Discover offers unsecured personal loans for multiple uses. Whether you need to finance a larger purchase, consolidate debt or pay for unexpected expenses like a medical bill, the flexible repayment terms and low interest rates make Discover an attractive option to consider.
What's more, Discover has an excellent reputation, as evidenced by its customer reviews. People enjoy the ease of which to apply for a loan, the many perks involved with being a Discover customer and the excellent customer service available.
Therefore, if you are eager to learn more about doing a personal loan with Discover, this review has everything you need to know.
Personal Loan Details
Discover has a wide borrowing range to account for diverse needs. Currently, you can apply to borrow as little as $2,500 all the way up to $35,000. Discover will determine the amount you qualify for by examining factors such as your credit histories, your income and your debt to income ratio-which is how much you pay your debt obligations relative to your monthly income.
Along with a generous range, Discover aims to keep its interest rates low, with a range from 6.99% APR to 24.99% APR, making it an enticing choice compared to other online lending options. Discover determines the interest rate you'll pay by your creditworthiness.
Lastly, when you receive a personal loan with Discover, you'll have flexible repayment terms. You can set up terms for as short as three years or 36 months to as far as 84 months or seven years. This gives you the flexibility to set your loan terms to your budgetary needs. It's important to note the sooner you pay off your debt, the less you'll have to pay for it. So if you can swing it, aim to go for no more than four years.
Discover offers a secure way for you to apply for a personal loan through its website. However, if you don't feel comfortable with this method, you can contact its customer service line via phone and do an application that way.
In either case, it's important to have details ready, as this will expedite the application process. Information to have available includes the following:
- Personal information such as your name, address, Social Security number
- Your monthly rent/mortgage payment
- Your bank account information if you plan to receive funds via direct deposit
- If you plan to consolidate debt, Discover will need information from your creditors especially account numbers, mailing addresses and total amounts owed
- Your employment information, specifically duration of employment and monthly income
- If you plan to do a joint application, be sure you have all these items for the co-borrower as well.
Once you complete the application, Discover can determine your eligibility often within the same business day if you have provided all the information needed. If you receive approval, you move on to the next step, which is the verification stage.
During this process, you'll need to supply documentation to support the information you provided in the application. Often, all you'll need to do is to upload a copy of your recent pay stub or bank statement, using Discover's secure uploading tool on its website. Discover might also contact your employer as another layer of verification.
After receiving all the required documentation, Discover will fund your loan. It can do this based on your needs. To illustrate, if you are using the loan to consolidate debt, Discover will send checks to your creditors to pay off or down those accounts. You can also receive your loan funds via direct deposit or it can mail you a paper check.
Once you receive the loan funds, you have up to 30 days risk-free. If for any reason you determine you don't want the loan, just return all the money and you won't pay any interest. This is a unique perk you won't find with many lenders.
Meanwhile, you can repay the loan in multiple ways. The easiest is to set up automatic payments. You can also log onto your account online, call Discover or mail a check. It's important to keep on top of payments, as Discover charges a $39 late fee for any missed payments. In addition, you can pay off the loan anytime you like at no charge.
Discover keeps things simple as it pertains to its qualification rules. Currently, you must meet these minimum requirements to become eligible for a personal loan:
- You must be at least 18 years old
- Be a US citizen or a permanent resident
- Have a minimum income of $25,000
Along with these qualifications, your credit score and employment information will weigh heavily into Discover's underwriting criteria.
Perks with Discover
Discover offers many benefits you won't find with other online lenders. For one, its 30-day risk-free trial means you can change your mind after receiving your loan funds and you won't incur a penalty. Speaking of penalties, Discover won't make things costly for you by charging you a loan origination fee, which can save you hundreds of dollars compared to other lenders' offerings. Discover also makes it simple for you to consolidate debt by sending payment to your creditors directly.
Verdict - Great
Discover is an excellent choice if you are considering a personal loan because it has flexible borrowing amounts, low interest rates and versatile repayment options. It also has many perks you won't find with other lenders, which can save you money and time. If you have questions at any time, Discover's attentive customer service is standing by to assist you. Overall, for all the perks and excellent service you will receive, Discover is among the smartest choices for personal loans.