Discover Personal Loan Review
Discover Personal Loan review offers insight to all the information concerning loan process, reward structure, terms, fees, advantages, and drawbacks.
Discover financial services are popular among the public for their Discover Credit Card, making it one of the best credit card brands along with MasterCard, American Express and Visa. However, Discover also offers personal loans to their borrowers who have a good credit history and robust financial history.
Discover offers its customers loans ranging from the amount of $25,000 till $35,000 with an interest rate anywhere between 6.99% to 24.99%. The best part is that you can choose your own loan term that can be anywhere between three to seven years.
Apart from this, you will not be charged with any extra charges as long as you are paying off your debt in time and even if you pay a bit early, there will be no charges for that. It also offers a 30-day money back guarantee which states that if you will pay off the loan amount within the 30 days from the date of its approval, then you will not have to pay any interest amount for your loan. In fact, Discover will even send the money directly to your creditors if you want.
Now, even though the rules to apply for the Discover loan are not that strict, you will not be able to get approved for a loan if your credit score is less than 660. In case you have a lower or much higher credit score than this, then you might want to consider other options that would provide you a better APR rate in the latter case.
Terms and Fees of Discover Personal Loans
- Term: 3 to 7 Years
- APR: 99% – 24.99%
- Loan Amount Range: $2,500 – $35,000
- Origination Fee: None
- Prepayment Penalty: None
- Late Payment Fee: $39
Discover Personal Loans Eligibility Requirements
You need to fit in the minimum eligibility criteria in order to get approved for the Discover loan. It includes:
- Minimum Credit Score Requirement – The applicant should have a “good credit score”
- Minimum Credit History Requirement – The applicant should have a “strong financial history”
- Minimum Debt-to-Income Ratio Requirement – Not Specified
However, Discover does specify it very clear that in order for you to be eligible for a personal loan, you must:
- Either you should be a U.S. citizen or permanent resident of U.S.
- Be at least 18 years old in age
- Have a minimum household income of $25,000
Discover Personal Loans Application Process
You can apply for Discover personal loan online through their website or by calling them on 1-866-248-1255. If you have received an invitation to apply for the loan on your email id, then you can just fill out the form and mail the application to Discover.
You can also check the monthly payment and interest rate that you will have to incur by simply filling out information like the amount of loan you wish to apply for, the term of the loan and the purpose for which the loan amount will be used, before actually pulling out on your credit.
However, make sure that you have the following information in order to complete the application:
- An invitation number if you received an invitation by mail
- Income information
- Employment history
- Bank account number and routing number for depositing funds via direct deposit
- Creditor information (balances and account numbers) if funds will be sent directly to creditors to consolidate debt
After accessing your application details, a loan specialist will contact you if you will be eligible for a Discover Person Loan to confirm your information. You will be notified about the decision in the same business day.
Pros and Cons of Discover Personal Loan
- There is no origination fee or hidden fee as long as you pay back your loan in time
- You can receive the funds quite quickly, as soon as the next business day after being approved
- You can choose the term loan between 36 to 84 months without any prepayment penalty
- There entire customer service team is located in the U.S.
- Interest rates are higher than many of the lenders
- Some might find their application process to be more stringent than the others