Discover Personal Loan Review: Debt Consolidation

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Whether you’re looking to consolidate debt or you need extra funds for a major event or a big purchase, Discover personal loans offer a convenient online application and simple upfront terms that provide flexibility to applicants with fair to good credit ratings. Discover also offers personal loans for weddings, vacations, major purchases, auto repairs, medical expenses, taxes, credit card refinancing, debt consolidation or green loans for household improvements.

Discover’s Debt Consolidation Loans Offer:

  • Flexible terms for optimal budgeting
  • The ability to combine multiple credit cards and loans into one monthly payment
  • Lower fixed rates let you pay high-interest debts off faster

This Loan Isn’t Ideal For:

  • Recent grads
  • Applicants who are unemployed
  • Applicants with poor credit/no credit

Discover’s personal loans for debt consolidation are comparable to many traditional lenders. You get a fixed annual percentage rate (APR) based on your creditworthiness. Because Discover is a traditional lender, applicants have access to the loans in all 50 states. Flexible terms and a lower maximum fixed APR set Discover’s products apart from many competitors. If you’re interested in personal loans for bad credit, this loan isn’t for you; to qualify, you need fair to good credit.

Getting a Discover Personal Loan in Four Steps

Before you fill out the application, visit the Discover website to enter your desired loan amount and estimated credit score range to get an estimate of the fixed APR and monthly payments you can expect without having to run a formal credit check. Before you apply, it’s helpful to take note of Discover’s main requirements for approval, which include having a minimum credit score of 675 and a minimum annual income of $25,000.

Step One: Apply

Complete the application online or by calling 1-866-248-1255 to complete the application over the phone with one of Discover’s loan specialists. As you fill out the application, the website prompts you to enter your contact information and personal information that’s necessary to perform a credit check. It also asks you to provide information about the use of the loan, the amount of money you want to borrow and your desired loan term.

Discover’s debt consolidation loans offer repayment terms that extend from 36 months to 84 months. For a lower payment, choose a loan that you pay back over a longer period. For example, James needs a loan for $10,000 and he has a “good” credit rating, which Discover defines as a score between 660 and 699. According to the personal loan calculator, he could opt for a 36-month loan with a monthly payment of $342, based on an APR of 13.99%.

If this doesn’t work for James’s budget, he can choose a longer repayment period. Based on the same scenario, his payments would be:

  • $273 for 48 months
  • $233 for 60 months
  • $206 for 72 months
  • $187 for 84 months

Although a loan with a longer term offers lower payments, you can expect to pay more in interest over the life of the loan. If James chooses the 36-month loan, he pays a total of $12,312. If he chooses the 84-month loan, he pays a total of $15,708, which is $3,396 more in interest.

Step Two: Review Your Options

Unlike a secured loan, you don’t need to use anything as collateral for Discover’s debt consolidation loans. After you complete the application, expect to verify your identity over the phone. Discover makes the approval decision quickly, sometimes within one minute of submitting the application. After approving the application, Discover offers you an interest rate based on your creditworthiness. You then have the option to accept it or turn it down.

In most cases, even after the loan is approved, you need to provide supporting documentation to complete the process. Examples include pay stubs, bank statements and tax returns, which verify your identity and provide proof that you meet the minimum income requirements.

Step Three: Receive Your Money

Many applicants receive their funds on the next business day, although the process can take up to 10 business days in some cases. Discover gives you the option to receive the funds via direct deposit or have them paid directly to your creditors.

Step Four: Make Monthly Payments

Discover reports the payment history of its loan holders to the three major credit bureaus: Equifax, Experian and TransUnion. Making timely payments is an important way to establish or maintain a positive credit history. The APR Discover assigns you remains fixed throughout the life of the loan. Additionally, Discover doesn’t charge a prepayment penalty and gives you 30 days to return the money without any interest accrual.

Personal Loans: Compare Rates & Lenders

When you’re looking for personal loans, it’s crucial to do your homework and compare the rates, fees and other important details among popular loan options to make the most informed decision. Additionally, avoid borrowing more than you’re able to repay. If the monthly payment doesn’t work within your budget, find one that does.



If you’re looking for personal loans for debt consolidation, your wisest option is a 0% interest balance transfer card, which lets you consolidate your high-interest balances to pay them off faster and for less money. If that’s not available to you, getting a personal loan with a fixed interest rate and clear repayment terms can help you pay off your debt faster to improve your finances. To maximize the benefits of consolidating your debt, avoid taking any new debt on until you pay down your new loan.

Caryn Anderson
Caryn Anderson combines extensive behind-the-scenes writing experience with her passion for all things food, fashion and finance. Anderson honed her craft while earning her B.S in Communication Studies from New York University.

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