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Retirement Planning: Key Steps and Common Questions

Thursday, January 9, 2020

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone and is not intended to be a source of investment advice. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Joni Sweet Joni Sweet

Whether you’re just starting out in your career or are starting to think seriously about planning for your future, our guide to retirement planning covers some of the most common questions that prospective savers face: How much do you need to save? What’s the best way to grow your savings to support yourself once you stop working? Where should you be investing your retirement funds?

We cover these questions and more in our guide to retirement planning below.

In this guide, we’ll cover

What is retirement planning?

How to approach retirement planning

How much should you save for retirement?

What’s the best age to retire?

Stages of retirement planning

Retirement accounts you should consider

What is retirement planning?

Retirement planning is the process by which you prioritize your income and assets to support your ideal lifestyle once you stop working. Retirement planning involves devoting a portion of your paycheck to one or more retirement accounts, such as a 401(k) plan or an individual retirement account (IRA), which can be a traditional or a Roth IRA, among other forms.

Investing early helps you reap the benefits of compounding interest over time. You also need to take into account your risks at various stages of life as you decide how and where to save for retirement.

“Be familiar with all the saving tools and strategies available to you,” said Kevin Gaines, chief investment officer at American Financial Management Group. “Using the ‘best tool’ for a specific need may sound right, but you need to have some flexibility in case things change.”

Retirement planning is an ongoing process, and what works for you now may change over time. Plan to reevaluate your cash flow needs every year and make adjustments to your retirement planning strategy.

How to approach retirement planning

The right strategy for retirement planning will look different for every person or family, but all retirement planning begins with assessing your resources and setting goals.

You begin the retirement planning process by quantifying your resources, said Charles L. Failla, a certified financial planner at Sovereign Financial Group, Inc. How much is your salary? Do you have valuable assets, such as a house? How much money do you have in savings? Getting a full picture of your net worth is the first step.

The next step to approaching retirement planning is to think about what you want your retirement to look like, and how your savings can make those dreams a reality.

“Retirement is not a goal — what you will do during retirement is the goal,” said Gaines. “Your goals create a savings target while you’re working, and then, as you enter retirement, an income target.”

To live comfortably during retirement, you’ll need to save enough to cover at least your basic needs, including housing, transportation, food, medical care, insurance and clothing. Retirement planning can also address what you’d need to do to achieve your ideal retirement lifestyle, whether that includes travel, hobbies or entertainment.

“Beyond goals, other conversations such as long-term care funding and estate planning need to be part of a retirement plan,” said Gaines. “It is very important to understand what could go wrong and how the plan will adjust.”

Online tools, like this retirement income worksheet and this retirement expenses worksheet, can help you estimate your finances during retirement. Understanding this information can help you develop a strategy to withdraw the money you need from your assets while “minimizing the risk of outliving your savings,” added Gaines.

How much should you save for retirement?

Retirement planning gives you a road map to determine how you’ll save enough for your non-working years. However, figuring out the “magic number” can be tricky. Here are two common principles that can help you estimate the amount you’ll need for retirement:

  • 4% withdrawal rule: This rule states that retirees can comfortably withdraw 4% of their assets during the first year they stop working. They can then increase the withdrawal amounts to match inflation as the years go on, which should allow their savings to cover them for at least 30 years. Put into action, this rule would allow someone with a $1 million nest egg to withdraw $40,000 in their first year of retirement, with small increases based on inflation in subsequent years.
  • 75% of income rule: Another guideline for figuring out your retirement planning goal is planning to spend no more than 75% to 85% of your current income during each year of your retirement. For example, let’s say someone born in 1980 currently earns $100,000 a year and wants to retire at age 67. Under the 75% of income rule, they’d need to have saved nearly $1.6 million by their anticipated retirement age to cover the expenses of their remaining life expectancy of about 21 more years. “Longevity is something else that must be considered — especially if it runs in the family,” added Failla.

What’s the best age to retire?

A 2018 Gallup poll found that the average American expects to retire at age 66. The earliest people can start collecting Social Security is age 62, with full benefits kicking in between age 65 and 67, depending on what year you were born.

