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Discover Personal Loans

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4.5

Overall Score

LAST UPDATED: September 15th, 2022

To help customers meet their obligations and pay for unforeseen expenses, large projects, or emergencies, Discover offers personal installment loans for a variety of needs, such as:

  • Debt consolidation
  • Home remodeling
  • Medical bills
  • Wedding loans
  • Small businesses
  • Auto Repairs
  • Other financial emergencies

Offering competitive interest rates, no fees, and a quick application process, Discover makes it easy to cover your expenses.

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Highlight: Discover personal loans rates and terms

  • Fixed APR range — 6.99–24.99%
  • Loan terms — 36–84 months
  • Loan amounts — $2,500–$35,000
  • No hidden fees

Read our comprehensive review of Discover personal loans below to get a glimpse of its unique services as well as Best Company's recommendation.

Or jump directly to verified Discover personal loan reviews to see what customers are saying about their experience with Discover.

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The Good

  • Same-Day Application Approval
  • Competitive Interest Rates
  • No Closing, Origination, or Prepayment Penalty Fees
  • Flexible Loan Repayment Terms
  • Ability to Pay Creditors Directly
  • Discover Personal Loan Calculator
  • 30-Day Money-Back Guarantee
  • Payment Due Date Changes
  • Student loan Consolidation

Same-Day Application Approval

Discover's personal loan application is simple from start to finish. In fact, you can receive approval the same day and have the money in your bank account in as little as one business day.

Discover explains on its website that loan approval is determined by your income (minimum household income must be $25,000), debt-to-income ratio, credit history, and qualified application information. This can be in your favor, as credit history is not the only variable brought into consideration for approval.

Applying is intuitive and hassle-free, and you can start your application online or over the phone.

Competitive Interest Rates

Your annual percentage rate (APR) will depend largely on your credit report and overall credit history. As with most financial institutions, the higher your credit score and the better your credit report, the lower your rate. Discover personal loan rates are among the lowest in the lending industry, starting at 6.99 percent APR and ranging up to 24.99 percent APR, a much lower maximum interest rate than many other personal loan lenders.

Discover personal loans also have a fixed interest rate, so your APR and monthly payment will never change. This provides stability for borrowers and peace of mind that rates and fees will not unexpectedly increase.

No Closing, Origination, or Prepayment Penalty Fees

Unlike mortgage loans, there is no closing fee associated with Discover's personal loans. The company also does not charge an origination fee.

A borrower can also repay the loan prior to the scheduled final payment date without incurring any prepayment penalties.

Flexible Loan Repayment Terms

You can have a Discover personal loan for as long as seven years. Not only does this give a borrower more time to pay off their loan, but a longer loan length will also result in lower monthly payments. This provides versatility for consumers who want more flexibility in their repayment options.

Many personal loan providers only offer loan terms of up to five years. Discover's complete loan term options are 36 (three years), 48 (four years), 60 (five years), 72 (six years), or 84 months (seven years).

Ability to Pay Creditors Directly

If you are looking to take out a personal loan to pay off credit card debt, Discover personal loans allows you to pay your credit card collectors directly. This makes debt consolidation simple and provides borrowers with the peace of mind that they can consolidate their credit card debt within the same day as their loan approval.

Discover Personal Loan Calculator

Discover has a personal loan calculator on its website that allows you to input your loan needs and preferences and receive an estimated monthly payment and APR.

For example, if you wanted to take out a $15,000 personal loan for a length of 48 months and you have a good credit score between 740 and 799, your monthly loan payment would be between $380 and $410, and your APR would be between 9.99 percent and 13.99 percent.

This personal loan calculator is convenient for potential borrowers who don't want to have to call a loan specialist to receive estimated rates and terms.

30-Day Money-Back Guarantee

Discover offers a 30-day money-back guarantee if you decide to return the loan funds within the first month of receiving them. You will be charged zero interest as long as your request and funds have been sent and received within the first 30 days.

However, if you opted to pay creditors directly rather than receive the funds yourself, you cannot take advantage of the 30-day money-back guarantee as you can not request money back from credit card collectors.

