See what personal loan offers you qualify for

The first thing you’ll want to do is check what APR and payment you can expect. Don’t worry, this won’t have any impact on your credit score.

Tell us how you plan to use the loan
Amount you want to borrow
How long you need to pay it back
Provide some personal info
You’ll enjoy a lower APR if you use the loan for debt consolidation because you’ll be creating less new debt.

Complete a personal loan application

You’ll be presented with a few loan options to choose from — and can then apply in minutes. Here’s what you’ll need:

Income and employment information for verification
Bank account and routing numbers for direct deposit
Balances and accounts for creditors if you’re consolidating debt
Once your application is received, a loan specialist may call you to verify your info and final details.

Get an approval decision

We’ll let you know the APR, loan amount and payment terms if you’re approved. You’ll then be able to review the full details before you accept.

Receive your funds

Once approved and accepted, your funds can be sent as soon as the next business day to:

Pay off creditors directly if you’re consolidating debt
Or deposit into your bank account
If, for some reason, we’re unable to disburse as you requested, we would either issue you a check for the difference or credit your loan balance.

Pay off your loan

Save money with a lower interest rate and simplify with a single, fixed monthly payment.

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Convenient payment options
Enroll in automatic payments, set up electronic bill pay with your bank, or make payments online, by phone or by mail.

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No prepayment penalties
Make extra payments and pay off your loan early. Any payments that exceed your monthly minimum are applied to your principal balance.



Full Review of Discover® Personal Loans

Discover offers unsecured personal loans for borrowers with good or excellent credit (scores above 689). Loans are available nationwide and can be used for almost any purpose.
Discover accepts personal loan applications online or over the phone with a Discover loan specialist. If approved, Discover can deposit the funds in as little as one business day, and borrowers can manage loan payments from a mobile app.
Unlike some competitors, Discover doesn’t offer rate discounts; however, the lender has other perks like a wide range of repayment terms and a free monthly credit scorecard.
» MORE: Compare personal loan options
Table of Contents

Discover loans at a glance
Where Discover personal loans stand out and fall short
Do you qualify for a Discover personal loan?
How to apply for a Discover personal loan
How Discover personal loans compare
How we rate Discover personal loans


Where Discover personal loans stand out
Debt consolidation: Discover is a good option for debt consolidation. The lender offers an online consolidation calculator that shows potential savings with a Discover personal loan. If approved, Discover will send loan funds directly to your creditors within one business day. A Discover personal loan, however, cannot be used to pay off a Discover credit card.

Customer support: Discover has a team of U.S.-based loan specialists available seven days a week during extended business hours to answer questions. Customers can also access the Discover Online Account Center to view their payment progress and begin the payoff process at any point in the loan term.
Refinancing option: Borrowers can use a Discover loan to refinance an existing personal loan from Discover or another lender. If you qualify for a lower rate, you could save money on interest and pay off your debt faster.

Where Discover personal loans fall short
No rate discount for autopay: Unlike other lenders, Discover doesn’t offer a discount for setting up automatic payments. A discount usually ranges from 0.25 to 0.5 percentage points, lowering the loan’s annual percentage rate.
Late fee: Discover may charge a $39 late fee for payments not received by the due date. Some lenders charge zero fees or offer a grace period for making a payment past its due date.
No co-sign, joint or secured loan options: Discover offers unsecured personal loans only, which means you cannot add a co-borrower or co-signer or secure a loan with collateral. These options typically help borrowers get approved and receive a lower rate or larger loan amount.

Do you qualify for a Discover personal loan?

Discover says it reviews credit history, recent credit activities and credit inquiries when evaluating an application. Here are Discover’s basic eligibility requirements:
Minimum credit score: 660.
Minimum individual or household annual income: $25,000.
Must be at least 18 years old.
Must be a U.S. citizen or permanent resident.
Must have an active email address and access to the internet to finalize the application.
Before you apply
Check your credit. You can get your free credit report on NerdWallet or at 9jahitsongs Doing so will help you spot and fix any errors before you apply.
Calculate your monthly payments. Use a personal loan calculator to determine what APR and repayment term you’d need to get a loan with affordable monthly payments.
Make a plan to repay the loan. Review your budget to see how the loan’s monthly payments impact your cash flow. If you have to cut other expenses to repay the loan, it’s better to know that before you borrow.
Gather your documents. Discover requires proof of income, which can be a W-2 or pay stub, as well as bank account details and a Social Security number. Having this information handy can speed up the application process.
How to apply for a Discover personal loan
Here are the steps to apply for a Discover loan.
Pre-qualify with Discover over the phone or online. You’ll be asked how much you want to borrow, the loan term and what the funds are for, and some personal information like your name, address, income and employment. There’s no hard credit pull at this stage.
Preview loan offers and accept the one that fits your budget. Once you find a loan offer that works for you, you’ll submit a formal personal loan application. This could require verification with documents like W-2s, pay stubs and tax documents. Discover will do a hard credit check when you apply, so your credit score could temporarily dip. After applying, a loan specialist from Discover may contact you to confirm the information you provided.
Make a plan to repay the loan. Discover reports payments to all three major credit bureaus (Equifax, Experian and TransUnion), so on-time payments will help build your credit score, but missed payments will hurt it. Setting up automatic payments and keeping an eye on your budget are two ways to manage your loan payments.


