You can’t use a Discover personal loan to directly pay off a Discover credit card or any secured loan. 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. Debt consolidation assistance: Discover makes it easy to consolidate debt by sending your personal loan funds directly to your creditors.citizen or permanent resident who’s at least 18 years old to get a Discover personal loan. Its minimum required credit score is 660, and its minimum required annual income is $25,000 for an individual or household. 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.ĭiscover reviews your credit, income, debt-to-income ratio, and other factors when evaluating you for a personal loan. If you ask to receive your funds by check, the process will take a little longer. Once your application is approved, Discover can distribute the funds as soon as the next business day via an electronic ACH transfer. If you apply on a weekend, you might have to wait until the next business day to receive a decision. Time to Receive Fundsĭiscover can approve your loan the same day you apply as long as your application is not missing any information. 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. 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. There are some restrictions on how you can use the loan proceeds. Paying for home improvements and large purchases were the next two most common reasons. You can use a Discover personal loan for almost any legal purpose, including:Īccording to Investopedia’s 2023 Personal Loan Borrower survey, debt consolidation is the most common reason cited for getting a personal loan. Borrowers with the strongest credit will get the best rates, while weaker-credit borrowers will get worse rates or will not qualify. Instead, Discover reviews your credit, income, debt-to-income ratio, and other factors when evaluating your loan application. Types of Personal Loans Offered by Discoverĭiscover offers unsecured personal loans, meaning these loans don’t require you to apply with collateral. 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.ĭiscover lets a borrower pay off a personal loan over the course of 36 months to 84 months.There’s no option to add a co-signer or apply for a joint personal loan. 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. ![]() 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.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.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.Flexible repayment terms: With a Discover personal loan, you can select loan terms ranging from three years (36 months) to seven years (84 months).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.Fast funding times: If you’ve fulfilled all the application requirements, you could receive the money in as little as one business day.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. ![]() Take advantage of pre-qualification by checking your rates with multiple lenders.
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