Discover Personal Loans

Discover Personal Loans is an unsecured personal loan product offered by Discover Bank, the banking subsidiary of Discover Financial Services. Discover Bank is best known for its credit cards but has offered personal loans directly to consumers for a number of years. The loans are available nationally and can be used for debt consolidation, home improvement, major purchases, medical bills, weddings, and other personal needs.

Discover personal loans have no origination fees, no prepayment penalties, and no closing costs, which means you receive the full loan amount upfront and can pay the loan off early without penalty. These terms are competitive compared to lenders that charge origination fees. The absence of upfront fees makes it easier to calculate the true cost of the loan, as you only pay the stated interest rate over the repayment term.

Discover offers a 30-day money-back guarantee on personal loans, meaning if you change your mind within 30 days of receiving the funds and return the full amount, you pay no interest. This is an unusual feature among personal lenders.

The application process is online, and Discover offers pre-qualification that does not affect your credit score. Rates and approval depend on your credit score, income, and other financial factors. Discover personal loans are best suited to consumers with good to excellent credit.

Paying the loan back on schedule is important, as late payments can affect your credit score and trigger late fees. Compare Discover's rates and terms against other lenders including credit unions and online platforms before accepting any offer. Discover Bank is FDIC-insured.