Loans are inevitable. I admit, regardless of how stable my income is at the moment, it’s no surprise that I still might apply for a loan. Personally, loans helped me to overcome certain circumstances, especially when it comes to unexpected things that might break my budget.
But what are loans are and why should we apply for one? In this article, I’ll give you one of the most popular loans today from Discover. The Discover Personal Loan has been helping many families and individuals for years.
But, can anyone apply for this? Let me give you a detailed explanation of what this loan is and how it works. Read on for more details.
- About Discover Personal Loan
- Benefits Of Discover Personal Loan
- Discover Personal Loan Fees
- How To Apply
- How Do Discover Personal Loans Compare To Other Financial Companies?
About Discover Personal Loan
Discover provides unsecured personal loans for customers, like me, with good credit that may be used for practically any reason. The bank’s application process is quick and entirely digital.
Discover can transfer money in as few as one working day if the application is accepted, and as a customer, I can handle repayments using the Discover app. Discover’s rates are higher than those offered by other lenders to similar applicants, owing to the lack of an autopay discount.
Other benefits include a more extensive variety of repayment terms, refinancing possibilities, a free monthly credit report, and a 30-day loan guarantee from the lender.
If I’m a borrower with high to outstanding credit ratings, who desire repayment flexibility, or who need money fast, I should choose a Discover Personal Loan.
Features Of Discover Personal Loan
Discover gives me the option of checking my rate online without affecting my credit score. It also enables me to repay a personal loan if I am dissatisfied for whatever reason.
If I send my cancellation request together with a cheque for the entire loan amount within 30 days after disbursement, the loan will be canceled, and no interest will be charged. Discover offers different repayment help programs, such as Payment Deferral, Short-Term, and Long-Term Assistance, which are available with personal loans.
The duration of the term varies from 6 to 84 months, according to the loan I applied for and a variety of criteria, such as my credit score and background. As a borrower who has had my own account for at least eight months, I’m eligible for repayment aid programs.
Benefits Of Discover Personal Loan
The bank’s 30-day money-back assurance is one of the advantages of utilizing Discover. If I conclude within 30 days that I do not need the loan, I can refund it to Discover in full, without paying any interest. Within 30 days of approving the loans, I must return the loan balance by check by mail.
If Discover already had delivered money directly to my creditors, this 30-day assurance would not apply. I won’t be able to receive that cash back, and in that instance, I’ll have to repay Discover with my own cash.
Additionally, as a Discover borrower, I have access to the Discover ScoreCard, which is a free online gateway where I can check my FICO credit score and learn more about what is helping and harming my credit score.
I may pay without incurring any costs via automatic withdrawal, cheque, wire transfer, online bill pay, mail, phone, or a variety of other options. During the duration of my loan, I’m also allowed to modify my payment due date twice, enabling me to fit repayment into my schedule better.
More Benefits And Some Drawbacks Of Using Discover Personal Loan
While the lender imposes extra payments on the first day my repayment is late, I may contact a Discover representative about flexible repayment alternatives if I’m having difficulties repaying the loan. Finally, Discover has no prepayment penalties, so I may pay off my loan early and save money on interest.
Though the Discover Personal loan provides many advantages, it’s essential to keep in mind that it also has some disadvantages. First and foremost, the loan is only available to applicants with excellent credit.
Discover needs a credit score of 660, with the average borrower having a credit score of 700 or higher. Another disadvantage of this loan is that it requires no co-signers. Discover does not accept co-signers; thus, I may have to go for another loan if I do not qualify.
Discover Personal Loan Fees
When applying for a credit card, it is important to know the fees and interest charged. Below is a list of fees that come with the Discover Personal Loan.
- APR – 6.99% to 24.99%
- Loan Amounts – $2,500 to $35,000
- Loan Terms – 36 to 84 months
- Late Payment Fee – $39
Aside from these, with Discover loans, there are no upfront costs. Discover has no early payoff costs, so I may make extra payments to pay off my loan faster without incurring any penalties or incurring future interest.
Who Are Eligible To Apply For Discover Personal Loan?
Since Discover Personal Loan has gone mainstream due to its slew of perks for borrowers like myself, an increasing number of individuals are curious to find out if they are eligible to apply.
To qualify for this loan, I must be a United States citizen or permanent resident at least 18 years old. A minimum household income of $25,000 is also required. Discover will consider my credit history, application information, the intended use of money, and repayment capacity before making a loan offer.
How To Apply
Discover has an automated personal loan application procedure, and I’ll be able to verify my rate without it impacting my credit score. To find out what my rate is, I’ll need to know how much money I’ll need and how I’ll spend it.
I’ll also have to provide my private and contact information to apply for Discover Personal Loan. If I utilize the loan to consolidate debt, the bank will ask for more account information, including my household income, work history, bank account information, and creditor information.
After I submit my application, a Discover employee may contact me to verify my information, and the bank may conduct a hard credit pull, which may impact my credit score. I’ll get my money in a few days if I’m accepted.
Is Discover Personal Loan Worth Trying?
Discover is a trustworthy company when it comes to business licenses and certification. The bank is a Better Business Bureau-Accredited corporation with an A+ rating for dependability. The BBB assesses a company’s trustworthiness by looking at how it responds to consumer complaints, advertises truthfully, and is transparent about its business operations.
On the other hand, a perfect BBB rating does not guarantee a happy connection with Discover, so I read online reviews and ask friends and relatives about their experiences with the company.
Over the last few years, there have been no problems surrounding Discover. Because of its clean past and high BBB rating, as a client, I feel confident choosing Discover as my loan provider.
How Do Discover Personal Loans Compare To Other Financial Companies?
Because Discover Personal Loan appears to be too good to be true, I’ll discuss some other financial companies that provide the same type of personal loan to help customers, like me, compare them to Discover Personal Loan. Let’s start with LendingClub.
It is a viable personal loan alternative. LendingClub, unlike Discover, needs only a 600 credit score and no minimum income to qualify. I may borrow up to $40,000 from this lender, with APRs ranging from 8.05% to 35.89% and repayment terms of three to five years. LendingClub, on the other hand, takes longer to fund, typically at least seven days.
Let’s look at another example, Earnest. If I’m a borrower who requires personal loans for reasons other than debt consolidation or who wants a cosigner on my application may consider this option. Earnest does not have rigorous credit, debt-to-income, or income criteria, unlike other lenders.
Instead, the lender searches for working borrowers with sufficient resources and cash flow to sustain loan payments and is debt-free. Earnest has a variety of APRs ranging from 5.99% to 17.24%.
Discover Contact Information
To find out more about the Discover Personal Loan, it is advisable to contact the bank directly. Discover can be contacted using the following details.
Phone Number: 1-866-248-1255.
Mailing Address: PO Box 30200 Salt Lake City, UT 84130-0200.
As a borrower, I have various factors in deciding when I take out a personal loan, such as how much cash I need, how fast I can repay it, and how much interest I have to pay. This loan is perfect for those who try to take advantage of next-day financing and flexible payoff plans since it has a payback period of up to seven years and reasonably moderate interest rates for those with good credit.
Disclaimer: There are risks involved when applying for and using loans. Ensure you consult the lender’s terms and conditions page before agreeing to anything.