Marcus by Goldman Sachs Personal Loans: 2020 Review

Marcus by Goldman Sachs is an online lender that provides personal loans to borrowers with good and excellent credit.

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Our Take

5.0

NerdWallet rating 

The bottom line: Marcus loans stand out for low rates, no fees, and flexible loan terms and payment options. They're among the best options for good-credit borrowers looking to consolidate debt.

Best Personal Loan from a Bank

Marcus by Goldman Sachs

on Goldman Sachs's website

on Goldman Sachs's website

Min. Credit Score

690

Est. APR

6.99 - 19.99%

Loan Amount

$3,500 - $40,000

Pros & Cons

Pros

  • No fees.

  • Options to change your payment date and defer a payment.

  • Rate discount with autopay.

  • Offers direct payment to creditors with debt consolidation loans.

Cons

  • No option to include co-signer.

  • Reports payments to only one of the three major credit bureaus.

Compare to Other Lenders

Marcus by Goldman Sachs
Lightstream
Payoff
Est. APR

6.99 - 19.99%

Est. APR

5.49 - 20.49%

Est. APR

5.99 - 24.99%

Loan Term

3 to 6 years

Loan Term

2 to 7 years

Loan Term

2 to 5 years

Loan Amount

$3,500 - $40,000

Loan Amount

$5,000 - $100,000

Loan Amount

$5,000 - $35,000

Min. Credit Score

690

Min. Credit Score

660

Min. Credit Score

640

Compare estimated rates from multiple lenders

Compare Rates

Full Review

To review Marcus, NerdWallet collected more than 30 data points from the lender, interviewed company executives and compared the lender with others that seek the same customer or offer a similar personal loan product. Loan terms and fees may vary by state.

Marcus is the online-only consumer banking and lending arm of investment bank Goldman Sachs. One of the few banks offering personal loans, the company prides itself on transparency and no-fee loans, says Mandy Huang, vice president who heads the company's digital acquisition team.

Marcus loans are aimed at borrowers with good and excellent credit. Some of its personal loan features, like flexible loan terms, were added specifically because of customer feedback.

One drawback is the company reports loan payments only to TransUnion instead of all three major credit bureaus.

Best for: NerdWallet recognizes Marcus among our list of best personal loans in the categories of good credit, debt consolidation and bank loans. These loans can be used for almost any purpose.

No fees: The lender says it doesn’t charge any fees, not even late fees for missed payments. A borrower must still pay the interest that accumulates during a missed-payment period, though.

Direct payment to creditors: Marcus offers direct payment to creditors for debt consolidation loans. Some debt consolidation customers may be required to send part of the loan directly to creditors.

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 handful of loan options that fit your preferences, provided you qualify for a loan.

Marcus also allows borrowers to change their due date up to three times during the life of the loan.

Loan terms: Repayment terms range from three to six years, but there are nine options within those three years — a loan's timeline isn't always rounded to a year. Depending on a borrower's desired loan amount and monthly loan repayments, a loan term could be 39 months, 45 months or even 66 months.

Defer a 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. The loan term is simply extended by one month. You’ll pay interest during the extended month, but not during the deferral month.

Autopay discount: If you set up autopay, Marcus will cut your loan's annual percentage rate by 0.25%.

Customer support: Marcus has U.S.-based loan specialists who provide customer support seven days a week.

How to qualify:

Marcus doesn't disclose many hard borrower requirements, but the lender says it's looking for borrowers with enough income to support their existing expenses and monthly loan payments. To get a Marcus loan, borrowers must:

  • Be 18 or older, 19 in Alabama; 21 in Mississippi and Puerto Rico.

  • Have a valid U.S. bank account, Social Security number or tax ID.

  • Have a 680 or higher credit score.

Loan example: For a borrower with good credit, a $20,000 personal loan with a repayment term of 48 months at 18% APR would carry a monthly payment of $587, according to NerdWallet’s personal loan calculator.

Before you shop for a personal loan

Pre-qualify on NerdWallet

NerdWallet recommends comparing loans to find the best rate for you. Pre-qualifying may get you personalized rates from multiple lenders that partner with us, including Marcus. Pre-qualifying will not impact your credit.

Apply on Marcus

You can fill out an application on the 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.

Personal Loans Rating Methodology

NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including: soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus, and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews. Read our editorial guidelines.