Loans » Personal Loan Lender Reviews » Discover Personal Loans Review 2021
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Discover Personal Loans Review 2021

Discover personal loans are backed by a large bank with billions of dollars in assets and is a major provider of credit products. Read our review of Discover Personal Loans - how do they work, what can a personal loan be used for, Discover application Process and Discover loan pros & cons.
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Some products that appear here are from companies from which this website receives compensation. This may impact how and where products appear on this site (including, for example, the order in which they appear). This compensation allows us to maintain a full-time, unbiased editorial staff. Our opinions are our own.

In this Review..

Discover is one of the leading U.S online banks. It offers customer service based 100% in the USA. Discover offers a variety of products including personal loans with competitive rates and no origination fees. 

You can use a Discover personal loan for various reasons, from financing a large purpose, such as home repairs or a wedding to debt consolidation. You can also use your personal loan to cover unexpected expenses, remodeling your home or purchasing a new vehicle. 

If you want to use a Discover loan for debt consolidation, Discover will send funds directly to your creditors. You will need to use at least 70% of your loan for your existing creditors, or your final APR may be impacted. 

Discover personal loans are available for $2,500 to $35,000. However, the available loan amount will depend on factors such as your credit score. Loans are offered at a fixed rate ranging from 6.99% to 24.99%. But, Discover does not offer a rate discount for those who enroll in autopay. The repayment terms range from 36 to 84 months. 

Discover may focus on debt consolidation but their personal loans have many different uses such as vacation and wedding expenses.


6.99% – 24.99%

Loan Amount

$2,500 – $35,000


36 to 84 months

Min score


Discover Personal Loans is a product offered by Discover Bank. The bank was started in 1985 by Sears as a credit card. The company was owned by a few large companies before spinning off as its own company in 2007.

Discover Personal Loans is a mass market provider of personal loans with a focus on debt consolidation and financial educational resources. Discover is a very large player in the personal loan space and is a large public bank with billions of dollars in assets and in revenue. Discover offers many different products that most large banks provide.

Discover Loan Pros & Cons

As we know, each lender has its own pros & cons – here are the relevant things we found for potential borrowers:



Loan Details

Loan Amount Range
$2,500 – $35,000
Interest Rate Range
6.99% – 24.99%
36 to 84 months
Origination Fee
Late payment Fee
Returned payment Fee
Prepayment Fee
Minimum Income
$25,000 annually
Minimum Credit Score
1 to 7 days

What Can a Discover Personal Loan Be Used For?

Discover personal loans can be used to pay for debt consolidation, vacations, wedding expenses, or home improvements. They cannot be used for any post-secondary education expenses.

Discover personal loans can be used for home repairs or renovations. The advantage of using a Discover personal loan for home improvement is the promptness of receiving the funds.

Typically, it takes a month or more to get an equity line of credit on your home. Discover personal loans also offer loans for green improvements. Discover has information on how “green” upgrades can save you money and improve your home.

A Discover personal loan for vacations offers a way to get money for your vacation without having to deal with credit cards or worry about every dime during travel.

This includes everything from family vacations to international travel and cruise vacations.

Discover personal loans focus on helping borrowers pay down debts. Debt consolidation loans with Discover require 70% of the loan to be paid to the creditor directly. If you don’t, the rate may be higher. If 70% of the loan does not go to the creditor, it could even result in a decline.

Debt consolidation is seen as wiping out debt and if you have lots of credit card or other debt and do not pay it off, Discover could decline the loan outright. Discover’s website has a very useful tool, the debt consolidation calculator, which you can use to see if a Discover loan may be right for you.

Using Discover personal loans for an engagement ring will reduce the overall cost of one of the biggest purchases of your lifetime. You can also use Discover personal loans for wedding expenses, including your reception and honeymoon.

Application Process

The minimum application requirements are that the borrower must be a US citizen or a permanent resident who is at least 18 years of age and makes at least $25,000 a year. Discover aggressively markets their personal loans, mailing out millions of invitations to apply.

Discover Personal Loans

They have a large customer base, marketing to those who use their credit cards or other banking products. You do not need an invitation to apply. You can apply online or by phone.

Discover Personal Loans

Even if you apply online, you will have to speak to a Discover representative. You can do a soft pull online to see what kind of rate Discover will offer to you. You will need basic personal information such as income, employment and banking information.

Discover Personal Loans

If you are planning to consolidate debt, Discover will require creditor information, including balances and account numbers.

Discover Personal Loans

 The application process for Discover personal loans usually takes 1 to 7 days. In some cases they will require additional information in order to verify identification and/or income.

Discover Personal Loans Discover Personal Loans

Discover may focus on debt consolidation but their personal loans have many different uses such as vacation and wedding expenses.


6.99% – 24.99%

Loan Amount

$2,500 – $35,000


36 to 84 months

Min score


Alternatives Lenders For Consideration

Here are our 3 choices of lenders which can use as a great alternative to Discover personal loan: 

Earnest is a subsidiary of Navient and has been around since 2013. This company offers loans to “financially responsible” applicants. The company offers competitive rates from 5.99% with no fees. You can use your Earnest personal loan for any purpose.

You can take out an Earnest personal loan for amounts between $5,000 and $75,000. However, if you’re a resident in California, the minimum loan amount is $10,000. Earnest offers fixed rates that ranges from 5.99% to 17.24% APR. However, Earnest offers no additional discounts.

Earnest offers loan terms of three, four and five years. There are some qualification requirements for an Earnest personal loan. This includes:

  • A minimum credit score of 680
  • Proof of consistent income
  • History of payments made on time
  • No open collections accounts
  • No bankruptcy declarations in the last three years.

Upgrade is an online direct lender established in 2017. The company offers both personal loans and lines of credit called “Upgrade Card”. To date, 8 million people have applied for an Upgrade personal loan or Upgrade Card.

According to representatives, Upgrade looks for a credit score of at least 620. However, the company may consider other factors to establish your creditworthiness.

One issue to be aware of is the Upgrade fees. While there is no prepayment fee, Upgrade charges an origination fee of 2.9 to 8% on personal loans. There is also a $10 late payment fee, which applies after a 15 day grace period.

This company mostly caters to people with great credit. They offer fixed rate loans to consolidate debt with a two to five year repayment period. The lowest interest rates are typically reserved for borrowers with the best credit scores.

FreedomPlus is one of the few lenders willing to offer joint or co-signed loans to those with poor credit. Approximately 30% of FreedomPlus borrowers have taken advantage of this, as it helps borrowers to access lower interest rates.

For example, if you qualify for a loan at 15% interest, it may reduce to 10% if you use a co signer with good credit.

Discover Personal Loan is Best for..

Discover personal loans are backed by a large bank with billions of dollars in assets and is a major provider of credit products. They have competitive rates and terms with no origination fees. 

Discover may focus on debt consolidation but their personal loans have many different uses. It a mass-market product that can be of use to almost anyone.

Compare Rates

Loan Amount


Credit Score


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Loan Reviews Methodology

When it comes to choosing personal, student or car loans, we make sure that we evaluate all of the different products and services that are available for the lender we review. 

The Smart Investor’s selection of loan providers for inclusion here was made based on key areas we evaluated: loan types and loan products offered, fees, and APR. We also considering customer satisfaction and reliable external ratings such as J.D power/Trustpilot.

Cutting fees is now table stakes in the personal and student loans market. In addition, the most valuable loan products tend to offer a deep bench of options that meet a wide array of customer needs. These include a diverse range of loan amounts and terms, as well as loan structures. We also make sure that you’re going to save money by cutting down on the APR that goes along with the loans offered.