Marcus by Goldman Sachs® Personal Loans Review: No Fees and Long Terms

Marcus by Goldman Sachs® has taken the online personal loan industry by storm. It's easy to see how its low interest rates and uncompromising no-fee commitment have made Marcus by Goldman Sachs® popular with borrowers. Read our full Marcus by Goldman Sachs® personal loan review to see if you should apply.

This personal loan is a good fit for: Borrowers with relatively high credit scores looking for a no-fee loan.

Top perks

No fees: Marcus is not exaggerating when it says "no fees." It charges no sign-up fees or late payment fees. It also won't charge you a fee if you decide to pay the loan off early. The lack of fees makes Marcus by Goldman Sachs® one of the most consumer-friendly personal loan companies.

Payment deferral: Another sweet benefit offered by Marcus is its monthly payment deferral. It works like this: Once you make 12 consecutive monthly payments in full and on time, the lender allows you to skip a payment without taking a hit to your credit score. Hold onto that perk just in case something happens, like you're hit with a huge unexpected expense and need extra funds to get it paid.

Low APRs: Marcus has some of the best low interest personal loans around. The most creditworthy borrowers can qualify for a particularly good loan interest rate. This is especially important if you're looking for an unsecured loan with a low interest rate.

Large loan sizes and long repayment terms: Whereas other lenders max out at $25,000 loans and four- or five-year repayment terms, Marcus offers loans as large as $40,000 for periods as long as six years. This makes it a good choice for people who need a larger loan and more time to pay it off. (Though you may find you'll pay a higher APR if you go for a longer repayment period.)

Simple debt consolidation: If you do go to Marcus for a debt consolidation loan, it will automatically pay your existing creditors. So if you have three credit cards with combined balances of $10,000, you could get a $10,000 loan from Marcus and have it send a check to each of them. Not only is this more convenient than paying three separate creditors, but it helps you pay off your debts once and for all.

AutoPay Discount: You can reduce your loan's APR by 0.25% if you sign up for AutoPay. Automating your payments also makes it easier to ensure you don't accidentally miss a bill.

Get a quote without hurting your credit score: This advantage isn't unique to Marcus, but it's worth highlighting. Marcus only needs to do a soft credit check to give you a quote, which won't hurt your credit score. It's only when you accept the loan that Marcus will conduct a hard check to verify your information. The real advantage of a soft check is that it allows you to shop around for a personal loan that fits your needs without dinging your credit score.

What could be improved

The upper-end interest rate: The upper-end rate is not horrible (in fact, it's lower than most of its competitors). But it is a reminder to apply when your credit score is high enough to snag the lowest rate.

No joint applications accepted: If you are hoping to get credit with a spouse or partner, this is not the place to do it. Marcus does not accept joint applications.

• Have a FICO® credit score of at least 720
• Be at least 18 years of age (19 in Alabama, 21 in Mississippi and Puerto Rico)
• Have a valid U.S. bank account
• Provide Social Security or Individual Tax ID Number

Application process:

You can apply for a Marcus by Goldman Sachs® personal loan online or by phone.

• Fill in some basic personal information. Initially, Marcus will conduct a soft credit check, meaning that your credit score won't take a hit when you get a quote.
• Based on the quote you receive, you will need to choose the amount you want to borrow and your loan term.
• If you decide to proceed with the loan, you'll need to fill in some more details and Marcus will conduct a hard credit check.
• You may be asked to supply financial documents, such as recent pay stubs, bank statements, your full Social Security number, Individual Tax ID Number, and a photo ID.
• Finally, you will sign a loan agreement and you could receive your funds in as little as three days.

Not every lender is perfect for every borrower. Factors like your income, FICO® Score, and even the length of your loan term may sway you toward one lender over another. Do yourself the favor of comparing personal loans from several lenders. For example:

• Upstart accepts credit scores as low as 580 and allows you to repay your loan in 36 to 60 months. If you're looking for a very small personal loan, Upstart loans are available for as little as $1,000.
• Avant loans are specially created for borrowers with poor credit scores (as low as 580). It offers loans from $2,000-$35,000 and repayment terms of 24 to 60 months.

A Marcus by Goldman Sachs® personal loan may be a good fit for you if the following statements apply:

• You have a relatively high credit score. You'll need excellent FICO® Score to qualify for a Marcus by Goldman Sachs® personal loan. If that describes you, you will find that Marcus offers lower-cost loans than most competitors.
• You want the option to pay off debt faster. Marcus is easily a top choice for people who may want to pay off a loan early because it doesn't charge prepayment penalties or origination fees.
• You need more time to pay off debt. Many credit cards offer 0% intro APRs on purchases and balance transfers for 12-18 months. As such, they're an excellent option if you can pay them off before the promotional rate expires. However, if you might need up to six years to repay a larger loan, a Marcus personal loan may be a better fit.