MoneyGeek’s Take

Discover Personal Loan Lender Review

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ByChristopher Boston
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Reviewed byBrett Holzhauer
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Updated: December 23, 2023

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Discover provides personal loans with flexible amounts ranging from $2,500 to $40,000, offering fixed interest rates for easier budget planning. Standout features include no origination or prepayment fees and a 30-day money-back guarantee. However, it requires a good credit score and doesn't allow co-signers, limiting options for some borrowers. Ultimately, Discover is best suited for individuals with stable finances and who prefer online tools for loan management.

  • Discover

    • 5.99% to 24.99%APR Range
    • 720Minimum Credit Score
    • $2,500 to $35,000Loan Amount Range
    • 36 to 84 monthsRepayment Terms
    • Next DayTime to Receive Funds

    Discover stands out as a personal loan lender with several benefits catering to diverse borrowing needs. Its flexible loan amounts, ranging from $2,500 to $35,000, enable you to tailor your loan to your specific financial situation, whether it's for consolidating debt or funding a significant life event.

    Another key advantage is Discover's fixed interest rates. These rates ensure your monthly payments remain consistent throughout the loan term, which can be up to seven years. Having predictable payment amounts can streamline your budget planning.

    Moreover, Discover offers a unique 30-day money-back guarantee. If you change your mind within 30 days of receiving your loan and return the funds, there are no interest charges. This feature provides peace of mind, offering you the flexibility to reconsider your decision without incurring financial penalties.


    • Flexible loan amounts ranging from $2,500 to $40,000
    • Fixed interest rates for consistent payments
    • No origination or prepayment fees
    • 30-day money-back guarantee without interest charges


    • Requires a good credit score for approval
    • Not available to non-U.S. residents
    • No co-signer option available

Features of Discover

Discover offers a range of features for personal loans that cater to different needs. You can use these loans for various purposes like debt consolidation, home improvements or major purchases. Its loan terms vary, providing you with repayment flexibility. Additionally, Discover doesn’t charge origination fees or prepayment penalties.

If you ever face financial challenges, Discover offers repayment assistance. Plus, its customer service and online tools make managing your loan easier. Understanding these features can help you decide if Discover fits your needs, ensuring you choose the right lender for your financial goals.

What Can You Use Your Funds For?

Knowing how you can use the funds is crucial when choosing a personal loan, as some lenders have specific restrictions. Discover, however, offers flexibility in how you can utilize your loan, catering to a variety of needs. Here's a look at some common uses:

  • Home Improvements: Invest in your home with renovations or repairs. This can increase your home's value and enhance your living space.

  • Debt Consolidation: Simplify your finances by combining multiple debts into one loan with a potentially lower interest rate.

  • Emergency Expenses: Cover unexpected costs like medical bills or car repairs without the stress of immediate repayment.

  • Major Purchases: Finance substantial expenses, such as purchasing a new car or acquiring expensive equipment that might be out of reach otherwise.

Understanding how you can use your Discover personal loan can help you plan your finances effectively. Whether it's improving your home, managing debts, covering emergencies or making big purchases, Discover offers a flexible solution to meet your financial needs.

Loan Terms for a Discover Personal Loan

Understanding the terms of a Discover personal loan is key to making an informed decision that suits your financial needs. Knowing details like loan amounts, repayment terms and APR (Annual Percentage Rate) allows you to plan your finances better and avoid surprises.

  • Loan Amounts: Discover allows you to borrow $2,500 to $40,000.

  • Repayment Terms: Discover's repayment terms range between 36 and 84 months.

  • APR Ranges: The APR range for Discover personal loans varies based on creditworthiness and other factors.

These figures allow you to select a loan amount and repayment term that suits your budget. A larger loan can cover significant expenses, while a longer repayment term can make monthly payments more manageable. The APR, which includes interest and other charges, varies. A lower APR is better, as it means you'll pay less over the life of the loan.

Fees and Discounts for a Discover Personal Loan

With Discover, borrowers benefit from not having to pay some common fees. The lender notably refrains from charging origination fees, typically incurred during loan processing, and prepayment penalties, which are fees associated with early loan repayment. However, it’s essential to be aware of the fees that Discover does charge:

  • Late Payment Fees: A $39 late fee may be applied if a payment is late.

  • Returned Payment Fees: Fees may be incurred for payments that are returned due to insufficient funds or other reasons.

Understanding these fees will allow you to manage your loan more effectively. Avoiding late or returned payments saves you money and helps maintain a good credit score. Awareness of these specifics ensures you can budget accordingly and choose a loan that aligns with your financial capabilities.

