Discover Personal Loans Review (2020): The Best Choice For You?
If you’re looking for a personal loan you’re likely wondering which loan company is the best for you, if they’re trustworthy, and if you’re likely to have a good experience with them. Firstly – well done for doing your due diligence! Discover is a popular option, and are known for high customer satisfaction ratings and a great reputation overall, but are they the right lender for you?
What Are the Pros and Cons of Discover Personal Loans?
Here’s an at-a-glance overview of the pros and cons of a Discover personal loan:
- Trustworthy lender
- APR rates are reasonable
- Minimal additional fees
- Customers are generally very happy
- APR rates start at 6.99%, which is generally high if you have perfect credit, as you can often get an APR between 3-5%
- Charges late fees
- No co-sign option
- Unsuitable for those with a credit score of less than 660
Now let’s take a closer look and answer some common questions we hear about Discover personal loans.
How Much Can I Borrow from Discover Personal Loans?
Depending on your circumstances and needs, Discover lends between $2,500 and $35,000.
What Can I Use a Discover Personal Loan For?
Since a Discover loan a personal loan, the money is tied to you, not what you use it for, so you’re free to use the money as you see fit. This may be a new car, a loan for your wedding, or home improvements.
What Can’t I Use a Discover Personal Loan for?
There’s only one restriction on what you can’t use a Discover personal loan for: you cannot use a Discover personal loan to pay off a secured loan or Discover credit card balance.
What Rates and Terms Can I Expect?
Discover is transparent about its loan rates and terms, so if you’re seriously considering Discover, it’s well worth reading through them on their website. Loan terms range from a minimum of three years to a maximum of seven. Interest rates vary from 6.99% to 24.99% and are locked for the period of your loan. So whatever happens to the financial markets you can guarantee your monthly payments won't change.
What Do I Need to Qualify for a Discover Personal Loan?
A Discover Personal Loan isn’t for those with a mixed financial history. The minimum credit score you need is 660 and the borrowers’ average score is around 750. You have to be earning a gross $25,000 a year, though generally a higher income is expected. In addition, you must be a U.S. citizen or permanent resident, over 18 years old and have a social security number.
If My Situation Changes Can I Change the Payment Due Date?
If you need to, Discover will allow you to change the date on which your payment is made twice within the term of your loan, with at least a year between changes. Also, there are options to pay weekly or every two weeks as well as the normal monthly payment option.
Borrowers who have problems making payment may be offered deferred payments.
What Happens if I Change My Mind and Don’t Want the Loan?
Discover gives you the option of returning the loan in full within 30 days if you decide you do not want it or can no longer make the purchase you wanted to make. No interest or fee is charged for this.
What Fees Can I Expect?
There is no origination fee but Discover will charge, as of April 2020, $39 if you are late in paying. So if you keep up regular payments there are no fees at all. And if you want to pay off your personal loan earlier than originally planned there is also no fee for that either.
How Much Will My Discover Loan Cost?
The answer to this question is different for everyone, and your monthly payments and the overall cost will depend on your credit rating, the amount borrowed, and the repayment term. As a ballpark figure: If you have an excellent credit score and want to borrow $20,000 over five years, with a 13.9% APR, you’d be looking at around $464 per month and paying $7,859 for the loan over that time.
Are Discover Personal Loans Safe?
Like most banks, Discover take security very seriously indeed. They monitor accounts 24/7 for suspicious activity and have extremely high-level cybersecurity systems in place.
How Do I Apply for a Discover Personal Loan?
Applying directly to Discover is straightforward. Typically this would be online but it is also possible over the phone. Discover uses a soft credit check to see if you are eligible which doesn’t impact your credit rating though a hard credit check will be used for the actual loan application.
Once you have checked your personal loan interest rate, based on the amount you want to borrow and the length of time you want to pay it back, the application process takes minutes. A decision is often made on the day you apply and if approved you or your creditors will receive the funds. This can typically take up to seven business days. Discover does not permit co-signers.
However, we never recommend going directly to a lender, as you may get better terms elsewhere. When you’re ready to apply for your personal loan, the best thing to do is to fill out our form to let us know what you’re looking for, and we’ll compare hundreds of loans to find the one that is best for you and your circumstances.
This minimizes the likelihood of being rejected and ensures you get the best terms and lowest costs. Interested in learning more? Click here to find out how working with us works.