Explore Personal Loan FAQs

A personal loan has many different uses. Because funds can be deposited directly into any of your bank accounts, you can use a personal loan in a variety of ways. Personal loans are often used for debt consolidation, so you may be able to pay down your debt at a fixed rate. A personal loan can also help finance a large purchase, like a wedding, a vacation or a home remodel. If you're facing an unexpected expense or a financial emergency you can get the funds you need with a personal loan. You can also use a personal loan to cover medical bills, adoption or IVF, auto repairs, and more.

Discover® Personal Loans lets you check your rate before you apply. Your interest rate is determined by many factors, including your application information, your credit history, and the loan term you select.

In the most general terms, the higher your credit score is, the lower your interest rate and monthly payments may be. Your interest rate is determined at the time of application based on the information you provide. 

Some lenders charge customers a fee for processing and originating the loans—this is an origination fee. This fee is deducted from the total amount of the loan, so if your lender charges origination fees, remember to account for that when you request your total loan amount. Discover Personal Loans does not charge origination fees.

With a Discover personal loan, you get a fixed rate. That means you'll lock in your interest rate, so your monthly payments will remain the same for the duration of your loan, as long as you make the monthly payments on time. This is typically the key difference between a line of credit and a personal loan.

With a Discover personal loan, there are no application or origination fees. In addition, there are no prepayment penalties if you decide to pay your loan off early.

Nearly all lenders in the US, including Discover, use a FICO® Score among other information when they make their credit decisions, and they have for more than 20 years. That's why Discover Personal Loans provides a FICO® Score, as opposed to another type of credit score. Regularly seeing your score can help you prepare for the future, stay on top of your credit, or avoid surprises. For more information, visit our Credit Scorecard FAQs page.

FICO is a registered trademark of Fair Isaac Corporation in the United States and other countries.

Yes. Consolidating your higher-interest debts with a Discover personal loan may be a smart decision because it could save you hundreds — even thousands — of dollars on higher rate debt. We can send the funds directly to many creditors in the case of debt consolidation, or the
funds can be deposited into any of your bank accounts in as little as one business day after acceptance. It cannot be used to pay for post-secondary education, to pay off a secured loan, or to directly pay off a Discover credit card. Simply provide account numbers, payoff amounts and payment addresses, then we'll take care of the rest.

See how much you could save with our debt consolidation loan calculator.

During the loan application process, you can tell us which accounts you'd like us to pay directly. We’ll handle sending funds directly to those creditors. We will need information such as account numbers, amount you'd like paid, and payment address information to take care of paying creditors for you. You can provide this information during the application process, either online or while speaking to one of our loan specialists.

If you have any remaining money in your loan, those funds can be deposited directly into any of your bank accounts.

Rates vary depending on the card, however, Discover personal loan rates may be lower than credit or store card rates, so by consolidating higher-rate credit card debt, you could save money on interest.

Additionally, our loans offer a fixed rate and fixed repayment term, giving you a set regular monthly payment you can budget for. You also get the benefits of having one monthly payment with a fixed rate and a clear, defined knowledge of when your loan will be paid in full.

The most common types of debt to consolidate into a personal loan are credit card and store card debt. Secured loans, like home and auto, cannot be consolidated. Also, a Discover personal loan cannot be used to directly pay off a Discover credit card.

When you consolidate your variable rate debt into a Discover personal loan, you get the added benefit of a fixed rate, fixed term loan.

When you take out a Discover personal loan to consolidate debt, you use the funds from your loan to pay off your other debt. Depending on the amount of your loan, you’ll be left with x to x in debt, payable to one lender. Then you have just one regular monthly payment instead of multiple bills with different due dates.

Loans for debt consolidation may have lower interest rates than high-rate loans or revolving debt like credit cards, department store cards, and gas cards. Plus, a Discover personal loan has a fixed rate and a fixed repayment term. This could help you save money on interest while you pay down your debt.

With a fixed rate loan, you could lock in an interest rate that might be lower than what you're currently paying on your outstanding balances. This means you could pay less in interest over time. Additionally, a fixed rate loan can lower your monthly payments to help you save money on interest each month, and it may help you pay down your debt faster. Read more about consolidating debt.

