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

FAQs

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

On the other hand, Discover is not the best choice for consumers who want to apply for a loan with a co-borrower or co-signer. Also, it's not the best option if you have bad credit since most approved applicants have FICO scores of at least 660.

The minimum credit score needed to secure a debt consolidation loan ranges from 580 to the mid-600s, depending on the lender. The best terms and rates go to borrowers with scores that are around 700 or higher.

Are you having trouble paying your bills? Not being able to pay your bills has a significant impact on your credit rating. It gives lenders a bad impression. And it's one reason a bank will refuse your consolidation loan application, since the bank will consider you at risk of not repaying the loan.

A personal loan can make a lot of sense for debt consolidation, but make sure to consider all the options and tools that may be available to you. Getting out of debt requires you to stop racking up more bills you can't pay.

Borrowers will need at least a 660 FICO score to be eligible for a Discover personal loan. The lender will also consider factors such as your income and debt-to-income ratio when you apply for a personal loan.

Discover uses multiple resources to confirm income and employment status: To verify income: Documents like recent pay stubs or bank statements can serve as income verification. In certain situations, we may use third-party vendors to confirm that information.

You need a minimum credit score between 580 and 680 to get a debt consolidation loan that offers reasonable rates with most lenders. The higher your credit score is, the lower your APR is likely to be - and the main purpose of a debt consolidation loan is to get a lower APR for your debt.

Consolidation loans are usually amortized over 3 to 5 years. This means that the payments have to be high enough to pay the loan off in 3 to 5 years. If your income can't handle that kind of a payment, you could be declined a consolidation loan.

Debt consolidation loans are unsecured, meaning the borrower doesn't have to put an asset on the line as collateral to back the loan. However, borrowers will only be offered the best interest rates and other favorable loan terms if they have good credit scores.

Lenders like to see a credit score of at least 670 for a debt consolidation loan, but probably closer to 700 just to be safe. It's not the only factor that matters, but a low credit score could stop you from getting a debt consolidation loan with reasonable interest rates and terms.

Who is not qualified for debt consolidation? ›

Low Credit Score

If your score is less than 670, you might be out of luck for a debt consolidation loan. Even if you're over 670, a problematic debt-to-income ratio (more on that below) or payment history could derail your loan.

To be considered for debt consolidation, you must have an income and be credit worthy. Why should I consolidate my debt? Debt consolidation won't take away your debt, but it might make managing your debt easier. Paying a single loan instead of several means you only have one to repay with one interest amount.

If you can afford to pay off your debt during the promotional APR period, a balance transfer card may be your best bet. For example, with $5,000 of debt, a six-month intro APR balance transfer card would allow you to pay off your debt interest-free with $833.33/month payments.

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.

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).

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.