While these statistics can serve as a helpful guideline, calculating the right retirement age for you will depend on your individual financial situation. The longer you delay retirement and continue working, the more time you have to build your savings and the higher your Social Security benefits will be (until age 70). Early in your retirement planning, you can assume you’ll retire around age 65 and set your monthly savings goals accordingly. Once you’re in your 50s, reevaluate any potential gaps in your income and set a more specific retirement date to work toward.

Stages of retirement planning

How you approach retirement planning may change throughout your life. Here are some retirement planning tips to consider at different stages.

Young adulthood

This is the time to start building good habits: “If you get into the habit of saving now, it will be easier to stick with it in the future,” said Gaines.

Financial advisors encourage young adults to maximize their contributions to retirement accounts to take advantage of compounding interest over the decades ahead. This compound interest calculator will show you how early investing can help your money grow over time.

If your employer offers a match to your 401(k) contributions, make sure you contribute enough to hit the maximum so you’re not leaving money on the table. While young adults who do this will have more time to earn compounding interest on the matching contribution, it’s a smart retirement planning strategy at every stage of life.

If you’re enrolled in a high-deductible health insurance plan, it may be a good idea to open a health savings account (HSA), said Gaines. An HSA can offer tax savings on your contributions, earnings and withdrawals if used for eligible medical expenses. Plus, after age 65, you can spend the money in your HSA on anything you want without paying taxes or incurring any penalties.

Mid-career

Throughout your 30s and 40s, continue to increase the rate at which you save for retirement, Gaines advised. This can be challenging if you’re juggling other major expenses, such as a mortgage, consumer debt and the costs of a growing family.

“Budgeting is critical,” Gaines said. “Hopefully your younger self created a savings discipline that you’re now using [when you have] so many other demands on your money.”

If you find that you’re maxing out your 401(k) or IRA contributions, you may need to start exploring other savings vehicles. A certificate of deposit (CD), brokerage account or automated micro-investing app are all potential places to squirrel away extra money for retirement.

Nearing retirement

The countdown to retirement is on and, as such, you need to manage the risks of your investments. When you have less than 10 years until your anticipated retirement date, adjust your portfolio to no more than 40% to 50% in stocks, the riskier asset class, said Failla. Allocate no more than 20% of your portfolio to stocks when you’ve got five or fewer years to retirement, eventually bringing it down to a majority of low-risk investments (such as CDs and money market accounts) when you’re in your final year of work, he advised.

You can also start making more precise estimates on your financial goals and retirement expenses during this stage of your life. Eliminate your debt (if you didn’t already do so earlier in your career) and take advantage of catch-up provisions, which allow people to contribute an extra $1,000 to their IRA or an extra $6,500 to their 401(k) each year starting from age 50.

Retirement accounts you should consider

When it comes to retirement planning, you have a few different options. This article explains the different retirement plans, including 401(k) plans, traditional IRAs, Roth IRAs, SEP IRAs, HSAs and Roth 401(k) plans, along with tips on choosing the right option for you.

While some people may manage their portfolios manually, many others choose to work with a financial advisor who can analyze their individual circumstances and offer advice on where to invest their money for retirement.

You can also open a retirement account managed by a robo-advisor, which uses sophisticated algorithms to invest your retirement savings in diversified portfolios that meet your needs. This could be a more cost-effective option than working with a traditional financial advisor.

Regardless of which option you choose, what’s crucial is to consider what works best for your personal financial situation and to start saving sooner rather than later.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Joni Sweet
Joni Sweet |

Joni Sweet is a writer at MagnifyMoney. You can email Joni here

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Auto Loan

RV Buying Tips: Get the RV of Your Dreams

Friday, September 6, 2019

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

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RV buying tips
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Ever dream of buying an RV? You’re not alone — about 10 million households in the United States already own an RV.“The popularity of RVing is at an all-time high because of the freedom and flexibility RVs offer,” said Kevin Broom, director of media relations at the RV Industry Association (RVIA). “With the same RV, people can take an array of trips, spend time having adventures with friends and family and form memories that will last a lifetime.”

