Discover Personal Loans: 2021 Review

Discover personal loans can be a smart way for borrowers with excellent credit to consolidate or refinance debt.

Jackie VelingMar 23, 2021
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Our Take


NerdWallet rating 

The bottom line: Discover’s rates aren’t as competitive as other lenders', but its seamless online experience, strong customer support and borrower perks make up for it.

Best Personal Loan for Debt Consolidation


on Discover's website

Min. Credit Score


Est. APR

6.99 - 24.99%

Loan Amount

$2,500 - $35,000

Pros & Cons


  • No origination fee.

  • Offers direct payment to creditors.

  • Offers mobile app to manage loan.

  • Able to fund loans within one business day.

  • Wide variety of repayment term options.


  • Charges late fee.

  • No co-signed, joint or secured loan options.

  • No rate discount for autopay.

Compare to Other Lenders

Marcus by Goldman Sachs
NerdWallet rating 
NerdWallet rating 
NerdWallet rating 
Est. APR

6.99 - 24.99%

Est. APR

6.99 - 19.99%

Est. APR

5.99 - 24.99%

Loan Term

3 to 7 years

Loan Term

3 to 6 years

Loan Term

2 to 5 years

Loan Amount

$2,500 - $35,000

Loan Amount

$3,500 - $40,000

Loan Amount

$5,000 - $40,000

Min. Credit Score


Min. Credit Score


Min. Credit Score


Compare estimated rates from multiple lenders

Compare Rates

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Full Review

To review Discover’s personal loans, NerdWallet collected more than 40 data points from the lender, interviewed company executives and compared the lender with others that seek the same customer or offer a similar personal loan product. Loan terms and fees may vary by state.

Discover offers unsecured personal loans that can be used for almost any purpose for borrowers with excellent credit.

The online bank provides a quick and fully digital application process. If approved, Discover can deposit the funds in as little as one business day, and borrowers can manage loan payments from the Discover mobile app.

Discover’s rates are not as low as other lenders targeting similar applicants, mostly because they do not include an autopay discount. However, the lender has other perks, like a wider range of repayment terms, refinancing options, a free monthly credit report and a 30-day loan guarantee.

Discover is best for borrowers who:

  • Have excellent credit (720 FICO or higher).

  • Want to consolidate or refinance high-interest debt.

  • Want quick access to funds.

Discover at a glance

Credit building

  • Soft credit check to pre-qualify.

  • Reports payments to three credit bureaus.


  • APRs are consistent among lenders targeting similar borrowers.

  • No origination or prepayment fees.

  • Charges late fee.

  • No rate discount for autopayments.

Loan flexibility

  • Offers only unsecured loans.

  • Funds loans the next day.

  • Offers direct payment to creditors for debt consolidation loans.

  • Offers refinancing option.

  • Available in all 50 states and Washington, D.C.


  • Clearly discloses rates, fees and terms on website.

  • Offers FAQ that answers key borrower questions.

Customer experience

  • Offers multiple customer contact channels available seven days a week.

  • Offers mobile app to manage loan.

  • Provides financial education.

Where Discover stands out

Debt consolidation: Discover is one of NerdWallet’s best lenders for debt consolidation. It offers a debt consolidation calculator that shows you potential savings with a Discover personal loan. Once you apply and are approved, Discover will send loan funds directly to your creditors within one business day.

Customer support: Discover has a team of U.S.-based loan specialists, who are available seven days a week during extended business to answer questions. Customers can also access online financial education, including free articles, quizzes and videos about personal loans.

30-day loan guarantee: Discover offers a unique 30-day money-back guarantee, meaning customers can return loan funds for any reason within that period and pay zero interest. Requests to cancel your loan must be made in writing, sent by mail and include a check for the amount of the loan. If you use your loan to pay creditors directly, you can’t return the funds after funds have been sent.

Credit scorecard: Every month, Discover provides customers with a free FICO scorecard, which shows credit utilization, missed payments, inquiries, credit length and total accounts. This can help you keep an eye on your score and monitor changes as you pay off your loan.

Refinancing option: Borrowers can also use a Discover loan to refinance an existing personal loan, either from Discover or another lender. If you qualify for a lower rate, you could save money on interest and pay off your debt faster.

Where Discover falls short

No rate discount for autopay: Unlike other lenders, Discover doesn't offer a rate discount for setting up autopayments. The discount usually ranges from 0.25% to 0.5% and lowers the loan’s annual percentage rate.

Charges late fee: Discover charges a $39 late fee for missed payments. However, that’s the only fee the lender charges, meaning if you pay on-time and in-full, you will not pay fees on your loan.

No co-signed, joint or secured loan options: Discover only offers unsecured personal loans. This means you cannot secure the loan with collateral or add an additional borrower or co-signer to be approved at a lower rate or for a larger loan amount.

How to qualify for a Discover loan

Discover doesn’t disclose many borrower requirements, but according to the lender, it reviews credit history, recent credit activities and credit inquiries when evaluating an application. Here’s what you need to qualify:

  • Minimum credit score: 720; borrower average is 750.

  • Must be a U.S. citizen or permanent resident.

  • Must be at least 18 years old.

  • Must have a minimum household income of $40,000.

Loan example: A three-year, $10,000 loan with a 17.4% APR would cost $359 in monthly payments. You’d pay $2,924 in total interest on that loan.

Pre-qualify on NerdWallet

NerdWallet recommends comparing loans to find the best rate for you. Click the button below to pre-qualify on NerdWallet. You may receive personalized rates from multiple lenders that partner with us. Pre-qualifying will not impact your credit.

Apply on Discover

You can fill out an application on the Discover website or apply by phone. After entering your desired loan amount,  loan purpose and repayment term, Discover will present loan options for which you pre-qualify.

Personal Loans Rating Methodology

NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including: soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus, and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews. Read our editorial guidelines.