Personal loans

Discover the review of personal loans 2022

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Discover the amounts and interest rates of personal loans

Discover personal loan amounts range from $2,500 to $35,000 and can be repaid over three to seven years, depending on the agreement you make with the lender.

Discover’s lowest APR of 6.99% is about the same or lower than comparable lenders. Marcus’ minimum rate is also 6.99% and LendingClub’s lowest rate is 8.05%. Keep in mind that you will need to have good credit to qualify for the best rates.

However, Discover’s best APR of 24.99% sits in the middle of the pack when compared to similar companies. Marcus’ maximum rate is 19.99%, while LendingClub’s is 35.89%. Check what your rates are at different companies before you decide which one to take out a loan from.

Advantages and Disadvantages of Discover Personal Loans

Find out how personal loans work

Discover offers unsecured personal loans that can be used for many reasons, including debt consolidation, home improvement, and vacations. You don’t need collateral, like a house or car, to get an unsecured personal loan.

You can find the application online or over the phone, and you can complete the application in minutes. Discover does not allow co-signers.

Depending on when your application is approved, your money could be received the very next day with Discover. You won’t pay origination fees or prepayment penalties with the company, but you may be charged $39 for late payment.

A unique feature of Discover is its 30-day money-back guarantee. If you decide within 30 days of getting your loan that you no longer want it, you can return the funds by check and you will not be charged interest. This benefit can be useful if you find a lender with a lower rate or end up not needing the loan amount you originally requested.

To contact customer service, call the lender Monday through Friday, 8:00 a.m. to 11:00 p.m. ET, or weekends, 9:00 a.m. to 6:00 p.m. ET. If calling isn’t the best job for you, you can also mail Discover’s address in Utah.

Discover has a well-reviewed app that received 4.8 out of 5 stars on the Apple Store and 4.6 out of 5 stars on the Google Play Store. This is useful if you want to manage your loan on the go.

What credit score do you need for a Discover personal loan?

Discover does not have a minimum credit score to qualify for a loan and will instead make its approval decision based on other financial factors. Other comparable lenders have no specified minimum, such as Marcus of Goldman Sachs and LendingClub. That said, you’ll likely receive a better rate with a higher score.

If you need access to your credit report, you can get it for free from any of the three major credit bureaus on annualcreditreport.com weekly through April 20, 2022. This report will provide information about your payment and credit history, but it will not provide your credit score. Reviewing your credit report can help you spot errors and find areas for improvement.

You can get your score for free on your credit card statement or online account. You can also buy it from a credit reporting agency.

If you check your rates with Discover, your credit rating will not be negatively affected, as the lender will only generate an indirect credit inquiry. However, before your loan is finalized, Discover will perform a thorough credit check, which will likely affect your credit score. A thorough investigation gives the lender an overview of your credit history, but it can affect your credit score.

Is Discover trustworthy?

Discover is a Better Business Bureau accredited company, and the BBB, a non-profit organization focused on consumer protection and trust, gives Discover a A+ rating reliability. The BBB rates businesses by looking at companies’ responses to customer complaints, the truthfulness of advertising, and the transparency of business practices.

However, a top BBB rating does not guarantee a positive relationship with Discover, so check out reviews on the internet and ask friends and family about their experiences with the company.

Discover hasn’t caused any controversy over the past few years. You can feel comfortable choosing Discover as your personal lender because of its clean history and excellent BBB rating.

Discover Personal Loan Comparison

Discovery rates are similar to those offered by comparable lenders, although rates depend on your particular profile. Here’s how Discover compares to the competition:

Neither Discover nor Marcus by Goldman Sachs have a minimum credit score requirement, but if you have a lower credit score, your APR may be higher with Discover than with Marcus. The upper end of Discover’s APR range is 5% higher than Marcus’ range. If your credit is in good shape, you’ll likely pay a similar rate with both lenders.

You won’t pay set-up fees or prepayment penalties with either company, but Discover may charge a late fee of up to $39. If you’re worried about missing a payment, Marcus may be the best option for you.

Marcus offers a loan term range of three to six years, which is slightly lower than Discover’s three to seven year range. Discover’s seven-year repayment term will lower your monthly costs, but you’ll pay more interest over the life of the loan.

Discover has a better APR range than LendingClub, as you can get over 1% lower minimum rate with Discover than LendingClub, and over 11% lower maximum rate. Neither lender has a minimum credit score requirement.

LendingClub’s repayment terms are three or five years, while Discover’s terms range from three to seven years. If flexible repayment options are important to you, Discover may be the best choice.

A distinctive feature of Discover is its 30-day money back guarantee on its personal loans. If you decide within 30 days of receiving your loan that you no longer want it – perhaps you have found a better rate elsewhere – you can return the funds by check and you will not be charged interest.