Discover Review
8.8
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Discover Reviews

8.8
Lauren Le-Hair

WRITTEN BY

Lauren Le-Hair

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About Discover

Initially launching as a credit card company, Discover was created by Sears in 1985. Since then, the company has branched out into a fully-fledged financial institution and is one of the biggest financial brands in America. Discover provides online banking services, personal loans, student loans, and mortgages, all alongside its famous Diners Club credit card offering.

Currently based in Riverwoods, Illinois, Discover has more than 50 million customers in the US and over 17,000 employees. The financial powerhouse offers all the benefits of a full-service bank with an excellent online presence and top-quality customer service.

9.5

LS SCORE

10

CREDIBILITY

8.0

SUPPORT

8.0

ACCESSIBILITY

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 Highlights

LOAN AMOUNT

$2,000 - $35,000

LOAN REPAYMENT TERM

36-48 months

MIN CREDIT SCORE

660

APR FIXED RATE

6.99% - 24.99%

FUNDING TIME

1 days

ORIGINATION FEE

None

PREPAYMENT FEE

None

OTHER FEES

Yes

SOFT CREDIT PULL

Yes

LENDER TYPE

Direct

Pros & Cons

  • Discover offers a 30-day loan guarantee where you can return the loan with no penalty in the first 30 days
  • Competitive interest rates and very flexible loan terms
  • Excellent customer service team available
  • The sleek, easy-to-use online application process
  • High late fee charged
  • No co-signed, joint, or secured loans are available
  • Only available for people with a credit score greater than 660

Personal Loans Types

  • Unsecured Personal Loans
  • Fixed-Rate Personal Loans

Loan Purpose

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

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:

  • APR between 6.99% and 24.99%
  • 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.

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.

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 Highlights

MORTGAGE AMOUNT

$35,000 - $300,000

REPAYMENT TERM

10, 15, 20, or 30 years

MIN CREDIT SCORE

620

FUNDING TIME

4-6 weeks

ORIGINATION FEE

None

PREPAYMENT FEE

None

UNDERWRITING FEE

None

OTHER FEES

Yes

SOFT CREDIT PULL

Yes

NMLS

684042

LENDER TYPE

Direct

Mortgage Type

  • Mortgage Refinance
  • Home Equity Loan

Discover Refinance Highlights

REFINANCE AMOUNT

$35,000 - $300,000

REFINANCE FIXED APR

6.24% - 10.74%

Pros & Cons

  • No fees are associated with the mortgage. Many banks can charge 1-2% of the total loan as fees
  • The seamless online application process
  • Competitive APRs for mortgage refinancing
  • Mortgage purchase option is not available
  • No variable rate
  • The limit of $300,000 is lower than average
  • Takes a longer-than-average time to close a loan

Discover Home equity Highlights

LOAN AMOUNT

$35,000 - $300,000

FIXED APR

7.49% - 13.99%

Pros & Cons

  • Higher than average loan-to-value of 90%, allowing you to borrow more
  • The seamless online application process
  • Competitive APRs for home equity loans
  • Mortgage purchase option is not available
  • No variable rate
  • The limit of $300,000 is lower than average
  • Takes a longer-than-average time to close a loan

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
  • Home equity APRs of between 7.49% and 13.99%
  • Mortgage refinance APRs of between 6.24% and 10.74%
  • 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

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

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 Highlights

LOAN AMOUNT

$1,000 - $100,000

APR FIXED RATE

5.49% - 14.99%

APR VARIABLE RATE

4.49% - 15.49%

LOAN REPAYMENT TERM

10-20 years

FUNDING TIME

3 days

ORIGINATION FEE

None

PREPAYMENT FEE

None

OTHER FEES

None

SOFT CREDIT PULL

No

LENDER TYPE

Direct

Pros & Cons

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

Student Loans Type

  • Private student loans
  • Student loan refinance

Discover Refinance Highlights

REFINANCE AMOUNT

$5,000 - $150,000

REFINANCE FIXED APR

4.99% - 9.49%

REFINANCE VARIABLE APR

5.49% - 9.49%

Pros & Cons

  • Available with or without a degree
  • Can apply with a co-signer
  • No origination fees or late fees
  • No soft credit pull is available
  • Very few repayment durations are available
  • Average APRs available

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?

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

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.

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.

Phone Support
(855) 361-3435
Mon–Fri
8am-12am
Sat-Sun
10am-6pm

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.

FAQ

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.

Discover 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.

Disclosure

This website is an informative comparison site that aims to offer its users find helpful information regarding the products and offers that will be suitable for their needs. We are able to maintain a free, high-quality service by receiving advertising fees from the brands and service providers we review on this website (though we may also review brands we are not engaged with). These advertising fees, combined with our criteria and methodology, such as the conversion rates, our team of reviewer's finding and subjective experience and product popularity, impact the placement and position of the brands within the comparison table. In the event rating or scoring are assigned by us, they are based on the position in the comparison table, or according to other formula in the event specifically detailed by us. See our How we Rate page and Terms of Use for information. The reviews, rating and scoring are provided “as-is” without guaranties or warranties regarding the information contained in our website, which shall not be considered as endorsement. We make the best efforts to keep the information up-to-date, however, an offer’s terms might change at any time. We do not compare or include all service providers, brands and offers available in the market.

WRITTEN BY

Lauren Le-Hair

As an experienced content writer, Lauren’s passion for the finance sector is only exceeded by her love of writing. Lauren specializes in the financial industry, drawing on her knowledge and experience to deliver top-quality, specialized content with an expert tone of voice and a unique flair. She also holds a First Class (Hons) Batchelor’s degree from Staffordshire University.