How to Get a Loan From Discover

(July 2024)

How to Get a Loan From Discover

In This Article

Do you need a loan to finance your needs? Whether you want to make a major purchase, consolidate debt, or cover unexpected expenses, Discover offers a range of loan options to suit your needs ranging from personal loans to student loans.

To initiate the loan application process, start by visiting Discover’s official website or contacting their customer service. Take time to review their loan offerings, interest rates, and repayment terms to determine the most suitable option for your circumstances. And don’t forget to prepare essential documents such as proof of income, identification, and credit history details.

Read till the end to learn how to secure the financial support you’re looking for. Remember these key steps and requirements can help you navigate the application process smoothly.

  1. Know The Types of Loan Discover Offers
  2. Understand How Much You Need
  3. Check Eligibility Requirements
  4. Gather Necessary Documents
  5. Apply Online or In-Person
  6. Review Loan Terms and Conditions
  7. Receive Loan Funds.

Curious? Let’s dive deeper.

1. Know The Types of Loan Discover Offers

To get a loan from Discover, know the specific loan you require. You can only get four types of loans from Discover which are personal loans, home equity loans, mortgage refinance loans, and student loans.

Personal loans

Discover personal loans offer fixed interest rates from 7.99% to 24.99% APR, and loan amounts from $2,500 to $40,000. You can choose from loan terms of 36 to 84 months. Don’t forget that there are no application, origination, or late fees.

Home equity loans

Discover home equity loans offer fixed interest rates from 4.99% to 7.49% APR, and loan amounts up to 80% of your home’s appraised value. You can choose from loan terms of 10 to 30 years. Remember there are no application, origination, or late fees.

Mortgage refinance loans

Discover mortgage refinance loans offer fixed interest rates from 3.25% to 5.99% APR, and loan amounts up to 80% of your home’s appraised value. You can choose from loan terms of 15 to 30 years. Also, there are no application, origination, or late fees.

Student Loans

Discover student loans offer competitive interest rates, flexible repayment options, and no fees. If you are a student, you can borrow up to 100% of your school-certified college costs. Don’t forget that Discover also offers valuable rewards, such as cash rewards for good grades and a 0.25% rate reduction when you enroll in automatic payments.

2. Understand How Much You Need

To receive a loan from Discover Bank, calculate how much you need. You need to have a clear understanding of the specific amount of money you require as a loan from Discover Bank. It’s important to accurately calculate the exact sum you need for your intended purpose, whether it’s for education, home improvement, or any other financial need. This helps you avoid borrowing more than necessary, which can lead to higher interest payments and also ensures you have a well-defined repayment plan. You should create a budget and consider factors like interest rates, fees, and your ability to repay the loan comfortably.

3. Check Eligibility Requirements

To obtain loans from Discover Bank, check the eligibility requirements. Pay attention to criteria such as:

Credit Score

Understand that Discover examines your credit record and credit score to evaluate how suitable you are for credit. Depending on the loan type, you need a credit score of 660 or higher. Keep in mind, the higher your credit score, the greater your approval odds and the more favorable loan terms you can be eligible for.

Income and Employment

Provide information about your employment status and income, this helps to ensure loan repayment. Discover examines factors such as job position, earnings, and additional income streams.

Age

Be at least 18 years old to apply for a loan from Discover Bank.

US Citizenship

Make sure you are a U.S. citizen or a permanent resident to qualify for a loan from Discover Bank.

Debt-to-Income Ratio (DTI)

Discover often evaluates your debt-to-income ratio, which compares your monthly debt payments to your income. You need 35 – 40% or less, which indicates a better ability to manage additional debt.

4. Gather Necessary Documents

To access a loan from Discover, gather the necessary documents. Know that the information you present depends on the type of loan you need. However, you need to get some documents ready such as:

 

  • Personal Identification: This includes a valid government-issued ID like a driver’s license, State ID card, or passport. You also need to include your Social Security Number.
  • Proof of Income: Documents like pay stubs, tax returns, or bank statements to demonstrate your ability to repay the loan.
  • Employment Information: Details about your current employer, job title, and duration of employment.
  • Credit History: Keep in mind that your credit score and credit history are important factors. You may not need to provide this directly, but the bank can access it.
  • Proof of Address: You can use your utility bill, bank statement, or lease agreement as your proof of address.

5. Apply Online or In-Person

To obtain a loan from Discover, fill out an online application form that asks for some personal and financial information. Here are the steps to follow:

  • Go to the Discover Personal Loans website and click on “Check Your Rate” to start the application process.
  • Enter the loan amount, loan purpose, and repayment term that you want, and then click on “Continue”.
  • Enter your personal information, such as your name, address, phone number, email, date of birth, and citizenship status. You also need to provide your social security number and annual income.
  • Review the application and solicitation disclosure that explains the terms and conditions of the loan offer. You can also download and print the disclosure for your records.
  • Submit your application and wait for a decision. You may need to provide additional documents, such as proof of income or identity, to verify your information.

6. Review Loan Terms and Conditions

To apply for a loan from Discover, review loan terms and conditions. Understand that this is an important step before you accept any loan offer from Discover Bank. The terms and conditions explain the details of the loan, such as the interest rate, fees, prepayment schedule, and your rights and obligations as a borrower. You can find the terms and conditions on the Discover Personal Loans website or in the email that you receive after you submit your application. You should read them carefully and make sure you understand them before you sign the loan agreement.

7. Receive Loan Funds

To take out a loan from Discover, get ready to receive the loan funds. Once the bank receives your application, the financial institution reaches out to you to confirm your information and verify the final details. Upon approval, there’s a loan agreement you need to sign and return to Discover. Don’t forget that you can also choose how you want to receive your funds. After Discover receives your signed agreement, they transfer the funds to your bank account or your creditors within one to two business days. However, it might take a little longer to receive the money in your account. It just depends on your bank.

Recap

To secure a loan from Discover, know the types of loans Discover offers and understand how much you need. Before applying, check your eligibility requirements, and gather the necessary documents you may need. Apply online or in person and review loan terms and conditions. You can get your loan after a few days of application.

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