Discover Personal Loans Review

Competitive interest rates without origination fees

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Discover Bank is one of the leading online banks in the U.S., offering 100% U.S. based customer service and various products, including personal loans. The company offers competitive interest rates and doesn't charge origination fees. Applicants may be able to borrow up to $35,000, and you may receive repayment assistance if you experience hardship after taking out the loan. Our Discover Bank personal loan review provides important details, so you can decide if the lender is a good fit for your borrowing needs.

Discover Bank offers interest rates from 6.99% to 24.99% APR. You may qualify for loan amounts from $2,500 to $35,000, depending on your creditworthiness. Repayment terms range from 36 to 84 months. While Discover doesn’t require a minimum credit score, applicants with the highest credit scores may be eligible for the lowest rates. To qualify, you must be at least 18 years old, a U.S. citizen or permanent resident, and have a minimum annual income of $25,000.

  • Product Specifications
  • Pros and Cons
  • Fees
Product Specifications
  • APR Range 6.99% to 24.99%
  • Loan Amounts $2,500 to $35,000
  • Loan Terms 36 to 84 months
  • Recommended Minimum Credit Score no minimum
Pros and Cons
  • No fees to take out a personal loan

  • Offers competitive interest rates for qualified applicants

  • Check estimated loan rate without affecting your credit score

  • Maximum amount lower compared to other lenders

  • Borrowers may need good credit to qualify

  • No co-signers are allowed on applications

  • Origination: none
  • Late payment: $27 for first time, $39 thereafter
  • Prepayment: none

Pros Explained

  • No fees to take out a personal loan – Discover won't charge borrowers origination or application fees. Also, there aren't any prepayment penalties if borrowers want to pay off loans early. 
  • Offers competitive interest rates for qualified applicants – Rates for Discover personal loans start as low as 6.99%. As with any other lenders, the lowest rates are for those who can show responsible financial history alongside other factors. 
  • Check estimated loan rate without affecting your credit score – Discover conducts a soft credit inquiry when offering an initial loan rate and term. There will only be a hard credit inquiry when borrowers submit a full application.

Cons Explained

  • Maximum amount lower compared to other lenders – Borrowers who want to borrow more than $35,000 will need to go with another lender. 
  • Borrowers may need good credit to qualify – Discover doesn't state a minimum credit score for borrowers to be able to qualify for a loan. Its website does mention that those who have the best credit profiles will most likely qualify for the lowest rates. 
  • No cosigners are allowed on applications – For now, only individual applications are allowed, so borrowers won't be able to recruit a cosigner to boost their chances for approval.

Personal loan customers can call Discover at 1-877-256-2632 from 8 am to 8 pm ET, Monday through Friday to request a two-month deferment of payments. Discover will move your next two payments to the end of the loan repayment term and defer all interest, late fees, and negative credit reporting for 60 days.

Types of Personal Loans Offered by Discover Bank

Borrowers can use Discover Bank personal loans for a variety of projects. These include financing large purchases, such as weddings, home repairs, or vacations. Discover personal loans can also be used for debt consolidation and to cover unexpected expenses, such as medical bills or auto repairs. The loan can finance remodeling projects, purchasing recreational vehicles, and more.

For borrowers who are interested in debt consolidation, Discover will send the funds to your creditors directly. You'll be required to use a minimum of 70% of the proceeds toward your existing creditors. Otherwise, your final annual percentage rate (APR) may be impacted.

Time to Receive Funds

Discover Bank borrowers usually receive funds within the next business day if they opt for an automated clearing house (ACH) payment, the loan submission has no errors or typos, and Discover Bank funds the loan on a weekday evening.

However, borrowers may wait up to seven business days if there are errors on the application, funds are requested to be funded by another means, or Discover Bank funds the loan on the weekend. 

Discover Bank Personal Loan Features

Initial Soft Credit Inquiry

Discover offers an opportunity for you to check your rate online without impacting your credit score. The lender will only conduct a hard inquiry when you submit a full application, which could affect your credit score. 

Thirty-Day Money Back Guarantee

Discover allows you to return a personal loan if you are unsatisfied with it for any reason. The loan will be canceled, and no interest will be charged if you mail your cancellation request within 30 days of your loan disbursement, along with a check for the full amount of the loan. 

Repayment Assistance Available

Discover offers borrowers a few repayment assistance programs:

  • Payment Deferral – Discover may let you defer past-due payments until the end of your loan term.
  • Short-Term Assistance – You may be able to make interest-only payments for the next six to 12 months.
  • Long-Term Assistance – Discover may reduce your monthly payment by altering your repayment term. 

Repayment assistance programs are only available to borrowers who have had their account for a minimum of eight months. To receive possible assistance, borrowers will need to call 877-256-2660 to speak to a repayment assistance specialist.

Apply for a Discover Bank Loan

Find out what you may qualify for by getting prequalified on Discover Bank online application form. The following steps are what you can expect from the application process:

  1. Be prepared to provide a few pieces of personal information, such as your Social Security number, email address, preferred loan amount, physical address, and intended loan usage on the online form. You'll also need to include your name, physical address, and preferred loan amount. 
  2. Discover will provide an initial loan offer for you to choose from. Once you pick one, you'll be asked for more personal information.  
  3. Enter additional financial information to save time from filling in additional personal information.
  4. Provide your financial information, including bank account information, proof of income, employer information, and your monthly rent or mortgage payment. 
  5. Provide creditor details if you intend on using your personal loan for debt consolidation. 
  6. Submit the full personal loan application if you've reviewed the terms and want to proceed with the hard inquiry. Discover Bank may contact you for additional information as necessary. 

Alternatively, you can call Discover Bank's customer service hotline at 866-248-1255, and representatives can take your personal information over the phone. 

Can I Refinance a Personal Loan With Discover Bank?

Discover Bank doesn't state in the fine print on its website whether you can refinance your personal loan with it. You may be able to take out an additional loan, but you'll need to contact Discover to find out. 


Discover Bank personal loans offer competitive interest rates with no origination fees, which can save you money throughout the lifetime of the loans. For borrowers who don't want to borrow a large sum of money and wish to repay it over a more extended period of time, this lender may be the right fit.

Before applying for a personal loan, make sure to shop around. Whether you're looking to cover a large expense or consolidate debts, weigh the pros and cons to make sure that you can take on the extra payments, and the loan is an absolute necessity. 


Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of personal loan lenders. We collected over 25 data points across more than 50 lenders—including interest rates, fees, loan amounts, and repayment terms—to ensure that our content helps users make the right borrowing decision for their needs.