Getting a loan to consolidate debt can be a smart way to pay off your credit card balances, higher interest loans, and other bills. Because your goal is to eliminate debt, a debt consolidation loan can help in the long term. Since credit bureaus look for a credit mix, having an installment loan may impact your credit health by adding a fixed loan to your revolving credit. In the short term, the debt consolidation loan may affect your credit because you're opening a new account and taking out a new line of credit.

Wondering if a debt consolidation loan is right for you? You can review your rate and monthly payment before you apply. Just check your rate. It's quick and easy. And it won't affect your credit score.

The debt consolidation loan calculator totals up the debts you input and, using your average interest on that debt, estimates how long it would take to pay it all off if you continue to simply make your current monthly payments. It also estimates how much you'd spend on interest if you continued to pay down your debt in this way. Then, the calculator estimates your pay-down time and total interest paid if you were to get a debt consolidation loan with the estimated rate shown for the calculation.

This helps you compare your current situation to what might happen if you consolidated your debt. Your rate may vary based on the information contained within your application. These numbers are for comparison purposes only.

There are two very common ways to consolidate credit card debt. You can transfer your other credit card balances onto one credit card with a balance transfer. Or you can get a personal loan for debt consolidation and use it to pay off your balances. There are other ways to tackle credit card debt, but either way, consolidating could help you save money and pay down your credit card debt faster.

A Discover personal loan cannot be used to directly pay off a Discover credit card.

Yes, in most cases with a debt consolidation loan, we can send funds directly to your creditors or you can receive a check in the mail to pay them off yourself. With a student consolidation loan, we will send funds directly to your current lenders. A balance transfer can also send funds to most credit card or loan companies.

Debt consolidation may help you lower your monthly payment or under certain circumstances decrease the amount of interest you pay, but this depends on your financial situation and your ability to make your monthly payments.

Paying off higher-rate debt is critical for financial health. The most important thing is to pick a method for paying off debt and stick with it. Your dedication can give you peace of mind, open up new financial opportunities, and put you on a path toward a more rewarding future.

If you have debt in the form of higher-rate credit cards or loans that you’re struggling to pay off, consolidating that debt into one loan with a lower fixed rate can help. You could save money on interest and pay off your debt faster. 89% of surveyed debt consolidation customers told us they paid off existing debt sooner with a Discover personal loan.

ABOUT SURVEY All figures are from an online customer survey conducted in September 2024. A total of 736 Discover personal loan customers were interviewed about their most recent Discover personal loan with 546 of them using the funds to consolidate debt. All results @ a 95% confidence level. Respondents opened their personal loan between January and July 2024 for the purpose of consolidating debt. Agree includes respondents who ‘Somewhat Agree’ and ‘Strongly Agree’. For debt consolidation, even with a lower interest rate or lower monthly payment, paying debt over a longer period of time may result in the payment of more in interest.

A personal loan is an unsecured loan, so you don't have to borrow against the value of your home. It's quick and easy to start the application process — most people get a decision the same day. This is important if you have an unexpected repair and need to start your project right away.

A personal loan can cover any home remodeling or repair-related cost, whether you want to make a cosmetic update or need to make necessary or emergency repairs. You can also use funds as a green energy loan to install solar panels or upgrade to energy-efficient appliances or systems. 

Discover personal loans range from x to x; the amount of your loan will vary based on your eligibility. With home repairs, don't forget to include a contingency fund in your total renovation budget. You may need more than your estimate to cover unexpected costs that come up throughout your project.

Need to borrow more? A Discover home loan might be right for you.

Yes, personal loans can be used for wedding financing — and for financing any of life's big events. Because you can choose both your repayment term and your loan amount, from x to x, a personal loan can cover wedding costs now while you get fixed monthly payments that work with your budget.

You can cover any wedding-related cost. From the big-ticket items like the venue and the caterer down to decor and gowns or tuxedos, a personal loan can help you finance the entire event. You can also use a personal loan to pay for the engagement ring or honeymoon financing.

You can get a loan in any amount from x up to x. When you estimate how much you'll need based on your wedding budget, don't forget to include enough for gratuity, taxes, and any other last-minute costs.

A vacation loan is a personal loan used for financing travel. Because you get a fixed rate and can choose your repayment term to determine your monthly payments, a vacation loan can be a smart way to finance a big trip or a once-in-a-lifetime experience.

