Truist vs. Discover: Which Personal Loan Is Right for You?
Updated: July 25, 2023
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If you’re unsure about which personal loan lender is better between Truist and Discover, we’ve done the research for you. MoneyGeek collected essential and updated information about the best personal loan lenders in the U.S. to help you find a suitable provider for your financial goals.
For instance, Truist is more accessible for those with bad credit scores, while Discover might be the right choice for you if you need a smaller loan amount for your financial goals.
Truist or Discover: Overview
MoneyGeek evaluated Truist and Discover’s unique features, APR ranges, required credit scores, repayment terms, loan amounts and funding times.
Although Truist has more flexible repayment terms (six to 60 months), Discover has a significantly longer maximum (up to 84 months). Additionally, Truist has no required credit score, while Discover only accepts applicants with a credit score of 720 or higher.
Before you apply for a personal loan, evaluate your financial background and needs so you can select a suitable option.
Truist
Discover
APR Range
Each lender has an annual percentage rate (APR). This refers to how much interest you pay annually for a personal loan. Lenders also have different APR rates, and these can shift depending on the market. Additionally, your specific APR depends on variables like your chosen loan type, loan amount, creditworthiness and repayment terms.
Discover's minimum APR is lower than Truist's, but the latter has lower maximum APR.
Since Discover has a wider APR range and higher maximum APR, Truist is the winner of this category. Having a smaller APR range means that borrowers pay less interest over the repayment term.
A lower APR entails a lower overall loan cost. However, we recommend that you compare other factors before you decide which personal loan lender is best for you.
Minimum Credit Score
MoneyGeek’s research found that Truist has no minimum credit score, while Discover requires a credit score of at least 720. Truist doesn’t have a credit score requirement since it assesses other finance-related factors that show whether a borrower can pay off their loan.
Generally, your credit score is a factor that personal loan providers evaluate when computing your rate and assessing your application. Your credit score objectively reveals your ability to repay outstanding payments. If you consistently pay your monthly credit card bills on time, you show that you can fulfill financial obligations.
You can usually apply to more personal loan lenders if you have good-to-excellent credit. Another benefit is that you can obtain good rates, loan amounts and repayment terms.
Since Truist has no minimum credit score requirement, it has a massive edge in this category. The lender possibly evaluates applicants based on other factors, such as their gross monthly income, proof of employment or debt-to-income ratio. Thus, borrowers have more wiggle room if they want to prove that they can pay their loans punctually.
Although Truist is MoneyGeek’s pick, other factors might be a bigger priority to your financial needs. Make sure to look at the full picture when choosing a lender.
Loan Amount Range
A loan amount refers to how much money a provider is willing to lend you. Taking note of each lender’s loan amount range will help you decide whether or not it can sufficiently meet your funding needs. You may want to avoid applying for a lender that offers too much or too little in funding.
Both Truist and Discover have different loan amount ranges. Truist’s loans range between $3,500 and $50,000, while Discover’s loan amount ranges from $2,500 to $35,000. Truist is great for those who need at least $15,000 more than Discover’s maximum loan amount.
However, Discover fits those who only need to fund a minor expense.
Truist provides a wider loan range, giving borrowers a lot of flexibility to finance their personal loan needs. When applying for a personal loan, you must know the exact amount of money you need to borrow. This will inform your decision since different lenders have different loan amount ranges.
Although it’s appealing to immediately apply for a loan based on this factor, we suggest that you assess other variables to ensure you choose the right lender for your needs.
Repayment Terms
A repayment term is a timeframe you have to pay off your personal loan. Please note that if you choose a shorter repayment term, you tend to secure a lower interest rate. However, your repayment term, or repayment period, also depends on your credit score and loan type.
Truist lets you pay off your loan within six months or up to five years. On the other hand, Discover has a longer repayment term of three years to seven years.
Although a lengthened repayment period seems like the best option, it might not be the case for all borrowers. If you have a longer repayment period, your interest rate is usually higher.
Truist has the upper hand in this category since its repayment terms are more flexible. Compared to Discover’s minimum repayment term of 36 months, Truist allows borrowers to pay in six months (30 months earlier).
A shorter repayment term means that you pay a lower interest rate. However, this entails more costly monthly bills. Before you decide on your repayment terms, evaluate your monthly budget and other debts. Ask yourself if you’re financially ready for this huge commitment.
Time to Receive Funds
Both Truist and Discover have a similar disbursement timeframe and are miles ahead of conventional loan lenders. For traditional lenders, it can take a few days or even a week to process an application and send funds to a borrower.
If you urgently need funds to finance a huge expense like medical bills, Truist and Discover release your funds the next day.
A quick and easy way to apply for a loan is online. When you apply online, you can prequalify without a hard credit inquiry. It’s also possible to speed up your loan application process if you gather all relevant documents.
Truist and Discover tie in terms of this factor. They both release funds on the next day, making them viable options for borrowers who need funds quickly.
That said, how long fund disbursement takes shouldn’t be your only consideration when choosing a lender. Be sure to look at all the terms of your loan to choose the right option for your needs.
Final Thoughts
MoneyGeek’s personal loan review found that Truist has the competitive edge over Discover. Truist has a narrow APR range, doesn't have a credit score requirement and has relatively flexible repayment terms.
However, Discover offers a lower loan amount range, making it ideal for borrowers who don’t need to fund huge expenses.
MoneyGeek makes general recommendations for lenders based on their perks, disadvantages, requirements, terms and features. Ultimately, the decision is up to you since you know which lender can best meet your goals based on your financial background.
Frequently Asked Questions About Personal Loan Lenders
Personal loans are a complex topic, especially for first-time borrowers. MoneyGeek answered frequently asked questions about personal loans to help you decide on a suitable lender.
Lenders typically request proof of identity, address, income, employment and debt when you apply for a personal loan.
You can access the Annual Credit Report website for free to check your credit score. Another way is to submit a form to their office or inquire by phone.
Generally, providers conduct a soft credit check during prequalification. Afterward, they perform a hard credit inquiry in order to provide you with a loan offer.
No, personal loan interest rates greatly vary among lenders. Rates also vary based on your unique financial profile.
It depends. Some lenders charge late fees or origination fees, while others do not. Ask your lender for more information before making a final decision.
When you apply for a personal loan online, you can get your application processed faster. This speeds up approval time and fund disbursement.
Yes. However, certain lenders charge a prepayment penalty fee. Check with your lender to see if they charge prepayment fees.
sources
- Discover. "Personal Loans from $2,500 to $35,000 - Fixed Rates." Accessed September 22, 2022.
- Truist. "Personal Loans and Lines of Credit." Accessed September 22, 2022.
- USA.gov. "Credit Reports and Scores." Accessed September 22, 2022.
The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.
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