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Discover personal loans can be used to finance projects of all kinds, but are ideal for people trying to get out of high-interest debt. In the Discover personal loan review you'll learn how Discover could help you cover unexpected expenses or consolidate high-interest debt into one lower-interest loan. We'll also look at what's good and not so good about this personal loan so that you can decide if it's right for you.
|Lending Partner||Best For||Min. Credit Score||Loan Amounts||APR Range|
Discover Personal Loan
Min. Credit Score:
No origination fee: Many lenders make money upfront by charging a loan origination fee of 1% to 8% of the amount borrowed. For example, the fee on a $20,000 loan would range from $200 to $1,600. Discover does not charge this fee -- which sets a good precedent as to how it treats borrowers.
Decent APR: It may not be the lowest APR on the market, but the rate for highly qualified applicants can help you save money, particularly if you plan to consolidate high-interest debt.
Small loans available: Discover allows borrowers to take out loans for as little as $2,500, perfect for covering unexpected expenses.
Debt consolidation support: Climbing out of debt takes discipline. A Discover personal loan can help by paying your creditors directly. It works like this: When you apply for a loan and choose debt consolidation as the reason you need the money, Discover will require that at least 70% of the loan go toward paying off debt. Once you're approved, you give Discover the information they need to pay your creditors. In addition, a Discover personal loan gives you a free credit scorecard that shows your FICO® Score, the number of recent credit inquiries, and more. It's a great way to watch your credit score improve as debt is paid down.
Flexibility: Discover offers personal loans for $2,500 to $35,000 with repayment terms of 36 to 84 months. What makes this wide range of repayment terms attractive is that it allows you to target a specific monthly payment that you know you can afford.
Available for a variety of needs: Discover personal loans can be used for more than paying off high-interest debt. A Discover loan may also come in handy when it's time to pay off taxes or medical bills, make home repairs, or pay for big-ticket items.
Getting a quote won't hurt your credit score: Discover can offer you a loan quote by conducting a soft credit check, which won't hurt your credit score. It's not until you accept the loan that it does a hard pull to verify your information.
Cosigners not accepted: The minimum household income required for a Discover personal loan is $25,000, and the minimum credit score is 660. However, neither of those minimums qualify you for the best rates. If Discover allowed a highly-qualified cosigner to be added to your application, your odds of snagging a low interest rate would jump dramatically.
Better interest rates available elsewhere: For the most qualified borrowers, there are lower interest rates available through other personal loan providers. Even borrowers with fair credit may find more competitive interest rates elsewhere.
You can apply for a Discover loan online or by phone. Before applying, have the following ready:
Once your loan is approved, carefully read the terms and decide if they are acceptable. If so, sign the loan agreement and let Discover know where you want funds deposited (as early as the next business day). If you are using the loan to pay off existing debt, give Discover the names, account numbers, and creditors' addresses.
Before you dive into any loan, do yourself the favor of comparing several lenders to find the one that works best for you. For example:
The decision to take out a personal loan can feel huge. Take your time to compare lenders, determine precisely what you want to do with the funds, and make a plan for repaying the loan as quickly as possible. The more thought you put into it, the happier you are likely to be with the experience.
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