Starting the application process is quick and easy, and results in a same-day decision in most cases. If your application is approved, your funds can be sent as early as the next business day after acceptance. So whenever you're ready to pay for your trip, a vacation loan from Discover can be there to help you.

Yes, you can take out one personal loan and use it in many ways. Because funds can be disbursed as a lump sum, how you use your personal loan is at your discretion.

Yes, a personal loan can help cover medical bills that your insurance may not. Families may face expenses that some insurance plans may not cover, like braces or extensive dental work. A personal loan can also help finance corrective or cosmetic surgeries that may not be covered by insurance.

Discover Personal Loans does not make auto loans. If you're buying a motorcycle or RV, a personal loan can help you finance the purchase. 

Our personal loan calculator estimates a monthly payment based on the loan amount, term and the credit score you select. Your actual payments will also be determined by your interest rate.

There are five minimum requirements to be eligible for a Discover personal loan. You must:

1. Have a valid U.S. SSN.
2. Be at least 18 years old.
3. Have a minimum individual or household annual income of at least $25,000.
4. Have a physical address.
5. Have an active email address and access to a computer or mobile device to finalize your application online.

Once you meet those minimum eligibility requirements, several other factors are considered when processing your application. These include the information you provide on your application and information from credit bureaus (which includes your credit history, recent credit activities, and credit inquiries registered to your name).

There is no guarantee that you will be approved for a loan when you submit an application. Loan applications are reviewed based on creditworthiness at the time of application. Please see the minimum requirements to meet eligibility for a Discover personal loan.

You can qualify for a Discover personal loan if you are unemployed provided you meet our application eligibility criteria.

No collateral is required to qualify for a personal loan.

Interest rates for a Discover personal loan are determined on a case-by-case basis. They are based on creditworthiness at time of application for loan terms of 36-84 months. Many factors are used to determine your rate, including your credit history, application information, and the term you select. A lower interest rate does not always mean a less expensive loan — you'll also want to understand the total lifetime costs of your loan.

Discover uses multiple resources to confirm income and employment status:

To verify income: Documents like recent pay stubs or bank statements can serve as income verification. In certain situations, we may use third-party vendors to confirm that information.

To verify employment status: Discover may use your work email address or contact the employer you listed in your loan application. In certain situations, we may use third-party vendors to confirm employment.

The fastest way to get additional documents sent is to take advantage of our Secure Information Portal option. This convenient online process allows you to send supporting documents directly into our system.

We'll ask you to log into your application first, using your 15-digit reference # and last four digits of your Social Security Number. You'll then be guided to upload your documents. 

Secure Information Portal

You may also mail or fax supporting documents to:

Fax:
1-224-813-5200
1-800-161-1140

Mail:
Discover Personal Loans 
PO Box 30954 
Salt Lake City, UT 84130

Verifying income helps confirm that the loan amount and repayment timeline you request fit within your financial situation. We want to help you set up a personal loan which you can afford that can help you meet your financial goals.

Most people get a decision the same day as long as their application is complete and there is no missing information.

No. Because Discover personal loans are only for individual borrowers, co-borrowing is not permitted.

You can get started in minutes. You can submit your application online using our secure website or call 1-866-248-1255 to talk to a Discover loan specialist who can start your application right over the phone. You will need to go online to Discover Personal Loan's application portal to finalize your loan. After you are fully approved, you will need to use your mobile device or computer to go online to consent to receive electronic communications and accept your loan. Without this consent, we cannot take your application. If you have a Personal Invitation ID # you should use it to complete your application here. 

When you apply, you'll follow these three steps:

1. Determine the loan amount and payment term that best fit your budget.
2. Gather your basic personal information and apply online or by phone. Once your application is received, a loan specialist may call you to confirm your information and verify final details.
3. Upon approval, you’ll be able to tell us how you would like to receive your funds and to enroll in Autopay before you accept the terms of your loan.

Learn more on how to apply for personal loans here

You'll need the following information to complete your application:

• Your Personal Invitation ID # (if you received an offer in the mail)
• Household income information
• Employment history
• Bank account number and routing number to have your funds deposited directly into your checking or savings account
• Creditor information (including balances and account numbers) if you're using the loan to consolidate debt

Including complete information on your application helps us process your request more quickly so we can get back to you with a decision promptly.

You can apply for as little as x or up to a maximum of x.

