Debt Consolidation Loans - Apply | Discover Personal Loans (2024)

FAQs

How hard is it to get approved for a Discover personal loan? ›

Discover isn't the hardest lender to qualify for, but it isn't the easiest, either. If you have fair credit, you might qualify for a Discover personal loan since it has a minimum credit score of 720. However, you'll have better chances if you have good credit or higher.

This basically means credit cards, store cards, gas cards and unsecured personal loans can all be consolidated. Additionally, unpaid medical debts and even some payday loans can be included, too.

A Discover personal loan is intended for personal use and cannot be used to pay for post-secondary education, to pay off a secured loan, or to directly pay off a Discover credit card. If your application is approved, we will send funds after you accept the loan.

Debt relief companies, sometimes called debt settlement companies, are one option for those struggling with credit card debt, tax debt, personal loan debt, and other types of unsecured debt.

To increase your chance of qualifying for a $10,000 unsecured loan, you should have a credit score of 600 or higher. Some lenders start their minimum credit score requirements at 600, however, there are some lenders that require a credit score in the high 600s or low 700s.

The minimum credit score for a Discover personal loan is a 660. Borrowers must also have a household income of $25,000 or higher, be at least 18 and be a U.S. citizen or permanent resident. Co-signers are not accepted.

Most personal loans can be used for several potential purposes. However, if you have mountains of debt, whether it's credit cards, medical bills, or something else, then debt consolidation loans are particularly useful for simplifying repayment.

Only available to those with decent credit: Debt consolidation is, ironically, only a possibility for those who have a high enough credit score and a low enough DTI. It won't solve underlying financial flaws: You'll need to change your income, spending or both to stay out of debt once you pay it off.

Increased debt level: Taking out a Discover personal loan will naturally increase the amount of debt that you have. Since your debt level is one of the components of your credit score, you can expect that to have a negative impact initially.

What is the limit on Discover personal loan? ›

With a Discover personal loan, you can request up to $40,000. Terms define how long you'll hold the loan and can impact your monthly payment.

Can I take out more than one loan? Even if you've already taken out a loan, you can still apply for another one. In fact, there are personal loans designed to help you pay off other loans.

Four types of debt are commonly consolidated: credit card debt, student loan debt, medical debt and high-interest personal loan debt. You may reduce the overall cost of repayment by securing better terms and interest. You'll also have a single payment to keep track of instead of several.

The bottom line

The IRS generally does not consider personal loans taxable, as these loans do not count as income.

You'll typically need a credit score of at least 700 to qualify for a debt consolidation loan with a competitive interest rate. Although a lower credit score doesn't automatically equal a denial, as some lenders offer loans for bad credit, the borrowing costs will likely be higher.

If you want to get a Discover® credit card, you may be wondering how hard it is to get approved. Your credit score plays an important role here. The best Discover credit cards are aimed at consumers with FICO® Scores of 670 or above. If you have good or excellent credit, that helps quite a bit.

Payments: The biggest factor in how a Discover personal loan affects your credit score is whether you pay on time. If you make on-time payments, your score should steadily increase as a result.

The easiest banks to get a personal loan from are USAA and Wells Fargo. USAA does not disclose a minimum credit score requirement, but their website indicates they consider people with scores below 640, so even people with bad credit may be able to qualify.

Nearly all lenders in the US, including Discover, use a FICO^® Score among other information when they make their credit decisions, and they have for more than 20 years. We think that everyone should be informed about their credit so that they can avoid surprises.