Discover Personal Loans: 2023 Review

Do you qualify?

Discover considers several factors when you apply for a personal loan. 

• Have a minimum credit score of 660.
• Have a minimum household income of at least $25,000. 
• Be a U.S. citizen or permanent resident. 
• Be at least 18 years old. 

“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 says. “However, our typical customer’s average income is much higher than the minimum." 

What Discover doesn't allow loan funds to be used for

You can’t use a personal loan from Discover for financing a car, pay for secondary education, pay off any secured loans or pay off a Discover credit card.

Discover: in the details

What we like and what we don’t like

What we like

• Online tools, including a debt consolidation calculator: Using loan amount calculators and payment tools on the Discover website can help you get an idea of how much you qualify for and what payments would look like. 
• Flexible payment terms of up to seven years: Discover is one of a handful of lenders that offers terms up to seven years. 
• Only fee is a late fee: Discover does not charge origination fees or other extra fees when you apply. 

What we don’t like

• No joint applications: Discover does not allow you to apply with a co-borrower or submit a joint application. 
• Low maximum loan amount: The maximum you can borrow is set at $40,000. There are other lenders like LightStream and SoFi with similar eligibility requirements and much larger loans.
• No in-person service: Discover only offers its loans online, and its customer service team is limited to email or phone. 

How to contact Discover

There are a few ways you can get in touch with Discover. You can give them a call at 866-248-1255. Representatives are available to help Monday through Friday from 8 a.m. to 11 p.m. ET, and Saturday through Sunday from 9 a.m. to 6 p.m. ET. 

How to apply for a personal loan with Discover

Discover’s loan application process is straightforward and fast.

Features and additional perks

Discover 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.

Additionally, Discover allows account holders to check their credit score for free. All you have to do is log in to your Discover account to see your FICO credit score for free.

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.

Discover frequently asked questions

Methodology

To select the top personal loan lenders, Bankrate considers 20 factors. These factors include credit requirements, APR ranges, fees, loan amounts and flexibility to account for a wide range of credit profiles and budgets. Bankrate reviewed over 30 lenders and gave each a Bankrate rating, which consists of four categories:

• Availability: What the minimum loan amounts are, its eligibility requirements and loan turnaround are considered in this category.
• Affordability: The interest rates, penalties and fees are measured in this section of the score. Lower rates and fees and fewer potential penalties result in a higher score.
• Customer experience: This category covers customer service hours, if online applications are available, online account access and mobile apps.
• Transparency: This category is measured by how accessible credit requirements, rates and fees are on the lender's page. We also took into account whether prequalification was available, as all these factors are key for consumers to make an informed decision.

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.