Discover personal loans are loan which are available from the range of $2,500 and $35,000 with terms between three and seven years. Borrowers can Discover personal loans for a wide range of activities such as auto repairs, consolidating debt and covering wedding or vacation costs.
Advantages and Disadvantages of Discover Personal Loans
- Option to pay off creditors directly.
- No organization fees or prepayment penalties.
- Discover range loans can be used for a wide range of purposes.
- Discover loans charges late fees
- No discount applicable for enrolling in automatic payments.
- Low maximum loan amount.
Who is Discover Loan Best For?
Discover loan is excellent for consumers who need a small loan, as a minimum loan amount cost $2,500. Discover loans offers flexible repayment terms and customers can use funds for a wide range of uses.
Discover loans wide range of uses makes discover personal loans a strong choice for a consumer who need cash to cover every amenity from a planned home improvement to unexpected medical bills or other more unpredictable expenses. It is also a great option for debt consolidation, as Discover can directly pay off third party creditors with loan proceeds.
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Purposes of Discover Loan Purposes
Adoption and Fertility costs
Small business expenses
Repayment of a secured loan
Repayment of a Discover credit card
Details of Discover Personal Loans
Loan Amount and Terms
Loan amounts: As mention earlier, Discover offers unsecured personal loans from $2,500 to $35,000 in all 50 states in the US.
Loan Terms: Discover personal loans are available for terms of 36, 48, 60, 72 and 84 months.
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APR: Discover offers personal loans with annual percentage rates (APRs) between 5.99% to 24.99%, with the lowest rates reserved for the most qualified customers. Overall, rates are based on a combination of factors including credit history, application information and loan term.
Rate Discounts: Discover does not offer a discount for borrowers who sign up for automatic payments. Autopay discounts at other lenders typically range from 0.25% to 0.5% off the standard APR.
Organization fees: Discover loans does not charge any closing costs or origination fees.
Prepayment penalty fees: Discover does not charge customers prepayment penalties. This gives borrowers the ability to pay off their loans prior to the end of their loan term without incurring additional costs.
Late fees: While discover does not charge borrowers any other fees, it may impose a late fee of $39 if a payment is not received by its due date.
Perks and Features of Discover Personal Loans
- Payment flexibility: In addition to offering flexible repayment terms, Discover lets borrowers change their payment due date to better match their budget. Customers can change their payment date twice over the life of the loan as long as there is at least one year between changes.
- 30-day, money-back guarantee: Discover offers a 30-day, money-back guarantee on personal loans. This perk lets borrowers return all of the loan funds and cancel the loan if they decide they don’t want their Discover loan within 30 days of funding. Borrowers who take advantage of this guarantee are not charged any interest. Keep in mind, however, that the perk is not available for funds paid directly to creditors.
- Direct payment of creditors: Discover personal loans can be used to consolidate credit cards and other types of debt. Discover will directly pay off each account rather than depositing the loan funds to your personal bank account.
- Credit Scorecard: Discover providers access to a free Credit Scorecard that includes an updated FICO credit score each month, plus information about credit utilization, recent inquiries and missed payments.
Eligibility for Discover Personal Loan
Personal loan applications are approved or declined based on a number of factors. All lenders have their own unique underwriting requirements, but these typically include information from an applicant’s credit profile and other factors that demonstrate the ability to repay the loan, such as income. Meeting the requirements below won’t guarantee approval, but they can help you decide if a personal loan is the right fit for you.
Credit Score Requirements
When evaluating borrower eligibility, Discover looks at information from credit bureaus, including the applicant’s credit history, recent credit activity and recent credit inquiries. In general, though, applicants must have a minimum FICO credit score of 660 to get approved for a Discover personal loan. The average credit score of Discover borrowers is approximately 750.
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Discover personal loan applicants must have a minimum household income of $25,000 to be considered for a loan. However, even if you meet Discover’s minimum income requirements, you should consider whether there is actually room in your budget for another monthly payment before taking on additional debt.
Co-signers and Co-applicants
Discover personal loans are only available to individuals. Therefore, co-borrowers and co-signers are not options.