Discover vs. Achieve: Which offers better personal loans?

Discover and Achieve are both online personal loan companies that work with a variety of borrowers. The major difference is the cost and the requirements you need to meet to borrow. While they could both fit your financial needs, Discover has less fees while Achieve lets you apply with a co-borrower.

Discover vs. Achieve at a glance

While Discover and Achieve offer similar loans, Discover has less fees — but more strict eligibility criteria for borrowers. Achieve may be a better option if you don’t qualify for a loan from Discover.

Discover personal loans

Rating: 4.8 stars out of 5

4.8

Learn more in our Bankrate review

• Bankrate's view

  The primary drawback when using Discover is that it doesn’t allow co-borrowers or co-signers for its personal loans. Many online lenders — including Achieve — allow you to borrow a loan with someone else. If you don’t qualify on your own, you won’t be eligible to borrow.

  It also has slightly more strict eligibility criteria than Achieve. But provided you meet the minimum credit score and bring home at least $25,000 annually, you may qualify for slightly lower rates — Discover’s maximum APR is 24.99 percent compared to Achieve’s max APR of 35.99 percent.

  Discover may be a good fit if you need funds quickly or don’t need to borrow much. Plus its loan terms go up to seven years and can help keep monthly payments down, although you will pay more in interest over time if you opt for a longer term.

• Pros and cons

  

  Pros

  • No origination fees.
  • Quick funding time.
  • Long loan terms.

  

  Cons

  • No joint loans.
  • Strict eligibility criteria.
  • Small maximum loan amount.

Achieve personal loans

Rating: 4.7 stars out of 5

4.7

Learn more in our Bankrate review

• Bankrate's view

  While Achieve does have origination fees, which will increase the total cost of your loan, it still has its benefits. Unlike Discover, you are eligible  if you have fair credit. You can also add a co-borrower to your application to help improve your chances of qualifying.

  However, its maximum APR is much higher than Discover. Achieve also requires you to borrow at least $5,000. If you need less than this, it may be better to go with Discover or another lender that lets you borrow less.

• Pros and cons

  

  Pros

  • Fair credit accepted.
  • Quick funding time.
  • Co-borrowers accepted.

  

  Cons

  • High minimum loan amount.
  • High maximum APR.
  • Origination fee up to 5.99%.

How to choose between Discover and Achieve

Discover and Achieve are both good options for unsecured personal loans. However, it is worth applying for Discover first if you qualify, if only to score a potentially lower APR and avoid origination fees. But if you need a larger loan, you may still be able to qualify for a similarly competitive APR with Achieve. Pick the lender that offers you the best terms — including the APR you receive and the monthly payment you will need to make.

Discover is better for borrowers with good credit

Not only does Discover have a lower maximum APR than Achieve, but there is no origination fee. This means you may pay less overall — though it may still cost more than other lenders that work with good credit.

Still, Discover is the best option of these two lenders if you have good credit. Lower rates, less fees and longer terms can help keep your monthly payments more manageable.

Achieve has larger loan amounts

Achieve is a good choice if you need to borrow more than $40,000 and only have fair credit. If you have a co-borrower in mind, Achieve will also be able to work with them, which can help you qualify for lower rates.

While the maximum APR is higher than Discover, Achieve still offers the same low starting APR if you are able to qualify. This makes it a good idea to apply for prequalification with both lenders to see which offers better terms.

Compare lenders before applying

Both Discover and Achieve have similar personal loan products that can be used for many purposes. While Discover has fewer fees, Achieve allows you to apply with a co-borrower. These are small differences, but they should help you determine which lender fits your financial needs better.

In addition, consider checking your rate with other lenders to ensure you’re getting the best APR and terms available.