Marcus by Goldman Sachs Personal Loans Review
Marcus at a glance
|Lender||Loan Amount||APR Range||Terms||Key Benefit|
|Marcus||$3,500 to $40,000||6.99% to 19.99%||36 to 72 months||No fees whatsoever|
Rates accurate as of July 30, 2020
What we like about it
Marcus claims “Truly, no fees. Ever.” Many lenders charge loan origination fees, application fees, and late fees which often make it hard to find its fee disclosure. You won’t have to worry about the extra charges from Marcus loans.
Another unique feature is Marcus’ deferral program — the lender lets you defer one monthly payment every time you make 12 on-time payments. This could come in handy to set aside some money for savings or if you have a larger bill coming up.
Credit-worthy borrowers will qualify for a competitive 6.99% interest rate and don’t risk their credit score checking — Marcus only performs a soft inquiry on your credit to give you an accurate interest rate.
Things to consider
There are a couple of important factors you should keep an eye on before you sign on the Marcus loans dotted line. Individuals with a lower credit score and/or those who’d like a longer term to repay their loan may end up with a high interest rate of up to 19.99% APR.
As for couples hoping to pay for a wedding or rebuild credit together, Marcus doesn’t allow for joint loans. If you have a low credit score or need a loan that allows joint borrowers, you’ll need to look at other personal loan alternatives.
What you need to know
Here’s the breakdown on how Marcus loans work. You may borrow an amount between $3,500 and $40,000 for a term of up to 72 months. Marcus provides debt consolidation loans, personal loans or home improvement loans. You may use the funds for nearly anything except student loans or educational expenses.
Individuals with higher credit scores looking for shorter repayment periods are more likely to qualify for the low 6.99% APR. If you have a lower credit score, you may want to shop around for other personal loan offers — Marcus loans come with an APR of as high as 19.99%.
Applying for a loan is simple and you don’t have to worry about impacting your credit score from a hard credit pull. That’s because Marcus performs a soft inquiry to accurately quote you how much it will cost you to take out a loan. The whole process happens online. Here’s how to apply for Marcus loans:
- Visit the Marcus loans online application page
- Choose the type of loan you need
- Enter the desired loan amount and term
- Provide your personal details such as name, address, email address, date of birth, income and your rental or mortgage payment amount
You’ll receive a loan quote detailing your interest rate and amount of your monthly payment. If you agree to the offer, you’ll need to upload or email documents, such as your government-issued photo ID, bank statements, banking information for where the funds will be deposited and Social Security number. Verification will take a few days at which point you’ll receive a loan agreement to sign and the funding you asked for.
Collateral and criteria
Marcus doesn’t have a wide range of loan products yet. The financial institution currently only offers unsecured loans. As with all unsecured loans, the approval of your loan is based on your credit score, income and the financial institution’s perception of your ability to repay the loan. You won’t have to put up any assets for collateral, such as a vehicle, home or other valuable to qualify. If you have credit history challenges that would make it hard to qualify for an unsecured loan, you’ll have to look at other lenders that offer secured loans.
Marcus vs. Lightstream
Marcus by Goldman Sachs and Lightstream are two online lenders offering a variety of personal loans. Lightstream ups the ante by providing loans between $5,000 and $100,000 with terms of up to 12 years, compared to Marcus’s $40,000 lending limit. Both lenders provide loans to customers with good credit. If you had to choose between the two, Lightstream may win the better lender title. You’ll be able to borrow higher amounts for longer terms. And customers with the best credit scores will get better rates from Lightstream — its APRs are 3.99% to 19.99%.
Marcus vs. Avant
Avant can also be considered an apples-to-apples comparison of online lenders. You can borrow between $2,000 and $35,000, making it a good option when you need to cover an emergency, such as a car breakdown, or a larger expense. In an Avant vs. Marcus loans comparison, Marcus wins. Marcus has better interest rates — 5.99% to 19.99%, compared to Avant’s 9.95%–35.99%. You have up to 72 months to repay your Marcus loans, compared to Avant’s 60 months. It doesn’t mean Avant should be ruled out; Avant is more accessible due to its lower credit score requirements than Marcus.