Discover Personal Loans: 2023 Review

Do you qualify?

Several eligibility factors are considered when you apply for a personal loan. And it’s important to note that all of the factors together will be used to determine your eligibility. However, there are a few minimum requirements to qualify:

• You must be a U.S. citizen or permanent resident. 
• You must have a minimum household income of at least $25,000. 
• You must be at least 18 years old. 

• Credit score requirements: 660.
• Co-signers and co-borrowers: Not permitted.

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

If you are hoping to finance a vehicle, you can use a Discover personal loan to finance an RV or motorcycle but not a car. You also can’t use loan funds from Discover personal loans to finance 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: Everybody has different needs regarding a loan. That’s why having different repayment options makes it easier for you to get a loan that works for you and your life. 
• Only fee is a late fee: Some lenders pile on extra fees that make the cost of the loan go up, but Discover loans have no origination fees or other extra fees to tack on when you apply. 

What we don’t like

• No co-signers: Applying for a loan with a co-signer allows some people to get the extra help they need to qualify for a loan. Not allowing co-signers means Discover disqualifies even more potential applicants. 
• Can’t be used to pay for college: Paying for college is a big expense, and having options to cover this cost is certainly helpful. Discover doesn’t allow anyone to use a personal loan to pay for college, leaving them to explore other options for education expenses.
• No in-person service: Doing everything online or by phone is fast and convenient, but sometimes it’s helpful to get in-person service. Discover doesn’t have this option for account holders, so if you want to get help face-to-face, you’re out of luck.

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 at this number 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. You can also call this number to submit a loan application by phone. 

If you already have an account with Discover and have questions, you can log in to your online account to pay your bill and manage your account.

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. 

Discover also doesn’t have any prepayment penalties on personal loans. This means that if you are able to pay off your loan earlier than expected, they won’t charge you any extra fees.

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.