Hot take

Best for: borrowers with a strong credit history looking to consolidate debt

Pros:
No origination fee
Option to pay creditors directly for debt consolidation
Free credit scorecard, with FICO® score

Cons:
More stringent credit requirements
$39 late fee, with no grace period

In-depth Review of Discover Personal Loans

While Discover is best known for offering credit cards, it is a full fledged bank and offers a variety of products. Discover’s personal loan offering is fairly vanilla – with loan amounts from $2,500 to $35,000 and competitive interest rates. While it boasts no origination or prepayment fees, Discover (unlike competitors Marcus and SoFI) does charge late fees — $39 to be exact, with no grace period.

What’s different about a Discover personal loan?

The biggest stand out is Discover’s credit score card, which offers your FICO® credit score and information about factors used to determine your score, like credit utilization and recent hard inquiries. We should note that you can access this feature for free — even without taking out a Discover personal loan — here.

Discover Personal Loan Details

Loan amount range$2,500-$35,000
Loan lengths36-84 months
Interest rate typeFixed interest rate
APR range6.99% - 24.99%
FeesOrigination fee: none
Late fee: $39
Prepayment fee: None
Can check rate with no impact to score?Yes
Loan usesPretty much any reason: refinance credit cards; consolidate debt; major purchase; home improvement; vacation; moving/relocation; medical expenses; etc.
Time to fundWith an online application process, many applicants can get a same day decision. Additional verification or documentation, such as a W-2 or paystub, may be required and take extra time to process. Once approved, funds are typically available the next business day.
Joint application (co-borrower) optionNo
Minimum qualificationsMinimum credit score: 660, but average score is 750
Minimum income: $25,000, but average is significantly higher
Can send loan proceeds directly to creditors (for debt consolidation loans)Yes

Representative Loan Example

Borrow $20,000 for 36 months
Receive $20,000 (no origination fee)
6.99% fixed APR
Pay back $617 per month for 36 months
Total repaid $22,212
Cost of financing $2,212

What People Are Saying

CFPB complaint data: 76 complaints in last 24 months (consumer loan or personal loan)

Trustpilot rating: Poor (2.1/5) from 43 reviews

Better Business Bureau: Accredited, A+ Rating

A note on reviews

When looking at reviews or complaints, we urge you to think about them in context and take them with a grain of salt. For instance, companies that have more customers are likely to generate more complaints to the CFPB — so the raw number of complaints on its own doesn’t paint the full picture.

Similarly, it’s possible for companies to attempt to game ratings on services like TrustPilot, by timing when they ask borrowers for a review to encourage positive comments and by challenging negative reviews on the platform.

Most of all, borrowers should be cautious in how they interpret a firm being Better Business Bureau (BBB) “Accredited” or having an A+ rating. BBB “Accreditation” means merely that a business makes a commitment to make a good faith effort to resolve customer complaints and follow the BBB’s Code of Business Practices. It’s not clear how closely adherence to these practices is followed or how non-compliance is enforced.

Also note customer reviews are not included in the BBB rating, and it’s possible to have an “A+” rating despite having a poor customer rating.

Contact Information

Physical Address
2500 Lake Cook Rd, Riverwoods, IL 60015

Phone
(866) 248-1255

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