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Discover personal loans review

Last updated:  

This provider has a generous 30-day return policy, but watch out for steep late fees.

finder.com’s rating: 4.0 / 5.0

★★★★★

  • Best for borrowers with good credit looking to easily consolidate their debt.
  • Pick something else if you need to borrow more than $35,000 or want to avoid high late fees.

$35,000

Max. Loan Amount

6.99% to 24.99%

APR

Varies

Min. Credit Score

Details

Product NameDiscover personal loans
Min. Loan Amount$2,500
Max. Loan Amount$35,000
APR6.99% to 24.99%
Interest Rate TypeFixed
Min. Credit ScoreVaries
Late Fee$39
Loan Term3 to 7 years

Expert review

Kellye Guinan

Review by


Kellye 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, and you only have to use 70% for debt consolidation — the other 30% can be used to cover other expenses. And Discover also has a 30-day return period if you decide you don’t need your loan.

However, it doesn’t come with a rate discount for autopay like many other lenders out there. It’s also not forgiving if you’re late on a payment — there’s no grace period and it charges a $39 late fee. And if your credit isn’t the best, you may be stuck with a moderately high APR for a personal loan.

Not sold on Discover? Compare other options below.

How much will this loan cost me?

Discover charges an APR from 6.99% to 24.99% with no origination fee. This isn’t the most competitive option out there, especially if you have good to excellent credit. But its long loan terms up to seven years may be appealing if you’re looking for low monthly payments.

Use our calculator to get an idea of how much you might pay based on your loan amount, term and Discover’s APR range.

How it works

The amount you’re approved for — along with your APR — are based off your credit score, income and current debts.

Since Discover specializes in consolidating credit cards and other unsecured debt, these may not count as strongly against you.

However, the moderately high maximum APR of 24.99% may mean you’re paying more toward your debts than if you’d kept them in separate accounts.

What do I need to qualify?

Discover only has one clear-cut eligibility requirement for its personal loans: a household income of at least $25,000.

Loan decisions are also based on your debt-to-income 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.

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

Pros and cons

  • No origination 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
  • 30-day return period
  • Moderately high maximum APR of 24.99%
  • Steep late fee and no grace period
  • No autopay discount
  • Low maximum loan amount

See other personal loan options

Data indicated here is updated regularly
Name Product Filter Values APR Min. Credit Score Max. Loan Amount
Credible personal loans
4.99% to 35.99%
Fair to excellent credit
$100,000
Get personalized rates in minutes and then choose an offer from a selection of top online lenders.
Monevo personal loans
3.49% to 35.99%
None
$100,000
Quickly compare multiple online lenders with competitive rates depending on your credit.
Fiona personal loans
4.99% to 35.99%
Good
$100,000
Get loan offers from multiple lenders at once without affecting your credit score.
LendingTree personal loans
Starting from 2.49%
Good to excellent credit
$50,000
Receive up to five loan offers in just minutes through LendingTree's simple online form.
SoFi personal loans
5.99% to 18.28%
680
$100,000
A highly-rated lender with competitive rates, high loan amounts and no fees.
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Compare up to 4 providers

Is Discover legit?

Yes, Discover is a legit bank that has multiple products and services beyond its personal loan offering. It has an encrypted website and pages dedicated to explaining its privacy policy, terms of service and security system. You’ll also be able to contact it by phone or instant messenger on its website.

Discover reviews and complaints

BBB accreditedYes
BBB ratingA+
BBB customer reviews1.37 out of 5 stars, based on 131 customer reviews
J.D. Power rankingRanked No. 3 in J.D. Power 2020 customer satisfaction survey
Trustpilot score1.9 out of 5 stars, based on 71 customer reviews
Customer reviews verified as of16 October 2020

Discover has a mixed track record when it comes to customer reviews. While the majority of Discover’s reviews on sittes like the Better Business Bureau and Trustpilot are for its credit cards, the general consensus is that the company has poor customer service. The few reviews available for its personal loans are also negative.

But it came in third place in the 2020 J.D. Power Consumer Lending Customer Satisfaction Survey. The survey asked borrowers about their experiences with the application and approval process, loan management, as well as the rates and terms of the loan.

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:

  1. Go to Discover’s website and click Personal loans in the top navigation bar.
  2. Enter how much you want to borrow and what you plan to use the loan for, then click Check your rate.
  3. Choose your loan term and enter your contact information. Click Continue.
  4. Enter details about your employment, income and citizenship status, as well as your Social Security number and date of birth. Click Continue.
  5. Read over the electronic disclosures and consent agreement. Check the box to accept the terms and conditions, then click Continue.

What happens after I apply?

Discover electronically processes your application within a few minutes. If there are 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. In any case, 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.

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 without paying interest.

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.

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