Discover personal loans allows you to borrow from $2,500 – $35,000 to consolidate your debt. You can consolidate credit card debts and other unsecured loans with Discover personal loans. Borrowers can use up to 70% of the loan amount to pay off the debt.
After you are approved, you must provide information on the creditors that you want to pay off. Discover will help you to consolidate your credit card and other financial obligations. You can also pay off the creditors yourself if you want.
You can qualify for a Discover debt consolidation loan as long as your credit score is higher than 660 and you make more than $25,000 per year. If your credit score is below 660 and you need a poor credit personal loan, consider lenders such as SignatureLoansNetwork.com or Sofi.com as potential alternative options. The lowest interest rate that you can get approved with Discover is 6.99% with the maximum interest rate capped at 24.99%. They will check your creditworthiness when determining the interest rate. Usually, when you have high credit score, they will give you a low interest rate.
If you apply the debt consolidation loan with Discover, you don’t have to pay the origination fee. Discover allows borrowers to change the due date for 2 times per year. The feature is useful when you are facing some financial problems and need more time to come up with the money to make repayment. They charge a $39 late fee for every late payment you have submitted. Discover waives both the personal check processing fee and returned payment fee.
They offer customers who have problems paying back the loans the option of calling the customer service and discussing alternative ways to settle the payment. Customers who are able to pay back the Discover loan in 30 days will not have to pay any interest charges.
Discover loan can be used to build your credit score as it reports to the 3 national credit bureaus including Equifax, Experian, and TransUnion. As you make repayment every month, you can also keep track of your credit score from your account.
Discover personal loans can only be applied online or by phone. To apply online, you must visit the Discover website and fill in a form. After you submit the application, they will carry out a soft credit check. They will send you an email and let you know whether you are preapproved.
If you proceed with the loan application, a hard credit check will be performed. When the application is approved, they will ask you to choose the repayment term which can range from 3 – 7 years. The fastest you can receive the fund is at least 1 business day. Sometimes, they will take up to 1 week to release the funds for example, they may require you to provide more documentation to approve the loan.