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Discover 2025 Personal Loan Review

Last updated on August 22, 2025
Jackie Veling
Written by 
Lead Writer & Content Strategist
Kim Lowe
Edited by 
Head of Content, Personal & Student Loans
Fact Checked
Nicole Dow
Co-written by 
Lead Writer & Content Strategist
Jackie Veling
Written by 
Lead Writer & Content Strategist
Nicole Dow
Co-written by 
Lead Writer & Content Strategist
Kim Lowe
Edited by 
Head of Content, Personal & Student Loans
Fact Checked

Many or all of the products on this page are from partners who compensate us when you click to or take an action on their website, but this does not influence our evaluations or ratings. Our opinions are our own.

Our Take

5.0

NerdWallet rating
The Nerdy headline:

With competitive rates and no fees, Discover personal loans are good options for borrowers with good and excellent credit.

Jump to:Full Review
Discover
Discover® Personal Loans
Est. APR
7.99-24.99%
Loan amount
$2,500 - $40,000
Min. credit score
660

Pros

  • Competitive APRs.
  • No fees.
  • Same- or next-day funding.
  • Wide range of loan amounts and repayment term options.
  • Direct payment to creditors with debt consolidation loans.

Cons

  • No rate discount.
  • No co-signed, joint or secured loan options.
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Full Review

Discover offers unsecured personal loans for borrowers nationwide with credit scores from 660 and up. Discover personal loans have no fees and a wide range of loan amounts and repayment terms, but the lender doesn’t offer rate discounts, secured loans or the ability to add a co-applicant.

If approved for a loan, you could get same-day funding if you’re a Discover accountholder. For non-customers, the lender can deposit funds in as little as one business day.

» MORE: Compare personal loan options

Discover personal loans at a glance

Minimum credit score

660.

APR

7.99% - 24.99%.

Fees

No fees.

Loan amount

$2,500 to $40,000.

Repayment terms

3 to 7 years.

Time to fund after approval

Same or next business day.

Loan availability

Loans available in all 50 states, Washington, D.C., and U.S. territories.

  • This is not a commitment to lend from Discover Personal Loans. Your APR will be between 7.99% and 24.99% based on creditworthiness at time of application for amounts between $2,500-$40,000 and loan terms of 36-84 months. For example, if you get approved for a $15,000 loan at 12.99% APR for a term of 72 months, you'll pay just $301 per month. You must have a minimum individual or household annual income of $25,000, be over 18 years of age, and have a valid US SSN to be considered for a Discover personal loan. Loan approval is subject to confirmation that your income, debt-to-income ratio, credit history and application information meet all requirements. Our lowest rates are available to consumers with the best credit. Many factors are used to determine your rate, such as your credit history, application information and the term you select. State restrictions may apply. A Discover personal loan is intended for personal use and cannot be used to pay for post-secondary education, to pay off a secured loan, or to directly pay off a Discover credit card. If your application is approved, we will send funds after you accept the loan. Your bank or creditor may take more days to process the funds. Discover makes loans without regard to race, color, religion, national origin, sex, disability, or familial status.

Where Discover personal loans stand out

Competitive APRs: Annual percentage rates start at 7.99% and go up to 24.99%, a range that's lower than several competitors. The lower your rate, the less you’ll pay in interest over the life of the loan.

No fees: Unlike several other lenders, Discover does not charge origination fees, late fees or any other fees.

Fast funding: Discover says it provides same-day decisions on loan applications. It can send funds the same day when deposited into a Discover account, or the following business day for direct deposits into other accounts.

Wide range of loan amounts and repayment term options: Discover personal loans range from $2,500 to $40,000 with repayment terms from three to seven years, which makes this lender a suitable borrowing option to cover a variety of needs. Borrowers may choose a shorter-term loan to save on total interest or a longer-term loan for lower monthly payments.

Direct payment to creditors: Discover is a good option for debt consolidation loans. If approved, Discover will send loan funds directly to creditors within one business day. A Discover personal loan, however, cannot be used to pay off a Discover credit card, a Capital One account or any secured loan or student loan.

