In a Nutshell
pros
- No origination, processing, or prepayment fees
- Many Marcus customers receive funds in as little as 5 days
cons
- High credit score required to be accepted
- Late payment policy can mean higher interest rates
Marcus at a Glance
| Loan types | Fixed rate personal loans |
| Loan amount | $3,500 to $40,000 |
| Repayment terms | 36 - 72 months |
| APR | 6.99% - 19.99%* |
| Minimum credit score | 680 |
| Best for | Customers with good credit who need a small, all-purpose loan |
| Direct Lender or Marketplace | Direct lender |
Overview
Marcus is a new personal loan solution from one of the nation’s oldest banking institutions—Goldman Sachs, which has 150 years of financial expertise. This recently-launched branch of the venerable investment bank is currently testing its new approach to personal lending and debt consolidation on a smaller audience, but anyone can now borrow without a special invitation. In a fresh spin on an old system, loans from Marcus are fee-free, and offer more flexibility thanks to unique loan features. Fast funding is also a crucial component of the Marcus strategy, and many Marcus customers receive funds in as little as 5 days. In order to offer its customers the best loan options, only the most creditworthy applications qualify for the largest loan amounts and lowest rates.
Best For?
Marcus is best for borrowers with debt from several creditors, consolidating outstanding obligations under a single loan may be a good idea. Marcus makes it easy to put all these debts under one manageable banner. Others who simply need the cash to complete a home improvement project, buy an engagement ring, or handle a personal matter are also welcome. Generally, those with healthier credit have a better chance at obtaining a loan from Marcus. Marcus is flexible and lets you choose the length of your term, as well as the monthly payment you'd like.
Loan Features
Marcus does not place any restrictions on its loans, which can be used for debt consolidation, home improvements, and many other alternatives. You can personalize your repayment terms and monthly payments along with loan amounts. Marcus also does away with fees, instead offering fixed-rate loans with no hidden surcharges or additional costs. Customers can apply for loans directly online with no need for visits to a branch or calls to representatives. Additionally, Marcus rewards responsible repayments, allowing customers to miss one payment after 12 months of on-time payments without a penalty or extra charges. The company provides a range of repayment terms, and allows customers to pay out their loan early without penalty.
Highlights for Marcus:
- Most creditworthy applications qualify for the largest loan amounts and lowest rates
- Rapid funding - Many Marcus customers receive funds in as little as 5 days
- Adjustable range of loans, terms, and monthly payments
- Absolutely no fees
- Personal loans for debt consolidation and more
- Competitive interest rates
- Late payment feature lets customer earn the ability to defer payments
- Reasonable range of loan amounts
- Solid foundation in Goldman Sachs, a centuries old institution
The Application Process
The first step of the application process is to fill out a form that asks for basic details and financial information. Once completed, one of the more unique offerings makes its appearance: two sliders that let the applicant choose their term and monthly payment. After answering a few more questions on income and other demographic information, Marcus performs soft credit check on the applicant, which does not impact their score.
To be approved for a loan, Marcus asks that applicants meet the following requirements:
- Be a citizen or legal permanent resident of the US
- Be 18 years or older (must be 19 years old in AL, 21 years old in PR & MS)
- A minimum FICO score of 680, though 700 is recommended
- At least 36 months credit history
Additionally, applicants are recommended to have the following documents ready to expedite the approval process:
- Recent bank statements
- Proof of income such as pay stubs or tax returns
- A driver’s license or similar photo ID
- Proof of citizen/residence such as a passport
Loan Terms
Unlike many of its competitors, Marcus is focused on providing customers a more versatile lending experience. When applying, customers are asked to provide a range of preferable loan terms and monthly payments. The company takes these selections into account during the approval and funding process, giving customers the best approximation of their preferences possible. This sets it apart from many industry mainstays that give customers set terms without choices.
Thanks to its slightly higher approval requirements, Marcus can offer customers more favorable terms and loan amounts, along with the ability to set their own preferences. Customers can get fixed rates that range between 6.99% - 19.99%*, which are well within the industry average. The company offers borrowers loans as low as $3,500, reaching as high as $40,000. What really sets the company apart, however, is its fee structure and benefits. The company does not charge any origination, prepayment, or even late fees. Customers who miss payments or cannot cover the full amount in a given month will simply have interest added to their final payment. However, customers who pay on time for 12 months can defer up to 3 payments for no extra interest, with the missed installments simply added to the end of the loan.