Discover Personal Loan Repayment Assistance

When you take a personal loan, it's crucial to consider what support you'll get if you face financial challenges. Discover stands out by offering repayment assistance for its personal loans. This type of help is important to contemplate as it can provide relief during challenging periods.

Discover may assist by adjusting your plan if you're struggling to make payments due to unexpected events like job loss or medical emergencies. This might involve extending your loan term, temporarily reducing monthly payments or implementing a deferred payment.

Having this safety net is reassuring. It shows that Discover understands life can be unpredictable and is willing to work with you in difficult situations.

Discover Customer Service

Choosing a personal loan lender isn't just about the loan itself; it's also about the support you get. Discover provides various channels to seek assistance based on your specific concern:

  • Loan Application: You can call 1-866-248-1255 for assistance with your personal loan application from Monday to Friday, 8 a.m. to 11 p.m. ET and from Saturday to Sunday, 9 a.m. to 6 p.m. ET.

  • Loan Payment: You can contact 1-877-256-2632 and choose option 1 to make payments through its automated voice system 24/7.

  • General Questions: You can call 1-877-256-2632 for any concern from Monday to Friday, 8 a.m. to 8 p.m. ET.

Good customer service is key, as it ensures you have help whenever you have questions or issues with your loan.

Discover Personal Loan Online Resources

When considering a personal loan, it goes beyond merely obtaining funds; it involves evaluating the resources a lender offers for efficient loan management. An ideal lender goes beyond addressing loan-related issues and provides tools to simplify your financial experience.

Discover, for instance, offers educational resources to help you understand loans and financial planning better. Its online calculators can help you determine your monthly payments and how long it'll take to pay off your loan. Discover's mobile banking app lets you manage your loan anytime, anywhere. These resources are crucial because they empower you to make informed financial decisions, track your loan and easily stay on top of your finances.

Qualifying for a Discover Personal Loan

Before applying for a Discover personal loan, it's crucial to understand the eligibility criteria. This knowledge helps you assess your likelihood of approval but also prepares you for the application process. Understanding its requirements can save you time and minimize the risk of a rejected application.

  • Minimum Credit Score: Discover requires a minimum credit score of 660 for its personal loans.

  • Income Requirements: You must have a minimum individual or household annual income of at least $25,000 to qualify for a Discover personal loan.

  • Employment Status: Discover often verifies your employment status and income to assess if you have a reliable source of income for loan repayments.

Discover does not allow co-signers or co-applicants on personal loans. While having a co-signer can increase approval chances and potentially get you a lower interest rate (as the co-signer's credit score and income are also considered), Discover's policy means you must qualify based on your own financial standing. This could be a limitation if your credit score or income doesn't meet its criteria.

Is a Discover Personal Loan Right for You?

Assessing whether Discover is the right lender involves looking at its loan terms, fees, customer service and the support it offers during repayment. Doing this helps you find a loan that fits your budget and goals. Make an informed decision that aligns with your long-term interests, ensuring you're at ease with your loan and can handle it without stress.

Who Can Benefit From a Personal Loan From Discover?

While Discover offers excellent personal loan options, it's essential to recognize that it might not be the perfect fit for everyone. Certain features of Discover's loans align well with specific borrower needs. Let's explore who might benefit most from what Discover has to offer.

  • Homeowners with Substantial Equity: Discover's loans can be ideal for homeowners looking to invest in their property, as it offers substantial loan amounts.

  • Borrowers Seeking Quick Funds: If you need the money fast, Discover's relatively quick approval and funding process can be a major advantage.

  • Individuals with Good Credit: Since Discover requires a good credit score, those with strong credit histories can capitalize on potentially better interest rates.

  • Technologically Savvy Individuals: If you're comfortable with online banking, Discover's digital tools and mobile app make managing your loan convenient.

By understanding Discover's specific features and requirements, you can determine if the lender aligns with your financial situation and goals.

Who Shouldn’t Secure a Personal Loan From Discover?

Discover may not be the best fit for every borrower. Understanding this can save you time and effort if you fall into certain categories. Let's look at borrower profiles that might need to consider other lenders due to Discover's specific requirements and offerings.

  • Those with Poor Credit: Discover usually requires a good credit score for approval. If your credit history isn't strong, you may find it challenging to get approved.

  • Those Seeking Small Loan Amounts: If you need a loan smaller than Discover's minimum of $2,500, you may be better off with a different lender.

