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Discover provides a long list of things its personal loans can be used to finance. For example, the company suggests using a loan to remodel your home, adopt a child, undergo in-vitro fertilization (IVF), make auto repairs, or fund the opening of a small business. One of the most popular uses of a Discover Personal Loan, though, is debt consolidation. That may be because Discover makes the process so easy. Find out if a Discover Personal Loan is right for you in our full review.
Discover is a consumer-friendly lender that offers competitive rates to qualified applicants. Discover knows that financial decisions are complex; if you change your mind and return your loan within 30 days, it won't cost you a thing.
No cosigners accepted
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This personal loan is a good fit for: Those with strong credit scores looking for debt consolidation support and long repayment terms.
Low APR: Discover's lowest APR is in line with several of our top lenders. Because of this, highly qualified applicants can save money -- particularly those who plan to consolidate high-interest debt.
No origination fee or prepayment penalty: A lot of lenders make money upfront by charging a loan origination fee, which can be as high as 8% of the amount borrowed. Discover does not charge this fee -- and it also doesn't charge a prepayment penalty (a fee for paying off your loan early). This sets a good precedent for how it treats borrowers. A couple of lenders don't even charge late payment fees, but note that Discover is not one of them.
Debt consolidation support: If you're approved for a debt consolidation loan with Discover, it will pay your creditors for you -- a nice perk. In addition, a Discover Personal Loan gives you a free credit scorecard that shows your FICO® Score, the number of recent credit inquiries, and more. It's a great way to watch your credit score improve as you take greater control over your debt.
Small loans available: Discover allows borrowers to take out loans for as little as $2,500. That's not the lowest loan amount, but it may be enough to cover unexpected expenses. Say your car breaks down and you don't want to borrow more than you need or can afford. Discover's relatively low minimum might help.
Flexibility: Discover offers personal loans for $2,500 to $40,000 with loan repayment terms of 36 to 84 months. This range allows you to target a specific monthly payment that you know you can afford. It also allows you to tackle large projects or small projects with the same ease of application. While the ability to control your monthly payment is a nice perk, keep this in mind: The longer the term, the more interest you will end up paying over the life of the loan.
Available for a variety of needs: Discover Personal Loans can be used for more than paying off high-interest debt. A Discover loan may also come in handy when it's time to pay off taxes or medical bills, finance home repairs, or pay for big-ticket items.
Getting a quote won't hurt your credit score: Discover can offer you a loan quote by conducting a soft credit check, which won't hurt your credit score. It's not until you accept the loan that it orders a hard pull to verify your information.
Cosigners not accepted: The minimum household income required for a Discover Personal Loan is $25,000, and the minimum credit score is 660. However, neither of those minimums qualify you for the best personal loan interest rates. If you need a cosigner to qualify for better rates, make it a point to look at other lenders.
Upper interest rate: Discover's upper interest rate is actually similar or even lower than many lenders, but it is a high rate, nonetheless.
Directions:
You can apply for a Discover Personal Loan online or by phone. Here's how.
The decision to take out a personal loan can feel huge. Compare lenders, determine precisely what you want to do with the funds, and make a plan for repaying the loan as quickly as possible. The more thought you put into it, the happier you're likely to be with the experience.
The most common use for a Discover Personal Loan is debt consolidation. Discover makes it easy by paying off your creditors directly.
As with all loans, the lowest rates are reserved for highly qualified applicants. If your credit score is excellent, you have a chance of landing the lowest rates available.
One of the first things Discover will ask is how you plan to use the funds. You will then be asked to provide your Social Security number, recent pay stubs, bank statements, and photo identification.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Please note that this calculator is not personalized financial advice and should not be considered or used as such. Nor are we promising that by use of this calculator, will you be able to save more money, preserve wealth, or otherwise.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
Please note that this calculator is not personalized financial advice and should not be considered or used as such. Nor are we promising that by use of this calculator, will you be able to save more money, preserve wealth, or otherwise.
Citi Personal Loan disclaimer:
**Rates as of 10-06-2023 . Your APR may be as low as 10.49% or as high as 19.49% for the term of your loan. The lowest rate quoted assumes excellent credit, and a loan term of 36 months or shorter. Otherwise, a higher rate will apply. For example, if you borrow $10,000 for 36 months at 15.99% APR, to repay your loan you will have to make 36 monthly payments of approximately $351.52.
There is a 0.5% APR discount if you enroll in automatic payments at loan origination. Additionally, existing Citigold and Citi Priority customers will receive a 0.25% discount to the interest rate. If you are in default, your APR may increase by 2.00%. No down payment is required. Rates subject to change without notice.
You must be at least 18 years of age (21 years of age in Puerto Rico). Co-applicants are not permitted. Loan proceeds cannot be used for post-secondary educational or business purposes.
If you apply online, you must agree to receive the loan note and all other account disclosures provided at loan origination in an electronic format and provide your signature electronically.
Credit cards issued by Citibank, N.A. or its affiliates, as well as Checking Plus and Ready Credit accounts, are not eligible for debt consolidation, and Citibank will not issue payoff checks for these accounts. If you are unsure of the issuer on the account, please visit https://www.citi.com/affiliatesproducts for a list of Citi products and affiliates.
*SoFi Personal Loan Disclaimer
Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.
Loan amounts range from $5,000–$100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive.
Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.
Impact to credit score: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
*Upstart Loan Disclaimer
The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646 including a $626 origination fee. APR is calculated based on 3-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.