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If you’re on the fence, take advantage of its generous 30-day return policy.
finder.com’s rating: 4.0 / 5.0
Discover offers unsecured personal loans with minimal fees, a 30-day return policy and a potentially fast turnaround. But you could face a high interest rate if you don’t have the best credit. And there are no rate discounts to speak of.
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.
A Discover personal loan might be best if…
You have good credit. You might have an easier time qualifying with a credit score over 670.
You want to consolidate debt. This lender pays off your creditors directly, rather than having you handle the process yourself.
You need a quick response. Discover can let you know if you qualify as soon as the same day.
What makes Discover personal loans unique?
The real highlight of Discover’s personal loan offering is its generous return policy. If you decide you no longer need the funds, you can return your loan within 30 days and pay nothing in interest. This is a rare perk you’ll be hard-pressed to find with other lenders.
What are Discover personal loans?
Discover offers fixed-rate, unsecured personal loans between $2,500 and $35,000. They can be used for almost any legitimate purpose except for paying back a secured loan or post-secondary education expenses. Interest rates range from
6.99% to 24.99%
depending on your creditworthiness.
Alongside its generous loan terms, which range from 3 years to 7 years, Discover also charges minimal fees. That means you won’t pay a monthly maintenance fee, origination fee or prepayment penalty. Instead, all you’ll have to worry about is a late payment fee, which you can avoid by setting up autopay.
What are the benefits of a Discover personal loan?
With its minimal fees and convenient 30-day return policy, there are a few perks of taking out a personal loan with Discover:
Return period. Unlike many lenders that lock you in once the loan contract is signed, Discover gives you a 30-day return period. If you decide to return your funds, you won’t pay any interest.
Limited fees. Discover doesn’t charge a monthly service fee, origination fee or prepayment penalty if you want to pay your loan back early.
Fast turnaround. If you apply during the week, you could get approved the same day and receive your funds as fast as the next business day.
Pays off your debts. If you sign up for debt consolidation, Discover can disburse the funds directly to your creditors.
Free access to credit score. When you borrow through Discover, you’ll receive a Credit Scorecard with your FICO score to help you stay on top of your finances.
What to watch out for
Not sure a Discover personal loan is right for you? Consider these potential drawbacks first:
High maximum interest rate. While 24.99% isn’t the highest interest rate out there, it can make your monthly payments much more difficult to afford.
Steep late fee. Discover doesn’t have a grace period for late payments, so you’ll be on the hook for a $39 late fee — even if you miss your due date by just a day.
No autopay discount. Unlike many other lenders, Discover doesn’t offer a rate discount for borrowers who set up automatic payments.
Long terms. The shortest term Discover offers is 3 years .
Low loan amounts. Discover’s maximum loan amount is on the lower end of the scale for personal loan providers.
Compare more personal loan providers
Updated September 17th, 2019
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.
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.
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.
I got a Discover personal loan. Now what?
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.
Reach out to customer service if you have any questions or problems with your loan account by calling 866-248-1255.
With minimal fees, a 30-day return period and fast turnaround, a Discover personal loan has a lot to offer. 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.
No. You can also apply by calling 866-248-1255 to speak to a loan specialist. And if you received an offer by mail, you can send your application to:
Discover Personal Loans PO Box 5192 Southfield, MI 48086-9907
Yes. You can’t use your loan to pay off a secured loan or for post-secondary education.
Yes. You can use some of your loan funds from a debt consolidation loan for another purpose — such as car repairs or taking a vacation — but at least 70% must go directly to your creditors.
No. If you make at least $25,000 a year, you won’t have to add information about your household income.
No. Discover only offers unsecured personal loans, which means you don’t have to provide any collateral.
Customer service is available weekdays from 8 a.m. to 11 p.m. ET, as well as Saturdays and Sundays from 9 a.m. to 6 p.m. ET.
Personal loan ratings
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★★★★★ — Good
★★★★★ — Average
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★★★★★ — Poor
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