Discover offers fast funding on personal loans, with no origination fees
Check Rates
Our Take
With fast funding, no origination fees, and flexible repayment terms, Discover personal loans may be a good option for borrowers with strong credit. If you need to borrow more than $40,000, though, consider another lender that offers higher loan amounts.
Top Rated For
- Best for Debt Consolidation Best Personal Loans for April 2025
- Best for Overall Best Personal Loans for Debt Consolidation for April 2025
- Best for Debt Consolidation Best Personal Loans for April 2025
- Best for Debt Consolidation Best Personal Loans for Fair Credit for April 2025
- Best for Debt Consolidation Best Personal Loans From Banks
- Pros & Cons
- Key Takeaways
- Company Overview
- specifications
Pros & Cons Pros
-
Fast funding times
-
Direct payment to creditors for debt consolidation
-
Flexible repayment terms
-
Option to pre-qualify online or over the phone
Cons
-
Borrowing limit maxes out at $40,000
-
No opportunities for interest rate discounts
-
No option to add collateral or co-signer to loan
-
May charge a fee for late payments
Key Takeaways
- Discover offers unsecured personal loans from $2,500 to $40,000 to creditworthy borrowers.
- You can use a Discover personal loan for almost any purpose, including debt consolidation, home improvement, medical expenses, wedding costs, and more.
- While Discover doesn’t offer interest rate discounts, it does give you the opportunity to cancel your loan without penalty within 30 days if you change your mind.
- If you borrow a personal loan for debt consolidation, Discover can send the funds to your creditors directly within one business day.
Company Overview
Founded in 1986, Discover is largely known as an issuer of credit cards. In addition to its credit card offerings, though, this Illinois-based company provides a variety of financial products, including unsecured personal loans in all 50 states and Washington, D.C.
If you’re interested in a Discover personal loan, you can check your rates directly on its website or over the phone. This option to pre-qualify means you can get a sense of your personal loan offers with no obligation or impact on your credit score.
specifications APR Range 7.99% – 24.99% Loan Amount $2,500 – $40,000 Loan Terms 36 months – 84 months Recommended Minimum Credit Score 660 Average Origination Fee 0.00% Late Fee $39.00
Why Trust Us
59 Lenders reviewed 45 Loan features considered 2,655 Data points analyzed 284 Primary data sources used Investopedia collected data from dozens of lenders to evaluate the factors most important for borrowers. We used this data to rank each lender based on APRs and fees, loan amounts, repayment terms, customer experience, and more to provide unbiased, comprehensive reviews and help you make the right borrowing decision for your needs. Read our Full Methodology
- Pros Explained
- Cons Explained
- Types of Loans
- Time to Receive Funds
- Borrower Requirements
- Loan Features
- Customer Service
- Customer Satisfaction
- How to Apply
- Other Services
- Alternative Lenders
- The Bottom Line
- FAQs
- Methodology
Tip
Take advantage of pre-qualification by checking your rates with multiple lenders. Our list of the best personal loans is a great place to start. If your credit isn’t so great, try the best bad credit loans to find a lender that fits your situation.
Pros Explained
- Fast funding times: If you’ve fulfilled all the application requirements, you could receive the money in as little as one business day.
- Direct payment to creditors for debt consolidation: If you’re borrowing to consolidate debt, Discover can simplify the process by sending the loan funds directly to your creditors.
- Flexible repayment terms: With a Discover personal loan, you can select loan terms ranging from three years (36 months) to seven years (84 months).
- Option to pre-qualify online or over the phone: Discover makes it easy to check your rates through pre-qualification, a simple process that won’t ding your credit or show up as a negative item on your credit report.
Cons Explained
- Borrowing limit maxes out at $40,000: Some other lenders offer personal loans up to $100,000 or even more, but Discover sets a relatively low borrowing limit.
- No opportunities for interest rate discounts: While some lenders offer a rate cut to existing customers or borrowers who opt in to automatic payments, Discover doesn’t offer rate discounts.