Payment Due Date Changes

Discover allows you to change your loan payment due date to better fit your monthly budget and financial situation.

However, it's important to note that Discover states you may only request a payment due date change two times during the length of your loan, and there has to be at least 12 months between each of these requests.

To help borrowers keep up with payments, Discover has an automatic payment service. This can reduce the need for needing to change payment due dates, although that is still a helpful option if necessary.

Student Loan Consolidation

With a discover personal loan a borrower can consolidate both private and federal student loans. Debt consolidation provides a borrower with the opportunity to lower their interest rate and monthly payments on their current student loan.

Unlike many other personal loan lenders, Discover personal loans does not require a cosigner to qualify for student loan consolidation.

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The Bad

  • Below Average Maximum Loan Amount
  • Unsecured Loans Only
  • Loan Stipulations
  • Minimum Credit Score
  • $39 Late Fee
  • Discover Personal Loans Reviews

Below Average Maximum Loan Amount

Discover's personal loan amounts max out at $35,000, which is slightly lower than the maximum loan amount offered by some other top providers. Some loan providers offer personal loans for as much as $100,000.

If you are looking for a higher personal loan amount, you might want to consider another lender.

Unsecured Loans Only

Discover only offers unsecured personal loans, meaning you cannot offer up any sort of collateral to ensure you will not default on the loan. Some lenders offer secured loans for borrowers who have little or no credit, so this may prove to be a difficulty for any borrower looking for a secured loan.

Loan Stipulations

Discover personal loans cannot be put towards post-secondary education or be used to pay off a secured loan. Many lenders do not have such guidelines and allow borrowers to choose what they do with their loan funds. Discover personal loans may not be for you if either of these situations is why you are looking for a personal loan lender.

Minimum Credit Score

Discover personal loans sets its minimum credit score around 660. This minimum credit score is typically higher compared to other personal loan companies, making it difficult for individuals with a lower credit score to qualify.

In addition to a high minimum credit score requirement, low or bad credit borrowers may have a difficult time qualifying for a Discover personal loan based on the company's offered APR range. Discover's interest rates are lower than many competing lenders, which means that low-credit borrowers will likely not qualify.

$39 Late Fee

Discover charges a $39 late fee if you make any late payments throughout the length of your loan. However, this is quite common in the lending industry.

Discover Personal Loans Reviews

Although Discover personal loans do not have a large number of reviews quite yet, many reviews thus far are less than positive.

Some reviews note a quick application process, however, a large amount highlight unsatisfactory rates even with excellent credit, troubling customer service, and miscommunication in which Discover requests payments even after they have already been paid.

Discover personal loans reviews, as of spring 2020 are largely negative:

  • About 74% one-star reviews
  • An overall score of 1.8/5.0 stars
  • An average sentiment Criteria of 2.5/5.0 stars
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The Bottom Line

Discover personal loans offer a lot of competitive services and terms, but it may not be the best fit for everyone. Discover personal loans seem to work best for borrowers with good credit that are looking for an unsecured loan with a competitive annual percentage rate and a loan offer of no more than $35,000. However, These stipulations can be limiting for many borrowers.

There is flexibility that can be found with a Discover personal loan, from lack of fees, to the ability to return funding without penalty within 30 days of funding disbursement. However, for borrowers with low credit scores it can be difficult to qualify.

Overall, we would recommend looking into another personal loan service provider, given Discover's low maximum loan amount, its loan restrictions, and negative reviews. Read Discover personal loans reviews below to see what consumers are saying about the lender.

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Star Rating

2.2

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66 Reviews

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20%

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9%

3 grade

3%

2 grade

2%

1 grade

67%

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Review Source

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Shauna Lyons Omaha, NE

I appreciate the representative being so patience as I gathered documentation and walked me through sending to Discover. The only down size is I like to pay more per month to clear more interest. So I have to go in monthly and adjust. I am sure there is a easier way I just have not called to find out. The process was okay and response and deposit to my account was fast.