Compare Discover with other lenders
Personal loan lenders offer different rates, loan amounts and special features, so it pays to weigh other options. The best personal loan is usually the one with the lowest APR.
Discover is one of the best options for borrowers with excellent credit, but SoFi and LendingClub are strong lenders with wider options.
Discover vs. SoFi
Both SoFi and Discover offer borrowers fast funding and the convenience of managing a loan with an app. SoFi offers an autopay rate discount, has no required fees and accepts co-borrowers on a loan. However, SoFi’s starting rates and minimum loan amounts are higher than Discover’s.

Discover vs. LendingClub
LendingClub boasts a wider loan amount range than Discover, but its loan terms can be shorter. LendingClub also accepts lower credit scores. Discover’s APR range is lower and it doesn’t charge an origination fee.


How we rate Discover personal loans
9jahitsongs writers rate lenders against a rubric that changes each year based on how personal loan products evolve. Here’s what we prioritized this year:



Debt consolidation is when a borrower takes out a new loan, usually with more favorable terms (a lower interest rate, lower monthly payment or both) and then uses the loan proceeds to pay off their other individual debts. Debt consolidation loans are commonly used to help pay off credit card balances, auto loans and other personal loans.





Debt consolidation is a debt management strategy that involves rolling one or multiple debts into another form of financing. For instance, you may take out a debt consolidation loan or balance transfer credit card and use it to pay off existing debts with better terms.

Ideally, you’ll want to consolidate your debt to a lower APR than what you’re currently paying. This can help you save money on interest, lower your monthly payments and pay off debt faster.

On this page
1How does debt consolidation work?
2Is debt consolidation a good idea?

How to get a debt consolidation loan
3 major benefits of debt consolidation

Debt consolidation vs. debt relief: What’s the difference?
How your credit score impacts loan rates
Alternatives to debt consolidation
Federal funds rate and debt consolidation loans
Frequently asked questions
How we chose the best debt consolidation loans
Is debt consolidation a good idea?

There’s no one-size-fits-all debt management strategy. To determine that, you’ll need to take a close look at your finances.

Debt consolidation is a good idea when…

You have debt with high (or variable) interest rates
You can qualify for a lower APR than what you’re currently paying on your debts
You’re struggling to manage credit card bills and loan payments
You want to pay off debt faster on a set schedule

Debt consolidation is a bad idea when…

You can’t qualify for a lower APR than what you’re currently paying on your debts
You still won’t be able to afford your payments after consolidation
Your debt burden is small
How does debt consolidation work?

Although there are many ways to consolidate debt, it generally works the same way: You pay off one or more debts using a new debt. Some popular debt consolidation methods include personal loans and balance transfer credit cards.

Depending on your unique situation — how much debt you have to consolidate, your credit score, how soon you need the funds, what type of debt you have and other factors — one method may work better for you than another.


Check your credit score. Most consolidation options will require a credit check. Unsecured personal loans don’t require collateral, which means that lenders rely more heavily on your credit score, along with other factors, to determine eligibility. Check your credit score for free using LendingTree Spring.
Calculate how much you need to borrow. Add up all your monthly debt payments that you wish to consolidate. You can use a personal loan to pay off credit cards, payday loans and other high-interest debts.
Determine the APR you need in order to save money. Your APR would need to be lower than what you’re currently paying on your debts for a personal loan to be worthwhile.
Compare APRs by prequalifying with lenders. Many lenders let you prequalify for a personal loan to get an idea of your potential APR without impacting your credit score. This lets you compare estimated loan offers before you formally apply.
Formally apply with a lender. If you’re approved, the lender can deposit the funds directly into your bank account. You can use that money to pay off all types of debt.
3 major benefits of debt consolidation

1. Simplifies your budget

Managing multiple due dates and accounts can add stress to your life and budget. Debt consolidation combines some, if not all, of your debt into one payment. You’ll only have to track a single account instead of multiple accounts and debt payments.

2. Saves you money on interest

If you’re able to secure a lower APR, you could save yourself hundreds (if not thousands) of dollars over the life of your loan. Your APR is the measure of how much interest and fees you’re paying on the loan.

3. Improves your credit score

As you pay off your debt consolidation loan, your credit utilization ratio will gradually decline, helping boost your credit. On top of that, your on-time payments will be reported to the credit bureaus, further increasing your credit score.

Debt consolidation vs. debt relief: What’s the difference?

