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- Marcus by Goldman Sachs® Personal Loans Review
Marcus by Goldman Sachs® Personal Loans Review: No Fees and Long Terms
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Marcus by Goldman Sachs® has taken the online personal loan industry by storm. Since its launch in 2016, Marcus has already issued $5 billion in loans to borrowers who apply directly through its website. It's easy to see why Marcus is so popular with borrowers, given its low interest rates and promise of "Truly, no fees. Ever." These consumer-friendly features make Marcus loans some of the best personal loans available to qualifying applicants.
Read our detailed Marcus by Goldman Sachs® personal loan review to see if you should consider applying.
Ratings Methodology
| Lending Partner | Best For | Rating | Min. Credit Score | Loan Amounts | APR Range | Next Steps |
|---|---|---|---|---|---|---|
Marcus |
Best For:
Low overall APR |
Rating image, 5.0 out of 5 stars.
5.0 stars
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. |
Min. Credit Score:
660 |
Loan Amounts:
$3.5k - $40k |
APR Range:
6.99% - 19.99% |
Check Rate
On Secure Website. |
Full Marcus by Goldman Sachs® personal loan review
Top perks
No fees: Marcus by Goldman Sachs® operates under the motto "Truly, no fees. Ever." Thus it doesn't charge an application fee, origination fee, or even late payment fees (though paying late could cost you more in interest and harm your credit score). Best of all, Marcus doesn't charge a prepayment fee, so you can pay off a Marcus loan early without penalty. This lack of fees makes Marcus one of the more borrower-friendly lenders out there.
Payment deferral: Once you've made 12 consecutive monthly payments in full and on time, Marcus allows you to defer one monthly payment. This can be advantageous if you encounter some unexpected expenses that temporarily affect your ability to make monthly payments -- you'd be able to skip a payment without taking a credit score hit.
Low APRs: Marcus has some of the best low interest personal loans on the market. The most creditworthy borrowers can qualify for an APR as low as 6.99%, a particularly good rate for an unsecured loan.
Large loan sizes and lengthy 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.
Simple debt consolidation: If you go to Marcus for a debt consolidation loan, you can disburse funds directly to your existing creditors and Marcus will send the amounts you specify. 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.
Flexibility: Loans are available from $3,500 to $40,000. One nice perk is that you can customize your loan to target a certain monthly payment that you know you can afford and a repayment date by which you'd like to have the loan paid off in full.
Get a quote without hurting your credit score: This advantage isn't unique to Marcus, but it's one worth highlighting. Marcus can give you a quote for a loan by doing a soft credit check, which won't hurt your credit score. Only upon accepting a loan will it do a "hard pull" to verify your information, so you can shop around for a loan with no impact on your credit score.
What could be improved
The upper-end interest rate: At 19.99%, it is definitely in your best interest to apply when your credit score is high enough to snag you the lowest rate.
No joint applications accepted: If you are hoping to build credit with a spouse or partner, this is not the place to do it. Marcus does not accept joint applications.
The interest rate is tied, in part, to the loan term: The longer the repayment period, the higher the interest rate. You benefit most by taking out the shortest term you can afford to repay.
How to qualify for a Marcus by Goldman Sachs® personal loan:
- Have a FICO® credit score of at least 660
- Be at least 18 years of age (19 in Alabama, 21 in Mississippi and Puerto Rico)
- Have a valid U.S. bank account
- Ability to 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. Initially, a soft credit check is conducted, meaning that your credit score won't take a hit when you get a quote.
Later, you may be asked to supply financial documents, such as recent pay stubs, bank statements (or W-2s), your full Social Security number, Individual Tax ID Number, or a photo ID issued by a U.S. state or territory. You will also need to choose the amount you want to borrow and your ideal monthly payment. It's only when you decide to proceed with the loan that a hard credit check is conducted. Finally, you will sign a loan agreement and funds are disbursed (generally within five days).
Alternatives to consider
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 some of our lending partners. For example:
- Upstart accepts credit scores as low as 620 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). They offer loans from $2,000-$35,000 and repayment terms of 24 to 60 months.
This personal loan is right for you if:
A Marcus by Goldman Sachs® personal loan may be a good fit for you if the following statements apply to your personal situation:
- You have a relatively high credit score. Marcus by Goldman Sachs isn't for everyone, seeing as its borrowers typically have a FICO® Score of 660 or better, higher than many other online personal loan providers. For this reason, it's best for people who simply found themselves with a little too much debt rather than people who have serious issues on their credit report.
- You want the option to pay off debt faster. Marcus is easily a top choice for people who want the option to pay off a loan early, because it doesn't charge prepayment or origination fees. If a loan is paid off early, the origination fee is spread over less time, which can substantially increase the cost of the loan. For example, a loan with a 9% interest rate and no origination fees is actually less expensive than a loan with a 6.5% interest rate and a 3% origination fee when paid off in 24 months.
- You need more time to pay off debt. Many credit cards offer 0% intro APRs on purchases and balance transfers for 15-18 months, making them a good solution if you can pay off the debt within the 0% intro APR period. However, if you need more time to pay off your loan -- up to six years -- a Marcus personal loan would be a better choice.
About the Author
Dana has been writing about personal finance for more than 20 years, specializing in loans, debt management, investments, and business. Her work has appeared on San Jose Mercury News, The Detroit News, Oakland Tribune, and Dun & Bradstreet. After moving around the globe, she's thrilled to be living in her hometown of Kansas City.
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