What we like:
|Rates (APR)||5.99% – 28.99%|
|Loan Terms||3 – 6 years|
|Loan Amounts||$3,500 – $40,000|
|Fees||Origination fee: None|
Prepayment penalty: None
Late fee: None
When many people think of Goldman Sachs, they think of investment banking and Wall Street. However, in recent years Goldman Sachs has introduced more consumer-friendly banking products, including savings accounts and loans. The products are branded with the name Marcus, one of the company’s founders.
Goldman Sachs is a well-known financial firm that has been in business for about 150 years. Now, the company is using its clout to provide Marcus personal loans to consumers.
This Marcus by Goldman Sachs personal loan review will cover what you need to know to decide if these products are right for you.
In this review:
- Applying for a Marcus Personal Loan
- Marcus Loan Rates, Terms, Fees, and Limits
- Benefits of a Marcus Personal Loan
- Downsides of a Marcus Personal Loan
Applying for a Marcus Personal Loan
Getting a loan from Marcus by Goldman Sachs is fairly straightforward. You start by sharing basic identifying information, including your name, address, birth date, annual income, and housing payment. You also include how much you want to borrow, and your desired monthly payment.
Marcus also asks what you will use the loan for before providing different loan options. Once you choose your desired loan, Marcus will gather remaining identifying information, including your Social Security number. You might also need to provide documentation verifying your identity and your income. Be prepared to provide pay stubs or tax documents.
Realize, though, that your final loan offer will depend on your credit report, as well as your income and other factors. In many cases, you’ll have the best chance with Marcus if you have good credit. Borrowers with good credit looking to consolidate debt can save hundreds of dollars in interest by getting a personal loan through the company at a lower rate than their current loans.
>> Read More: Best debt consolidation loans
Marcus Loan Rates, Terms, Fees, and Limits
Before you commit to a personal loan from Marcus, carefully consider the features of the loan. Here are some of the essential factors you need to know:
As with most loans, your interest rate will ultimately be decided by a number of factors, including your credit, as well as the loan amount and term. Marcus offers fixed-rate loans with APRs ranging from 6.99% to 24.99%.
Your loan term will be based on how much you borrow and how much you can pay each month. In many cases, you can choose your term. Marcus offers loan terms ranging from 36 to 72 months. For many borrowers, this offers the opportunity for reasonable payments.
Marcus by Goldman Sachs charges no fees. There aren’t even late fees if you pay late. According to the Marcus website, if you’re late, don’t pay what you owe, or miss a payment, you’ll end up being charged interest and the final payment will be higher.
However, if you miss payments, Marcus will report that to the credit bureaus. Additionally, your loan could go into default if you miss payments. So, while you won’t have additional fees, there are consequences for late or missed payments.
Marcus by Goldman Sachs allows you to borrow up to $40,000. Additionally, there is a minimum loan amount of $3,500. How much you’re actually allowed to borrow is determined by the information in your application. Many other personal loan providers, like LendingClub, have a similar limit.
If you want a loan of up to $100,000, though, you’ll have to consider looking at another lender. SoFi personal loans, for example, offer a large unsecured personal loan limit.
Benefits of a Marcus Personal Loan
There are plenty of benefits associated with Marcus by Goldman Sachs personal loans. Here are some of the advantages you can expect when you use this loan:
- Low interest rate: With Marcus, you can get a loan with a rate as low as 6.99% APR. That’s a competitive personal loan rate. If you’re hoping to consolidate debt, this rate can save you a great deal of money.
- Soft credit pull: The initial pull on your credit will be soft so you can compare loans. However, later a hard inquiry will be used to finalize your loan terms.
- Loan flexibility: You can choose a monthly payment amount on the website when you apply. As long as you qualify for the loan, Marcus will try to fit your loan options around what you’re looking for, with loan terms of up to 72 months.
- No fees: Marcus by Goldman Sachs loans are truly no-fee loans. You don’t have to worry about origination fees, or about late payment fees.
- Skip a payment: One of the benefits of Marcus by Goldman Sachs is the fact that, after making 12 months of on-time payments, you can skip a payment without incurring additional interest charges. Instead, you just make the payment at the end of your loan term.
It’s also worth noting that Marcus offers customer support seven days a week, allowing you to speak with a human on the phone when you need to. For many consumers, this is a plus.
Additionally, the Marcus dashboard is easy to manage, and if you have a savings account with Marcus, you can see all your financial accounts with the company in one place. If you’ve already got an account, this can help you better manage your options and stay on top of your money.
Downsides of a Marcus Personal Loan
There aren’t a whole lot of negatives associated with Marcus personal loans. For the most part, though, Marcus isn’t for those with poor credit scores.
>> Read More: Bad credit loans
According to company data, more than 80% of Marcus borrowers have a credit score of at least 660. So, if you have a thin credit history or poor credit, you might have a hard time qualifying for a Marcus personal loan. If you do qualify, you might have to pay a higher interest rate. If you’re trying to consolidate debt, paying the top rate of 24.99% might not be worth it, particularly if your existing credit cards have lower interest rates.
Another issue to be aware of is the fact that the minimum loan amount is $3,500. If you don’t need to borrow that much, you should look for a loan elsewhere.
In general, Marcus loans are in line with loans from many other online personal loan lenders. You might be able to get lower rates with some companies, like SoFi and Lightstream, but you need to weigh whether the lower rates elsewhere offset the origination fees.
Marcus personal loans are some of the best personal loans available — especially if you have good or excellent credit. If you qualify for the lowest rates, you can use a personal loan for credit card consolidation and save thousands. The sign-up process is easy, and the fixed rate and lack of fees make these loans predictable.
- How much you can borrow: $3,500 to $40,000
- Interest rate: 6.99% to 24.99%
- Term: 36 to 72 months
- Credit score: Most borrowers have a score of at least 660
- Fees: No fees, including no origination or late fees
Before you make your choice, research your options and compare offers from several different lenders to ensure that you are getting the best deal for your needs.4.32 Marcus Personal Loans
Author: Miranda Marquit
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