Yes, Discover does a hard inquiry when you apply for a loan. This credit report inquiry will likely drop your credit score by about 5 to 10 points, but you'll be able to get back on track with a few months of on-time payments.
Discover's hard inquiry will stay on your credit report for two years, but it won't affect your credit after one year, and the impact may subside before then. To see how your individual credit score may be affected by a hard inquiry, you can use the credit score simulator on WalletHub.
It's worth noting that some people may be uncertain about whether Discover does a hard inquiry because there's only a soft inquiry during the pre-qualification process. Soft inquiries do not impact your credit score. But that's just the first step, and a hard inquiry is required when you officially apply.
If not having a hard inquiry is important to you, lenders that don't do a hard pull at all include Integra Credit, NetCredit and Opploans.
Yes, a Discover personal loan does affect your credit score, both when you apply and during the entire time that you are paying the loan off. Initially, a Discover personal loan will affect your credit score in a negative way, but the long-term impact can be very positive, assuming you repay the loan on schedule.… read full answer
How a Discover Personal Loan Affects Your Credit Score
Hard pull: When you apply for a Discover personal loan, Discover will do a hard inquiry into your credit history, which will temporarily drop your credit score by about 5-10 points in most cases.
Increased debt level: Taking out a Discover personal loan will naturally increase the amount of debt that you have. Since your debt level is one of the components of your credit score, you can expect that to have a negative impact initially.
Account diversity: One positive way that getting a Discover personal loan can impact your score right away is by adding more diversity to the types of accounts you have open. Your "credit mix" is one of the components of your credit score, and the more types of accounts you have, the better - as long as you handle them responsibly.
Payments: The biggest factor in how a Discover personal loan affects your credit score is whether you pay on time. If you make on-time payments, your score should steadily increase as a result. If you pay late or fail to make payments altogether, you can expect your credit score to drop.
The bottom line is that while a Discover personal loan does affect your credit score, most of the way that your score changes depends on how responsible you are with the loan. If you'd like to estimate how certain actions might affect your credit score, you can use WalletHub's free credit score simulator.
You can get Discover personal loan pre-approval through the Discover website. Discover pre-approval allows you to see your odds of approval for a personal loan from Discover, as well as your potential interest rate, and the process will have no impact on your credit score.
Enter the loan amount, loan purpose, your name, home address, email and phone number.
Once you receive your Discover pre-approval status, you can choose whether or not to actually submit an application. Getting pre-approved does not mean you're guaranteed to be approved if you apply, but your approval odds will be very high.
If you want to consider more options first, you can try out WalletHub's free personal loan pre-approval tool, which checks for pre-approval with multiple personal loan providers at the same time.
To apply for a Discover personal loan, first check for pre-qualification and decide which way you will apply (online, by phone or through mail), then enter your personal and financial information on the application. Next, verify the accuracy of the information, submit the application and wait to receive a decision.
Check for pre-qualification. Pre-qualification is a way to check your approval odds and potential rates before applying for a Discover personal loan. It doesn’t hurt your credit. You can check for pre-qualification on the Discover website.
Decide which way to apply. You can apply for a Discover personal loan online, by phone or through mail. Applying online is the best way because it typically offers the fastest decision.
Enter your personal information on the application. Discover requires the following personal information on the application: your name, home address, email, phone number, date of birth, Social Security number and citizenship.
Enter your financial information on the application. Discover requires the following financial information on the application: your employment type, employer name, occupation, total annual income, additional household income, monthly housing payment and whether or not you have a savings of Money Market account.
Double check the application for accuracy. To ensure that your Discover personal loan application gets processed as quickly as possible, make sure that all the information is correct and complete before you submit it.
Submit your application. Discover will typically provide a decision on your application within up to 3 business days.
If you are approved for a Discover personal loan, you will generally receive the funds within up to 7 business days after approval. After that, it’s your responsibility to make monthly payments until you have fully paid back your loan, including interest.
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