NerdWallet rating: 5.0 / 5.0
Good for: good credit, debt consolidation
Marcus is an online lender owned by Goldman Sachs that makes debt consolidation loans to those with good credit scores.
Marcus may be a good fit for you if:
- Your credit score is between 700 and 740. The minimum required score is 660.
- You have an established credit history. Marcus did not provide a minimum requirement but said its borrowers typically are not new to credit.
- You want flexible loan terms. Marcus loans span two to six years, but the lender offers loan terms between those ranges, such as a 26- or 47-month loan.
Marcus at a glance
|Typical APR||5.99% – 22.99%|
|Loan amounts||$3,500 - $30,000|
|Time to funding||Two business days|
|Soft credit check with application?||Yes|
Marcus personal loan review
To review Marcus, NerdWallet collected more than 30 data points from the lender, interviewed company executives, completed the online loan application process with sample data and compared the lender with others that seek the same customer or offer a similar product. Loan terms and fees may vary by state.
Marcus is investment bank Goldman Sachs’ first foray into consumer banking and lending. The lender wants to remove what it calls “the stigma around debt,” says Harit Talwar, head of digital finance at Goldman Sachs. Loans are marketed to people who want to consolidate debt, but you can borrow money for any purpose.
Marcus has some features that help it stand out among other online lenders NerdWallet has reviewed:
- No fees: The lender says it doesn’t charge any fees, not even origination fees or late fees for missed payments.
- Loan flexibility: Marcus lets potential borrowers choose a monthly payment amount and loan term on its website. Once you pick the numbers that suit your budget, the lender tries to design a loan that matches your preferences, provided you qualify for a loan.
- Skip a payment: After 12 months of making on-time payments, a borrower can skip one loan payment. The loan term is simply extended by one month without the addition of interest charges.
Marcus compared with other lenders
Earnest is not ideal for debt consolidation borrowers, but it’s the only other online lender reviewed by NerdWallet that doesn’t charge any fees and offers a similar degree of flexibility. Borrowers can choose flexible loan terms, but they can also change their payment due date and monthly payment amount at any time. Unlike Marcus, Earnest doesn’t have a soft credit check option. A soft check doesn’t affect your credit score.
How to apply for a Marcus loan
You can fill out an application on Marcus’ website and choose the loan term and monthly payment amount that you prefer. Marcus conducts a soft credit check with credit bureau TransUnion to see if you qualify for a loan.
Once you pick the loan you want, you fill out a detailed application and the lender conducts a hard credit check before finalizing the loan.
Details about Marcus personal loans
- Minimum credit score: 660
- Minimum gross income: Not provided
- Minimum credit history: Not provided, but typically not for those with thin credit files
- Limitations: Aimed at good-credit borrowers
- Maximum debt-to-income ratio: Not provided
- Annual percentage rate range: 5.99% to 22.99%
- Loan amount: $3,500 to $30,000
- Loan duration: Two to six years
- Time to receive funds: Usually two days
Marcus fees and penalties
- Origination fee: None
- Prepayment fee: None
- Late fee: None
- Personal-check processing fee: None
- Other fees: None
Learn more about personal loans
PERSONAL LOANS RATINGS METHODOLOGY
NerdWallet’s ratings for personal loans awards points to lenders that offer consumer-friendly features, including soft credit checks, no origination fees, payment options, short time to funding, interest rate caps of 36%, and absence of prepayment penalties. Features are considered for their positive impact on consumers’ credit history and financial health. To ensure accuracy and consistency, our ratings are reviewed by multiple people on the NerdWallet Personal Loans team.
— Among the very best for consumer-friendly features
— Excellent; offers most consumer-friendly features
— Very good; offers many consumer-friendly features
— Good; may not offer something important to you
— Fair; missing important consumer-friendly features
— Poor; proceed with great caution