Business Insider's personal finance team compared Discover Personal Loans to the best personal loans and found it to be a strong option if you have a good credit score. Those with high credit ratings may benefit from competitive interest rates and flexible repayment terms.
Additionally, Discover offers features such as no origination fees or late fees and a straightforward application process. Funds can be deposited into any of your bank accounts in as little as one business day after acceptance, making this an option for one of the best quick loans available.
Discover Personal Loan Pros and Cons
Discover Personal Loan Pros
- No origination, prepayment, or late fees. While some lenders charge an origination fee, which comes out of your total loan proceeds, Discover won't hit you with that fee. There's also no cost for paying off your loan early, or any late fee for tardy payments.
- Low minimum APR. Discover Discover Personal Loans has a relatively low minimum APR of 7.99%, which is one of the more favorable rates out there. However, you'll only be eligible for that rate with an excellent credit score. Consider more options for the best low-interest personal loans.
Discover Personal Loan Cons
- Low maximum loan amount. You can only borrow a maximum of $40,000 with Discover. Other lenders will allow you to borrow more if you need money for a bigger project.
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Unable to add a co-borrower to your application. If your credit isn't in the best condition and you want to add a co-borrower to increase your chances of approval, you won't be able to do so with the bank.
Apply for Discover Loans
7.99% to 24.99%
$2,500 to $40,000
660
- 30-day money back guarantee
- Low minimum APR
- No origination fees
- Low maximum loan amount
- No co-borrowers allowed
Discover is a strong option for borrowers with good credit, and offers a 30-day money-back guarantee if you're dissatisfied with your loan or find a better rate.
- Loan term lengths range between 36 to 84 months
Overview of Discover Personal Loans
What Are Discover Personal Loans?
Discover is a solid option for borrowers who want to avoid origination fees. Borrowers with excellent credit may also qualify for the lender's competitive minimum rates.
If you need a home improvement loan, it could be a good option, though remember that the maximum amount you can take out is $40,000. Discover also provides home equity loans, which allow homeowners to borrow against their property's value, potentially offering lower interest rates in exchange for using their home as collateral.
However, if you hope to enlist a cosigner to help you qualify or get a better rate, you'll have to look elsewhere. The bank doesn't allow co-signers.
Loan Amounts and Terms
Borrowers can get up to $40,000 with a Discover personal loan, and choose a loan term between 36 to 84 months (three to seven years). In a Business Insider survey, we found the majority of respondents who had taken a personal loan borrowed $20,000 or less — half the amount of Discover's limit. Longer loan terms will have smaller monthly payments, but higher interest rates overall. Choosing a shorter loan term will require higher monthly payments but lower interest.
Discover Loan Features and Benefits
Discover Personal loan repayment terms often range between two to seven years, and can go up to 12 years if you've borrowed a large amount. However, you should choose the repayment term that makes the most sense for you. For example, a longer repayment term typically allows for smaller monthly payments, but more interest over the life of the loan. A shorter term will require larger monthly payments but cost less in interest overall.
With Discover Personal Loans, you can make early payments and extra payments and pursue repayment assistance if needed. You can pay back your personal loan in several ways, including automatic payments, automated phone calls, mail, wire transfers, or through Discover's mobile app or Secure Account Center.
There is no penalty for paying off your loans early with Discover and customers can adjust their payment dates to a day that's more compatible with a monthly budget, if necessary.
How to Apply for a Discover Loan
Discover Personal Loan Requirements
To be eligible for a Discover Personal Loan, you must have a household annual income of at least $25,000, be over 18 years old, and have a valid Social Security number. Loan approval is subject to review, depending on your income, debt-to-income ratio, credit history, and application information.
To qualify for a Discover personal loan, you generally need a credit score of at least 660.
Step-by-Step Guide to Applying for a Discover Personal Loan
1. Estimate your monthly payments. You can use Discover's calculator to estimate your monthly payments based on your loan amount, credit score, and interest rate. Make sure you can fit these payments into your budget.
