Discover is not just the third largest credit card issuer. It is also a major bank and online lender. Discover Bank offers personal loans, home equity loans, and student loans. Discover Bank is based in Greenwood, Delaware, and was was founded in 1911. The company has over $89 billion in assets and has been givena stable credit rating from both Standard & Poor and Moody. Discover is an accredited business with the BBB and has an A+ rating.
How Does Discover Work?
Discover offers unsecured personal loans with fixed rates and competitive rates. Discover personal loans can be used for a variety of purposes, from consolidating debt to paying for a wedding or taking your family on the vacation of a lifetime.
- The loan process can take as little as 24 hours to complete.
- Funds are either deposited directly into your account or, if you’re using the funds to consolidate existing debt, sent to your creditors.
- There are no closing fees, no prepayment penalties, and no origination fees.
- Borrowers who return the loan funds within 30 days can do so without paying a dime in interest.
What Are Discover's Rates and Fees?
Discover’s personal loans range from 6.99% APR to 24.99% APR and terms vary from 36 to 84 months (3 to 7 years). These rates are competitive even when compared to leading online lenders such as Lending Club (5.99% APR to 32.99% APR) and Prosper (5.99% APR to 35.97% APR). Unlike Lending Club and Prosper, Discover does not charge origination fees. Origination fees are included in the APR but are deducted from the loan amount before the funds are deposited. The average origination fee with Lending Club, for instance, is around $600.
How Much Money Can I Borrow from Discover?
Discover offers loans amounts of up to $35,000. To illustrate the cost of borrowing with Discover, check the following scenarios.
$10,000 loan to consolidate credit card debt for a borrower with excellent credit (over 740): approximately 8.99% APR. If the loan is paid in 36 months, monthly payments will be $318. The same loan with a 7-year term will have monthly payments of $161.
The same $10,000 loan to consolidate credit card debt for a borrower with fair credit (620 to 640) will have an APR of approximately 19.99% APR. If the loan is paid in 36 months the monthly payments will be $372. The same loan with a 5-year term would have monthly payments of $265.
What Is Discover's Application Process Like?
Discover has a streamlined online (or phone) application process that can fund loans in one business day. Borrowers must have fair (620-640) to excellent credit to qualify.
How Is Discover Better than Other Lenders?
This is what we love about Discover’s personal loans:
- Competitive rates
- Next day funding available
- Flexible payment terms (36 months to 84 months)
- Cash can be sent directly to creditors
- No origination fees or prepayment penalties
- Loan amounts of up to $35,000
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