Discover Personal Loans Review
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| Rates (APR) | 6.99% – 24.99% |
| Loan Terms | 3 – 7 years |
| Loan Amounts | $2,500 – $35,000 |
| Fees | Origination fee: None Prepayment penalty: None Late fee: $39 |
Discover Financial Services takes its place as today’s third largest credit card brand in America with roughly 50 million customers. Ever since debuting in 1985, Discover has survived multiple mergers as it grew each decade into a larger company and financial service provider. It was only natural for Discover to expand its products to cover not only credit cards but personal loans as well.
Being a financial services company, Discover specializes in many different types of financial products; personal loans are one of the products in Discover’s extensive repertoire. Competitive rates and loans are offered to devoted Discover customers, and soon-to-be borrowers, who are in need of quick funding for various personal reasons.
Discover’s Personal Loan Offerings
Personal loans are characterized by flexibility in their purposes. This means they can be applied for with just about any sort of reasoning in mind. Discover is more than happy to provide personal loans that fit this criteria since there are plenty of qualified reasons for taking out a Discover personal loan.
One of the most common reasons for a personal loan is debt consolidation. Many borrowers need to get rid of multiple pesky loans or credit debt with several interest rates. A personal loan can cover all of this debt and then be paid off under one interest rate. Borrowers normally save on interest this way.
Other reasons for a personal loan may include expensive life events. One of the most common examples would be a wedding. These can be expensive, so a personal loan is a quick solution to funding the big day. There are other reasons that qualify as a “life event;” for instance, a personal loan can be taken out for a big vacation.
Discover personal loans can be put to uses that include major purchases. This can mean anything such as home improvements, refurbishing, or any expensive upgrades. One common example is a solar panel installation or maybe a new set of couches for the living room.
Loan Amounts
Discover adheres to a common personal loan standard when it comes to available funds. Borrowers can apply for any amount up to $35,000. Those who have better credit history are more likely to qualify for higher loan amounts.
Rates
The annual percentage rates (APR) on a Discover personal loan are decently competitive. Borrowers can qualify for rates anywhere between 6.99% and 24.99%. The minimum is slightly higher than some of Discover’s competitors, but the maximum is lower than average. Those with higher credit scores are more likely to qualify for a lower interest rate. All APRs are fixed.
Repayment Plans
There may be the most payment plan options with a Discover personal loan than any other competitor; for instance, five different options are available. Borrowers can choose repayment plans ranging from 3 years, 4 years, 5 years, 6 years, or 7 years. This is an unprecedented number of options that many competitors do not provide. However, you may want to review other lenders too such as TD Bank and Capital One.
Fees
Possibly the best part about the Discover personal loan terms and conditions is the lack of an origination fee. Origination fees are common for personal loans, but Discover waives this fee. On top of no origination fee, there is no prepayment fee for paying off a loan early, so in addition to saving on interest, a Discover borrower can save on fees.
Benefits
There are plenty of benefits offered by Discover for personal loan borrowers. These range from simple resources providing advice to borrowers to debt calculators.
One of the most helpful benefits of borrowing through Discover is how quickly funds are dispersed. In some cases, approved applications for a personal loan can receive funding as quickly as one business day. This is directly deposited to the listed bank account.
Extensive resources are provided to users who may have questions on how his or her loan works or need advice on how to use his or her loan effectively. Here is an example. There are several resources that help borrowers pick the right lender through Discover, and there is advice on how to stay out of debt. These are meant for borrowers who take out a personal loan for debt consolidation reasons. There are more resources for the other reasons for taking out a loan.
Two different calculators are available as helpful resources: the personal loan calculator and the debt consolidation calculator. The first tool is meant to calculate out the size of monthly payments; additionally, it helps borrowers understand how much interest they will pay over the life of the loan. The second tool helps borrowers figure out how much they need to pay off debt, so it helps them figure out how much to request for a personal loan. These tools compare the differences in cost before and after taking a loan, so borrowers can understand how much they can save from debt consolidation.
Final Thoughts
Discover personal loans have considerable flexibility which makes them more convenient than other competitors. The combination of this with the resources and perks of a Discover loan make these one of the most desirable personal loans on the market.
There are extremely helpful resources for anyone who visits the Discover personal loans website. They help convey the message of just what a personal loan can be used for, and they help the borrower understand how much he or she can save. The end result is a product with a beneficial degree of transparency.
Factoring in other perks makes the Discover personal loan even more desirable. There are more payment plans than any other competitor, and Discover requires no origination fee or prepayment fee. At the end of the day, a Discover personal loan is easily one of the best products in the industry that is backed by a well-established company.
