Discover Personal Loans Review 2019

Discover might be a good fit if:

Discover personal loans can be a great option for borrowers with good credit who want to consolidate their debt with the possibility of lower rates and longer repayment terms. In addition, the product offers borrowers an unusual level of flexibility through its due date policies, wide array of payment methods and option to pay creditors directly. These loans are best for borrowers with established credit histories.

Discover Loan Rates & Terms

APR range:6.99% – 24.99%
Loan terms:3 – 7 years
Loan amounts:$2,500 – $35,000
Fees:No Origination Fees
Late or Returned Payment Fee of $39
Credit Score:660+
Income needed:$25,000+
Best for:Good credit & debt consolidation

Click “Check Rates” to pre-qualify and receive a personalized rate.

About Discover

Whether you’ve been looking for personal loans or a new credit card, you’re more than likely familiar with Discover’s name.

Discover introduced its first credit cards in 1985 through the the Sears department store chain. The company has been innovative since its start 34 years ago, debuting with an unusually high credit limit and no annual fees. Now after establishing a reputation for itself, the fourth-largest American credit card brand’s personal loans hold similarly unique qualities with flexible repayment terms and lower rates.

If you’re considering applying for a Discover personal loan, you’ll need the following things to secure your pre-approval:

  • A minimum credit score of 660
  • A minimum gross income of $25,000

Rates, Fees: While Discover does not charge any origination fees, it charges a late or returned payment fee of $39. There are also no check processing fees or prepayment penalties. In addition, Discover offers a 30-day money back guarantee, meaning that if you decide you no longer want the loan, you are able to return it in full within 30 days without paying any interest.

Discover Personal Loan Review

Interest rates: Discover offers personal loans with annual percentage rates ranging between 6.99% and 24.99%.

Cost: Discover offers loans ranging between $2,500 and $35,000, and repayment terms between three and seven years.

How to Qualify for Discover: To qualify for a Discover personal loan, applicants should have a minimum credit score of 660 and a minimum annual income of $25,000. However, most Discover borrowers have a credit score around 750 and a higher income than the minimum. They should also be able to pass a soft credit check to get the rate and a hard credit check to apply.

Debt Consolidation: Due to the product’s flexible repayment terms, low rates and option to repay creditors directly, Discover loans are ideal for debt consolidation. If the purpose of your loan is to consolidate, at least 70% of those funds must go toward paying debt.

Payment Options: The loan offers a great deal of flexibility with the option to pay by check, automatic withdrawal, wire transfer, mail, phone or electronic bill pay without accruing any fees.

Flexibility: One of the defining features of this loan is the option to change the due date of the payment up to two times over the entire repayment term. However, there must be at least a year between each change. Customers can also choose how often they make payments, with options ranging from a weekly to a semi-monthly basis or monthly autopay.

In addition, its wide array of payment method options make it easier to pay through the platform they are most comfortable with, while its maximum loan term of up to seven years gives borrowers the ability to repay their loans over a longer period of time.

Loan examples: For a borrower with good credit, a $25,000 loan with a repayment term of 72 months and a 10.5% fixed APR carries monthly payments of $469.47.

How Discover Personal Loans Compare

Discover vs FreedomPlus

Discover and FreedomPlus share many similar aspects, but here are a few features that set them apart:

  • FreedomPlus has a wider range of possible APRs, starting at 5.99% with a maximum APR of 29.99%
  • FreedomPlus has a lower minimum credit score of 620
  • FreedomPlus has a shorter maximum loan term of five years
  • FreedomPlus has origination fees ranging between 0-5%
  • FreedomPlus has a late fee of $15 or 5% of the amount due, whichever is greater

Discover vs Earnest

Let’s take a look at how one of Discover’s major personal loan competitors, Earnest compares:

  • Earnest has no late payment fee
  • Earnest has a higher loan ceiling, at $75,000
  • Earnest has a lower maximum APR, at 18.24%
  • Earnest does not offer the option to pay creditors directly

Discover vs SoFi

Discover and SoFi offer similar types of loans. However, there are some features that differentiate the two:

  • SoFi has a higher minimum and maximum loan amount, with loans ranging between $5,000 and $100,000
  • SoFi does not charge late fees
  • SoFi requires a higher minimum credit score of 680
  • SoFi requires a higher minimum annual salary of $45,000

Discover Pros and Cons

Let’s evaluate some of the upsides and downsides to taking out a personal loan with Discover:


  • Flexible repayment due date policy
  • Free online tools to manage debt and estimate monthly payments
  • Wide variety of payment methods
  • Potential for lower rates for borrowers with excellent credit
  • Option for direct creditor repayment
  • Low minimum income required for consideration
  • Option to have up to a 7-year loan term


  • Borrowers without established credit histories are less likely to be approved
  • Late and returned payment fees of $39
  • Does not allow co-signers

Discover for Good Credit

Although Discover requires a minimum credit score of 660 to be eligible for one of its personal loans, the average credit score of its borrowers is 750. Borrowers with higher credit scores and extensive credit histories are more likely to be approved for the lower rates that this product offers.

» MORE: Best Loans For Good Credit

In addition to credit, the company also considers factors like household income and employment history when making an application decision.

Discover for Debt Consolidation

Discover offers the option of paying creditors directly, adding ease to the debt repayment and consolidation process. If you take a personal loan for the purpose of consolidation, a minimum of 70% of that must be paid toward debt.

» MORE: Debt Consolidation Loans


Discover personal loans may be a good fit for borrowers with good credit and established incomes who want to consolidate debt or are seeking loans of up to $35,000. Borrowers also have more flexibility with this loan than they would with some of its competitors, and are afforded a wide array of payment methods as well as unique repayment policies. If you’re an applicant without an established credit history, this product may not be for you as it does not allow co-signers. However, if you have a good credit score and a verifiable annual income above $25,000, Discover personal loans may be worth looking into.

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