Discover does not do business with loan brokers, nor do we charge a fee for a loan application. Qualifications for a Discover personal loan are based on a person's income and credit profile. 

If you have more questions about the loan application process through Discover, please call our customer service and we would be happy to help.

Yes. We'll let you know the estimated APR, loan amount, and payment term if you are approved for a loan. You'll be able to review the full details to make sure it's what you had in mind before you accept the loan.

During the loan application process, you'll have the opportunity to tell us how you want the funds disbursed. We can:

• Choose which creditor(s) you want, and we can send the funds directly to many of them.
• Have the money deposited directly into your bank account.

If for some reason we are unable to disburse some or all of your loan as you instructed, then Discover reserves the right to either issue you a check for the difference or credit your loan account for the amount which we were unable to disburse.

Money can be sent as soon as the next business day once you’re approved and accept the loan, provided:

• The application submitted has no typos or errors
• The loan is funded on a weekday night
• The funds are disbursed electronically to your checking or savings account only

If there are errors on your application, the loan is funded on a weekend, or you request funds be delivered by another method, disbursement of your personal loan funds can take longer.

Here are the best ways to speed the process for your Discover personal loan:

• Submit a completed application which follows all instructions and directions
• Verify bank account numbers for accuracy
• Provide an email address or other contact information where we can quickly reach you with any questions

If additional documents are required, returning them as quickly as possible can also help avoid delays.

Occasionally when funds are sent directly to creditors or banks, delays may occur based on outstanding information from those financial institutions. You can always check the status of your loan online.

Check application status

That's one of the advantages of a Discover personal loan. There are no prepayment penalties to worry about. So you can make extra payments or pay off your loan early if you'd like.

Yes. Discover Personal Loans does not charge prepayment penalties. This means you have the choice to pay more than your regular monthly payment or make extra payments along the way.

With a Discover personal loan, there’s no prepayment penalties, which means you can pay off your loan as early as you like.

Generally, payments will be first applied to any accrued and unpaid interest, then toward the principal balance. If you have a balance of late fees, part of your payment may be applied to them after you have satisfied your New Amount Due and any Amount Past Due.

We're here to help you, whether you've had a temporary financial setback or a long-term hardship.

Please visit our repayment assistance programs webpage or call us today:
U.S. 1-877-256-2632
TDD 1-866-710-3357

Absolutely. At Discover, we strive to be flexible to help you manage your money in the way that works best for you. To that end, we have several different options for making your monthly payments. Those options include:

• Mobile app
• Automatic payments
• Secure Account Center
• Automated phone call
• Speak directly to a representative
• Mail
• Wire transfer
• Electronic bill pay with your bank

Account statements will be mailed approximately 20 days prior to your monthly payment due date. To help with budgeting, you do have the option to choose any due date between the 3rd and 27th of the month. To request a different monthly payment date or to sign up for paperless statements, please visit the secure online Account Center.

Log in to Account Center

Yes. Download our free Discover mobile app to your iPhone or Android device and log in to access your account.

You can also log in via the Discover Personal Loans website on your smart phone.

Simply click on the link that says “Forgot Username/Password” from any account login page.

Yes. This is a popular and easy option to help you pay on time. Simply enroll in our free automatic payment program option. (You can sign up at any time.)

The automatic payment program withdraws your regularly scheduled monthly payment from your checking or savings account. (Of course, if you'd like to pay off your loan quicker, you can set up larger payments.)

It's a popular option because you'll never need to worry about whether you mailed your payment on time and you can rest assured it won't be late.

As a valued Discover Personal Loans customer, you can adjust your payment date to a day that works better in your monthly budget. Make this update by logging in to your account or calling us.

Secure online Account Center:
Log in to Account Center

or call:
U.S. 1-877-256-2632
TDD 1-866-710-3357

Please note: You may request a due date change two times during the life of your loan, and there must be a minimum of 12 months between each request.

You can conveniently update your account 24/7 with our secure online Account Center, accessible from desktop, mobile and tablet devices. Once you register, you can:

• See your statements
• Set up Account Alerts
• See your loan balance and posted transactions
• Make or schedule payments
• Enroll in paperless statements
• Get your FICO® Credit Scorecard
• Enroll in our Automatic Payment program
• View or send secure messages

There is no cost and your information will be kept confidential.

Log in to account center