Discover Personal Loans Reviewed in Depth

Discover personal loans

Discover Bank is an intriguing company with a long history. They came into existence when Discover Financial Services bought Greenwood Trust Company in 1985. Greenwood was owned by Sears, the retail icon, at the time. The rebrand included the issuance of a brand-new credit card, one that now competes with Visa and Mastercard.

What Are Discover Personal Loans?

Discover is a full-service digital bank. They offer bank accounts, credit cards, and personal loans to their customers. They also issue debit cards and provide ATM access to funds through a global network of banking and merchant partners. Discover personal loans have flexible terms, great rates, and no upfront fees. Funds can be available the next day after approval.  

Pros of this lender

  • No closing costs or origination fees
  • The loan term can be 36 to 84 months
  • Customers get free access to their FICO® Score

Cons of this lender

  • No co-signers are allowed
  • The minimum credit score for personal loan approval is 660

Services Offered by Discover Bank

Discover Bank offers unsecured personal installment loans with repayment terms ranging from three to seven years. They also issue student loans, home equity loans (HELOCs), and mortgage refinancing. For banking services, Discover Bank offers checking accounts, savings accounts, money market accounts, and IRA Certificates of Deposit (CDs).

Customer Details

Customer Qualifications for Discover Personal Loans

Discover Bank Has Higher Credit Score Requirements

Discover Bank was the recipient of the 2023 “Best Personal Lender” Award from US News for offering the lowest rates to qualified borrowers. Under their guidelines, that means anyone with a credit score of 660 or above, which is the high end of the “fair” ranking. Borrowers are also required to be 18 or older and have a household income of $25,000 a year or more.

Terms, Conditions, and Fees

Discover Bank doesn’t charge an origination fee for their personal loans, but they do charge a $39 late fee if your monthly payment isn’t made on time. Loan amounts can be anywhere from $2,000 to $40,000. The annual percentage rate, which includes fees, ranges between 6.99% and 24.99%, dependent upon the creditworthiness of the borrower. 

Restrictions and Limitations

Borrowers looking to consolidate debt with their Discover personal loan must send at least 70% of the loan amount directly to their creditors. Other than that, there are no significant restrictions on what the funds can be used for other than not using them for illegal activities. Personal loans cannot be used to refinance federal student loans.

How do you apply for a Discover Personal Loan?

Discover Bank can be accessed online at or through their mobile app which is available at the App Store and Google Play. You can check your rate at either of these locations without worrying about any impact on your credit score. Approvals typically happen within a few minutes and funds can be available in your bank account within one business day.  

Does Discover Bank Lend to Credit-Challenged Borrowers?

Discover Bank has higher standards than many of its competitors. Their minimum credit score requirement is 660, which is just 10 points shy of “good” credit on the FICO® credit score scale. That means they are not a good option for credit-challenged borrowers. Prospective borrowers who don’t meet the minimum requirements may be able to get a Discover it® Secured Card. 


Customer Timeline When Working with Discover Bank

Approval for a Discover personal loan can be obtained within a few minutes after submitting the online application on their website. Fund transfers take one to three days, depending on who the borrower banks with. Repayment terms can be 36 months (3 years), 48 months (4 years), 60 months (5 years), 72 months (6 years), or 84 months (7 years).

Kevin D. Flynn

Kevin D. Flynn

Kevin D. Flynn is a former financial professional, business coach, and freelance financial writer. He lives in Leominster, Massachusetts with his wife Evelyn, two cats, and ten wonderful grandchildren. When he’s not working, you’ll find him at the golf course or on his back porch reading classic sci-fi novels.

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