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Discover loan amounts and interest rates
Discover personal loan amounts range from $ 2,500 to $ 35,000 and can be repaid over three to seven years, depending on the agreement with the lender.
Discover’s lowest APR of 6.99% is roughly the same as or lower than comparable lenders. Marcus’ minimum rate is also 6.99% and LendingClub’s lowest rate is 8.05%. Remember, in order to qualify for the best rates, you need good credit.
However, Discover’s peak APR of 24.99% is in the midfield when compared to similar companies. Marcus’ peak rate is 19.99% while LendingClub’s is 35.89%. Before you decide which one to take out on a loan, see what your prices are like with different companies.
This is how Discover works
Discover offers unsecured personal loans that can be used for many reasons including Debt consolidation, Home improvement, and vacation. You don’t need collateral like a house or a car to get one unsecured personal loan.
Depending on when your application is approved, your money can be in Discover the next day. You will not pay any processing fees or prepayment penalties to the company, but you may be charged a late payment fee of $ 39.
A unique feature of Discover is the 30 day money back guarantee. If within 30 days of receiving your loan you decide that you no longer want it, you can return the money by check and no interest will be charged. This benefit can be helpful if you can find a lender with a lower interest rate or if you don’t need the loan amount originally requested.
To contact customer support, call the lender Monday through Friday from 8:00 am to 11:00 pm ET or on the weekend from 9:00 am to 6:00 pm ET. If calling isn’t the best work for you, you can email Discovers Utah by email.
Discover has a well-rated app that received 4.8 out of 5 stars in the Apple Store and 4.6 out of 5 stars in the Google Play Store. This is useful when you want to manage your credit on the go.
You must meet the following requirements to apply for a personal loan with Discover:
- Be at least 18 years old
- Be a U.S. citizen or permanent resident
- Have a minimum household income of at least $ 25,000
The pros and cons of Discover personal loans
How to Get a Discover Personal Loan
You can find the application online or by phone and fill it out in a few minutes. Discover does not allow co-signers. To apply for the first time, you will need basic information, including:
- birth date
- Contact information including your address, phone number, and email
- Your personal ID number if you have received an offer in the mail
- Household income
- Employment history
- Bank account number and sort code
- Creditor information when using the debt consolidation loan
Discover may require several documents from you in order to verify your information, including:
- A bank statement
- Current pay slips
- A business email address
- Direct contact with your employer
After you have submitted an application and your loan has been approved, you can get your money as early as the next business day.
What creditworthiness do you need to qualify for a Discover loan?
Discover does not have a minimum credit rating to qualify for a loan, but makes its approval decision based on other financial factors. Other comparable lenders do not have a set minimum, such as Marcus from Goldman Sachs and LendingClub. However, a higher score is likely to get you a better price.
If you need access to your credit report, it can be obtained for free from any of the three major credit bureaus annual credit report.com weekly through April 20, 2022. This report provides information about your payment and credit history, but not your credit history. Reviewing your credit report can help you spot mistakes and identify areas for improvement.
You can check your score on your credit card statement or online account for free. You can also buy it from a credit bureau.
Checking your rates with Discover will not negatively affect your credit score as the lender just creates a gentle loan request. However, before your loan is finalized, Discover performs one hard credit requestwhich is likely to affect your creditworthiness. A hard query gives a lender a full view of your credit history, but it can affect your credit score.
If you want to get a Discover personal loan but need to improve your credit score, here are a few steps you can take to improve your credit score:
- Obtain and review a copy of your credit report. Check your report for errors that could affect your score. If so, ask Schufa to correct the errors.
- Maintain low credit card balances. If you maintain a loan utilization rate – the percentage of your total loan you have used – of 30% or less, you are showing lenders that you can handle your credit responsibly.
- Design a system for paying bills on time. Your payment history is a significant part of your credit history, and lenders want to see consistent and reliable payments in the past. Set up calendar reminders or automatic payments to make sure you don’t skip any of your commitments.
Is Discover Trustworthy?
Discover is a Better Business Bureau accredited company, and the BBB enters Discover A + in trustworthiness. The BBB assesses trustworthiness by reviewing companies’ responses to customer complaints, veracity in advertising, and openness to business practices.
However, a top BBB rating doesn’t guarantee a positive relationship with Discover, so check out the reviews online and ask friends and family about their experience with the company.
Discover has had no controversy in the past few years. You can feel comfortable choosing Discover as your personal lender because of its clean history and great BBB rating.
How does Discover compare to other personal lenders?
Discover rates are comparable to those offered by comparable lenders – although the rates depend on your particular profile. How Discover compares to the competition:
Discover the rating vs. Marcus by Goldman Sachs rating
Neither discover nor Marcus from Goldman Sachs has a minimum credit rating, but if you have a lower credit score your APR may be higher on Discover than on Marcus. The high end of Discover’s APR range is 5% higher than Marcus’. If your credit is in good shape, you will likely pay similar interest rates with both lenders.
There are no processing fees or prepayment penalties with either company, but Discover may impose a late fee of up to $ 39. If you are concerned about the possibility of missing a payment, Marcus might be a better option for you.
Marcus offers a loan period of three to six years, which is slightly shorter than Discover’s three to seven years. Discover’s seven year repayment period allows you to reduce your monthly expenses, but pay more interest over the life of the loan.
Discover the review vs. LendingClub review
Discover has a better APR range than Lending Clubbecause you get a minimum rate of over 1% and a maximum rate of over 11% lower with Discover than with LendingClub. No lender has a minimum credit requirement.
LendingClub’s repayment terms are either three or five years, while Discover’s terms are between three and seven years. If flexible repayment options are important to you, Discover might be a better choice.
A special feature of Discover is the 30-day money-back guarantee on its personal loans. If within 30 days of receiving your loan you decide that you no longer want it – you may have found a better interest rate elsewhere – you can return the money by check and no interest will be charged.
Ryan Wangman is a Review Fellow at Personal Finance Insider reporting on mortgages, refinances, bank accounts, bank reviews, and loans. In his previous personal finance writing experience, he wrote about creditworthiness, financial literacy, and home ownership.