If you're looking for a personal loan with no upfront fees and low interest rates, Discover personal loans might be worth a look. Discover's fixed-rate loans are available for debt consolidation, home improvement, and other expenses with repayment terms of up to seven years.
Discover's rates are competitive, but you'll need good to excellent credit to qualify. Here's what you need to know before applying.
Compare personal loan rates
Who are Discover personal loans best for?
Best for low interest rates
APRs (annual percentage rates) for Discover personal loans range from 7.99% to 24.99%, which compares favorably to many other lenders offering personal loans for good credit. An APR of 7.99% on a three-year $10,000 loan could save you more than $300 in interest compared to the same loan with a 9.99% APR. Keep in mind that only borrowers with excellent credit will qualify for Discover's best rates.
Great for fee-free loans
Discover doesn't charge origination fees or application fees, so you won't pay anything upfront. You also won't pay a prepayment penalty to pay off your loan early. Discover may charge a late fee of $39 for loan payments made after their due date.
Pros and cons
Pros
- Low rates
- Long maximum repayment terms
- No upfront fees
- Mobile app
- Flexible due date
- Quick funding
- Direct creditor payments
Cons
- Requires good credit
- No cosigned or joint loans
- 3-year minimum term
- Relatively low borrowing limit
- Late fee
Pros
- Low rates: Fixed APRs as low as 7.99% to qualified borrowers
- Long maximum repayment terms: Terms up to 7 years
- No upfront fees: No origination or application fees
- Mobile app: Set alerts and manage loan payments
- Flexible due date: Adjust monthly payment date online or by phone
- Quick funding: As soon as the next business day after approval
- Direct creditor payments: Option to send loan funds directly to creditors for debt consolidation
Cons
- Requires good credit: Minimum credit score of 660
- No cosigned or joint loans: Borrowers with bad credit can't rely on cosigners or co-borrowers
- 3-year minimum term: May not be the best fit for short-term loans
- Relatively low borrowing limit: Maximum loan amount of $40,000; some other lenders offering loans of $50,000 or more
- Late fee: You may be charged a $39 fee for late payments
How to qualify for a Discover personal loan
Basic requirements to apply for a personal loan from Discover include:
- Age 18 or older
- Valid Social Security number
- Physical address
- Active email address
- Access to computer or mobile device to finalize application online
Your credit score and financial history
Discover requires a credit score of at least 660. Discover performs a credit check when you apply for a personal loan to review your credit score, recent credit activity, and credit inquiries, such as accounts you recently opened and whether you have any delinquent accounts. This information helps determine whether you're eligible for a loan and, if so, what interest rate, loan amount, and repayment term you qualify for.
Your income and employment
Personal loan applicants must have a minimum income of $25,000 to qualify for a Discover personal loan. Unemployed applicants may also qualify if their household income is at least $25,000 and they meet other eligibility criteria.
Discover typically requests pay stubs or bank statements, or may use a third-party vendor to verify your income when you apply. They may also contact the employer you list on your application to verify your employment status.
Learn More: What Are the Requirements for a Personal Loan?
Discover personal loan purposes
You can use a Discover personal loan for several purposes, including:
- Debt consolidation
- Financial emergencies
- Home renovations
- Auto repairs
- Moving expenses
- Vacation
- Weddings
- Veterinarian bills
- Medical bills
Discover does not allow personal loans to directly pay off a Discover credit card, pay a secured loan, or pay for college tuition.
Learn More: What Are Personal Loans Used For?
Discover personal loan fees and penalties
Discover personal loans don't have application fees, origination fees, or early repayment penalties. However, you may be charged a $39 late fee if you don't make your monthly payment by your loan's due date.
How Discover compares to other lenders
Here's a quick comparison between Discover and two other personal loan lenders, SoFi and LightStream.
How Discover compares to more lenders: Best Personal Loans
How to contact Discover
To contact Discover regarding its personal loans:
Phone
- 1-866-248-1255
- Monday-Friday, 8 a.m. to 11 p.m. ET
- Saturday-Sunday, 9 a.m. to 6 p.m. ET
Discover Personal Loans PO Box 30954 Salt Lake City, UT 84130-0954
About Discover personal loans
Discover is a financial services company that traces its roots to 1985 with the launch of the Discover Card. Discover Card Services Inc. would eventually become Discover Financial Services Inc. in 1999. The company now offers numerous financial services and banking products, including online checking accounts, student loans, and personal loans.
Discover has an A+ rating from the Better Business Bureau and is BBB-accredited. Its personal loans have an average rating of 4.9 out of 5 stars based on reviews collected by Bazaarvoice.
Rating Discover personal loans
Credible evaluates personal loan lenders based on factors such as customer experience, minimum fixed rate, maximum loan amount, funding time, loan terms, and fees. Credible's team of experts gathered information from each lender's website, customer service department, in-house resources, and via email support. Each data point was verified to make sure it was accurate at the time of publication.
Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.
FAQ
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