If you are looking for a personal loan, American Express and Discover are two options. American Express (also known as Amex) has been offering a variety of financial products since 1850. And while Discover hasn’t been around quite as long — it was founded in 1985 — it is a trusted and well-known brand.

Both lenders offer online loans with digital tools to help customers manage their personal loans. However, American Express personal loans are only available to those who have an American Express credit card.

American Express vs. Discover at a glance

Both American Express and Discover offer personal loans with similar loan amounts, but they differ in APRs and loan term lengths offered.

American Express
Discover
Bankrate Score 4.4 4.8
Better for Lowest APR Debt consolidation
Loan amounts $3,500-$40,000 $2,500-$40,000
APRs From 5.98% 7.99%-24.99%
Loan term lengths 12-48 months 36-84 months
Fees Late payment fee Late payment fee
Minimum credit score Not specified 660
Time to funding Typically 3-5 business days As early as the next business day

American Express personal loans

American Express

4.4
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  • Green circle with a checkmark inside

    Pros

    • No upfront fees.
    • No credit score impact to apply.
    • Quick loan decision.
    Red circle with an X inside

    Cons

    • Can’t use funds for vehicles.
    • No in-person service.
    • Membership requirement.

  • To get a personal loan with American Express, you must have an active American Express Consumer Card. If you already have an American Express credit card, getting a personal loan can be a convenient way to manage multiple financial products in one place.

    However, if you don’t have an Amex credit card, you will need to get one to qualify for a personal loan. This is an inconvenient way to qualify for a loan, especially when most other lenders don’t have similar requirements.

    However, interest rates for American Express personal loans start low at 5.89 percent. But it doesn’t provide a maximum APR — and your loan term is limited to 48 months, which is half the time Discover offers for repayment.

Discover personal loans

Discover

4.8
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  • Green circle with a checkmark inside

    Pros

    • No upfront fees.
    • Fast funding.
    • Free credit report.
    Red circle with an X inside

    Cons

    • No in-person service.
    • High starting APR.
    • No co-signers.

  • Discover offers unsecured personal loans to any U.S. citizen over 18 who can verify annual income over $25,000. Discover personal loans can be used for anything from wedding costs and IVF to debt consolidation and medical expenses. The only thing loan funds cannot be used for is post-secondary education costs, paying off a secured loan or paying off a Discover credit card.

    Discover offers a relatively approachable personal loan with average interest rates and perks. Borrowers can manage their loans easily with Discover’s mobile app or online portal. Another added bonus for a Discover personal loan is that the loan comes with a free annual FICO credit report and assistance for protecting your online privacy.

How to choose between American Express and Discover

Choose American Express for the most competitive interest rates and Discover if you want to borrow a debt consolidation loan.

American Express is best for lowest interest rates

The numbers don’t lie. If you want the best APR between the two lenders, you’ll find the lowest rates through American Express. Interest rates for American Express personal loans start at 5.49 percent, which is over two percent lower than the starting rate you can get with Discover.

Discover is best for consolidating debt

A debt consolidation loan allows you to compile multiple debts into one loan with a lower interest rate. Discover can give a debt consolidation loan for up to $40,000. It also gives the option to pay your loan funds directly to your creditors, if you’d like. Discover offers options for a longer period for repayment than American Express, allowing you to repay your debt in smaller increments over time.

Compare lenders before applying

Discover and American Express differ when it comes to loan use restrictions, loan terms and amounts — and they’re not the only options out there. So if you’re looking for a personal loan, compare more to find the best fit for your finances.