Discover's Loan Services: What You Need To Know

Discover offers a wide range of financial products, including personal loans, credit cards, and student loans. Personal loans from Discover can be used for debt consolidation, large purchases, unexpected expenses, home remodelling, or even a vacation. They offer loans ranging from $2,500 to $40,000 with no upfront fees and competitive interest rates. Discover also provides student loans for college and graduate school, helping students find the best loan to fit their needs. However, as of 2024, Discover no longer services student loans, and existing loans have been transferred to Firstmark Services. Discover's credit cards are designed to offer great rewards, including cash-back options and flexible travel cards.

Personal loans

Discover offers personal loans ranging from $2,500 to $40,000. These loans are unsecured, meaning they do not require collateral, and can be used for a variety of purposes. Personal loans are often used for debt consolidation, allowing individuals to pay down their debt at a fixed rate. They can also be used to finance large purchases, such as weddings, vacations, or home remodels. In the event of unexpected expenses or financial emergencies, a personal loan can provide quick access to funds, which can be deposited directly into an individual's bank account.

To be eligible for a Discover personal loan, there are five minimum requirements that must be met. These include possessing a valid U.S. SSN, being at least 18 years old, having a minimum annual income of $25,000, providing a physical address, and having an active email address along with access to a computer or mobile device to complete the online application process. It is important to note that meeting these minimum requirements does not guarantee loan approval, as other factors are considered during the application process, including credit history and recent credit activities.

Discover also offers student loans specifically designed to help college and graduate school students. These loans can assist in covering school-certified costs and come with no fees and competitive interest rates. However, it is worth noting that Discover is no longer servicing student loans, and existing loans have been transferred to Firstmark Services.

In addition to personal and student loans, Discover provides online banking services, credit cards, and other financial products. Their credit cards are known for their rewards programs and flexibility, catering to different customer needs, including those with no credit history or past credit struggles. Discover also offers checking accounts with no monthly fees or balance requirements, providing an attractive alternative to traditional banks that may charge for these services.

Student loans

Discover Student Loans used to provide loans for college students and could help find the loan that was right for the borrower. It offered an assortment of private loans with competitive rates to undergraduate and graduate students. However, Discover stopped accepting student loan applications on January 31, 2024, and has transferred the servicing of its student loans to a third-party provider, Firstmark Services.

Discover Student Loans borrowers can decide whether to make payments while in school. Repayment options include interest-only payments while in school, flat $25 monthly payments while in school, and deferred payment, with no in-school payments required. Discover does not disclose specific requirements or policies regarding its forbearance or deferment due to financial hardship options, but the lender does offer options for borrowers experiencing financial difficulty. If the primary borrower dies or is permanently disabled, the loan is forgiven for both borrowers and co-signers.

Discover Student Loans borrowers should follow the news and communications from Discover closely. While current loans will not be affected for now, borrowers may eventually have to interface with Firstmark Services, the borrower-facing brand for Nelnet, a publicly traded company with experience in the student loan industry.

If you were considering Discover for your private student loan needs, you may want to think about other options. Federal loans are often the best option for borrowers, but private student loans can help cover funding gaps. It is recommended that you exhaust all your other options before you start looking for another private student loan lender. Always look for free money first. Scholarship Search by Sallie Mae can help you find scholarships that match your background, major, and the state you live in. You can also fill out the FAFSA to see what scholarships, grants, and federal student loans you may be eligible for.

Credit cards

Discover offers a range of credit cards with various benefits and rewards. The Discover it® Card is a good option for those with established credit, while the Discover it® Secured Credit Card is designed for those looking to build or rebuild their credit history. This card has no monthly fees or balance requirements and offers cash-back rewards. Discover also offers student credit cards, such as the Discover it® Student Cash Back, which provides rewards at various places students shop, and the Discover it® Chrome for Students, which offers rewards at gas stations and restaurants.

Discover credit cards are widely accepted, with 99% of places that accept credit cards nationwide taking Discover. Cardholders can earn rewards on everyday purchases, such as shopping in-store or online, ordering takeout, or filling up their gas tank. Additionally, Discover offers an interest calculator to help estimate monthly payments, and cardholders can find out if they are pre-approved for a Discover card without impacting their credit score.

Discover no longer offers or services student loans, but they can help students find the best private student loan to fit their needs. Discover also provides personal loans ranging from $2,500 to $40,000, which can be used for various purposes, such as debt consolidation, unexpected expenses, home remodelling, or large purchases. These loans are unsecured, meaning they do not require collateral, and funds can be deposited directly into the borrower's bank account.

Loan rates and terms

Discover offers personal loans ranging from \$2,500 to \$40,000. These loans are unsecured, meaning they do not require collateral, and can be used for a variety of purposes, such as debt consolidation, unexpected expenses, home remodelling, or a vacation. The interest rate for these loans is fixed, which means that your monthly payments will remain the same for the duration of the loan as long as you make the payments on time.

Discover personal loan rates may be lower than credit or store card rates, and they offer a fixed rate and fixed repayment term. This gives borrowers a set regular monthly payment that they can budget for and the benefit of knowing when their loan will be paid in full. The most common types of debt consolidated into a personal loan are credit card and store card debt. It's important to note that a Discover personal loan cannot be used to directly pay off a Discover credit card.

Discover personal loans are available to borrowers with good to excellent credit scores (above 689). The interest rate for these loans is determined by several factors, including the borrower's credit history, application information, and the loan term selected. The higher the credit score, the lower the interest rate and monthly payments are likely to be. Discover does not charge origination fees, and borrowers can choose their repayment term and loan amount.

Discover no longer offers or services student loans. For existing student loans, servicing has been transferred to Firstmark Services.

Loan eligibility

Discover offers personal loans ranging from $2,500 to $40,000. These loans are unsecured, meaning they do not require collateral. To be eligible for a Discover personal loan, you must meet five minimum requirements:

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

Once you meet these minimum requirements, several other factors are considered when processing your application. These factors are similar across most lenders and include:

• Credit score: Your credit score measures your creditworthiness. A higher score indicates that you are more likely to qualify for a loan with better terms. Most lenders require a credit score of 640 or higher to access the best loan terms. Late payments can impact your credit score, so it's important to maintain a solid track record of on-time payments.
• Debt-to-Income (DTI) ratio: Lenders look at your DTI to assess your ability to repay the loan. A high DTI may indicate that you have overextended your finances, making it difficult to repay a personal loan. Lenders typically want to see a DTI below 36%.
• Income: Lenders consider your income to determine if you can afford to repay the loan.
• Credit history: Lenders may require several years of credit history to assess your ability to manage debt responsibly.

It's important to note that different lenders have different requirements for approving personal loans. Some lenders may be more flexible and work with applicants who have lower credit scores or higher debt loads. Additionally, it's worth considering alternative options, such as 0% intro APR credit cards or debt consolidation loans, to ensure you're choosing the best financial option for your situation.

Frequently asked questions