1 month ago

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Shalon Johnson Minneapolis, MN

I received a loan to help cover unexpected expenses from Discover. The process was extremely simple! I was approved within minutes and the funds were in my account the next day. They provided a detailed timeline as to when I had to pay them back as well as how much my interest would accrued over the years. Discover is probably one of the best companies to use for credit cards and personal loans.

1 month ago

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J9softball

The process was all online and was quick and easy. The interest rate was very reasonable and the payment method was an auto draft directly from my bank account which made payments very simple. I was also able to view my account balance on my online banking with my Discover account which made things centralized. When I paid it off in full there are were prepay penalties. Would borrow again if needed.

1 month ago

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M. Nielsen South Bend, IN

Quick and easy application process, customer service very knowledgeable and helpful with any questions. Fair terms and conditions and easy payment plans

1 month ago

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Koren Lambertville, MI

I just have to say I will always stick with discover! My husband and I got into a rut with credit cards and couldn't get out of debt and paying just interest and had to keep using credit cards to get by through the weeks. We were thinking about bankruptcy and they said we make to much and had to combine income then we tried the bank to consolidate and said we didnt make enough and couldnt combine income. So desperate for help we finally called discover and they were able to help us consolidate our credit card debt and save us 500.00 a month. Thank god for discover for being able to help us I would recommend them to anyone that needs help! Discover was helpful, fast, convenient, and the best decision we made.

3 years ago

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Carolyn O. Lawton, OK

At first, I was hesitant to apply with Discover, but I said what else do I got to lose? So, I finally decided to apply with Discover Personal Loans to consolidate 4 of my credit card with a total of almost $10,000. I was easily approved online, and called them to finalize the loan and asked me simple questions about my credit and employer. I received the remaining funds in my account in 2 business days (while hey directly paid off my credit cards). And my payment is lower than I expected with 4 yrs payoff ( as what I have chosen). The representative I talked to is very nice to me. And helped me finished the application with no problem. I wished I could have done sooner, but I'm glad I finally had to courage to do it. Now, I will be worry free from all my credit cards. And will be able to save money for the future. Thank You very much, Discover Personal Loans!

3 years ago

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Carolyn fisher Columbia, SC

I applied over the phone, expecting to be sent a stack of paper forms to fill out, wait for a few weeks and finally hear yes or no. The representative was amazing! She asked me some questions on the phone, checked my credit, and said I was approved!! I was doing debt consolidation , and the money was there the next day!! I am so impressed ! How painless compared to other loan applications in the past!!!

4 years ago

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TAMI Algoma, WI

I called and was approved immediately. Interest rate was 10% lower than my credit cards. I had the money in my account within 2 days after faxing my pay stubs in. I am so relieved that all my bills are paid off. All I have to pay is this loan. I am guesstimating my savings are about $400/mo. That will be going right back on this loan to pay it off quicker. Thanks you Discover!

5 years ago

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Amir Alsayegh Broomfield, CO

Discover's customer service is bottom to none. I can't imagine anyone having anything but a good experience with their phone-based customer service. That's honestly one of the reasons why I got a personal loan from Discover instead of one of the P2P lenders or lending marketplace. Customer service FTW! If you're looking for a loan that is not a home or student type loan and you have good credit, Discover Personal Loans is the way to go!

5 years ago

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Maria

They were able to help me consolidate my credit card debt on the same day that i completed my application and made me feel good about working with them. The loan was no fees and competitive interest plus i can have it payed off in three years! That is why i will no longer use credit cards!!!

3 years ago

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Shelly Bush Ogden, UT

I love the product Discover Personal Loan offers. I have had a discover card for several years and love their low balance transfer offers. I love working with their customer service department. If I ever have a question or concern I know I can call and my questions will be answered. I am always treated in a professional manner. Thanks!

4 years ago

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Review Source

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ramesh pothuru

easy to maintain on line portal, multiple payment options!

1 month ago

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reana salazar CA

its a very good loan company and the customer care personal are very helpful and polite

6 years ago