Discover the 2022 personal loans review

Personal Finance Insider writes about products, strategies, and tips to help you make informed decisions with your money. We may receive a small commission from our partners, such as American Express, but our reports and recommendations are always independent and objective. The conditions apply to the offers listed on this page. Read our editorial standards.

Find out personal loan amounts and interest rates

Discover personal loan amounts range from $ 2,500 to $ 35,000 and can be repaid over three to seven years, depending on the agreement you make with the lender.

Discover’s lowest APR of 6.99% is about the same or lower than comparable lenders. Marcus’ minimum rate is also 6.99% and LendingClub’s lowest rate is 8.05%. Keep in mind that you will need good credit to get the best rates.

However, Discover’s best APR of 24.99% is in the middle of the pack compared to similar companies. Marcus’ maximum rate is 19.99%, while LendingClub’s is 35.89%. See what your rates are at different companies before choosing a company to take out a loan from.

Pros and Cons of Discover Personal Loans

How Discover Personal Loans Work

Discover offers unsecured personal loans that can be used for a number of reasons including debt consolidation, home improvement, and vacations. You don’t need collateral, like a house or a car, to get an unsecured personal loan.

You can find the application online or over the phone, and you can complete the application within minutes. Discover does not allow co-signers.

Depending on when your request is approved, your money could be received as early as the next day with Discover. You will not pay origination fees or prepayment penalties with the company, but you may be charged a fee of $ 39 for late payment.

A unique feature of Discover is its 30 day money back guarantee. If you decide within 30 days of getting your loan that you no longer want it, you can return the funds by check and you won’t be charged interest. This benefit can be useful if you find a lender with a lower rate or if you don’t need the loan amount you originally requested.

To contact customer service, call the lender Monday through Friday, 8:00 a.m. to 11:00 p.m. ET, or weekends, 9:00 a.m. to 6:00 p.m. ET. If the call isn’t the best job for you, you can also send a mail to Discover in Utah.

Discover has a highly rated app that received 4.8 out of 5 stars in the Apple Store and 4.6 out of 5 stars in the Google Play Store. This is useful if you want to manage your loan on the go.

What credit score do you need for a Discover personal loan?

Discover does not have a minimum credit score to be eligible for a loan and will instead make its approval decision based on other financial factors. Other comparable lenders do not have a specified minimum, such as Marcus of Goldman Sachs and LendingClub. Having said that, you will likely get a better rate with a higher score.

If you need to access your credit report, you can get it for free from any of the three major credit bureaus on annualcreditreport.com every week until April 20, 2022. This report will give you information about your payments and your credit history, although it will not provide you with your credit score. Examining your credit report can help you spot errors and find areas for improvement.

You can get your score for free on your credit card statement or online account. You can also buy it from a credit reporting agency.

If you check your rates with Discover, your credit score will not be negatively affected as the lender will only generate a soft credit application. However, before your loan is finalized, Discover will do a serious credit investigation, which will likely affect your credit score. Thorough investigation gives the lender a full view of your credit history, but it can hurt your credit score.

Is Discover trustworthy?

Discover is a Better Business Bureau accredited company, and the BBB, a nonprofit focused on consumer protection and trust, gives Discover an A + reliability rating. The BBB assesses businesses by examining businesses’ responses to customer complaints, the veracity of advertising, and openness about business practices.

However, a top BBB rating does not guarantee a positive relationship with Discover, so check out reviews on the internet and ask friends and family about their experiences with the company.

Discover has not been the subject of any controversy in recent years. You may feel comfortable choosing Discover as your personal lender because of its impeccable history and excellent BBB rating.

How Discover Personal Loans Compare

Discover rates are similar to those offered by comparable lenders, although the rates depend on your particular profile. Here’s how Discover stacks up against the competition:

Neither Discover nor Marcus of Goldman Sachs require a minimum credit score, but if you have a lower credit score, your APR may be higher with Discover than with Marcus. The upper end of Discover’s APR range is 5% higher than Marcus’ range. If your credit is in good shape, you will likely pay a similar rate with both lenders.

You won’t pay any setup fees or prepayment penalties with either company, but Discover may charge a late fee of up to $ 39. If you’re worried about missing a payment, Marcus may be the best option for you.

Marcus offers a loan term range of three to six years, which is slightly lower than Discover’s three to seven year range. Discover’s seven-year repayment term will allow you to lower your monthly fees, but you’ll pay more interest over the life of the loan.

Discover has a better APR range than LendingClub because you can get a minimum rate that is over 1% lower with Discover than with LendingClub and a maximum rate that is over 11% lower. None of the lenders have a minimum credit score requirement.

LendingClub’s repayment terms are three or five years, while Discover’s are three to seven years. If flexible repayment options are important to you, Discover may be the best choice.

A distinguishing feature of Discover is its 30 day money back guarantee on its personal loans. If you decide within 30 days of receiving your loan that you no longer want it – you may have found a better rate elsewhere – you can repay the funds by check and you won’t be charged interest.

About Judith J. George

Check Also

Best Personal Loans for Good Credit November 2022 – Forbes Advisor

Upstart has made a name for itself in the personal loan space due to its …