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Discover loans

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Pay for college, cover personal expenses or borrow against your home.

Discover is more than just credit cards. It also offers a few loan products — whether you need to pay for school, borrow against your home or cover a personal expense. But with quite a few negative reviews out there, you’ll want to consider its customer service before applying.

What types of loans does Discover offer?

Unlike some major banks, you won’t find mortgages and auto loans among the list of products Discover offers. Instead, it narrows its playing field down to three options:

Personal loans

You can borrow between $2,500 and $35,000 with fixed rates from 6.99% to 24.99% APR. Discover offers terms from three to seven years, and it even has a 30-day return policy in case you decide you don’t need the loan afterall. You can use it for just about anything, except to pay for a secured loan or for post-secondary education expenses. That’s what its student loans are for.

Student loans

Discover offers a variety of student loan options, including loans for undergraduate and graduate school, MBA programs, law and medical school, bar exam costs and residency. And if you’re interested in refinancing your federal and private student debt, you can do that too.

Its standard undergraduate student loans start at $1,000 and go all the way up to 100% of your school-certified cost of attendance. You have the option of fixed rates, which range from 6.24% to 12.99% APR, or variable rates, which range from 4.24% to 11.99% APR. However, it only offers one repayment term: 15 years for all its undergraduate student loans.

Home equity loans

You can borrow anywhere from $35,000 to $150,000 depending on the equity you own in your home. Rates are fixed and depend on whether you’ve paid off your mortgage or not. Loans in the first-lien position come with rates that vary from 4.99% to 8.99% APR. Meanwhile, loans in the second-lien position have the potential to go slightly higher, ranging from 4.99% to 11.99% APR. Discover offers a wide range of loan terms to choose from: 10, 12, 15, 20 or 30 years.

Why should I consider taking out a loan with Discover?

From its fast turnaround to its limited fees, there are a few perks of borrowing with Discover:

  • Minimal fees. You won’t be on the hook for origination fees or prepayment penalties with any of Discover’s loan products. The only charges you need to worry about are if you miss a payment or pay late.
  • Quick funding. Depending on the type of loan you’re applying for and whether you have all the documents on hand, you may be able to get your funds as soon as the following business day.
  • Option to pay off creditors directly. If you’re looking to consolidate debt, you can have your personal loan funds sent straight to your creditors so you don’t have to worry about it.
  • 30-day guarantee. You can return your personal loan funds within 30 days if you have second thoughts — and you won’t be charged any interest.
  • Cosigners available. If you’re borrowing a student loan and don’t qualify on your own, you can apply with a creditworthy cosigner to help increase your chances of approval.

Where does Discover fall short?

Discover doesn’t fare well when it comes to customer reviews, and you don’t have as many loan options to choose from as other providers out there. Consider these potential drawbacks before applying:

  • Limited loan options. Unlike other big-name providers out there, Discover doesn’t offer mortgages or auto loans.
  • Negative reviews. Although most don’t center around its loan products specifically, many Discover customers aren’t happy with the company’s customer service team.
  • No autopay discount. Unlike many of its competitors, Discover doesn’t offer an autopay discount on its personal loans. Though, it does with its student loans.
  • No cosigner release. If you apply for a student loan with a cosigner, you won’t be able to take them off your loan later on without refinancing.
  • Lack of credit score transparency. Unless you’re applying for a home equity loan, you won’t know the score you or your cosigner need to meet until you apply for preapproval.

How much will it cost me to borrow with Discover?

Discover doesn’t charge origination fees or prepayment penalties for its loan products. This means the APR will be the same as your interest rate. And since interest rates are fixed with its personal and home equity loans, you can expect to have the same monthly payment for the life of your loan.

If you do make a late payment, you’ll be assessed a fee of $39. Discover may charge other fees, such as a nonsufficient funds (NSF) fees, which should be listed on your loan contract.

What do borrowers say about Discover?

Discover is accredited with the Better Business Bureau (BBB) and earns an A+ rating as of December 2018. However, this is based on factors like transparency and time in business — not customer reviews. Nearly 900 people have filed complaints against the company with the BBB, and it scores an average 1 out of 5 stars based on over 60 customer reviews.

It fares slightly better on Trustpilot, but only because less than 15 customers have left feedback. One person specifically mentioned troubles with a loan account, while others focused on Discover’s credit card options.