When shopping for a unit, you’ll need to consider what type of RV suits your needs, how much time you plan to spend in the RV, whether you want to buy a new or used unit (or lease an RV) and how you plan to pay for it. This article will explain the costs of owning an RV, as well as how you can get your best price.

In this review:

The costs of an RV

What kind of RV should you buy?

Should you buy a new or used RV?

Where can you buy an RV?

How do you get the best price on an RV?

The costs of an RV

RVs have a huge range of prices, which vary depending on size, style and other factors, said Broom. As of the date of publishing, here are some estimates for a variety of new RVs, according to the RVIA:

  • Folding camping trailers: $6,000 to $22,000
  • Truck campers: $6,000 to $55,000
  • Conventional travel trailers: $8,000 to $95,000
  • Fifth wheel trailers: $18,000 to $160,000
  • Type B and C motorhomes: $60,000 to $150,000
  • Type A motorhomes: $60,000 to $500,0000

You may be able to save some money by opting for a pre-owned RV instead of a new one, added Julie Bennett, who, along with her husband Marc Bennett, authored the book “Living the RV Life: Your Ultimate Guide to Life on the Road,” and run the RV Success School.

“We have met people who spent less than $5,000 on their RV, and others who spent over $1 million,” said Marc Bennett. “Most of the people we have met that do extended travel in their RVs typically spend between $50,000 and $150,000 on their RV setup, which includes the cost of the truck and trailer, or a motorhome plus the vehicle that they tow.”

You generally don’t need a special license to drive or tow an RV, said Broom, but it’s not a bad idea to look into the laws in your state, especially if you’re buying a very large trailer or motorhome.

The RV, as well as the truck and trailer if the RV needs to be towed, is just one of the costs to consider. You’ll also need to budget for maintenance and repairs, taxes, insurance, vehicle registration, fuel and storage. These expenses can vary from state to state.

There are also an array of optional (though potentially desirable) add-ons, like roadside assistance and extended warranties, that can increase the bottom-line costs of RV ownership.

“RV dealers will try to upsell you on things like paint protection and other options you may not really need,” said Marc Bennett. “You’d be surprised how much all of this can add up, so do your homework in advance and know what you are getting yourself into before committing.”

What kind of RV should you buy?

One of the first things to consider when figuring out which type of RV you should buy is how often you intend to use it.

“If you only plan on RVing a few weeks a year for short vacations, it really doesn’t make sense to spend a whole lot,” said Julie Bennett. “If you’re planning on using your RV for extended travel or even live in it full-time, then it’s easier to justify a bigger investment.”

Here are some other questions you should ask yourself when shopping for an RV:

  • Who will be traveling in the RV? A couple of retirees who are OK roughing it on the road might opt for a travel trailer, while a large family with pets may be better off with a camper van or motorhome.
  • Where do you plan to take the RV? Julie Bennett suggests that potential RV owners think about whether they want to stay in campgrounds with hookups for electricity, water and sewage, or camp off-grid in more remote places, and find an RV that fits those needs.
  • Do you need a special license for the RV? Large trailers or motorhomes may require a special license in certain states, said Broom.
  • What “toys” are you bringing in your RV? You may need to splurge on a larger RV or motorhome if you plan to take bikes, ATVs, kayaks and other recreational gear on your adventures.
  • Does the RV have a floor plan and layout that makes sense for you? “Pay attention to the things you will use most often,” advised Julie Bennett. “Is there sufficient counter space in the kitchen for making meals? Can you fit inside the shower and wash your hair?”
  • How far will you take the RV? If you want to keep costs in check on long-haul trips, you might need to pay more attention to things like the weight and aerodynamics of the RV. You should also consider whether you want a diesel or a gas engine. Gas engines generally don’t get as much power or as efficient mileage as their diesel counterparts, but they tend to be less expensive.

Should you buy a new or used RV?

