Best Egg vs. Discover: Which Personal Loan Is Right for You?

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Edited byMorgan Hull
Edited byMorgan Hull

Updated: July 25, 2023

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Your unique needs and financial goals will determine the best personal loan for you, but if you need quick cash, choices like Best Egg and Discover are ideal. Although Discover has a lower maximum APR, that may not be the driving factor behind your lender choice. Should you have good credit and a respectable wage, Best Egg might be your better option.

MoneyGeek’s up-to-date information on each lender will help you make the best decision for your needs.

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Best Egg or Discover: Overview

Although Discover has a lower APR range, Best Egg offers a greater maximum loan amount. Your specific financial needs, however, will dictate which lender is better suited for you.

Before making a decision, it's critical to carefully compare Best Egg and Discover, evaluating their APRs, credit score criteria, loan amounts and repayment periods.

Best Egg

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Discover

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APR Range

Lender
APR Range

Best Egg

4.99% to 35.99%

Discover

5.99% to 24.99%

An annual percentage rate (APR) is the total of the yearly interest a borrower will pay on their loan along with any additional fees charged by the lender. Many factors affect your APR, including your credit rating, loan type, loan size and the underwriting model employed by the lender. Because of this, you aren’t guaranteed to get the lowest APR that is offered. It should also be noted that APRs frequently change.

For a Best Egg personal loan, a borrower must have a credit score of at least 700 because the lender performs a soft credit check to establish your rates. A credit score of 720 or above is required to qualify for a Discover personal loan.

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MONEYGEEK’S VERDICT

Discover's APR range is lower than Best Egg's, ranging from 5.99% to 24.99%. This implies that if the range is lower, borrowers will probably pay less in interest and other fees during the life of their Discover personal loan.

Low APR is just one factor; the lender's repayment plan, loan amounts and credit conditions are other factors that you need to consider before choosing a loan.

Minimum Credit Score

Lender
Credit Score

Best Egg

700

Discover

720

Your credit score plays a significant role in determining whether you are approved for a loan. Essentially, a higher score will help you get loans with better terms, including an affordable APR. You can only establish credit through long-term financial habits — for example, paying off your credit card bills diligently in full each month.

Discover requires a credit score of at least 720, which is relatively high when compared to other lenders, whereas Best Egg requires a credit score of at least 700. You also need a substantial credit history to support your Discover personal loan application, since it does not accept consumers with new or no credit.

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MONEYGEEK’S VERDICT

Given that the minimum credit score requirement for a Discover personal loan is 720, which is relatively high in comparison to other lenders, it might not be the ideal option for applicants with bad credit. Best Egg offers a more flexible credit score requirement, which is ideal for those with good credit scores and respectable earnings.

The fact that people with bad credit may receive higher interest rates or less-than-ideal terms should be emphasized. Therefore, borrowers should make sure the loan's terms are fair and suitable for their requirements.

Loan Amount Range

Lender
Loan Amount Range

Best Egg

$2,000 to $50,000

Discover

$2,500 to $35,000

The loan amount range is the difference between the minimum and maximum amount that a lender is willing to lend to a borrower.

Of the two lenders, Best Egg has the larger maximum loan amount, allowing borrowers to receive up to $50,000. With Discover, consumers can only borrow between $2,500 and $35,000. Because of this, Best Egg personal loans are the better choice for significant expenditures like travel, home improvements and other financial needs. However, when compared to other lenders who offer at least $100,000 in loan amounts, both Best Egg and Discover have lower maximum loan amounts.

To simplify your finances, it is better to choose a lender whose product line covers all of your lending needs rather than taking out numerous small loans from multiple lenders.

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MONEYGEEK’S VERDICT

The personal loan amount range offered by Best Egg is far more flexible, ranging from $2,000 to $50,000. Discover may be a better alternative if you want to receive funding quickly while saving money on lower interest rates.

Whether or not these will be valuable to you will depend on your preferences and needs. The loan amount is one of the many factors to take into account, so it’s advisable to extensively research potential lenders before selecting one.

Repayment Terms

Lender
Repayment Terms

Best Egg

36 to 60 months

Discover

36 to 84 months

The repayment term, often known as the payback period, determines how long you have to pay back a loan. Shorter payback terms are typically connected with lower interest rates, but other factors, including your credit score, may still come into play. Compared to Best Egg's three- to five-year payback terms, Discover provides a wider range of payback terms of three to seven years.

However, bear in mind that a longer payback period has drawbacks. In other words, even if your APR is low, you’ll accrue more interest over a longer repayment period.

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MONEYGEEK’S VERDICT

With Discover's more accommodating repayment terms, borrowers have greater control over how long it takes to repay their loans.

If you have a low credit score, you might have to abide by the restrictions that your supplier imposes. Your credit score will also have an impact on whether you can benefit from this feature. Additionally, a shorter payback period is suggested if you can afford the higher monthly payments.

Time to Receive Funds

Lender
Time to Receive Funds

Best Egg

Next day

Discover

Next day

It can take some lenders up to a few weeks to disburse funding after your application is approved. However, Best Egg and Discover provide cash faster than typical lenders, funding customers the day after they sign a contract for a personal loan.

Considering there is not much of a difference between the two lenders in terms of loan disbursement time, choosing the right lender for you will depend on a number of other factors, such as the APR, repayment terms and the size of your approved loan.

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MONEYGEEK’S VERDICT

A lender's prompt release of your funds will enable you to use them sooner in case of an emergency. Best Egg and Discover will disburse your loan the next business day following the date you sign your deal. Although receiving your loan quickly is a major selling point, you shouldn't make your choice solely on disbursement time.

Final Thoughts

Both Best Egg and Discover offer personal loans with short funding times, and both can be regarded as the best options. Each lender has distinctive qualities in terms of APR range, credit score requirement, loan amounts, payback terms and loan disbursement time. However, due to Discover’s lower APR range, it is the best personal loan lender of the two.

MoneyGeek outlines some considerations that may help you to determine whether Best Egg or Discover is the best option for you:

  • APR range. Discover offers a lower APR range between 5.99% and 24.99%.
  • Minimum credit score. Best Egg requires a high credit score of at least 700, while Discover requires a comparable score of 720.
  • Loan amounts. Discover only permits customers to borrow up to $35,000, while Best Egg has a higher maximum of up to $50,000.
  • Repayment terms. Discover offers payback periods of three to seven years, while Best Egg has three- to five-year payback options.
  • Fund disbursement. Customers who sign a contract for a personal loan with Best Egg or Discover are funded the next day.

With all these in mind, the personal loan lender that is appropriate for you will depend on your particular demands and financial objectives.

Frequently Asked Questions About Personal Loan Lenders

Prior to actually applying for a personal loan, carefully consider your options. MoneyGeek answered frequently asked questions about personal loan lenders to help you choose the one that’s right for you.

What documents do I need to provide to personal loan lenders?
How do I know what my credit score is?
Do lenders conduct a hard inquiry?
Are interest rates on personal loans the same for all lenders?
Do lenders charge fees for personal loans?
What are the advantages of applying for a personal loan online?
Is prepayment allowed on personal loans?
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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.

Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about our editorial policies and expert editorial team.