Most of the negative reviews had a similar theme: Discover didn’t send notifications about issues with an account and refused to fix mistakes, even when it caused them. Before applying for a loan, you might want to take the time to call customer service and see what kind of response you get. This can be an indication of how the company will treat you if you were to borrow from them.

Are Discover loans safe?

Generally, yes — though no online company can 100% guarantee your information will stay safe. Discover does its part by encrypting your personal details with industry-standard SSL technology to protect your account from fraud. You can also view Discover’s privacy policy for each of its loan products to see how your personal information is used and what’s shared with affiliates.

Depending on what type of loan you’re applying for, you can call Discover at one of the numbers listed below to limit what details are shared:

  • Personal loans: 1-877-256-2632
  • Student loans: 1-800-788-3368
  • Home equity loans: 1-888-347-1137

How to apply for a loan with Discover

Decide a Discover loan is right for you? You have the option of applying online or by phone.

To get started on the online application, follow these steps:

  1. Visit Discover’s website and click Personal Loans, Home Equity Loans or Student Loans depending on what you’re interested in.
  2. Click Apply Now or Check My Rate to begin the process.
  3. Complete the application with information about yourself, employment and income.
  4. Review the details you entered and submit the application.

If approved, read through the terms and conditions of the loan, and then sign your loan documents. Your funds will either be transferred to you, your college or your creditors — depending on the type of loan you applied for.

Documents needs

Make sure you have this information on hand to speed up the process:

  • Your name, contact information and date of birth.
  • How much you want to borrow and the purpose of the loan.
  • Your annual individual or household income.

Depending on the type of loan you’re applying for, you may need to provide additional documentation — like proof of identity, address or income.

Eligibility requirements

More about Discover

Founded in 1985 by Sears, Discover isn’t the oldest financial institution in the world, but that hasn’t stopped it from becoming a big name in the industry. With a variety of top credit cards and a bank to back them up, Discover is trusted by borrowers across the US.

If you need more than just a loan, Discover also has savings accounts and credit cards. With a range of banking products and an informative financial education center, Discover is a good resource if you want to explore your options.

Bottom line

Although Discover doesn’t have every loan product, it takes the ones it has seriously. With competitive rates for each, you’ll likely be able to find an offer that suits your needs. And if Discover doesn’t have what you’re after – or you still want to compare your options – check out our guide to personal loans, browse our page on student loans or read more about home equity loans before you start.

Frequently asked questions

Aliyyah Camp

Aliyyah Camp is a publisher for finder.com helping folks compare personal, student, car and business loans. When she's not helping people with their personal finances, you can find her going for runs outdoors.

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4 Responses

  1. Default Gravatar
    sylviaApril 28, 2018

    Do you offer on your personal loans Credit Life and Disability Insurance ?

    • finder Customer Care
      JeniApril 29, 2018Staff

      Hi Sylvia,

      Thank you for getting in touch with finder.

      As a friendly reminder, while we do not represent any company we feature on our pages, we can offer you general advice.

      Discover offers personal loans but not with credit life and disability insurance. They also offer Payment Protection exclusively on their Discover card. Also, Discover card understands that accidents occur, illnesses strike, and people lose their jobs. If you find yourself in a difficult financial situation, you must contact their customer service.

      I hope this helps.

      Have a great day!

      Cheers,
      Jeni

  2. Default Gravatar
    SaiJuly 24, 2017

    Can I get a debt consolidation loan with 3-year credit history and good credit score. I am not a permanent resident of the US

    • finder Customer Care
      HaroldJuly 24, 2017Staff

      Hi Sai,

      Thank you for your inquiry.

      Typically, lenders required a permanent US resident to be eligible in debt consolidation. You can find further information and lenders options here. On the other hand, since you are not a permanent resident in the U.S. you may also want to consider the loan options here.

      I hope this information has helped.

      Cheers,
      Harold

US Personal Loans Offers

Important Information*
Credible Personal Loans

Get personalized rates in minutes and then choose a loan offer from several top online lenders.

Even Financial Personal Loans

Get connected to competitive loan offers instantly from top online consumer lenders.

LendingClub Personal Loan

A peer-to-peer lender offering fair rates based on your credit score.

SoFi Personal Loan Fixed Rate (with Autopay)

No fees. Multiple member perks such as community events and career coaching.

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