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Discover is a digital bank and payment services company known for its credit cards. But Discover also offers other products including fixed-rate personal loans of up to $35,000 to borrowers in all 50 states. The lender boasts no fees as long as you pay on time.
- Discover has no fees other than a late fee.
- Customizable loan terms from 36 to 84 months.
- Borrowers get free access to their FICO credit score.
- Co-signers are not accepted.
- Personal loans require a minimum FICO credit score of 660, which is at the high end of fair credit.
Debt consolidation is a popular use for Discover personal loans. Other common uses include:
- Home repairs or improvements
- Medical bills
- Taxes
- Other major purchases, like weddings
If you take out a loan for debt consolidation, you must use at least 70% of the loan amount to pay off your debt. Instead of issuing you the full loan amount, Discover will pay off your debt directly.
Discover offers fixed-rate personal loans from $2,500 to $35,000. Repayment terms are available in 36, 48, 60, 72 and 84 months.
Discover doesn’t charge origination or prepayment penalties. It does, however, charge a late fee of $39 if you miss your payment due date. Borrowers can change their due date up to two times during their loan repayment, as long as the changes occur at least 12 months apart.
Personal Loan Finder
Select your desired loan amount and loan purpose, your credit score range, and your state to see estimated annual percentage rates and loan terms.
The minimum credit score for a Discover personal loan is a FICO 660. Borrowers must also have a minimum annual household income of $25,000.
Discover offers a Check Your Rate feature, which allows borrowers to see if they qualify and find out their rate without a hard credit check. Co-signers are not accepted.
Often, applicants can receive a same-day decision.
Discover has an A+ rating with the Better Business Bureau and is BBB-accredited. In 2020, the Consumer Financial Protection Bureau received 24 personal loan-related complaints about Discover, which provided a timely response for every complaint. Common issues included getting a line of credit, unexpected charges, fees or interest, problems with the payoff process and incorrect information on reports.
The Discover personal loan process can be completed entirely online. Preapproval, application, closing and account management can all be done through the lender’s website.
If you’re dissatisfied with your experience, you can return your loan funds to Discover within 30 days and pay no interest.
- People who have at least a 660 FICO credit score
- People who want to avoid loan fees
- People who prefer to apply for and close a personal loan online
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