Discover Personal Loan Review

Discover personal loans require a minimum credit score of 660 according to the company. The Discover personal loan credit score requirement is in the fair credit range,which is on par with most other lenders. 

Keep in mind that just having a 660 credit score is not enough to qualify you for a Discover personal loan. Discover will consider your entire financial profile, including things like your income, existing debts and recent credit inquiries, when deciding whether to approve you. It's also worth noting that some applicants might be able to get a personal loan from Discover with a slightly lower score if it's offset by other factors like an especially high income. But it's best to wait to apply until your score meets the threshold.

If you're unsure of what your current credit score is, you can check it for free on WalletHub. You can also pre-qualify for a Discover personal loan online to gauge your chances of getting approved with your current credit score.

Yes, Discover does issue personal loans. Discover offers personal loans of $2,500 - $35,000 with an APR range of 6.99% - 24.99% and repayment periods of 36, 48, 60, 72 or 84 months to people with credit scores of 660+.

Discover Personal Loan Terms

• Loan Amounts: $2,500 - $35,000
• APRs: 6.99% - 24.99%
• Repayment Periods: 36, 48, 60, 72 or 84 months
• Origination Fee: $0
• Prepayment Fee: $0
• Late Fee: $39

For more information, check out the full Discover personal loan review on WalletHub.

It takes 2 to 10 business days to get money from a Discover personal loan, in most cases. The Discover loan timeline includes around up to 3 business days to get approved for a Discover loan and another up to 7 business days to receive the funds after approval. Keep in mind that this is a typical applicant's experience, and in some cases it could take longer.

How to Get Money From Discover as Fast as Possible

• Fill out the application carefully. You should make sure that all information you enter on the application is correct and complete. That will eliminate any potential delays from Discover having to request additional information.
• Check your credit report for errors. Before you apply, you should verify that everything on your credit report is accurate, as any incorrect negatives on there could impact your chances of approval. If you find any errors, you should dispute them right away to get them removed.
• Get your credit score above the minimum. Ideally, you should only apply for a Discover personal loan once your credit score exceeds the minimum requirement of 660. That will make it easier for Discover to decide whether you qualify, which could lead to a quicker decision.
• Apply online. Online applications have the fastest processing times since they are automated and streamlined.
• Get an electronic funds transfer. Discover offers loan payouts through an electronic funds transfer to your bank account or by paper check. The transfer is the faster option.

Yes, Discover does a hard credit check before finalizing your loan, which can negatively impact your credit score. 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, you can refinance a Discover personal loan using either a new personal loan or a balance transfer credit card from a different lender. By paying off your remaining Discover balance with a new, lower-interest loan or credit card, you will shift what you owe to the new lender and save money on finance charges. 

How to Refinance a Loan from Discover With a New Loan

1. Check your credit score. Checking your credit helps you see if you're able to get approved with the score you have or if you need to spend some time improving it. You can check your credit score for free on WalletHub.
2. Get pre-qualified (if possible). Pre-qualifying shows you which lenders may approve you and what rates may be available to you. You can pre-qualify with multiple lenders for free on WalletHub.
3. Apply for the new loan. You can apply for the loan online, in person or over the phone. You'll need to give the lender some personal information when you apply, like your name, address and date of birth. The lender will also need some financial information, like your employment status and income.
4. Wait for funds. You should get your loan within a few business days of being approved. The lender will either write you a paper check or do a bank transfer.
5. Pay off the old loan. Once you receive the money, you'll need to pay off the old loan.  
6. Repay the new loan. After the old loan is paid off, you'll then need to repay the new loan. This could take a few months or years to do.

Refinancing a Loan from Discover With a Balance Transfer

The biggest difference between using a balance transfer credit card and a personal loan for refinancing is that many cards offer 0% introductory APRs. If you can pay off your loan before the introductory period ends, you won't have to pay interest.

To learn more, check out WalletHub's balance transfer guide.

Final Thoughts

You should refinance a personal loan from Discover if it saves you money. Ideally, your new loan or credit card should have a lower APR than your old loan. You can qualify for a lower APR if your credit score and overall financial situation are better than when you got the first loan.

Finally, it's worth noting that Discover does not offer personal loan refinancing services for its own loans. In other words, you can't use a Discover loan to pay off another Discover loan and get a lower interest rate in the process.

Yes, Discover will require a proof of income when you apply for a personal loan. Discover requires a minimum annual income of $25,000 to ensure that you can make your monthly payments, and if you don't meet the minimum income requirement, you likely won't get approved.

Discover verifies income by requesting pay stubs and bank statements. However, simply meeting the income requirement does not guarantee approval for a loan. There are other Discover personal loan requirements, as well.

Discover Personal Loan Requirements in 2023

• $25,000 annual income
• Be at least 18 years old
• Be a US citizen or permanent resident
• Have a Social Security number
• Have a credit score of 660 or higher

If you want a better idea of what personal loans you may qualify for with your income, you can use WalletHub's free pre-qualification tool.

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.

How to Apply for a Discover Personal Loan

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.

Yes, Discover personal loans are legit because Discover is registered to do business in the states it services, which is a legal requirement to be a legitimate lender. Another reason why Discover personal loans are legit is that the lender has a rating of A+ from the Better Business Bureau.

Why Discover Personal Loans Are Legit

• Discover is registered as a business in the states it services.
• Discover has a Better Business Bureau rating of A+.
• Discover has been around since 1985.
• Discover has an average user rating of 4/5 on WalletHub.
• Discover personal loans have a rating of 4.5/5 from WalletHub's editors.
• Discover has a secure website, which you can tell by the fact that the URL has "https" in front of it.

While Discover personal loans are legit, they may or not be the best choice for you. It's important to compare the terms and requirements of Discover personal loans against your other options before submitting an application.

Yes, you can pay off Discover personal loans early, which is a smart idea because it will save you money on interest. Discover does not charge a prepayment penalty, meaning that you will not be charged extra if you pay off the loan sooner than you're required to.

Example of How Much You Can Save By Paying Off a Discover Personal Loan Early

• Situation: A $10,000 loan with a repayment period of 4 years, an APR of 18% and an origination fee of 0%.
• Normal Payments: You will spend approximately $4,100 on interest.
• Early Pay Off: If you pay off the loan in 3 years, you will save about $1,086 on interest.

To estimate the cost of your Discover personal loan with different repayment schedules, check out WalletHub's free personal loan calculator.

Discover offers three good debt consolidation options: personal loans, home equity loans and credit cards. With Discover's personal loans and home equity loans, the borrower receives a lump sum of money that they can use to pay off their existing debts, combining them into a single balance that accrues interest at a lower rate (hopefully). The main difference between the two is that personal loans are unsecured, while home equity loans are secured by the borrower's house. Plus, Discover will pay off existing creditors directly with a personal loan.

The other way to pursue debt consolidation with Discover is to make a balance transfer to a credit card. The best credit cards for debt consolidation are ones that offer 0% introductory APRs on balance transfers. Below, you can see how all of Discover's debt consolidation methods stack up against one another.

Discover Debt Consolidation Options Compared

Each of Discover's debt consolidation options is best for a different group of people. Credit cards are best for people who can pay off the full amount within the card's 0% introductory period. Personal loans are best for people who need larger amounts of money but still don't want to provide collateral. And home equity loans are best for people who need above $35,000 in funding and have a home that they are willing to use as collateral.

The fact that Discover offers all three options puts them at an advantage compared to many other banks – in fact, only 5 of the top 10 banks by asset size offer all three.