Marcus at a Glance
|Loan types||Fixed rate personal loans|
|Loan amount||$3,500 to $40,000|
|Repayment terms||36 - 72 months|
|APR||5.99% - 28.99% **(5.99% - 24.99% for NY residents)|
|Minimum credit score||660|
|Best for||Customers with good credit who need a small, all-purpose loan|
Marcus is a new personal loan solution from one of the nation’s oldest banking institutions—Goldman Sachs. 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. In order to offer its customers the best loan options, only the most creditworthy applications qualify for the largest loan amounts and lowest rates.
For people with debt from several creditors, consolidating all 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 much better chance at obtaining a loan from Marcus. Marcus is very flexible and lets you choose the length of your term, as well as the monthly payment you'd like.
Pros and Cons
There's a lot to like about Marcus, however there are areas it could improve:
- High credit score and history requirements will be hard for some borrowers to pass
- The late payment policy could add more interest for customers who miss installments
Despite these sparse flaws, most of the Marcus experience was exceptional.
- Absence of origination fees, processing fees, prepayment fees, and all others is a big benefit
- Unique feature lets borrowers defer payment after good behavior
- Lengthy and flexible terms are suited to most borrowers
- Soft credit check has no impact on one's credit score or history
- Backed by one of the most influential, secure financial institutions
- All customers receive free credit and debt tools
Marcus does not place any restrictions on its loans, which can be used for debt consolidation, medical bills, 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, 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.* The company provides an excellent 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
- For New York residents, rates range from 5.99% to 24.99% APR
- Low rates and high loan amounts for most creditworthy applicants
- Adjustable range of loans, terms, and monthly payments
- Absolutely no fees
- Personal loans for debt consolidation and more
- Competitive interest rates
- Payment deferral feature: customers earn the ability to defer payments
- Reasonable range of loan amounts
- Backed by Goldman Sachs 150 years of financial expertise
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 (19 in Alabama, 21 in Mississippi and Puerto Rico) years or older
- A minimum credit score of 660, 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
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 interest rates that range between 5.99% - 28.99% **, which are well within the industry average. For New York residents, rates range from 5.99% to 24.99% APR. 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. 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.*
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 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.* 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 highly appreciating the extraordinary feature.
Privacy & Security
Opting for a Marcus loan is certainly one of the safest choices you can make. With nearly 150 years in the finance industry, a reputation you could build a city on top of, and enough backing to fund a large army, there is really no fear of anything going awry with this company. You won’t have the same issues you would with many other lenders such as not getting paid, exorbitant hidden fees, aggressive marketing techniques, or unlawful practices. Everything that runs through Goldman Sachs is 100% legitimate, guaranteed to provide quality, reliability, and integrity regardless of your financial standings.
Help & Support
During our exploration of Marcus and its services, we encountered an exceptionally friendly and informed customer service team. While Marcus may be a new entry into an established market, the representatives we spoke with were anything but inexperienced. All 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 5.99% - 28.99% **, 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; 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.*
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.
For people who need a personal loan for just about any reason, including for debt and credit consolidation, Goldman Sachs-backed Marcus provides a quick solution. The absence of any fees and some excellent 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.
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. Additionally, 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.* 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 credit score of 660, 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.
Marcus by Goldman Sachs
111 South Main Street
Salt Lake City, UT 84101
*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.