Every future RV owner is faced with one big question: Should you buy a new or a used RV? Here are some pros and cons to consider.

Pros and cons of buying a new RV

Pros

  • You know the history of the RV. Buying a new RV means you don’t have to worry that a previous owner cut corners on care and maintenance.
  • You can personalize the RV. “Some may like that they can choose their floor plan, layout, decor, color scheme and options, and some may want the latest technologies,” said Marc Bennett.
  • You can avoid potential allergens. Does your child have a severe peanut allergy? There’s no guarantee a used RV doesn’t contain peanut residue from a previous owner, so you might be safer buying a new one.

Cons

  • You’ll probably pay more. “Not only will you pay more for new, you will also see the sharpest dip in depreciation as soon as you drive it off the lot,” said Marc Bennett.
  • You still may need to make repairs. Just because you’re buying a new RV doesn’t mean it will be trouble-free. “RVs are very complex, and built by hand in relatively low-tech facilities,” he added. “Once new RVs leave the dealer’s lot, they tend to need more repairs and fixes — much like a punch list on a new house build.”

Pros and cons of buying a used RV

Pros

  • You’ll probably save money. The older an RV is, the more of an effect depreciation will have on its price tag, said Julie Bennett.
  • It’s already broken in. The problems associated with a brand new RV may have already been taken care of by a previous owner, which could save you time and money on repairs.
  • It might come with extras. People often include extra items when selling their RVs, said Julie Bennett. You may luck out with an upgraded suspension, RV gadgets or kitchenware at no additional cost.

Cons

  • It comes with risks. If the previous owner didn’t maintain an RV properly, it may need new parts or repairs.
  • You may need to renovate it. If an RV’s aesthetics are dated or simply unappealing, it’s on you to fix it up.
  • It probably won’t have a factory warranty. You may need to shell out for repairs right away before you can drive the RV, said Julie Bennett.

Where can you buy an RV?

There are a variety of places to buy an RV — and according to Marc Bennett, you may need to travel far to find the right one at the right price: “We traveled thousands of miles when buying our first RV. Opening up geographically allows for much more selection,” he said.

Here are some of the places you can start your search for an RV:

  • New RV dealerships: Looking to buy a new RV right off the lot? Then shopping at a new RV dealership might make the most sense. “Buying from a respected dealership might provide some peace of mind that they have checked the unit and it is ready to go,” said Marc Bennett.
  • Used RV dealerships: Used RV dealers might not know as much about the history of a particular unit as its original owner. However, you may be able to purchase an extended warranty for some added protection.
  • RV shows: RV shows offer the opportunity to see a wide variety of models in one place. Should you find the unit of your dreams at an RV show, you may be able to score special discounts.
  • Private sales: Buying a used RV directly from its owner allows you to learn more about its history, maintenance and unique quirks, said Marc Bennett. “An owner will be able to share much more detailed information about the specific RV than a dealership,” he added.
  • Online marketplace: Do you already know exactly what you’re looking for in an RV? An online marketplace could help you find it quickly. RVTrader.com and Craigslist are popular places to find private RV sales online, said Broom.

How do you get your best price on an RV?

The price tag on an RV can give you serious sticker shock. Luckily, there’s lots of room for negotiation, and you should not plan to pay the asking price, noted Marc Bennett.

“There’s no hard and fast rule about how much discount you can get on an MSRP [manufacturer suggested retail price],” he said, “but it is not uncommon to buy a new RV for 15% to 30% off the MSRP.”

Going into the negotiation armed with knowledge can help you get your best price on RV, added Julie Bennett.

“Get a few price comparisons on the RV you want to buy,” she said. “Know what questions to ask, know [what’s] a fair price for the RV you want, and keep an eye out for deals at certain times of year,” also noting that you may be able to get the best price when a dealer is clearing out old models to make room for new units.

