While some lenders focus on those with bad credit, Discover focuses on borrowers who have good credit and need a loan to consolidate their debt into one payment each month. They have personal loan calculators, which help potential borrowers figure out what they need as well as what they’d be making in monthly payments based on credit score and borrowed amount.
Discover Personal Loans
- A credit score above 660 is required.
- Allows borrowers to track their credit number.
- This lender will pay off creditors, which isn’t always true of other lenders.
- Free tools are available to manage debt.
As well as consolidating debt into one monthly payment, personal loans can be a lifesaver when it comes to major events like paying for a wedding or college tuition. Major emergencies can call for a personal loan too. Personal loans are unsecured because they don’t require collateral. Common collateral for a loan will often be a car of a home, which isn’t required for a personal loan, no matter how much is borrowed.
The person’s credit score and income will determine whether they’ll be allowed to secure a loan from the lender, and what the interest rate will be on the life of the loan. Unlike credit cards, a personal loan doesn’t have a revolving credit amount or interest rate. With a personal loan, the amount as well as the interest is fixed for the loan with the payment terms being the same each month.
You can run the numbers on a variety of amounts to test scenarios before asking for a loan amount. It’s important to do based on the interest rates you will have to pay. You’ll be able to see how it impacts a monthly budget during the repayment term.
It’s important to understand the debt that you’ll be consolidating as well as who repayment will impact your budget each month.
Applying for a Discover Loan
Discover’s borrowers will not be charged origination fees. In fact, there are no fees at all as long as the money is paid on time each month as well as within the time period specified at the time you take out the loan. There are flexible repayment terms where you can choose the repayment plan, which is between 36 and 84 months.
On the site, Discover allows potential borrowers to enter the loan amount as well as their credit score range to get an estimate of the amount they’d like to borrow as well as repayment amounts. This won’t trigger a credit check, which allows borrowers to shop around for the best deals. It’s only when the borrower decides to apply that the credit score might be impacted. On-time payments are reported to the credit bureaus and that can help borrowers build up their credit too.
Lending Terms and Penalties
Borrowers can take out a minimum loan of $2,500 and a maximum amount of $35,000. The loan duration can be between 3 and 7 years depending the time limit that you choose as the borrower. It can take a day to a week to receive the money.
There are no origination, repayment or personal check processing fees for the personal loan. Discover charges late fees and returned payment fees, which will vary depending on the amount charged by Discover, but there might also be bank charges.