2. Prequalify for a loan. To qualify for personal loan preapproval, you'll need to send in basic information, such as your name, address, income, Social Security number, and birthday. PNC will perform what's known as a soft credit check, which will not affect your credit score.
3. Send in an application. You may also need to give the lender W-2s, pay stubs, and bank statements to confirm the information you provided. When you submit your application, the bank will conduct a hard credit check, which may temporarily lower your score.
4. Accept your loan terms and plan for repayment. After you sign the document accepting your loan terms, your loan will be approved and funded, possibly as soon as the next business day. Budget for your loan payments — late payments may add significant costs to your loan.
How to Use a Discover Personal Loan for Debt Consolidation
You can use a Discover Personal Loan for a wide range of purposes. In Business Insider's survey, over 36% of respondents had taken a personal loan for debt consolidation. If you have an excellent credit score and can qualify for the lowest interest rates with no more than $40,000 of debt to consolidate, a Discover debt consolidation loan might be right for you.
Other Common Uses for Discover Personal Loans
While Discover Personal Loans are good options for debt consolidation, you can also use them for home improvement, medical expenses, wedding costs, vacation funds, pet emergencies, moving expenses, and other emergencies.
Discover Personal Loan Rates and Fees
Interest Rates and APR
Discover personal loans have competitive rates, with APRs ranging between 7.99% to 24.99%. Your interest rate will depend on your application, eligibility, and your loan term.
Are There Any Fees on Discover Personal Loans?
Discover personal loans do not charge any origination fees or prepayment penalties. However, missing a payment might cost you N/A.
Understanding Origination Fees, Late Fees, and Prepayment Penalties
Origination fees are fees that lenders charge to initiate and distribute loan funds. Not all lenders charge origination fees, but they are fairly common. Late fees are the most common type of fee that borrowers can expect to run into, but each lender is different. Some late fees will be a fixed amount, whereas others will be a small percentage of your outstanding balance. Prepayment penalties occur when borrowers make one or more early payments. Not every lender charges prepayment penalties, so review your loan terms to confirm.
How Discover Compares to Other Lenders in Terms of Fees
Discover meets the industry standard when it comes to fees. It charges neither origination fees nor prepayment penalties, and it recently eliminated late fees. Be sure to thoroughly examine your borrowing agreement to ensure you're not hit with any surprise charges.
Discover Personal Loan Customer Experience
Discover Loans has received poor ratings from users, earning a 1.5/5 on Trustpilot, but an A+ rating from the Better Business Bureau. Borrowers have reported significant criticism for its poor customer service and frustrating processes. Many have experienced daily requests for new documents, often for unclear or nonexistent issues, which lead to delays in securing loans. Further complaints highlight difficulties in retrieving funds, account freezes, and unhelpful customer support.
Discover Personal Loan Alternatives
Discover Personal Loan vs. Prosper Personal Loan
You can borrow up to $40,000 with Discover, which is slightly under Prosper's maximum loan amount of $50,000. If you need a larger personal loan, another lender, like LightStream Personal Loan or SoFi might be a better option.
Prosper will charge you an origination fee between 1.00% to 9.99% of your total loan amount, while Discover doesn't charge an origination fee.
Read our Prosper personal loan review.
Discover Personal Loan vs. PNC Personal Loan
PNC's personal loan maximum loan amount is $35,000, slightly less than Discover's. PNC's terms are between 6 to 60 months, while Discover's range from 36 to 84 months. If you want a shorter term length — and to save money on overall interest in the process — PNC Bank may be the best choice for you.
Neither PNC nor Discover charges origination fees.
Read our PNC personal loan review.
Discover Personal Loan vs. Rocket Personal Loan
Rocket Loans offers personal loans up to $45,000, slightly higher than Discover's $40,000 limit. Rocket's loan terms range from 36 to 60 months, whereas Discover offers more flexibility with terms from 36 to 84 months. If you need a larger loan and a shorter repayment period, Rocket Loans may be the better fit.
