2020 Discover Personal Loans Review
Quick Review: Discover personal loans are great for people who have a credit score of 660 or higher and want to borrow up to $35,000 at a time. Discover loans are especially good if you want a long repayment period, as Discover’s payoff timelines start at 36 months and go as long as 84 months. Plus, Discover’s personal loan APRs can be as low as 6.99%, which makes them useful for people who want to consolidate existing debt at a low cost.
Below, you can find more information about Discover’s personal loan terms, as well as how they rank in WalletHub’s three main review categories: Terms, Requirements & Application, and Reviews & Transparency. You can also compare Discover loans to offers from other lenders and see how you can get pre-qualified.
Discover Bank Personal Loan Terms
|APRs||6.99% - 24.99%|
|Loan Amount||$2,500 - $35,000|
|Loan Terms||36, 48, 60, 72 or 84 months|
|Minimum Credit Score||Fair*|
|Loan Purpose||Debt Consolidation, Home Improvement, Big Purchase|
|Time to Receive Loan Money||2 - 10 business days|
Discover Personal Loan Rates, Fees & Other Terms
Category Rating: 4.6/5
Discover has a feature called a “30-day guarantee.” If you return the entire loan amount in the first 30 days after taking out a Discover personal loan, you don’t have to pay any interest. Most people won’t be able to manage that, though. They’ll have to deal with Discover’s personal loan interest rates ranging from 6.99% to 24.99%. The exact interest rate that you get will depend largely on your credit score, income and other existing debts, among other factors.
Discover personal loan interest rates are fixed. That means that they will not change for the life of the loan. You’ll always pay the same interest rate that you lock in at the beginning.
There are hardly any fees on Discover personal loans, and you can avoid them altogether if you’re responsible. First off, there’s no origination fee to process your application. There’s also no fee for paying off your personal loan earlier than required. Discover will charge a $39 fee if you pay late or if you have automatic payments set up and your bank account has insufficient funds.
Discover offers a fairly large amount of funding, at $2,500 to $35,000. In addition, you’ll have at least 36 months to pay the loan off, and you may get up to 84.
Overall, Discover scores very well in this category. They keep the cost of their loans low, offer generous funding and have lengthy payoff timelines. There’s really not much negative to note other than the late fee, which is avoidable.
Discover Personal Loan Requirements & Application Info
Category Rating: 3.8/5
According to Discover’s website, you’ll need a credit score of 660 or higher to get a personal loan. So, if you have good credit, Discover would likely be a good choice. Discover also allows you to pre-qualify and check your potential rates before you submit an actual loan application, which is helpful.
Discover’s minimum income requirement is $25,000. That’s only the 29th percentile of individual income in the U.S., meaning that 71 percent of American adults have an annual income higher than $25,000.
There are some other basic requirements to meet, too. You’ll need to be at least 18 years old and either a U.S. citizen or a permanent resident. You must also have a Social Security number. You can’t apply with just an ITIN or a passport. Discover does not permit co-signers, either.
You can apply for a Discover personal loan online or by phone (1-866-248-1255). It usually takes up to 3 business days to get a decision and up to 7 business days to receive your funds after you’re approved, according to Discover representatives. Discover also provides a convenient tool to check your application status online.
Discover loans score points in this category for being attainable, allowing multiple ways to apply, having a way to pre-qualify, and offering a pretty quick funding timeline. However, they get docked some points for requiring an SSN and not allowing co-signers.
Discover Personal Loans Reviews & Transparency
Category Rating: 4.8/5
- Better Business Bureau: Discover has an A+ rating and has been accredited since 1989.
- Consumer Financial Protection Bureau: The CFPB has logged around 130 complaints about Discover Bank’s personal installment loans. Many complaints are people unsatisfied with the interest rate they received after getting a lower estimate from Discover’s rate calculator. A few people report issues with monthly statements or making payments. Discover has provided a “timely” response to every existing complaint.
- WalletHub: Discover has a user rating of 4/5 stars across more than 11,000 reviews.
- Transparency: Discover is extremely transparent about all of its personal loan terms, which are readily available on its website. They are also clear about their minimum credit score requirements.
Discover gets a good rating in this category because they have a stellar reputation, have satisfied customers and are very clear about what to expect from their personal loans.
Discover Personal Loans vs. Other Lenders
|APRs||6.99% - 24.99%||5.24% - 24.49%||10.68% - 35.89%|
|Loan Amounts||$2,500 - $35,000||$3,000 - $100,000||$1,000 - $40,000|
|Loan Terms||36, 48, 60, 72 or 84 months||12 - 60 months||36 or 60 months|
|Minimum Credit Score||Fair*||Fair*||Fair*|
In order to provide the most accurate Discover personal loan review, WalletHub used 17 key metrics grouped into three overall sections: Terms, Requirements & Application, and Reviews & Transparency. We rated each section on a scale of 0 to 5, with 5 being the best, and then averaged the scores of the three sections to produce an overall rating for the loan.
- The “Terms” section includes information about how expensive the loan is, including rates and fees. It also takes into consideration how much consumers can borrow and how quickly they must pay it back.
For companies where APR and fee ranges differ greatly by state, we used data from the most populous state serviced by the company. Discover terms do not fluctuate significantly by state, however.
- The “Requirements & Application” section examines how easy it is to apply for a loan and how long it takes to receive the money. It also looks at exactly who is eligible to apply.
- The “Reviews & Transparency” section measures the loan provider’s reputation as well as how clearly the lender discloses its terms and requirements. This takes into account user reviews and information from watchdog organizations.
The average of these three scores reflects how close a loan offer is to WalletHub’s definition of a 5-star loan. For more information, please read WalletHub’s full methodology.
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