If you can’t afford to pay cash, you may be able to take out an RV loan or secure other financing to make the purchase. Here are some ways to finance your RV:

  • Dealership financing: Dealerships may offer financing through lending partners (such as a bank or credit union), or offer in-house financing. This is convenient, as you can get your RV and your loan all in one place. However, dealers may use this type of financing to bolster their bottom line, so if the rate offered isn’t competitive, you might find a better offer somewhere else. Additionally, dealership in-house financing, which is usually offered to people struggling to find financing elsewhere, can carry high interest rates.
  • Banks, online lenders and credit unions: You may be able to secure an RV loan from an online lender, credit union, bank or other financial institution. Since dealers may not have partnerships with lenders you’re interested in, you may need to seek out quotes directly from the institutions themselves. Make sure to shop around to compare offers. Though credit unions may have lower rates, you’ll need to become a member.
  • HELOC or home equity loans: You may be able to use a home equity line of credit (HELOC) or a home equity loan to secure the funds for an RV. With both of these options, you’re borrowing a portion of your home equity. Keep in mind that you’re putting your home on the line with this type of financing, so make sure you’re on firm financial footing before moving forward. However, because the loan is backed by collateral, interest rates tend to be lower. With either option you’ll also need to pay closing costs, a process that can take several weeks or longer.

The bottom line

RVs offer the freedom to travel the country on your terms. Whether you dream of a life on the road or you’re just looking to spend a couple of weeks in the great outdoors every summer, you can get an RV to make it happen.

Remember: There’s no one-size-fits-all solution to finding or financing the RV of your dreams. Do your homework, know what you’re looking for and don’t be afraid to walk away from a bad deal. The right RV is out there waiting for you — and with enough legwork, you’ll find it.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Joni Sweet
Joni Sweet |

Joni Sweet is a writer at MagnifyMoney. You can email Joni here

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Personal Loans

Discover Personal Loan Review

Thursday, July 11, 2019

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Joni Sweet Joni Sweet
Kayla Sloan Kayla Sloan

What is Discover?

Discover describes itself as a bank and payment services company. Its first financial product was its credit card, launched nationally in 1986. Through various acquisitions, the company now provides non-credit card products, including checking and savings accounts, personal loans, retirement accounts and private student loans.

Discover has lent money to more than a million customers. The company’s personal loans come with a large variety of flexible repayment terms and no origination fees. Loan funds can be dispersed to your other lenders if you’re consolidating debt, or sent directly to you. Many borrowers can find out if they’re approved the same day they submit their application.

In this review, we’ll discuss how Discover’s personal loan offerings compare with competitors’ personal loans.

Discover personal loan highlights

  • Few fees: No origination fee or processing fees. However, you may incur a fee if you fail to make your monthly payment by the due date.
  • Next day funds: Once you’re approved and accept the loan terms, you could receive funds the next business day.
  • Option to pay off debt directly: Many people look for personal loans to consolidate existing debt. Discover offers to pay your lenders off directly with your loan funds.
  • Terms to fit your needs: Discover Personal Loans offers terms of 36 to 84 months with no prepayment penalty.
  • Customer support: Discover’s loan specialists are based in the United States, and are available to answer questions.
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The APR ranges from 6.99% to 24.99% APR based on creditworthiness at time of application. Loans up to $35,000. Fast & Easy Process. Terms are 36 to 84 months. No prepayment penalty. This is not a firm offer of credit. Any results displayed are estimates and we do not guarantee the applicability or accuracy to your specific circumstance. For example, for a $15,000 loan with an APR of 10.99% and 60 month term, the estimated monthly payment would be $326. The estimated total cost of the loan in this example would be $19,560.

Discover personal loan details
 

Fees and penalties
  • Terms: 36 to 84 months
  • APR range: 6.99% to 24.99% APR
  • Loan amounts: $2,500 to $35,000
  • Time to funding: You can find out if you’re approved for the loan the same day of your application. Funds may be sent to you as early as the next business day. Discover may take up to seven days to disburse the funds if your application has errors, if the loan is funded on a weekend, or you request funds with some disbursement methods.
  • Hard pull/soft pull: Checking your rate will result in a soft pull.
  • Origination fee: None
  • Prepayment penalty: None
  • Late payment fee: $39 if payment is not received in full by the due date.

