanted. We selected the 1-year CD at 3.25% 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 moved on to selecting our deposit method into the CD we had set up. We immediately deposited into our new account, and the CD was set up. The process was easy, taking less than 15 minutes in total.

Overall the experience was a good one and as easy as you would expect 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. Additionally, Discover Bank stands out with its robust checking and savings account options, giving it a competitive advantage over other banks. However, it’s worth noting that the minimum deposit requirement of $2,500 for their CDs might be considered substantial for some potential investors.

Discover Certificate of Deposit Highlight

4.85%

1-Year APY

4.30%

3-Year APY

4.00%

5-Year APY

$3K

Minimum Deposit

$0

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 Longer terms earn higher APYs
  • con-icon $2,500 minimum deposit
  • con-icon Automatic renewal upon maturity

Account types

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  • 3-Month APY 2.00%
  • 6-Month APY 3.40%
  • 1-Year APY 4.85%
  • 18-Month APY 5.00%
  • 2-Year APY 4.30%
  • 3-Year APY 4.30%
  • 4-Year APY 4.00%
  • 5-Year APY 4.00%
  • 7-Year APY 3.80%
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Discover Certificate of Deposit Terms & Requirements

  • Minimum opening deposit: $2,500
  • Term lengths: 3 months, 6 months, 1 year, 2 years, 3 years, 5 years, 7 years, 10 years
  • Interest compounding: Daily
  • Interest crediting: Monthly
  • Early withdrawal penalty: Varies depending on the term length. See the Discover website for details.
  • Other fees: None
  • Grace period: If you withdraw money from your CD during the grace period, you will be charged a penalty. The grace period is 9 days after the maturity date.
  • Automatic renewal: Your CD will automatically renew at the end of the term unless you take action to close it or change the term.
  • CD laddering: You can open multiple CDs with different term lengths to create a CD ladder. This can help you protect your money from market fluctuations and ensure that you have access to cash when you need it.

Qualification Requirements

To qualify for opening a CD account at Discover Bank, you typically need the following:

  • Must be a U.S. citizen or permanent resident
  • Must have a valid Social Security number or Individual Taxpayer Identification Number (ITIN)
  • Must have a checking or savings account with Discover Bank
  • Must have a minimum opening deposit of $2,500
  • You must be at least 18 years old to open a CD.
  • You cannot have more than one CD with the same term and interest rate.
  • If you close your CD before the term is up, you may be charged an early withdrawal penalty.

Early Withdrawal Penalty

The early withdrawal penalty depends on the length of the CD.

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.

Customer Support

As you would expect from a large financial institution, Discover places a high level of importance on excellent customer service. The overwhelming majority of online reviews of Discover 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. 

We called the Discover team to enquire about a personal loan. The call was answered quickly without being placed on hold, and the customer care agent was helpful and answered all our questions without issue. Full details of how to contact Discover are shown below.

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 that offers various products to meet all of your financial needs. 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 for you.

Brand Disclaimer

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. It cannot be used to pay for post-secondary education, pay off a secured loan, or pay off a Discover credit card directly.

Your APR will be between 6.99% and 24.99% based on creditworthiness at the time of application for loan terms of 36-84 months. For example, if you get approved for a $15,000 loan at 10.99% APR for 72 months, you’ll pay just $285 per month. Our lowest rates are available to consumers with the best credit. Many factors are used to determine your rates, such as your credit history, application information, and the term you select. We may charge a fee if your payment is late.

FDIC deposit insurance is $250,000 per depositor, per deposit ownership category. The FDIC provides separate insurance coverage for funds that depositors may have in different types of legal ownership. The FDIC refers to these different categories as ownership categories.

Discover Home Loans pays all closing costs incurred during the loan process so that you don’t have to bring any cash to your loan closing. If you decide to pay off your loan balance in full within 36 months after your loan closes, you will be required to reimburse Discover for some of the closing costs we are paying on your behalf, not to exceed $500.00. Reimbursable closing costs include all title fees, recording fees, and mortgage/transfer taxes. You are not required to reimburse the closing costs if you reside in Connecticut, Minnesota, New York, North Carolina, Oklahoma, or Texas.