Discover Personal Loan Review
could be a great lender if you have strong enough credit to qualify.
personal loan pros and cons
Taking out a personal loan isn’t a decision to take lightly, and neither is choosing a lender. Consider the pros and cons before going all in.
Pros
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personal loan requirements
Before you pursue a personal loan, you might want to make sure you meet its qualifications first.
Minimum credit score
Minimum annual income
(can be individual or household)
Residency requirements
Must have a valid U.S. Social Security number and be at least 18 years old
Required documents
- Personal invitation ID number (if applicable)
- Proof of household income (such as tax returns)
- Proof of employment
- Bank account routing and account number
- If consolidating debt, your current creditor information, existing balances and account numbers
Other notable requirements
- Must have a valid email address and the ability to finalize your application online (on a computer or mobile device)
- Must have a physical address
If you meet the basic requirements listed above, you may need to disclose how you plan to use your personal loan. While does allow borrowers to use its funding for a variety of purposes, there are certain expenses you cannot put the money toward.
Discover loans CAN be used for… Discover loans CANNOT be used for… - Debt consolidation
- Home improvements and repairs
- Financial emergencies
- Car repairs
- Medical expenses
- Weddings
- Vacations
- Motorcycles and recreational vehicles
- College expenses
- Business funding
- Paying off secured loans (loans that require collateral)
- Paying off Discover credit cards
If ’s loan options won’t work for your borrowing needs, be sure to shop around for a lender that helps you meet your financial goals and can offer you the best-fitting rates, terms and amounts.
How to get a personal loan with
’s application process for a personal loan is easy — just follow the steps below.
Prequalify for a loan
Prequalifying for a personal loan doesn’t guarantee that will approve you, but it may give you an idea of what annual percentage rate (APR) you might qualify for.
During the process, will first ask for your name and contact information. You’ll also need to specify how much money you’d like to borrow, what you need it for and how long you need to pay it back (called your loan term). If you need help with these details, use our personal loan calculator to see how a personal loan may impact your monthly budget.
Then, you’ll need to provide your employment information, basic financial information and your Social Security number (for a soft credit pull). At that point, will let you know if you qualify, and at what rate.
Formally apply
If you like what you see in your prequalification, it’s time to officially apply for a personal loan. In addition to the information above, you may need to provide supporting documents such as pay stubs, bank statements, tax documents as well as a copy of your government-issued ID.
At this time, will run a hard credit check to determine if you are truly eligible for the loan. A hard credit check may decrease your credit score, but usually minimally.
Accept your loan offer
To finalize your loan, you will need to sign your loan contract electronically. This is why requires you to have Internet access to apply. You must also consent to receive electronic notifications regarding your loan. If you don’t complete these final steps, will not send you your funds.
After the paperwork is signed, will either deposit funds into your bank account or pay your creditors directly.
Compare personal loan rates from top lenders in minutes How compares to other personal loan companies
Even if you believe aligns with what you’re looking for in a personal loan, it never hurts to shop around and compare other lenders. Here’s how stacks up against similar personal loan lenders.
LightStream LendingTree’s rating Minimum credit score APRs 6.40% – 25.29% (with autopay) Loan amounts Not specified – Not specified Repayment terms months months 24 to 84 months Origination fee Funding timeline May receive funds as soon as the next business day May receive funds within one to five business days May receive same-day funding Bottom line If customer service and convenience are your top priorities, could be a good fit. The company provides a mobile app to manage your loan and daily customer service availability. charges an origination fee, and its maximum APR is rather high if you have fair credit. However, it may be easier to qualify due to its lower credit score requirement of . LightStream offers larger loans than , but you have to borrow at least Not specified. That means it might not work if you need a small loan. How we rated
We evaluate personal loan lenders on more than just interest rates. Our goal is to show how accessible, affordable, transparent and supportive each lender really is.
Our categories
Every lender is scored out of 5 stars, with 5 stars being the highest rating. LendingTree loan experts determine this score using dozens of underlying data points across four weighted categories covering the full borrowing journey.
We assess how easy it is for people to qualify and apply. This includes state availability, soft-credit prequalification, membership requirements, funding speed and whether borrowers with less-than-excellent credit can get a loan.
We evaluate how affordable the loans are based on minimum and maximum APRs, loan fees and rate discounts. Lenders with unclear or potentially predatory costs receive lower scores.
We consider repayment term flexibility, loan amount ranges and whether options like secured loans, joint loans or direct-to-creditor payments are offered — plus whether the lender clearly communicates these options.
We evaluate borrower experience after funding: customer service access, hardship or forbearance programs, payment flexibility and digital tools like mobile apps or credit monitoring.
Our process
We gather data directly from lenders through their websites, disclosures and direct communication with company representatives. Our editorial team verifies and updates information regularly. We value transparency and award less favorable scores when lenders obscure or omit details.
In some cases, our editors may apply a small adjustment (no more than 4% of the overall score) to account for factors not captured by the methodology. This could include J.D. Power customer satisfaction surveys, recent regulatory actions or features that stand out in ways our rubric doesn’t measure directly.
Our editorial team applies the same scoring model and standards to every lender. Lenders cannot pay to influence our ratings.
Frequently asked questions
has a higher minimum credit score requirement than some lenders. Your score must be at least to be eligible. You also can’t add a second person to your application, a common strategy that can help make it easier to qualify for a loan. If you’re concerned about approval, you can check rates on ’s website, with no impact to your credit.
Maybe, but it depends on your budget and the reason behind your loan. One missed payment can be detrimental to your credit score, so it’s essential that you can pay back what you borrow.
It’s also not great to take out a personal loan for things you don’t absolutely need, or if you have time to save. Saving up for your purchase is ideal since interest rates won’t come into play. Saving up for your purchase is ideal since interest rates won’t come into play. Still, personal loans can be helpful as long as you have a full understanding of how they work and how much they’ll cost in the long term.
As long as you fill out your application completely and accurately, you will typically get an approval decision the same day you apply. After approves you, it may send your funds the next day (depending on when you applied and if you opted for direct deposit).
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