Discover features

Here's a breakdown of some of the benefits and drawbacks of Discover personal loans.

Pros

  • Online tools, including a personal loan and debt consolidation calculator
  • Flexible payment terms of up to seven years
  • Only fee is a late fee

Cons

  • Discover requires a minimum credit score of 660
  • No co-signers

Discover is a financial institution with a wide reach that provides a variety of services. The Discover global network has more than 48 million merchant acceptance locations and 2 million ATM and cash acceptance locations across the world. Known for its credit cards, Discover also offers personal loans, home loans, student loans and other financial services.

Discover personal loans offer a low minimum APR of 5.99 percent, as well as flexible loan repayment terms of 3 to 7 years. Most notably, this lender does not charge any fees aside from a late payment fee. These loans are, however, tailored to borrowers with good credit. Discover requires a minimum credit score of 660 and a minimum household income of $25,000.

If you are in the market for a personal loan, and you have good to excellent credit, Discover could be a great lender for you.

Get pre-qualified

Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.

Discover snapshot

Loan amount $2,500 – $35,000
APR 5.99% – 24.99%
Minimum credit score 660
Time to receive funds As soon as one business day

Discover is best for borrowers with good credit

Discover personal loans are affordable in many ways, offering flexible repayment terms, a low minimum APR and no associated fees unless you are late making a payment. However, the eligibility requirements for this loan are restrictive if you do not have a favorable credit history. Discover requires a minimum credit score of 660 to apply, as well as a minimum household income of $25,000 per year. These upfront eligibility requirements make it easier to know if you should consider applying, but make it clear that borrowers with bad to fair credit may want to look elsewhere.

Borrowers with good to excellent credit who want to borrow from Discover can expect a quick, fully online experience, with customer service representatives available over the phone 7 days a week.

Lending terms

Discover loans are fixed-rate and range from $2,500 to $35,000. The quote you receive is based on multiple factors, including credit history, the amount you’re asking for and how long you’d like to pay it off — anywhere from 36 to 84 months.

Discover charges an annual percentage rate (APR) of 5.99 percent to 24.99 percent. The amount of interest you will pay on your loan depends on the amount you borrow, your creditworthiness and the length of your loan.

For example, if you borrow $10,000 for 60 months at a rate of 9.99 percent, your monthly payments will be $212. Over the life of the loan you will have paid $12,720 — which includes $2,720 in interest on top of the original $10,000 you borrowed.

If you choose to use your Discover loan for debt consolidation, you’ll need to commit to sending a minimum of 70 percent of the funds to the creditors, or you risk losing final approval or adversely affecting the APR you’re approved for. You can set it up with Discover to send loan payments directly to the creditor.

Discover also has a unique 30-day money-back guarantee if you find more favorable terms from another lender. Within that window, you can return Discover’s loan without any penalties or interest charges.

Fees and penalties

Discover does not charge origination fees or prepayment fees, although it may charge a late payment fee of $39. This is higher than the late fees of many other lenders, and there is no grace period for late payments.

How to apply for a loan with Discover

Discover’s loan application process is straightforward and fast. Enter some basic information in the online application, including the loan amount you want, what you want to use the money for and the length of time you’d like to pay it off. Discover’s online calculators can give you an estimate of how much your monthly payments will be at different loan lengths and interest rates.

Before finalizing your Discover loan, the company will do a “hard” credit check, which can adversely impact your credit score. Once you’re approved, the company will call you to verify your identity.

A Discover personal loan applicant could receive a decision on the same day they apply as long as their application isn’t missing information. Once the application is approved and the applicant accepts the loan terms, funds can be sent as early as the next business day.

The minimum gross income requirement is $25,000 annually, but that’s not the only factor Discover considers in evaluating an application. “We evaluate each applicant based on a number of factors, including the applicant’s overall financial health, and assess each application based on the customer’s personal financial situation including their credit score, income and existing credit and debts,” a spokesman said. “However, our typical customer’s average income is much higher than the minimum.”

Get pre-qualified

Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.

How Bankrate rates Discover

Bankrate Score 4.8 Scoring factors
Availability 4.4 Low minimum income and relatively low minimum loan amount
Affordability 4.8 No fees except for late fee and competitive minimum APR
Customer experience 5.0 7-day a week customer service, highly rated mobile apps and online access

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.