- No option to add collateral or co-signer to loan: Discover personal loans are unsecured, so you alone must meet underwriting requirements for credit and income to qualify. There’s no option to add a co-signer or apply for a joint personal loan.
- May charge a fee for late payments: Discover may charge a fee of $39 if you don’t make your loan payments on time; not all lenders charge late fees these days, and this is a bit higher than most lenders that do charge.
Fast Fact
Discover lets a borrower pay off a personal loan over the course of 36 months to 84 months.
Types of Personal Loans Offered by Discover
Discover offers unsecured personal loans, meaning these loans don’t require you to apply with collateral. Instead, Discover reviews your credit, income, debt-to-income ratio, and other factors when evaluating your loan application. Borrowers with the strongest credit will get the best rates, while weaker-credit borrowers will get worse rates or will not qualify.
You can use a Discover personal loan for almost any legal purpose, including:
- Debt consolidation
- Home improvement
- Hospital bills
- Wedding costs
- Vacation funds
- Auto repairs
- Small business expenses
- Veterinary bills
- Financial emergencies
- Adoption expenses
- In vitro fertilization (IVF) costs
According to Investopedia’s 2023 Personal Loan Borrower survey, debt consolidation is the most common reason cited for getting a personal loan. Paying for home improvements and large purchases were the next two most common reasons.
There are some restrictions on how you can use the loan proceeds. You can’t use a Discover personal loan to pay for higher education expenses, or to pay off secured debt or a Discover credit card. If you’re using a Discover personal loan to consolidate debt, you can only consolidate unsecured debt—an auto loan or home loan, for instance, wouldn’t be eligible.
Time to Receive Personal Loan Funds
Discover can approve your loan the same day you apply as long as your application is not missing any information. If you apply on a weekend, you might have to wait until the next business day to receive a decision.
Once your application is approved, Discover can distribute the funds as soon as the next business day via an electronic ACH transfer. If you ask to receive your funds by check, the process will take a little longer.
To avoid delays and ensure your loan is processed quickly, follow all the application instructions, review the forms for typos, and double-check that your bank account numbers are accurate.
Borrower Requirements
Discover reviews your credit, income, debt-to-income ratio, and other factors when evaluating you for a personal loan. Its minimum required credit score is 660, and its minimum required annual income is $25,000 for an individual or household. You’ll also need to be a U.S. citizen or permanent resident who’s at least 18 years old to get a Discover personal loan.
Discover Personal Loan Features
- Debt consolidation assistance: Discover makes it easy to consolidate debt by sending your personal loan funds directly to your creditors. After your debts are paid off, you’ll start paying back your new personal loan, ideally at a lower interest rate than you had before. You can’t use a Discover personal loan to directly pay off a Discover credit card or any secured loan.
- 30-day loan guarantee: If you change your mind about your loan, Discover lets you return the full amount within 30 days without any interest charges or penalties.
- Mobile app: You can manage your personal loan on Discover’s mobile app.
- Option to apply online or over the phone: Discover lets you pre-qualify and apply for a personal loan on its website or over the phone.
Co-Signers and Co-Applicants
Discover does not allow co-signers or co-applicants for its personal loans. You’ll need to meet the lender’s underwriting requirements for credit and income on your own to qualify for a personal loan.
Can You Refinance a Personal Loan With Discover?
Discover lets you refinance an unsecured personal loan from Discover or another lender, which may be appealing if rates have dropped or your credit score improved since you initially took out the loan. Lowering your interest rate can save you money over the life of your loan. You also can choose new repayment terms.
Customer Service
Customer service is available by phone for personal loan applicants and borrowers.
| Medium | Contact | When |
|---|---|---|
| Telephone (applicants) | (866) 248-1255 | Weekdays, 8 a.m. to 11 p.m. ET Weekends, 9 a.m. to 6 p.m. ET |
| Telephone (general questions/loan payments) | (877) 256-2632 | 24/7 for loan payments |
Customer Satisfaction
Discover draws mixed opinions about its customer satisfaction.
- Trustpilot: Discover earns only 1.8 out of 5 stars on the Trustpilot review site.