Unlike Discover, Rocket Loans charges an origination fee up to 9% of the total loan amount, which could increase the cost of borrowing. However, Rocket Loans provides same-day funding in many cases, making it a good choice for those who need quick access to cash.
Read our Rocket personal loan review.
Why You Should Trust Us: How We Rated Discover Personal Loans
For our Discover personal loans review, we came up with a numerical score that represents how it compares with other personal loans across several different categories. These categories include loan interest rate, other fees, term lengths, funding speed, customer support, and more.
We consulted responses from a Business Insider survey to influence our methodology, focusing on the factors respondents said were most important in choosing a loan: interest rates and fees. Each category's weighting is based on its importance to your borrowing experience, with rates and fees weighted more heavily than aspects like customer service.
See more on how we rate personal loans »
At Business Insider, our reviews are guided by editorial independence, meaning our recommendations and ratings are based on objective criteria, thorough research, and expert analysis. Advertisers do not dictate our content, ensuring our reviews remain transparent and unbiased.
When considering whether Discover is right for you, consider its additional product lines:
- Best Discover Credit Cards
- Discover Student Loan Review
- Discover Bank Review
- Discover Savings Account Review
- Discover CD Rates
- Discover Home Loans Review.
Discover Loan Review FAQs
Are Discover Personal Loans good?
Discover Personal Loans may be good if you want competitive interest rates, flexible loan terms, no origination fees, and the ability to use the loan for debt consolidation, home improvement, and major purchases. Discover also offers excellent customer service and a straightforward application process.
Are there any fees associated with Discover personal loans?
Unlike other loan companies, Discover Personal Loans do not have any origination fees or prepayment penalties. Review the loan agreement for specific fee details.
Does applying for a Discover personal loan affect my credit score?
During the application process, Discover performs a soft credit check which does not affect your credit score. However, if you decide to proceed with the loan, a hard credit check will be conducted, which can impact your score.
How can I maximize the benefits of a Discover personal loan?
To maximize the benefits of your Discover Personal Loan, use it for purposes that provide the most value, such as consolidating high-interest debt or making home improvements that increase your property's value. Ensure timely repayments to avoid late fees and improve your credit score.
Is Discover Personal Loans legit?
Yes, Discover Personal Loans is a legitimate lender, founded in 1985 and accredited by the Better Business Bureau (BBB) with an A+ rating.
Fixed rates from 8.99% APR to 35.49% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or , Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 04/24/25 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. Loan amounts range from $5,000— $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.
The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: To be eligible to receive an additional (0.25%) interest rate reduction on your Personal Loan (your "Loan"), you must set up Direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A., or enroll in SoFi Plus by paying the SoFi Plus Subscription Fee, all within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled Direct Deposit to an eligible Direct Deposit Account in accordance with SoFi's reasonable procedures and requirements to be determined at SoFi's sole discretion, or during periods in which SoFi successfully receives payment of the SoFi Plus Subscription Fee. This discount will be lost during periods in which SoFi determines you have turned off Direct Deposit to your Checking and Savings account or in which you have not paid for the SoFi Plus Subscription Fee. You are not required to enroll in Direct Deposit or to pay the SoFi Plus Subscription Fee to receive a Loan.
Terms and conditions apply. Offer good for personal loan customers with credit cards and personal loans in their name only and subject to lender approval. To receive the offer, you must: (1) register and/or apply through this landing page; (2) complete a loan application with SoFi within 90 days of your application submit date; (3) meet SoFi's underwriting criteria; (4) apply 50% or more of your loan proceeds directly to your lenders/creditors. Once conditions are met and the loan has been disbursed, the interest rate shown in the Final Disclosure Statement will include an additional 0.25% rate discount. SoFi reserves the right to change or terminate the Direct Pay Rate Discount Program to unenrolled participants at any time with or without notice. It takes about 3 business days for your creditor/lender to receive payment after your loan is signed. You will be responsible for making all required payments to avoid credit card and other loan fees.
