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

FAQs

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

Is it hard to get a personal loan from Discover? 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.

People often use unsecured personal loans, which means no collateral is needed, to consolidate credit card debt. They can also use debt consolidation to combine and pay off other types of debt, such as auto loans and other personal loans.

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.

When life throws unexpected expenses your way, relying on personal loan debt relief is sometimes the only way to get through the financial challenges. While this can be a short-term solution, other factors should be considered including the ongoing impact of interest costs and other expenses.

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.

You must have a minimum individual or household annual income of $25,000, be over 18 years of age, and have a valid US SSN to be considered for a Discover personal loan.

Every lender sets its own guidelines when it comes to minimum credit score requirements for debt consolidation loans. However, it's likely lenders will require a minimum score between 580 and 680.

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.

What is the minimum credit score for a Discover loan? ›

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.

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.

You can consolidate your debts into one payment

Using a personal loan to pay off debt helps you get rid of multiple payments and go down to one payment per month — and hopefully with a much lower APR.

The better option for you depends on your financial situation. If you can make your minimum payments each month, but don't see a way out of debt anytime soon, debt consolidation will likely be fitting. If you're struggling to make your minimum payments, debt settlement may be your better option.

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.

You can get a Discover credit card with any credit score or even no credit history at all. Discover has credit card options to fit every consumer. If you have bad credit or no credit history, you could get a secured card with Discover.

The minimum credit score needed to get most Discover credit cards is 700 or above. There are a few Discover cards for which there's no minimum credit score requirement, such as the Discover it® Secured Credit Card which you can get with a bad credit score (below 640).

Personal loans can boost your credit score by adding to your credit mix, improving your credit utilization and your payment history. Applying for a personal loan can hurt your credit score temporarily by adding to your current debt, and missing payments can lower it further.

You will almost certainly have no problems qualifying for a $5,000 personal loan if you have a strong income and good credit. However, you may struggle to get approved if your income is inconsistent, you have a low credit score, or you have a considerable amount of debt already.