Discover Personal Loans: You Could Save Money on Interest While Paying Down Debt

Pay down revolving debts sooner by consolidating them.

As you’re on your journey to pay off debt and bills, it’s important you look for ways to save money along the way. One option is to consolidate higher-interest debt through a personal loan with a reputable lender like Discover Personal Loans. You can combine multiple bills into a personal loan with one set regular monthly payment at a fixed interest rate, which could be lower than the interest rate you’re paying. This could amount to paying off your debt sooner while saving money on interest.

Discover Personal Loans tries to make the process as seamless as possible and gives consumers options. You can check your interest rate without any impact to your credit score. Applicants receive a same-day decision, in most cases. Also, the money can be sent as early as the next business day if you’re approved for and accept the loan.

As with any loan, you should evaluate all the terms, benefits and costs of the personal loan before you apply. Here’s a look at what information you will find in this Discover Personal Loans review:

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Discover Personal Loan Overview: Rates, Terms, Fees

Discover Personal Loans offers flexible repayment terms and fixed rates, meaning your interest rate will never go up. Discover offers loans up to $35,000 and a choice of repayment terms to fit your needs.*

Discover Personal Loans at a Glance

APR 6.99% to 24.99%
Terms 36, 48, 60, 72 or 84 months
Fees No fees, as long as you pay on time
Loan Amounts Up to a maximum of $35,000

Unlike some other lenders, Discover personal loans have no origination fees or prepayment penalties, so you receive the full amount that you are approved for without any fees taken off the top. Also, there are set regular monthly payments and a payback timeframe that you choose, which could make it easy to structure your budget. If you change your mind after agreeing to the loan, you have 30 days to return loan funds and pay no interest with Discover’s money-back guarantee. You can apply online or over the phone, depending on your preference. Discover Personal Loans offers highly trained loan specialists to help you through the loan process.

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How To Pay Down Debt Using a Discover Personal Loan

A common use for a Discover personal loan is debt consolidation. You can use your funds to consolidate and pay off credit card balances, high-interest debt or other bills instead of juggling multiple payments that are easy to forget about. Discover’s interest rates are fixed so your interest rate won’t go up for the life of your loan.

Another advantage in addition to potentially saving money is Discover Personal Loans can make the debt pay-down process easy for you. When you take out a personal loan for debt consolidation, Discover can send the funds directly to your creditors. You can also choose to have your funds sent directly to your bank account if you’re using the money to pay for expenses such as home renovations.

If you took the loan for debt consolidation, you’ll make set regular monthly payments on your loan, rather than to your former creditors. However, unlike traditional unsecured debt, such as a credit card, your Discover personal loan has a set repayment period. You must continue to make set regular monthly payments until the end of the term, be it 36 months, 48 months or longer. By the end of the repayment term, your loan will be paid off. If you want to pay your loan off faster, you can do so at any time without being charged a penalty.

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Other Uses for a Personal Loan From Discover

Aside from post-secondary education or to pay off a secured loan, a personal loan from Discover can be used for nearly anything. As long as you pay back the loan according to its terms, you can use it for multiple financial needs.

As previously mentioned, debt consolidation is a common use for a Discover personal loan. You can also use your loan funds for big purchases — such as emergency repairs, home remodeling or new appliances. You can also use the loan to pay for major life events, such as weddings or vacations.

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How Does a Personal Loan From Discover Work?

Once you apply, you can receive a same-day decision in most cases. Your money can be sent as soon as the next business day after acceptance, assuming your application is in order and you accept the terms of the loan on a weekday.

These loans are unsecured, meaning you do not need to put up collateral to cover the loan as you would with a car loan.

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Discover personal loan specialists are available to answer any questions you have by phone from 8 a.m. to 11 p.m. EST, Monday through Friday and 9 a.m. to 6 p.m. EST on weekends.

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How To Apply For a Discover Personal Loan for Debt Consolidation

You can apply for a Discover personal loan online or check your rate online. Either way, you might have to provide basic personal and financial information, such as your employment history, to begin the process. To speed up the application process, be prepared with these documents, just in case:

  • Your driver’s license or state-issued identification card
  • Household income information like pay stubs and bank statements
  • Employment history
  • Bank account number and routing number
  • Balances and account numbers from creditors
  • Your contact information

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Is Discover Personal Loans Right for You?

Discover Personal Loans can help you get a handle on your outstanding debt by consolidating it into one loan with one set regular monthly payment.

To determine if a personal loan from Discover is a cost-effective option for you, first use Discover’s debt consolidation calculator to get an estimate on how much you could save on interest and how long it might take you to pay off the debt. After you apply for your Discover personal loan, compare the total cost of the loan with the amount you’re currently paying on your outstanding debt. Remember that the shorter the repayment term on your loan, the higher the monthly payment — but the important figure to consider is the total amount of origination and prepayment fees, which Discover doesn’t have, and the interest you’ll be paying over time.

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A Discover personal loan might be right for you if you can reduce or eliminate your outstanding higher-interest debt while potentially saving money on overall interest. When looking at other options for paying off debt, factor in the convenience Discover offers, along with the lack of origination and prepayment fees. If the whole package meets your financial needs, Discover Personal Loans might be key to your debt payoff journey.

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Jared Nigro contributed to the reporting for this article.

*Your APR will be between 6.99% and 24.99% based on creditworthiness at time of application for loan terms of 36-84 months. If you get approved for a $15,000 loan at 6.99% APR for a term of 72 months, you’ll pay just $256 a month. 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.

Discover Personal Loans: You Could Save Money on Interest While Paying Down Debt
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About the Author

John Csiszar

After earning a B.A. in English with a Specialization in Business from UCLA, John Csiszar worked in the financial services industry as a registered representative for 18 years. Along the way, Csiszar earned both Certified Financial Planner and Registered Investment Adviser designations, in addition to being licensed as a life agent, while working for both a major Wall Street wirehouse and for his own investment advisory firm. During his time as an advisor, Csiszar managed over $100 million in client assets while providing individualized investment plans for hundreds of clients.

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