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. Here, we'll examine how a Discover personal loan might help if an unexpected expense arises or you're hoping to consolidate high-interest debt. Our Discover Personal Loans review will also cover what we like about the lender and what we'd change if we could.
|Lending Partner||Best For||Min. Credit Score||Loan Amounts||APR Range|
Discover Personal Loan
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|Best For: Debt consolidation||Min. Credit Score: 660||Loan Amounts: $2.5k-$35k||APR Range: 6.99%-24.99%|
This personal loan is a good fit for: Those with strong credit scores looking for debt consolidation support and long repayment terms.
Low APR: Discover's lowest APR is in line with several of our top lenders. Because of this, highly-qualified applicants can save money -- particularly those who plan to consolidate high-interest debt.
No origination fee or prepayment penalty: A lot of lenders make money upfront by charging a loan origination fee, which can be as high as 8% of the amount borrowed. Discover does not charge this fee -- and it also doesn't charge a prepayment penalty (a fee for paying off your loan early). This sets a good precedent as to how it treats borrowers. A couple of lenders don't even charge late payment fees, but Discover is not one of them.
Debt consolidation support: If you're approved for a debt consolidation loan with Discover, it will pay your creditors for you -- a nice perk. 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 you take greater control over your debt.
Small loans available: Discover allows borrowers to take out loans for as little as $2,500. That's not the lowest loan amount on the market, but it may be enough to cover unexpected expenses. Say your car breaks down and you don't want to borrow more than you need or can afford. Discover's relatively low minimum might help.
Flexibility: Discover offers personal loans for $2,500 to $35,000 with loan repayment terms of 36 to 84 months. This range allows you to target a specific monthly payment that you know you can afford. It also allows you to tackle large projects or small with the same ease of application.
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, finance 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 personal loan interest rates. If you need a cosigner to qualify for better rates, make it point to look at other lenders.
Upper interest rate: Discover's upper interest rate is actually similar or even lower than many lenders, but it is a high rate, nonetheless.
You can apply for a Discover loan online or by phone.
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. 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're likely to be with the experience.
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