Whereas debt consolidation involves taking out a new loan or credit card to repay debt on better terms, debt relief seeks to reduce the amount of debt you owe through negotiation or legal means. Debt relief comes in many forms, such as credit counseling, debt settlement and bankruptcy.
Debt consolidation vs. credit counseling

Credit counseling is a nonprofit service to help you manage expenses and debt payments more effectively. A credit counselor may set you up on a debt management plan and even negotiate debts and monthly payments on your behalf.

Debt consolidation vs. debt settlement

Debt settlement involves negotiating with your creditors to lower the amount of debt you owe and reduce fees charged to your account. Some companies offer this service, but these programs may come with high fees and can severely damage your credit.

Debt consolidation vs. bankruptcy

Bankruptcy is a legal process offering debt relief for an individual or business. When you file for bankruptcy, your assets may be sold to repay your creditors, or you may be enrolled in a court-ordered debt repayment plan.

How your credit score impacts loan rates

When it comes to obtaining

most types of credit, including personal loans, the higher your credit score, the better the interest rates you are likely to be offered by lenders.

In the eyes of lenders, your credit score indicates how likely you are to repay a loan on time and in its entirety. Every time a lender offers someone a loan, they are taking a risk; the higher the credit score, the lower the perceived risk.

However, even borrowers looking for a personal loan with bad credit can find lenders that are willing to work with them. Keep in mind that you may not receive that lender’s lowest interest rates.


Alternatives to debt consolidation

Debt consolidation loans may be the right choice for some borrowers, but there are other options out there that might be better suited to others. Here are a few alternative strategies to consider:

Balance transfer credit cards

If you have high-interest debt, you may be able to cut back on how much interest you pay by getting a 0% intro balance transfer credit card.

These types of credit cards come with no interest for a set period of time. Once the introductory period ends, you’ll have to pay interest on whatever balance is left on the card.

Home equity loans/home equity lines of credit

Home equity loans and home equity lines of credit (HELOCs) allow borrowers to take advantage of the equity they’ve built into their homes.

Home equity loans work as a second mortgage and often come with fixed interest rates. You’ll be provided a lump sum and may be able to borrow up to 80% of your home’s value.

HELOCs, on the other hand, function as a credit line that is used to borrow against your home’s equity. These types of loans are similar to credit cards in that you only pay interest on the amount you borrow. HELOCs typically come with variable interest rates.

Credit counseling

A debt consolidation loan won’t ultimately solve your financial issues if you’re struggling with sticking to a budget. If you find yourself in this scenario, you can work one-on-one with a credit counselor.

A credit counselor can help you create a realistic debt management plan and teach you how to manage your finances. They can also help you navigate whether bankruptcy is a good option for you.

Debt repayment strategies

In some cases, it may be beneficial to aggressively pay off your current debt instead of taking on a new loan. The debt avalanche and debt snowball methods are among the most popular forms of debt repayment strategies.

Debt avalanche method

This debt repayment strategy focuses on paying off debts with the highest interest rates first. As a result, the debt avalanche method can help borrowers save money on interest in the long run.

Debt snowball method

When it comes to paying off debt, small wins can feel like big accomplishments. This is why some borrowers prefer the debt snowball method. This strategy focuses on paying off debts with the smallest balances first.

Federal funds rate and debt consolidation loans

The Federal Reserve meets throughout the year to assess the federal funds rate — which affects variable interest rates through the economy — and adjust it as needed to fight inflation. The Fed last raised the federal funds rate in July 2023, marking the 11th increase since March 2022 and the highest federal funds rate since 2001. In general, a Fed rate hike can raise variable interest rates across the economy.

Because debt consolidation loans have fixed interest rates, federal funds rate hikes shouldn’t change your existing loan terms or monthly payments. However, if you’re looking to apply for a new debt consolidation loan while the Fed continues to raise rates, you may want to consider getting that loan sooner rather than later so you can lock in a lower APR.

Frequently asked questions

Is debt consolidation worth it?
What does debt consolidation do to your credit?
Do I need good credit to consolidate debt?
What is the best way to consolidate debt?
What does it cost to consolidate debt?
Can debt consolidation save me money?
Can debt consolidation help get me out of debt sooner?
Where can I get a loan?
What’s the difference between secured and unsecured loans?

How we chose the best debt consolidation loans

We reviewed more than a dozen lenders that offer debt consolidation loans to determine the overall best 11 lenders. To make our list, lenders must offer competitive annual percentage rates (APRs). From there, we prioritize lenders based on the following factors:

Accessibility: Lenders are ranked higher if their personal loans are available to more people and require fewer conditions. This may include lower credit requirements, wider geographic availability, faster funding and easier and more transparent prequalification and application processes.
Rates and terms: We prioritize lenders with more competitive fixed rates, fewer fees and greater options for repayment terms, loan amounts and APR discounts.
Repayment experience: For starters, we consider each lender’s reputation and business practices. We also favor lenders that report to all major credit bureaus, offer reliable customer service and provide any unique perks to customers, like free wealth coaching.








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