Discover

Discover Personal Loans - Rates, Fees and Requirements

Discover is one of the few big banks that still offers personal loans with no fees at all. It is a strong choice if you have good credit and want to consolidate debt, but you'll need a score of at least 660, and the loan can't be used to pay off a Discover or Capital One card. Discover is now part of Capital One.

Pros

• No origination, late or prepayment fees
• Loans up to $40,000 with terms of up to 7 years
• Can pay your other creditors directly for debt consolidation
• Available in all 50 states

Cons

• Requires good credit (660+) and at least $25,000 in income
• No co-signers or co-borrowers
• No autopay or loyalty rate discount
• Can't pay off Discover or Capital One balances

Types of Discover loans

Today Discover only offers one kind of loan: the unsecured personal loan. You can use it for:

• Debt consolidation: pay off credit cards and other debts with one fixed monthly payment. Discover can pay your creditors directly.
• Home improvement: repairs or renovations without using your home as collateral.
• Major expenses: a wedding, a vacation, a medical bill or another large purchase.

You can't use it to pay off a Discover or Capital One account.

Loans Discover no longer offers

• Home equity loans and mortgage refinancing: Discover stopped taking applications in July 2025, after Capital One bought it. Since February 2026, existing home loans are serviced through yourmortgageonline.com, with the same terms and payments.
• Student loans: Discover no longer makes or services student loans.

Discover personal loan terms explained

• APR (6.99% to 24.99%): your exact rate depends on your credit score, income and existing debt. The best rates go to borrowers with excellent credit. The rate is fixed, so your payment never changes.
• Amount ($2,500 to $40,000): you can't borrow less than $2,500. If you need a smaller amount, a personal loan from Discover is not the right fit.
• Term (36 to 84 months): a longer term lowers your monthly payment but means you pay more interest in total.
• Fees: none. No origination fee, no prepayment penalty and no late or returned-payment fees, so the APR is the full cost of the loan.
• Collateral: none. The loan is unsecured, so you don't risk your car or home.
• No co-signers: you must qualify on your own credit and income.

Example: borrowing $15,000 for 5 years at 12% APR costs about $334 a month and roughly $5,000 in interest. The same loan from a lender with a 5% origination fee would cost $750 more.

Discover personal loan requirements

To qualify for a Discover personal loan you need:

• To be at least 18 years old
• To be a U.S. citizen or permanent resident
• A credit score of 660 or higher
• A household income of at least $25,000 a year
• A U.S. bank account to receive the funds

Discover also looks at your debt-to-income ratio. Even with a 660 score, a high balance on your other debts can mean a higher rate or a denial.

How to apply for a Discover personal loan, step by step

1. Check your rate. Go to discover.com and enter the amount, the purpose and your basic details to see your estimated rate.
2. Gather your documents. Have your ID, Social Security number, and income details (pay stubs or tax returns) ready.
3. Submit the application. Most applicants get a decision the same day. Discover may ask for documents to verify your income or identity.
4. Accept the offer. Choose your term and decide whether the money goes to your bank account or directly to the creditors you want to pay off.
5. Get the money. Funds arrive as soon as the next business day after you accept.
6. Set up payments. Your payment is the same every month, and you can pay the loan off early without a penalty.

Discover and Capital One: what changes for customers

Capital One completed its purchase of Discover on May 18, 2025. Discover still offers personal loans under its own name, and you still apply on discover.com.

• Personal loans: no announced changes to terms. The only new rule is that a Discover loan can't pay off a Capital One account.
• Credit cards: accounts are moving to the Capital One website and app in waves. Cash back balances, rates and the rotating 5% categories stay the same, and most cardholders keep their card number.
• Checking and savings: still offered by Discover, with no monthly fees and no minimums.
• Home equity loans: discontinued in July 2025 (see above).

Capital One has said it expects Discover personal loan volume to keep shrinking through the end of 2026 while it finishes the integration.

Is Discover legit? Reputation and regulation

Yes. Discover Bank is an FDIC-insured bank and is now part of Capital One, one of the largest U.S. banks. Its personal loans get strong reviews from independent sites; NerdWallet rates them 4.8 out of 5.

The bank has faced regulatory action, mostly on its card business:

• 2025, card misclassification: the FDIC found that for about 17 years Discover labeled millions of consumer cards as business cards, which overcharged merchants by more than $1 billion. It ordered at least $1.225 billion in restitution and a $150 million penalty; the Federal Reserve added a $100 million penalty. This affected merchants, not loan customers.
• 2012, credit card add-ons: the CFPB and FDIC ordered about $200 million in refunds over how Discover sold add-on products such as payment protection. That order has since been terminated.

Neither of these actions involved its personal loans.

FAQ

Does checking my rate with Discover hurt my credit?

No. Checking your rate uses a soft inquiry, which doesn't affect your score. A hard inquiry happens only if you accept an offer and complete the application.

What happens if I miss a payment?

Discover doesn't charge a late fee, but interest keeps building and a payment 30 or more days late can be reported to the credit bureaus and lower your score.

Is a Discover personal loan better than a balance transfer card?

It depends. A 0% balance transfer card is cheaper if you can pay the debt off during the promotional period. A Discover loan gives you a fixed rate and a fixed end date, which helps if you need several years.

Can I get a Discover personal loan with bad credit?

Unlikely. You need a score of at least 660, so borrowers with fair or bad credit should look at lenders that specialize in lower scores.