Where Discover personal loans fall short

No rate discount: Discover doesn't offer a rate discount. Other lenders discount interest rates, usually by a fraction of a percentage point, for setting up automatic payments or authorizing direct pay to other creditors on debt consolidation loans.

No co-signed, joint or secured loan options: Discover offers unsecured personal loans only, which means you cannot add a co-borrower or co-signer or secure a loan with collateral. These options typically help borrowers get approved and receive a lower rate or larger loan amount.

Our expert take

"Discover personal loans check the most important boxes: they’re available nationwide, allow pre-qualification, come with flexible terms and fund fast. Some drawbacks to Discover are the lack of rate discounts and the fact that you can’t add a co-applicant. But since you can pre-qualify with a soft credit check, there’s no harm in seeing what terms you get from Discover as you're shopping for loans."

— Jackie Veling, Lead Writer

How to use Discover personal loans

You can use a Discover personal loan for:

  • Debt consolidation.

  • Credit card consolidation.

  • Home improvement projects.

  • Medical/dental expenses.

  • Emergencies.

  • Vacations.

  • Weddings.

  • Funerals.

  • Other large purchases.

Discover prohibits the use of its personal loans for:

  • Higher education/college tuition/student loans.

  • Business expenses.

  • Investing.

  • Gambling.

  • Illegal activities.

  • Paying off a Capital One account or Discover credit card.

  • Paying off any secured loan.

Do you qualify for a Discover personal loan?

Discover says it reviews factors like income, credit history, recent credit activities and credit inquiries when evaluating an application. Loan applicants must be 18 years old with a valid Social Security number, email address and proof of residency.

Discover’s borrowing requirements

  • Minimum credit score: 660.

  • Must provide proof of employment or income. Your individual or household annual income must be at least $25,000.

  • A valid U.S. bank account is required for funding via direct deposit.

Discover’s average borrower snapshot

While Discover only requires a minimum credit score of 660, the lender says its average borrower’s credit score is 750.

» MORE: How to get a personal loan

How we rate Discover personal loans

NerdWallet writers and editors rate lenders against a rubric that changes each year based on how personal loan products evolve. Here’s how we scored Discover this year:

Category

Star rating

Affordability

Customer experience

Underwriting and eligibility

Loan flexibility

Application process

Overall

Find the Best Personal Loan

Best personal loansDebt consolidation loansGood credit personal loansFair credit personal loans

How we chose the best personal loans

Our team of consumer lending experts follows an objective and robust methodology to rate lenders and pick the best.

30+

Lenders reviewed

We review over 35 lenders, including major banks, top credit unions, leading digital platforms, and high interest installment lenders operating across multiple states.

25+

Categories assessed

Each lender is evaluated across five weighted categories and 27 subcategories, covering affordability, eligibility, consumer experience, flexibility, and application process.

60+

Data points analyzed

Our team tracks and reassesses hundreds of data points annually, including APR ranges, fees, credit requirements, and borrower tools, ensuring up to date, accurate comparisons.

Star rating categories

We evaluate more categories than competitors and carefully weigh how each factor impacts your experience.
Affordability

25%

We review lenders’ annual percentage rate offerings and the competitiveness of each lenders’ APR range. We also assess whether a lender charges an origination fee and any opportunity for borrowers to receive a rate discount.

Customer experience

20%

We consider the experience of the consumer trying to manage a personal loan, which means accessibility of customer service representatives, whether borrowers can choose and change their payment due date, and the ability to track their loan on a mobile app.

Underwriting and eligibility

20%

We consider the rigorousness of each lender’s underwriting practices and how widely available their loans are. This category includes whether a lender does a hard credit check before providing a loan, the range of credit profiles they accept and how many states their loans are offered in.

Loan flexibility

20%

We assess how flexible lenders can be with borrowers, including whether they offer multiple loan types, personal loan amounts and repayment term options and whether they offer direct payment to creditors on debt consolidation loans.

Application process

15%

We consider the lender’s full application process, including a borrower’s ability to preview their loan offer via pre-qualification, whether basic loan information such as APR range and repayment terms are available and easy to find online and how quickly a loan can be funded after approval.

5.0

Overall score

NerdWallet’s review process evaluates and rates personal loan products from more than 30 financial technology companies and financial institutions. We collect over 60 data points and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
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