Personal loans are becoming common among those who want some extra funds to meet their personal financial requirements. It can be anything from a wedding to a house renovation, or from consolidating other debts to paying off medical bills. They are unsecured loans that help you in time of need.
Discover has some exciting offers attached to its personal loans. To start with, the lender does not charge any processing fee. It has flexible repayment terms and fixed rates, so your monthly payments remain the same for the entire loan term. Discover’s loan specialists design loan terms as per customer requirements.
How to apply for a Discover personal loan?
In order to apply for a personal loan, you will have to fill up an application form available on the bank’s website and see if you qualify for a loan. Customers can select a loan amount anywhere between $2,500 and $35,000 and find out their personal loan rate. The bank offers fixed rate of interest starting from 6.99% to 24.99% APR. The rate depends on individual’s credit score, loan amount and the loan term chosen.
It further asks customers for personal information such as name, address, phone number and email address. The next page would instruct customers to fill all details regarding their employment and present financial conditions, including household income and expenses. Customers will have to enter their SSN number and date of birth to proceed.
The last step is to provide an e-signature stating that you want the bank officials to contact you and the information submitted is true to your knowledge. Once you click the submit button, the bank would verify the information provided. You may receive a call from a Discover loan specialist, who would guide you further and help you apply for the best loan suiting your budget.
How to use personal loan calculator?
Discover provides two different calculators. The first is a personal loan calculator used for estimating monthly payments. Customers can use this calculator to see how much they will have to pay each month if they opt for a Discover personal loan.
The second is a debt consolidation calculator used to find out how much of interest you could save if you choose to opt for a Discover debt consolidation loan. The calculators can be accessed here or you can use the calculator provided at this website.
Using both the calculators are simple. In order to use a personal loan calculator, you will have to enter the loan amount, purpose of the loan and your credit score. Once you click on ‘Estimate Payments’ tab, you would see your monthly payments for different loan terms. For example, if you borrow $3,000 for an auto repair and have a good credit in the range of 670 to 739, your monthly payments would come up to $103 for 36 months, $82 for 48 months and so on.
The longer the loan term, the lesser will be your monthly payment, but you will be indirectly paying more in the form of interest. The results in the above example are based on 13.99% fixed APR. Similarly, customers can use the debt consolidation calculator, enter the type of debt, current balance, current APR and current monthly payment.
Simply by clicking on ‘Estimate Savings’ tab, Discover would show you how you could pay off your existing debts with an estimated saving and lesser loan term. You can call Discover’s loan specialists on 1-866-248-1255 Monday to Friday 8am to 11pm ET and Saturday-Sunday 9am to 6pm ET to know more about personal loans.
Discover Personal Loans for Bad Credit
Discover usually offers personal loans for good credit borrowers. This means that those with poor credit might find it difficult to qualify and be eligible for a loan. The lender’s minimum requirement is 660, but the average borrowers have a credit score of 750.
The bank entertains only those customers who are good in managing their finances. They often look at the customer’s income, qualification and financial background before approving a loan. Customers with subprime credit might have to look for other lenders or improve their credit score before approaching Discover.
In a Nutshell
Discover can be an excellent choice for those with good credit and customers who need a flexible repayment option. There is no prepayment penalty if you decide to repay the loan in full. However, it charges a late payment fee of $39, which is higher than other lenders.
Discover does not seem to welcome all kinds of borrowers. It is therefore recommended to check your credit score before approaching Discover for a loan. If you have an excellent credit, Discover personal loan can be the right choice.
|Loan Amount: $|
|Interest Rate: %|
|Monthly Payment: $|
|Total Payment: $|