Discover personal loans has no fees as long as you make your monthly payments in full and on time. To help avoid late fees, you can set up automatic payments for free. You can also set up the automatic payment to withdraw more than the monthly payment amount if you want to pay off your loan early.

The repayment terms with Discover personal loans are more flexible than with most other personal loan lenders, with 36 to 84 months to repay your loan.

One cool perk from Discover is that the company allows you to see your free Credit Scorecard with your FICO Score on its website, even if you’re not a customer. This feature does not impact your credit.

Discover personal loans come with a 30-day guarantee. This means you have 30 days after the date your loan is funded to return the entire amount without interest and the loan will be canceled. However, Discover states that if the money was paid directly to your other lenders, it will not be able to get that money returned.

Personal loans from Discover can be used for many different purposes, including vacations, financing a wedding, home improvements, car repairs, medical bills, debt consolidation and more.

Eligibility requirements

  • Minimum credit score: Discover seeks applicants with “good credit.”
  • Minimum credit history: The lender says it prefers borrowers with a “strong financial history.”
  • Maximum debt-to-income ratio: Not specified.

Discover doesn’t specify a minimum credit score, minimum credit history or maximum debt-to-income ratio required to qualify for a personal loan; instead, its website says that Discover personal loans “may be an ideal solution for people with good credit and a strong financial history.” The exact definition of a good credit score is subjective, but Experian suggests that a FICO score must be at least 660 to be considered “good.”

Discover also specifies that in order to be eligible for a personal loan, you must:

  • be a U.S. citizen or permanent resident
  • be at least 18 years old
  • have a minimum household income of $25,000

Applying for a personal loan from Discover

You can apply for a personal loan from Discover on its website, or by calling 1-866-248-1255. If you received an invitation in the mail to apply, you can also fill out and mail the application.

Discover’s website allows you to check your interest rate and monthly payment amount with a soft pull on your credit. You have to share how much you need to borrow, the purpose of the loan and the length of the loan term, as well as personal information, like your address and phone number.

If you’re happy with the rates and you’d like to move forward with the loan, you’ll need to finish the application with the following information:

  • An invitation number, if you received one
  • Household income
  • Employment history
  • The bank account number and routing number to receive the funds
  • Creditor information (balances and account numbers) if funds will be sent directly to creditors to consolidate debt

After your loan application is received, a loan specialist may call you to confirm your information.

If your application is complete, you can receive a decision the same day. Funds may be sent as soon as the next business day, depending on the disbursement method you’ve chosen.

Pros and cons of a Discover personal loan

Pros:

Cons:
  • Flexible terms. Borrowers can choose from a range of repayment terms, from 36 to 84 months.
  • No origination fee or prepayment penalty. Discover does not charge borrowers an origination fee nor does it penalize them for paying off the loan early.
  • Check your rate with a soft pull. This means shopping around to see your rate won’t impact your credit score.
  • Interest rates may be higher than with some other lenders. Interest rates on Discover personal loans start at 6.99%, while other lenders’ rates may be as low as 3.99%. Take advantage of the pre-qualification form so you can compare your rate with other offers.
  • Late fees. You may be charged a fee of $39 if you don’t make the full monthly payment on time.

Who’s the best fit for a Discover personal loan?

If you have high-interest debt to consolidate, a personal loan from Discover may help you get a lower interest rate. You’ll also get a fixed monthly payment amount, which can make budgeting easier compared with fluctuating monthly payments.

Borrowers looking to spread their loan payments out over a long period of time may also be a good fit for a Discover personal loan, since the term can be as long as 84 months.

Discover personal loan consumer reviews

Reading about other borrowers’ experiences with a lender can help you decide whether or not you want to borrow money from that company. So what do people think about Discover personal loans? While Discover personal loans are not rated by the Better Business Bureau, its parent company, Discover Financial Services, has earned an A+.

Discover personal loans have earned 4.9 out of 5 stars from reviewers on LendingTree, the parent company of MagnifyMoney. Customers said they appreciated Discover’s rapid approval time, quick disbursement of funds and helpful customer service representatives.