Repayment Terms
It takes anywhere from 36 months to 72 months, or between 3 and 6 years to pay off a Marcus personal loan, with unique intermediate terms on offer. Borrowers can get approved for as low as $3,500 or as much as $40,000, and can choose to pay their loan back on a schedule that is as relaxed, or as stringent, as they like. During repayment, there are absolutely no fees involved for any customer service process, and a unique feature of Marcus reveals itself after just a year. After 12 consecutive months of consecutive on-time payments, the borrower earns a credit that allows them to make a late monthly payment at any time in the future, without incurring additional interest charges. Customers may also configure their repayment date on any day of the month and can change it up to three times over the course of repayment. Marcus impressed us with their creativity in creating this incentive, and we can see customers appreciating the feature.
Privacy & Security
Opting for a Marcus loan is one of the safest choices you can make. With nearly 150 years in the finance industry, a solid reputation, and consistent backing, you can be confident that you won’t have the issues you would with some other lenders - such as not getting paid, hidden fees, aggressive marketing techniques, or problematic practices. Everything that runs through Goldman Sachs is legitimate and provides quality, reliability, and integrity regardless of your financial standings.
Help & Support
During our exploration of Marcus and its services, we encountered a friendly and informed customer service team. While Marcus may be a new entry into an established market, the representatives we spoke with were experienced. Staff members responded to our inquiries via email and phone within a reasonable amount of time. We waited just a few minutes before speaking with a friendly support team employee, and for email we were returned to within a single business day. Additionally, the “Insights” section of the Marcus website holds a thorough FAQs list and a collection of frequently-updated articles on debt.
How Marcus Compares
Marcus provides loans with APRs between 6.99% - 19.99% **, payable over 3-6 years, with no origination, processing, or prepayment fees, making it similar to SoFi. However, when comparing Marcus with SoFi, Marcus stands out by giving you the option to defer payment if you’ve paid on time for 12 months.
Marcus offers similar loan amounts to LendingClub, but has more flexible loan terms when it comes to the length of the loan and also offers more attractive APRs. While LendingClub lets you pay a fixed monthly rate throughout the term of the loan, making it easier to budget and plan ahead, Marcus offers greater flexibility by letting you configure your repayment date for any day of the month and change it up to 3 times over the term of your loan.
FAQs
Does Marcus charge any fees?
Marcus does not charge any fees for originating a loan. The company doesn't charge late fees either, and if you miss a payment or can’t cover your entire payment in a given month, Marcus will simply add interest to your final payment. You can also defer up to 3 payments with no extra interest if you have made your payments on time for 12 months. Finally, if you decide to pay off your loan early, Marcus will not charge you a prepayment penalty.
What are the credit score requirements?
The credit score requirements with Marcus are a bit higher than that of many competitors. You will need a minimum FICO score of 680, though 700 or higher is recommended if you want to ensure you can get a loan with better terms. When you’re applying for a loan with Marcus, the company will do a soft credit check, which has no impact on your credit score. It also provides customers with free tools for improving their credit and reducing debt.
What can I use my loan for?
Marcus does not place any restrictions on what you use the loan for. You can use the extra cash flow for debt consolidation, home renovations, a family vacation, or really whatever your heart desires.
How long does the process take?
The application process on Marcus is easy and straightforward, and you never have to head down to your local bank branch. Many Marcus customers receive funds in as little as 5 day, according to Marcus.
Summary
For people who are looking for the best place to get a personal loan, Goldman Sachs-backed Marcus provides a quick solution. The absence of fees and flexibility makes a Marcus loan worthwhile and effective. Borrowers can choose their monthly payment, term length, and use their good performance to make late payments at no extra cost. With low APR and long terms, Marcus is taking advantage of their access to inexpensive credit to give borrowers a better alternative than credit cards.
Physical Address
Marcus by Goldman Sachs
111 South Main Street
Salt Lake City, UT 84101
Disclaimers
*After making 12 or more consecutive monthly payments, you can defer one payment as long as you have made all your prior payments in full and on time. We will waive any interest incurred during the deferral, and extend your loan by one month (you will pay interest during this extra month). Your payments resume as usual after your deferral. Advance notice is required. See loan agreement for details.
*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. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. You may be required to have some of your funds sent directly to creditors to pay off down certain types of outstanding unsecured debt. 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
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