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Discover Personal Loans are not what the company advertises them to be. They claim that you can pay off the loan early without penalty. What they do not tell you is that they bill the interest for the initial duration of the loan as a "finance charge" which you are required to pay regardless of when you pay off the loan.

What this means is that even if you pay off the principle of your loan early, you still owe the company interest for the original term of the loan. Unfortunately I did not know that companies could get around the "no penalty for early payoff" by charging the interest as a "finance charge".

Now they have me locked into a higher interest rate than the credit cards that I used the loan to pay off. Definitely look at this closer before you sign up. It is a life lesson for me and I personally will never do any banking through Discover again.

Monetary Loss: $8587.

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Same thing happened to me I used another credit card paid 365.00 to pay them off early, thinking I was saving interest. now I find out they charged full interest of the loan. so there goes more money while I was thinking of saving money.



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Los Angeles, California, United States #914270

Real Idiots.I have perfect credit and the offered a 6.9% rate.

After an hour on the phone with what sounded like a tween I WAS APPROVED!

@ 17.59 percent.I told the twot to F.O.

Vancouver, Washington, United States #848557

Yep, we just talked to those snakes.They asked why we wanted the loan and we made the mistake of telling them we wanted lower payments along with paying off our higher interest credit card.

They asked what our payments are (as if they didn't know) and we gave them a higher amount because we didn't recall the minimum payment since we always pay higher than minimum. While they were huddling for their next round of lies, we looked up the actual amount. They first offered a rate 2% higher than we are paying and a slightly lower payment. We said no way and they put another yo-yo on the phone claiming he was chief lender of the universe or something.

He said he would lower the interest rate by 1% if we would sign up for auto-pay. He repeated back to us that we were paying x dollars now and we told him we looked it up and our minimum payment was $70 less than we thought. Then he asked how long we would have to pay that amount and we guessed about 4 years. We later calculated it was 42 months.

Then he said with $100 per month lower payments we would end up paying $4800 less over the term of the loan and demanded to know why we wouldn't want to save $4800.

Don't waste your time with these lying sleaze-balls.


Real Waste of time don't bother.Throw those letters in the garbage.

They collect all the info happy about your good credit and then say..... But sorry although your payment was always on time, we feel that we cannot loan the consolidation money at this time. All I wanted was the lower interest rate.

Worthless, don't bother.Check at your bank!

Oakton, Virginia, United States #797216

So what is the truth?! Can you pay it off early and not owe all the interest or not? How can there be so much confusion about this!


My credit scores are 796, 760 and 762 with the 3 bureaus.I have a nice annual salary and low debt to income ratio.

I received a prequalification letter and applied online and was instructed to call a number because they have to speak with all of their customers as a condition of the approval process. When I spoke to a representative I was not offered the optimal rate of 7.99% or anywhere close to that... I was offered 15.99%. I asked to speak with a manager and the manager stated that because of my solid payment history as a discovercard customer he could offer me 13.99%.

I since have written a letter to the CEO David Nelms. I need to understand what are the credit factors that are disqualifying me from an optimal interest rate. --- Something seems fishy about having to speak to someone to get approved. What factor can they distinguish by speaking with someone that cannot be determined by answering questions objectively online??


Maybe you can tell a lot by someone's voice.I wonder if there are some similarities to those of us who have solid credit scores, income and low debt to income ratios but are still being offered very high interest rates????

Smyrna, Tennessee, United States #764887

I had a Discover Loan as well, recently paid off a 5 year loan 2 years early.No hassle or issues.

Exactly as their terms state, no early payoff off penalty.I'd definitely get another loan with Discover if my situation required it.

Princeton, Illinois, United States #632442

Just went through the process with no problems.Our credit isn't stellar, so we didn't qualify for the lowest rate, which is what I expected.

Those who have posted on here claiming great credit and then getting denied either aren't aware of thier true financial condition or aren't being honest. I have had a credit card with discover for years, and I find them to be a very good company.

That's why I went with this loan.It's always a good idea to do your due diligence, but I would not recommend basing your decision on the comments posted here.

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