Nerdwallet's

Discover Personal Loan Review

An easy solution for consolidating debt or paying for one of life’s big events, Discover Personal Loans helps you save money with no processing fees, flexible repayment terms, and fixed rates.

Advertiser Disclosure

With so many websites offering free financial tools, it can be hard to know whom to trust. At NerdWallet, we spend literally 1,000s of hours researching partner offers and following strict editorial integrity to match you with the perfect choice. We even share how we make money so you can enjoy our expert advice and researched recommendations with total clarity and confidence.

discover loans

 

CHECK RATE on Discover's secure website

 

NerdWallet rating: 5.0 / 5.0
Good for: Good credit, debt consolidation


APR Range: 6.99% to 24.99%


Loan amount: $2,500 to $35,000


Loan duration: 3 to 7 years


Time to funding: Next day, up to a week


Best For

  • Those with good credit scores. The lender’s minimum requirement is 660, but borrowers’ average is 750.
  • Those who need discipline paying off debt. Discover can pay off your creditors directly; not all lenders offer that.
  • Those who want to track their credit score. The lender gives everyone free access to their FICO credit score.

Fees and Penalties

  • Origination fee: None
  • Prepayment fee: None
  • Late fee: $39
  • Personal-check processing fee: None


Detailed Discover Personal Loans Review

“Many Americans want to simplify their debt while saving money. A personal loan is a quick and easy way to work towards that goal”, says Dan Matysik, vice president of the company’s personal loans division.

While Discover personal loans can be used for other purposes, such as paying for a vacation or financing a big purchase, the company provides free tools to manage debt and estimate monthly payments on its personal loans website.

The minimum household income requirement is $25,000, but borrowers usually make more, Matysik says.

Discover Personal Loans is among a small number of online lenders that don’t charge an origination fee. The company also allows payment flexibility:

  • Borrowers can change their payment due date twice during the lifetime of the loan, with a minimum of one year between changes.
  • The company charges a late fee for missed or delayed payments, but those who have trouble making payments can call the company to discuss their options.
  • Borrowers who return the loan amount within 30 days don’t need to pay interest.

All online lenders accept electronic payments, and many charge a fee for paying by other means, such as by personal check. Discover Personal Loans lets borrowers pay over the phone, by personal check or by other means, at no extra charge, in addition to automatic electronic payments.

To review Discover Personal Loans, NerdWallet collected more than 30 data points from the lender, interviewed company executives, completed the online loan application process with sample data, and compared the lender with others that seek the same customer or offer a similar product.

discover loans

 

CHECK RATE on Discover's secure website

 

NerdWallet rating: 5.0 / 5.0
Good for: Good credit, debt consolidation