One customer from Phoenix, Arizona said, “[I] had no idea Discover even did personal loans, [I was] so excited that I got an offer in the mail. [I] got online and filled out the application and got instantly approved … and within 48 hours had my disbursements being sent out to pay off my other debt.”

However, there were some complaints in the reviews of Discover personal loans, as well. High interest rates were the biggest criticism from negative reviewers. Some customers felt that their high credit scores should have earned them a lower APR. Overall, though, the vast majority of the reviews gave Discover personal loans four or five stars, making this company one potential borrowers should consider.

Discover personal loan FAQ

You can see if you qualify, check your rate and see your monthly payment without impacting your credit score through the Discover website.

Borrowers incur no origination fees, processing fees or prepayment penalties from a Discover personal loan. However, you may get hit with a fee if you make a late or incomplete payment.

A personal loan from Discover can be used for a large variety of purposes. You can use it to pay for a wedding, a dream vacation, home renovations, medical expenses, adoption costs, car repairs and more. You can also use the loan to consolidate high-interest debts.

Discover personal loans are commonly used to consolidate debt from credit cards and store cards. You can also use a Discover personal loan to consolidate home and auto loans, but if you already have a low interest rate on those debts, you might not save money by consolidating.

Discover will send you the money as early as the next business day after you accept the terms of the loan, as long as the application has no errors and the loan is being funded on a weeknight. Funding can take up to seven days if you make a mistake on your application, the loan funding is happening over a weekend or you request a different disbursement method.

Discover only offers personal loans to individuals. You can not take out a loan with a co-signer.

Discover will lend you up to $35,000 with a personal loan.

Discover personal loans come with a 30-day guarantee. If you decide within 30 days of funding that you no longer want the loan, you can send Discover a check for the full amount with zero interest and a request to cancel.

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Upgrade is an online lender that offers fairly priced personal loans for a term of either 36 or 60 months.... Read More .

Personal loans made through Upgrade feature APRs of 6.98%-35.89%. All personal loans have a 1.5% to 6% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Personal loans issued by Upgrade's lending partners. Information on Upgrade's lending partners can be found at https://www.upgrade.com/lending-partners/.

While Upgrade charges an origination fee of 1.50% - 6.00% of your loan amount and offers fewer options for loan terms, you can borrow up to $50,000.

Marcus by Goldman Sachs®

Marcus by Goldman Sachs®
APR

6.99%
To
28.99%

Credit Req.

Not specified

Terms

36 to 72

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

Marcus by Goldman Sachs® offers personal loans for up to $40,000 for debt consolidation and credit consolidation. ... Read More

Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans).Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions. For New York residents, rates range from 6.99% to 24.99% APR.

Marcus by Goldman Sachs® offers loan amounts up to $40,000. However, this lender has shorter repayment terms, meaning you’ll have less time to pay off a personal loan than you may with another lender.

LightStream

APR

4.99%
To
16.79%*

with AutoPay

Credit Req.

Not specified

Terms

24 to 144*

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

LightStream is the online lending division of SunTrust Bank.... Read More

*Your APR may differ based on loan purpose, amount, term, and your credit profile. Rate is quoted with AutoPay discount, which is only available when you select AutoPay prior to loan funding. Rates without AutoPay may be higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 4.99% APR with a term of 3 years would result in 36 monthly payments of $299.66.

With low APRs available for qualified borrowers and longer terms on personal loans, LightStream is a competitive lender. However, there’s no preapproval process to check rates, so you have to apply and take a hit on your credit score if you want to see your rate. Plus, in order to get the lowest rates, you have to sign up for autopay.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Joni Sweet
Joni Sweet |

Joni Sweet is a writer at MagnifyMoney. You can email Joni here

Kayla Sloan
Kayla Sloan |

Kayla Sloan is a writer at MagnifyMoney. You can email Kayla here

Get Personal Loan Offers
Up to $50,000

$

Won’t impact your credit score

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