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Discover personal loans review
This provider has a generous 30-day return policy, but watch out for steep late fees.
finder.com’s rating: 4.0 / 5.0
★★★★★
$35,000
Max. Loan Amount
6.99% to 24.99%
APR
Details
| Product Name | Discover personal loans |
|---|---|
| Min. Loan Amount | $2,500 |
| Max. Loan Amount | $35,000 |
| APR | 6.99% to 24.99% |
| Interest Rate Type | Fixed |
| Minimum Loan Term | 3 years |
| Maximum Loan Term | 7 years |
Expert review
Review by
Kellye Guinan
kellye.guinan@findercrew.comKellye Guinan is a writer and editor with Finder and has years of experience in academic writing and research. Between her passion for books and her love of language, she works on creating stories and volunteering her time on worthy causes. She lives in the woods and likes to find new bug friends in between reading just a little too much nonfiction.
Expert review
Discover is ideal if you’re looking to take out a personal loan to consolidate less than $35,000 in debt — it will send the funds directly to your creditors for you. It also has a potentially fast turnaround and 30-day return period if you decide you don’t want the loan after all.
But it doesn’t come with a rate discount for autopay like many other lenders out there. And you could get stuck with a relatively high APR if you don’t have the best credit. It’s also not forgiving if you’re late on a payment — there’s no grace period and it charges $39 late fees.
Not sure Discover is right for you? Compare your other options below.
First, am I eligible?
Discover doesn’t list any clear-cut eligibility criteria beyond having a minimum annual household income of $25,000. Loan decisions are based on your income, debt-to-income (DTI) ratio, credit history and requested loan amount and term. By applying for preapproval, you’ll be able to see if you qualify without impacting your credit score.
Pros
- 30-day return period
- No origination, monthly service or prepayment fees
- Debt consolidation funds sent directly to creditors
- May be able to receive your funds the next business day
- Free access to your credit score
Cons
- High maximum interest rate of 24.99%
- Steep late fee and no grace period
- No autopay discount
- Low maximum loan amount
Compare other personal loan providers
How do I apply?
You can apply for a Discover personal loan by phone, mail or online. To start the application process online, follow these simple steps:
- Go to Discover’s website and click Personal Loans in the top navigation bar.
- Enter how much you want to borrow and what you plan to use the loan for, then click Check Your Rate.
- Choose your loan term and enter your contact information. Click Continue.
- Enter details about your employment, income and citizenship status, as well as your Social Security number and date of birth. Click Continue.
- Read over the electronic disclosures and consents agreement. Check the box that you accept it, then click Continue.
What information do I need to apply?
When you apply, make sure to have the following information on hand:
- Annual income
- Monthly housing payment
- Social Security number
What happens after I apply?
Discover electronically processes your application within a few minutes. If it has any questions about your application, a loan specialist might call you to verify your personal details.
If approved, you may be able to receive your loan funds as soon as the next business day. However, it’s not guaranteed. If there are any errors on your application, your loan is approved on a weekend or you don’t want your funds deposited into your bank account, it could take up to seven days for your loan to be disbursed.
How do repayments work with Discover?
To help prevent late fees, sign up for autopay to have your repayment withdrawn from your bank account each month. You can also make extra repayments or pay off your entire balance early — Discover doesn’t charge a prepayment penalty. And if you decide a personal loan isn’t the right choice for you, you can return your loan funds within 30 days.
However, keep up with payments: Discover doesn’t offer a grace period, and you could be on the hook for a $39 fee if your monthly payment is even a day late.
To see how Discover stacks up to the competition, read our guide to personal loans. Or if you’re looking for a different type of loan, Discover has other options available.
Frequently asked questions
Personal loan ratings
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
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