Advertiser Disclosure
Best Lender for Long Loan Terms
- Loan Amount
- $2,500 to $35,000
- Credit Needed
- Fair Credit (660)
Discover offers personal loans of up to $35,000 to borrowers in all 50 states. The lender boasts no fees as long as you pay on time.
- Discover has no fees other than a late fee.
- Loan periods of up to 84 months are available.
- Borrowers get free access to their FICO credit score.
- Co-signers are not accepted.
- Personal loans require a minimum FICO credit score of 660, which is at the high end of fair credit.
The majority of Discover customers take out a personal loan to consolidate high-interest debt, says Dan Matysik, vice president of Discover Personal Loans. Other common uses include:
- Home repairs or improvements
- Medical bills
- Other major purchases
If you take out a loan for debt consolidation, you must use at least 70% of the loan amount to pay off your debt. Instead of issuing you the full loan amount, Discover will pay off your debt directly.
Discover offers fixed-rate personal loans from $2,500 to $35,000. Repayment terms range from 36 to 84 months.
Discover doesn’t charge origination or prepayment penalties. It does, however, charge a late fee of $39 if you miss your payment due date. Borrowers can change their due date up to two times during their loan repayment, as long as the changes occur at least 12 months apart.
Discover requires a FICO credit score of 660, but the average borrower has a score of 747. Borrowers must also have a minimum annual income of $25,000.
“There are many other factors that are considered, in addition to credit score,” says Matysik, including income, credit history and other information provided on the loan application.
Discover offers a Check Your Rate feature, which allows borrowers to see if they qualify and find out their rate without a hard credit check. Co-signers are not accepted.
Discover has an A+ rating with the Better Business Bureau. In 2018, the Consumer Financial Protection Bureau received seven personal loan-related complaints about Discover, which provided a timely response for every complaint.
The Discover personal loan process can be completed entirely online. Preapproval, application, closing and account management can all be done through the lender’s website.
If you're dissatisfied with your experience, you can return your loan funds to Discover within 30 days and pay no interest.
- People who have at least a 660 FICO credit score
- People who want to avoid loan fees
- People who prefer to apply for and close a personal loan online
Comparative assessments and other editorial opinions are those of U.S. News and have not been previously reviewed, approved or endorsed by any other entities, such as banks, credit card issuers or travel companies.