- J.D. Power: With a score of 769 out of 1,000, Discover ties for third place among personal loan providers in the J.D. Power 2023 U.S. Consumer Lending Satisfaction Study.
How to Qualify For and Apply for a Discover Personal Loan
Here are the steps to take for seeking a Discover personal loan:
- Get pre-qualified: Share a few details about how you plan to use the loan, how much you want to borrow, and some personal details to begin the pre-qualification process.
- Review your loan offers: Discover will provide you with a few loan offers; choose the one that meets your needs.
- Complete an application: You’ll be asked for details such as date of birth, Social Security number, street address, income and employment details, bank account and routing numbers (for direct deposit), and balances and account information for creditors (if you’re consolidating debt). For this part of the process, you may need to have documents on hand like bank statements, credit card statements, income tax returns, and pay stubs.
- Get funded: If you’re approved, officially, Discover will pay your creditors directly (if you’re getting the loan for debt consolidation), or send it directly to your bank.
Tip
Discover allows you to pre-qualify for a personal loan. As a result, you can check interest rates without affecting your credit score or seeing an inquiry show up on your credit report.
Other Banking Services and Loans Offered by Discover
Discover provides the full suite of banking services:
- Credit cards
- Checking accounts
- Savings accounts
- Money market accounts
- Certificates of deposit (CDs)
- IRA CDs
- IRA savings accounts
- Mortgage refinance loans
- Home equity loans
Compare Discover With Other Personal Lenders
| Discover | SoFi | Citibank | |
|---|---|---|---|
| APR Range | 7.99%–24.99% | 8.99%–29.49% | 11.49%–20.49% |
| Loan Amounts | $2,500–$40,000 | $5,000–$100,000 | $2,000–$30,000 |
| Loan Terms | 36–84 months | 24–84 months | 12–60 months |
| Recommended Minimum Credit Score | 660 | Not disclosed | Not disclosed |
| Origination Fee | None | None | None |
| Time to Receive Funds | 1 day | Same day | Up to 2 business days |
The Bottom Line
Discover offers flexible personal loans with competitive rates, multiple repayment terms, and zero origination fees in all 50 states. Rated by J.D. Power as one of the best personal loan providers for customer satisfaction, Discover could be an excellent option for borrowers.
Discover may have some drawbacks for certain borrowers, though. You can’t apply with a co-signer, for instance, and personal loan limits max out at $40,000. If these rules don’t match what you’re looking for, another personal loan provider could be a better fit.
Frequently Asked Questions
What Is the Recommended Minimum Credit Score for a Discover Personal Loan?
The minimum recommended credit score for a Discover personal loan is 660. That score is considered “fair” by FICO, whose scores are widely used by lenders. In 2023, the average FICO credit score was 715.
How Much Money Can You Borrow With a Discover Personal Loan?
Discover offers personal loans ranging from $2,500 to $40,000. In the second quarter of 2024, the average U.S. debt for unsecured personal loans was $11,687.
Can You Use a Discover Personal Loan to Pay Off a Discover Credit Card?
No, Discover doesn’t allow its personal loans to be used to directly pay off Discover credit cards. Discover personal loans also can’t go toward paying for post-secondary education or paying off a secured loan (like a mortgage or auto loan).
What Is the Income Requirement for a Discover Personal Loan?
You must have an individual or household annual income of at least $25,000 to qualify for a Discover personal loan. Aside from income, Discover considers a borrower’s debt-to-income ratio and credit history to decide whether to approve a loan application.
How Long Does It Take to Get a Decision on a Discover Personal Loan?
Most applicants for a Discover personal loan get a decision the same day if their application is complete and no information is missing.
Methodology
To evaluate and rank personal loan providers, we collected hundreds of data points from 59 lenders, including traditional banks, credit unions, fintechs, and finance companies. We researched and evaluated APRs, loan amounts and terms, fees, customer experience, and more. We grouped those factors into four broad areas:
- Loan costs: 30%
- Loan terms: 22%
- Borrowing requirements: 24%
- Lender features: 24%
Learn more about how we evaluated personal loans in our complete methodology.