If you’re looking for a personal loan, American Express and Discover are two options. American Express (also known as Amex) has offered a variety of financial products since 1850. And although Discover hasn’t been around long (it was founded in 1985), it is a trusted and well-known brand.
Both lenders offer online loans with digital tools to help customers manage their personal loans. However, American Express personal loans are only available to people who have an American Express credit card.
American Express vs. Discover at a glance
Both American Express and Discover offer personal loans with similar loan amounts, but they differ in APRs and loan terms offered.
American Express |
To discover |
|
|---|---|---|
| Bank rate score | 4.4 | 4.8 |
| Better for | April lowest | Debt consolidation |
| Loan amounts | $3,500 – $40,000 | $2,500 – $40,000 |
| APRs | From 5.98% | 7.99%-24.99% |
| Length of the loan | 12-48 months | 36-84 months |
| Cost | Late payment fees | Late payment fees |
| Minimum credit score | Not specified | 660 |
| Time for financing | Normally 3-5 working days | Already the next working day |
Personal loans from American Express
American Express
Learn more
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Plus points
- No upfront costs.
- There is no credit score impact applicable.
- Quick loan decision.
Cons
- Cannot use money for vehicles.
- No personal service.
- Membership Requirement.
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To take out a personal loan American Expressyou must be an active American Express consumer Card. If you already have an American Express credit card and a personal loan can be a convenient way to manage multiple financial products in one place.
However, if you don’t have an Amex credit card, you’ll need one to qualify for a personal loan. This is a tricky way to qualify for a loan, especially when most other lenders don’t have similar requirements.
However, interest rates for American Express personal loans start low at 5.89 percent. But it doesn’t offer a maximum APR — and your loan term is limited to 48 months, which is half the time Discover offers for repayment.
Discover personal loans
To discover
Learn more
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Plus points
- No upfront costs.
- Fast financing.
- Free credit report.
Cons
- No personal service.
- High starting APR.
- No co-signers.
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To discover offers unsecured personal loans to any US citizen over the age of 18 who can verify an annual income over $25,000. Discover personal loans can be used for everything from wedding costs and IVF to debt consolidation and medical expenses. The only things loan funds cannot be used for are post-secondary education costs, paying off a secured loan, or paying off a Discover credit card.
Discover offers a relatively accessible personal loan average interest rates and perks. Borrowers can do that manage their loans easily with Discover’s mobile app or online portal. Another added bonus to a personal loan from Discover is that the loan comes with a free annual FICO credit report and help protect your online privacy.
How to Choose Between American Express and Discover
Choose American Express for the most competitive interest rates and Discover if you want to borrow a debt consolidation loan.
American Express is best for the lowest interest rates
The numbers don’t lie. If you want the best APR between the two lenders, you’ll find the lowest rates through American Express. American Express personal loan interest rates start at 5.49 percent, which is more than two percent lower than the starting rate you can get with Discover.
Discover is the best for debt consolidation
A debt consolidation loan allows you to combine multiple debts into one loan with a lower interest rate. Discover can provide a debt consolidation loan of up to $40,000. It also offers the option to pay your loan funds directly to your creditors, if you wish. Discover offers longer repayment term options than American Express, allowing you to repay your debt in smaller increments over time.
Compare lenders before applying
Discover and American Express differ when it comes to loan usage restrictions, loan terms and amounts – and they’re not the only options out there. So if you are looking for a personal loan, compare more to find the best solution for your finances.
