If you’re shopping for a personal loan and have good credit and a strong financial history, Discover personal loan may be a good option. The leading financial institution offers personal loans with competitive interest rates and no fees.
Below is an in-depth review of Discover personal loans to help you determine if it’s the right option for you.
About Discover Personal Loans
The company started as a credit card brand in 1986. The introduction of the Discover card revolutionized the credit card industry. In fact, it was Discover that pioneered cash rewards and no annual fees.
Discover’s mission is to help people better manage their finances. Dan Matysik, Vice President of Discover Personal Loans, says, “Discover’s goal is to help people spend smarter, manage debt better, and save more, so they achieve a brighter financial future. At Discover, transparency is important. We believe that an informed consumer is the best consumer.”
Discover offers free FICO® Credit Score information to all customers to encourage financial knowledge and good money management.
Discover tries to make the borrowing process a smooth and easy one. That’s why they focus on offering excellent customer service. Their U.S.-based loan specialists are available seven days a week to guide you through the loan process and answer questions.
The Discover personal loans phone number (866-248-1255) is easy to find on the company’s website. You can manage your personal loan account at any time online or via their award-winning mobile app.
Discover personal loan details
Discover began offering personal loans in 2007. The loans range from $2,500 to $35,000.
Discover personal loans have fixed interest rates and flexible repayment terms. There are no fees of any kind, including origination fees. They do charge a late fee, though, if you don’t pay on time.
Payment plans range from 36 to 84 months. You often get a same-day decision on your loan application. Funds can be disbursed as soon as the next business day.
Discover will either pay off your creditors directly or send the money to your bank account. Says Matysik, “Our goal is to make the loan process as flexible as possible.”
Unlike many other lenders, Discover also offer a 30-day guarantee. If you’re not satisfied or change your mind, you can return the funds and pay no interest within 30 days
Overall, the Discover personal loans reviews have been excellent. Our feedback averages 4.8 out of 5 stars. We think that’s reflective of our focus on the product and service.”
According to the Matysik, the company has funded more than 1,000,000 personal loans over the last decade. He says, “Overall, the Discover personal loans reviews have been excellent. Our feedback averages 4.8 out of 5 stars. We think that’s reflective of our focus on the product and service.”
Who are Discover personal loans designed for?
The Discover personal loan is designed for borrowers who want to consolidate or pay down higher-interest debt, pay for unexpected expenses, or finance major life goals.
Matysik says, “According to a recent survey from Discover personal loans, 26% of respondents cited a major medical expense as the most popular potential use for a personal loan, followed by 22% saying debt consolidation, and 13% using it to fund a small business.”
Borrowers require a minimum credit score of 660. According to Matysik, however, most borrowers tend to have higher credit scores. He says, “A person’s FICO score alone isn’t the only indicator of creditworthiness. We consider other factors, such as payment history, income, and debt-to-income ratio.”
To see if a Discover personal loan is a good option for you, try the Discover personal loan calculator. The “Check Your Rate” feature allows you to preview potential interest rates before applying, without impacting your credit score. This can be done online or over the phone.
“With this tool, you can choose the loan amount and repayment term that you can comfortably pay each month. The calculator shows examples of monthly payments for various loan terms,” says Matysik.
What is the Discovers personal loan application process like?
You can apply online or by phone. The process starts with choosing the loan amount and payment term you want. Then, you’ll answer various questions to determine if you qualify. If you do qualify, you’ll review the loan terms and can then accept the offer.
Before applying, Matysik suggests gathering the following information:
- Household income amount
- Proof of personal identification
- Employment history
- Bank account details
- Creditor balances and account numbers
Discover personal loans application process
Here are the steps to applying for a Discover personal loan.
1. Visit Discover’s page and click “Start Now.”
2. Enter desired loan details and personal information to see if you qualify.
3. Add additional personal information to see if you qualify.
4. Review your loan offer and details.
5. Receive your loan offer.
Discover personal loans review and summary
With fixed, competitive rates and no fees, Discover personal loans are an ideal choice if you have good credit and a strong financial history.
It’s easy to determine your eligibility for a loan and the type of loan you can expect by using their Discover personal loans calculator. Using this tool won’t impact your credit score. If you have questions, U.S.-based loan specialists are available to help seven days a week.
If you do get a Discover personal loan and change your mind, you have 30 days to return the funds without paying any interest.
Discover personal loans aren’t right for everyone. If your credit score is below 660, you may want to work on improving it before applying for this loan.
To learn more and find out if you qualify for a Discover personal loan, click here.
Andrew is the managing editor for SuperMoney and a certified personal finance counselor. He loves to geek out on financial data and translate it into actionable insights everyone can understand. His work is often cited by major publications and institutions, such as Forbes, U.S. News, Fox Business, SFGate, Realtor, Deloitte, and Business Insider.