With so many different financial and life goals to achieve — saving money and paying down debt, starting a family and maybe home remodels or repairs, to name a few — it can be challenging to find the funds or room in your budget to cover all your goals. Some might find themselves with many high-interest bills and are unable to keep up with payments or are unsure how to finance large expenses — planned or not. Discover Personal Loans are a smart loan option that comes with fixed interest rates, loan amounts up to $35,000, a variety of terms to choose from and no origination or repayment fees. Additionally, no collateral is needed to secure a Discover personal loan. Discover Personal Loans also lets you check your interest rate before applying for your loan, with no impact on your credit score.
A key differentiator is their expert service team. Discover Personal Loans has highly trained and knowledgeable loan specialists to help you with your loan. Keep reading to learn more about Discover Personal Loans and see if they could be the right fit for you.
Here’s a look at the various features and benefits offered by Discover Personal Loans:
|Discover Personal Loans Features and Benefits|
|Loan Amounts||$2,500 to $35,000|
|Loan Terms||36, 48, 60, 72 or 84 months|
|APR||6.99% to 24.99%|
|Time to Receive Funds||As early as the next business day|
|Minimum Credit Score||Higher scores will likely qualify for lower rates (660 and above recommended)|
|Secured or Unsecured||Unsecured|
|Customer Service||100% U.S.-based|
Why Choose a Discover Personal Loan
A Discover Personal Loan is a financially responsible way to pay down debt and finance large or unexpected expenses. A variety of repayment terms and loan amounts means you can design the loan in a way that works for you and your budget. With a fixed interest rate and only one fixed monthly payment, a Discover personal loan can help you pay down your debt or pay for major expenses in a responsible, manageable way. If you’re looking to consolidate debt, Discover Personal Loans could save you money on interest over the life of the loan, possibly even thousands, and help you pay down your debt more quickly.
A Discover personal loan comes with benefits including no prepayment penalties, no origination fees and no closing costs. If you’re approved for a Discover Personal Loan, the funds can be deposited directly into your bank account, sent as early as the next business day. If you take out a debt consolidation loan, Discover will pay your creditors directly, so your only responsibility is paying your fixed monthly payment over the life of the loan.
Before you apply, review whether the loan makes sense for your financial situation and make sure you have a plan to pay the loan back. You can also use one of the calculators Discover Personal Loans offers to get an estimate of monthly payments or savings from debt consolidation with a personal loan. See how low your monthly payment could be with the Personal Loan Calculator or estimate how much you could save on your higher-interest debt with their Debt Consolidation Calculator.
Discover Personal Loan Rates and Loan Amounts
Discover offers fixed interest rates, meaning your interest rate will be the same for the duration of the loan. Rates vary based on an individual’s credit and financial history, so usually the better your credit score, the lower the rate you’ll likely get. Currently, unsecured personal loans from Discover have rates as low as 6.99 percent and up to 24.99 percent, and loan amounts from $2,500 to $35,000.
Compared to some competitors, Discover Personal Loans offer more favorable terms and interest rates. Avant, a private lender, offers similar personal loan amounts ranging from $2,000 to $35,000, but interest rates are significantly higher, ranging from 9.95% to 35.99% APR. Additionally, Avant repayment terms are limited to 24 to 60 months, giving you less flexibility and time to pay back your unsecured personal loan.
Discover Loan Fees and Penalties
While other lenders can charge up to 5 percent in loan origination fees, personal loans from Discover have no origination fees, which not only can save you money but makes it easier to calculate the total cost of the loan upfront. There are no surprise or hidden fees with this lender. With a Discover Personal Loan, you pay just your fixed interest fee, and no other fees, as long as you make your payments on time.
Late payments are subject to a $39 fee, however, these fees are easy to avoid with Discover alerts that will remind you when your payment is due.
If you take out a personal loan with Avant, you’ll pay an administration fee of 1.50 percent to 4.75 percent, automatically deducted from your loan funds when the loan is issued, and a $15 dishonored payment fee. LendingClub, a peer-to-peer lender, charges origination fees ranging from 1 to 6 percent of the loan amount — therefore you could pay up to $2,100 more on your loan.
Related: Loan Origination Fees Explained
Discover Loan Repayment Terms
When you apply for a Discover Personal Loan, you can choose from a variety of flexible repayment terms of 36, 48, 60, 72 or 84 months, so you can ensure your loan repayment amount can fit your budget. Unlike other lenders, Discover does not charge any prepayment penalties, which allows you the freedom of making extra payments or paying off the entire loan at any time without a penalty. And, if you decide you no longer need the loan, simply return the funds within the first 30 days, and you won’t be liable for expenses associated with the loan.
How to Apply for a Discover Personal Loan
Discover Personal Loans has a simple loan application process. Once you determine your loan amount and your desired repayment term, you can visit the Discover Personal Loan application page or call Discover directly at 866-248-1255 to get started. Before you apply, you can check your rate with a soft pull of your credit, meaning no ding to your credit score just for checking. You get the information on your rate upfront so you can apply with confidence. Once you’ve completed the loan application information, you might need to speak with a Discover Personal Loan specialist to confirm application information. If approved for the loan, you’ll receive and review the terms of your loan offer and choose to accept or not. Once you’ve accepted the loan rate and terms, funds will be dispersed as early as the next business day.
If you know you will use your Discover personal loan for debt consolidation, have your debts and creditors’ information ready.
Advantages of a Discover Personal Loan
Discover offers clear advantages for those seeking unsecured personal loans. Discover offers flexible loan amounts and repayment terms, one convenient fixed monthly payment, zero origination fees, no prepayment penalties, a 30-day money-back guarantee and a simple application process.
Discover Personal Loans’ U.S.-based customer service is also highly trained, which makes them a standout among competitors. They can help you fully understand and discuss your loan options so you’re equipped to make the best financial decision for you from your application until the day you’re done paying it off.
Is a Discover Personal Loan Right for You?
For most consumers, a Discover personal loan can be a good option for consolidating and paying down higher-interest debt or for funding unexpected and big life expenses that you don’t have the funds or savings to cover. The product is customer-focused, has fixed rates and has no fees — as long as you pay on time.
A Discover personal loan can be particularly useful if you have a large, near-term expense that you’re looking to pay off over time, instead of completely upfront. For example, if you’re hit with medical bills from a surgery or procedure that insurance doesn’t cover, like braces, you can pay them down month-by-month with an unsecured personal loan. Similarly, if you’re renovating your home, a Discover personal loan can be an additional way to cover large expenses and unforeseen projects, with one set monthly payment and clear payoff date. A Discover personal loan can also help you reach your life goals, like getting your small business off the ground. You can use your Discover Personal Loan funds to pay for inventory, equipment, office space and marketing — expenses small-business owners often have to fund out-of-pocket in the first year.
To determine if a Discover personal loan is right for you, look at your upcoming expenses, compare them with your available funds and see if the terms of a Discover Personal Loan match your needs.
All information is sourced from Discover Personal Loans and is accurate as of April 5, 2018.