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If you’re looking for a personal loan, American Express and Discover are two solid choices. American Express (aka Amex) has been offering a variety of financial products since 1850. Discover isn’t as old (it was founded in 1985), but it’s a trusted and well-known brand.
Both lenders offer online loans with digital tools to help customers manage their personal loans, but American Express personal loans are only available to those with an American Express credit card.
American Express vs Discover
Both American Express and Discover offer good credit personal loans in similar loan amounts, but they differ when it comes to the APRs offered and the length of the loan term.
| American Express | Discover | |
|---|---|---|
| Bankrate Score | 4.6 | 4.8 |
| Better yet | Low APR | Debt consolidation |
| Loan amount | $3,500-$40,000 | $2,500 – $40,000 |
| APR | 5.91%-19.97% | 7.99% – 24.99% |
| Length of loan term | 12 to 60 months | 36-84 months |
| Fee | Late fees | Late fees |
| Minimum Credit Score | not specified | 660 |
| Time to fundraise | one day | As early as the next business day |
American Express Personal Loan
The lower the APR the better
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Ideal for debt consolidation
Choosing American Express or Discover
Choose American Express for the most competitive interest rates, or choose Discover if you want a debt consolidation loan.
APR Range
If you’re looking for the lowest APR between the two lenders, you’ll find the lowest interest rate with American Express. In fact, American Express offers some of the lowest interest rates in the industry. Interest rates on personal loans with American Express start at 5.91%, which is more than 2% lower than the starting rate you can get with Discover.
Minimum Credit Score
To qualify for a personal loan from Discover, you need a good credit score. Your score must be at least 660. American Express doesn’t publish a minimum credit score requirement, so it’s hard to tell who will qualify for a loan. Discover gives you a better idea of who will qualify for a loan, at least from the minimum standard.
Repayment Terms
Discover offers longer repayment term options than American Express (up to 84 months), allowing you to pay off your debt bit by bit over time. However, American Express’s repayment terms are shorter – just 12 months compared to Discover’s 36 months – so choose a lender with the term options that best suit your needs.
Loan amount
Both lenders offer roughly the same loan amounts: Discover’s loan amounts range from $2,500 to $40,000, while American Express’s loan amounts range from $3,500 to $40,000. If you’re looking for a smaller personal loan, Discover can give you a slightly smaller loan amount.
Fee
Neither lender has prepayment fees, but they do have late fees. American Express charges $39 for late payments. Discover personal loans also have a $39 late fee.
Conclusion: Which lender is better?
When comparing Discover vs American Express personal loans, there are a few factors to consider: Both loans are solid options for borrowers with good credit.
However, it’s hard to know exactly what level of credit you need to qualify for an Amex personal loan, and the American Express personal loan is more exclusive and not available to everyone. If you qualify for either loan, you’ll get the more competitive interest rate of the two.
Ultimately, if you qualify, American Express is your best option, and for those who aren’t already AmEx customers, Discover’s personal loans are a strong second option.
Compare lenders before applying
Discover and American Express have differences when it comes to loan limits, loan terms, and loan amounts, so they aren’t your only options. If you’re looking for a personal loan, compare them with other personal loan lenders to find the best fit for your financial situation.
