About Bankrate Score
Bankrate's take: Discover's lack of origination fee sets it apart from other online lenders — but its lack of short terms may make it less appealing to borrowers who want to pay off their loan fast.
About Bankrate Score
Bankrate's take: Discover's lack of origination fee sets it apart from other online lenders — but its lack of short terms may make it less appealing to borrowers who want to pay off their loan fast.
Borrowers with good credit may be rewarded for managing their credit well with Discover personal loan rates as low as 7.99 percent — among the lowest of the lenders we reviewed. In fact, Discover is considered one of Bankrate’s best personal loan lenders for low interest rates.
You can use Discover’s good credit personal loan rates to consolidate any existing credit card debt to work towards an excellent credit score rating. Or, you can refinance a bad or fair credit personal loan at a higher rate to save money if your scores are 660 or higher.
Discover’s maximum rate of 24.99 percent is also lower than the 36 percent cap offered at many other companies, in part because it doesn't charge an origination fee. Even if you don’t qualify for the lowest rate, it may be lower than the maximum rates offered by other good credit personal loan lenders.
And you may be able to borrow for longer to spread your payments out. Discover's 72- or 84-month term is longer than the 60-month maximum offered by other lenders.
Discover’s low personal loan rates may be a good match for your debt consolidation or home improvement plans, since the monthly payment is likely lower than other higher-rate personal loan companies. If you need a smaller loan amount for an unexpected car repair or a moving expense, Discover’s $2,500 minimum is lower than many other lenders.
There are some limits on how you can use a personal loan from Discover. Post-secondary education costs, paying off a secured loan or paying off a Discover credit card are all prohibited.
Customer service is available Monday through Friday from 8 a.m. to 11 p.m. ET and Saturday and Sunday from 9 a.m. to 6 p.m. ET.
The application can be done entirely online, although Discover does offer a phone application option for people who prefer to speak to a representative. The phone application hours are the same as the customer support hours.
Discover’s website provides user feedback and features over 25,100 5-star reviews and 277 1-star reviews as of Feb. 20, 2024. Bazaarvoice manages the reviews, and the majority of them recommend the Discover personal loan product based on the speed and competitiveness of the rates and terms.
Negative reviews point to confusion over how debt consolidation funds are applied directly to creditors, or difficulties providing legible documentation for approval.
Discover is a better pick than SoFi if you have a credit score below 680 — down to 660 — or need a lower loan amount than SoFi’s $5,000 minimum. Discover’s APRs are lower than SoFi’s, which means your monthly payment could be lower with a Discover personal loan.
One significant advantage of SoFi over Discover is that SoFi allows you to qualify with a co-borrower. That extra borrowing power may be why SoFi offers loan amounts as high as $100,000.
Discover’s minimum rates are lower than Achieve, and you can borrow as little as $2,500 compared to the $5,000 minimum at Achieve. Achieve also charges origination fees of up to 6.99 percent, while Discover doesn't charge an origination fee.
However, Achieve is Bankrate’s 2024 award winner for best personal loan for debt consolidation with good reason: 75 percent of Bankrate users used an Achieve personal loan to consolidate debt. Another major advantage of an Achieve personal loan is that you can co-borrow with a person with a higher credit score to improve your approval odds, which isn’t allowed at Discover.
Besides the standard personal loan qualifications that include a valid Social Security number, proof you’re at least 18 years old and a physical address, you’ll need the following to qualify:
Discover will also need to verify your current employment status by emailing or contacting your employer if you are employed.
The application process can be started online or by phone. The online portal has to be used to finalize a loan even if you start it over the phone. Discover suggest the following steps to get started:
Funds can be sent to your bank account within one business day of approval. Discover can send the funds directly to your creditors if you're consolidating debt. Alternatively, you can have a check mailed to you and pay them yourself.
Overall Score | 4.8 | Explanation |
---|---|---|
Availability | 4.7 | Low minimum loan amount with funds available within 1 business day after approval. |
Affordability | 4.7 | No origination fees and low rates for good credit borrowers. |
Customer Experience | 5.0 | U.S.-based customer service available 7 days per week. |
Transparency | 5.0 | Rates and fees listed on the website with detailed FAQs. |
57
years in business
30
lenders reviewed
20
loan features weighed
665
data points collected
Bankrate considers 20 factors when reviewing lenders. Credit requirements, APR ranges, fees, loan amounts and flexibility are all taken into account so that ratings are representative of how competitive lenders are for a wide range of credit profiles and budgets. The Bankrate Score for personal loans consists of four categories:
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.