As always, it's crucial to explore alternative lenders that can meet your specific financial situation and requirements. This approach ensures you find a loan that aligns with your unique circumstances.

How to Apply for a Discover Personal Loan

Understanding the steps to secure a personal loan from Discover helps you prepare, smoothens the application process and potentially reduces stress while improving your chances of a successful application.


Check Your Eligibility

Before applying, it's essential to ensure you meet Discover's criteria. Visit its website and review the requirements like minimum credit score and income. This initial step saves time by allowing you to assess whether you're a good fit for a Discover loan before initiating the application process.


Complete the Application

The next step is to fill out the application form on Discover's website. This form asks for your personal details, financial information and the specific loan amount you need. Be accurate and thorough with your information to ensure timely processing.


Wait for Approval

Once your application is submitted, Discover will review it. This review involves a credit check and verification of the details you've provided. The time it takes for this step can vary, but Discover generally responds promptly, keeping you informed about your application status.


Receive Funds

If your application is approved, Discover will send you a loan agreement. You'll need to sign and return this agreement. After this, Discover will deposit the loan amount into your bank account. This final step marks the completion of the loan process, enabling you to use the funds as planned.

Following these steps will pave the way for a streamlined experience in obtaining your personal loan with Discover. Each step plays a crucial role in propelling your application toward the funds you need.

What to Do if You’re Denied

Getting your personal loan application denied by Discover can feel like a setback, but it's not the end of your financial journey. There are steps you can take to address this hurdle and move forward. Here are some of them:

  • Understand the Reasons for Denial: First, find out why your application was denied. Discover will provide reasons, like a low credit score or insufficient income. Knowing this helps you target specific areas for improvement.

  • Boost Your Financial Profile: Improve the factors that led to your denial. This could mean paying down debts to improve your credit score, increasing your income or managing your existing credit better.

  • Look For Alternative Financing Options: If Discover isn't a match, explore other lenders. Credit unions, online lenders or peer-to-peer lending platforms have different criteria and could be a better fit. Each has its own advantages, like lower interest rates or more flexible terms.

  • Seek Professional Financial Advice: Consulting with a financial advisor can provide personalized guidance. They can help you understand your financial situation better and plan a course of action to improve your chances for future loan approvals.

Remember, a loan denial isn't a full stop; it's a pause to reassess and strengthen your financial standing. By understanding the reasons, taking steps to improve your financial health, exploring other options and seeking advice, you can put yourself in a better position for future financial success.

Frequently Asked Questions About Discover as a Personal Loan Lender

Shopping for personal loans can be overwhelming, but being well-informed can make all the difference. To help you understand more about Discover as a personal loan lender, we've compiled a list of frequently asked questions. These answers aim to clarify common queries and give you a clearer picture of what to expect.

Discover prohibits borrowers from using its loans to pay for post-secondary education, repay a secured loan or Discover credit card or fund any illegal activity.

Discover typically requires a minimum credit score of 660 for personal loan approval. This requirement helps ensure that borrowers have a history of managing credit responsibly.

The approval time for a Discover personal loan can vary based on individual circumstances. However, Discover is known for its relatively quick approval process, often providing a decision within a few days of applying.

Yes, Discover offers a mobile app that allows customers to manage their personal loans conveniently. The app provides features such as viewing account details, making payments and tracking loan progress.

Discover personal loans are unsecured. This means they don't require collateral like a house or car. Unsecured loans are based on creditworthiness, including factors like your credit score and income.

With Discover, you can borrow between $2,500 and $40,000. This range offers flexibility to cover various needs, from small unexpected expenses to significant investments or debt consolidation.

Discover is known for having no origination or prepayment fees. However, you may encounter late or returned payment fees, so managing your loan payments carefully is essential.

When you apply for a Discover personal loan, a hard credit inquiry is made, which can temporarily lower your credit score. However, responsible loan management can positively impact your credit score over time.

Currently, Discover does not offer an autopay discount on its loans. However, setting up autopay can be a convenient way to ensure timely payments, which is crucial for maintaining a good credit score.

Discover does not allow co-signers or co-applicants on personal loans. This means the approval of your loan is based solely on your creditworthiness and financial situation.


About Christopher Boston

Christopher Boston headshot

Christopher (Croix) Boston was the Head of Loans content at MoneyGeek, with over five years of experience researching higher education, mortgage and personal loans.

Boston has a bachelor's degree from the Seattle Pacific University. They pride themselves in using their skills and experience to create quality content that helps people save and spend efficiently.

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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.

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