Marcus by Goldman Sachs Personal Loans: 2023 Review
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Our Take
5.0
With zero fees and customizable repayment terms, Marcus offers one of the best personal loans for borrowers who want to consolidate debt.
Pros & Cons
Pros
- No fees.
- Rate discount for autopay.
- Option to pre-qualify with a soft credit check.
- Direct payment to creditors with debt consolidation loans.
Cons
- No co-sign or joint loan option.
Compare to Other Lenders
Full Review of Marcus by Goldman Sachs
Editor's note: As of January 6, 2023, Marcus no longer provides new personal loans. The lender will continue to service existing personal loans.
Marcus is the online-only consumer banking and lending arm of investment bank Goldman Sachs. It offers unsecured personal loans with zero fees for borrowers with excellent credit.
Marcus stands out for its unique features like customizing your monthly payment amount and term, and the option to defer a payment without paying interest.
» MORE: Best bank loans
Table of Contents
Marcus personal loans at a glance
Minimum credit score | 740. |
APR | 6.99% - 24.99%. |
Fees | Origination fee: None. Late fee: None. |
Loan amount | $3,500 to $40,000. |
Repayment terms | 3 to 6 years. |
Time to fund after approval | 1 to 4 business days. |
Loan availability | Loans available in all U.S. states and territories. |
- Disclosure from Marcus
Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. Rates range from 6.99% to 24.99% APR, and loan terms range from 36 to 72 months. For NY residents, rates range from 6.99%-24.74%. Only the most creditworthy applicants qualify for the lowest rates and longest loan terms. Rates will generally be higher for longer-term loans. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans). Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions. Receive a 0.25% APR reduction when you enroll in AutoPay. This reduction will not be applied if AutoPay is not in effect. When enrolled, a larger portion of your monthly payment will be applied to your principal loan amount and less interest will accrue on your loan, which may result in a smaller final payment. See loan agreement for details.
Where Marcus stands out
No fees. Marcus doesn't charge fees on its personal loans, including origination, prepayment or even late fees. However, if you miss a payment, you must still pay the interest that accumulates during this period, and late or partial payments may be reflected on your credit report.
Direct payment to creditors. The lender will pay your creditors directly if you get a loan for debt consolidation. This direct pay feature is free and can apply to credit cards and retail cards (for a maximum of 10 cards total) and other personal loans.
» MORE: Best debt consolidation loans
Customizable payment and term. Marcus offers customizable payment terms and amounts to find the best fit for you. Borrowers input their loan amount and credit score, and Marcus will show options based on either a desired monthly payment amount or length of term. But keep in mind a lower monthly payment or longer length of term can mean a higher overall cost for the loan.
Payment deferral option. After making 12 consecutive monthly payments, you can defer one payment as long as you've made all your prior payments in full and on time. Deferring a payment extends the loan term by one month. You won't be required to pay interest while your payment is being deferred.
» MORE: Best personal loans
Where Marcus falls short
No co-signed, joint or secured loan options. Marcus offers only unsecured personal loans, meaning there’s no option to add a co-borrower or secure the loan with collateral in order to get a more competitive rate or be approved for a larger amount.
Limited customer service channels. Marcus encourages customers to get in contact via phone, and loan specialists are available seven days a week with extended business hours. Unlike some lenders, however, Marcus doesn't offer a chat tool for prospective borrowers or a social media account dedicated solely to customer service.
» MORE: Best good-credit lenders
How to qualify for a Marcus by Goldman Sachs personal loan
Marcus doesn’t disclose many borrower requirements, but here are a few must-haves to qualify:
Minimum credit score: 740.
Must show ability to repay the loan, through income from employment, self-employment or other sources.
Must provide a Social Security number and Individual Tax ID number.
Before you apply
Check your credit. You can get your free credit report on NerdWallet or at AnnualCreditReport.com. Doing so will help you spot and fix any errors before you apply.
Calculate your monthly payments. Use a personal loan calculator to determine what APR and repayment term you’d need to get a loan with affordable monthly payments.
Make a plan to repay the loan. Review your budget to see how the loan’s monthly payments impact your cash flow. If you have to cut other expenses in order to repay the loan, it’s better to know that before you borrow.
Gather your documents. Marcus requires proof of income, which can be a W-2 or paystub, as well as proof of address and a Social Security number. Having these documents handy can speed the application process.
How to apply for a Marcus by Goldman Sachs personal loan
Here are the steps to apply for a Marcus by Goldman Sachs loan.
Pre-qualify on Marcus by Goldman Sachs’s website. You’ll be asked how much you want to borrow and what the funds are for, as well as some personal information like your name, birthdate and address. Then, the lender will ask for information about your sources of income. There’s no hard credit pull at this stage.
Preview loan offers and accept the one that fits your budget. Once you accept a loan offer, you’ll submit a formal personal loan application. This could require more documents, like W-2s, pay stubs and bank statements to confirm the information you gave during pre-qualification. Marcus will also do a hard credit check when you apply, so your credit score could temporarily dip.
Make a plan to repay the loan. Marcus reports payment to all three major credit bureaus, so on-time payments will help build your credit score, but missed payments will hurt it. Setting up automatic payments and keeping an eye on your budget are two ways to manage your loan payments.
Compare Marcus by Goldman Sachs to other lenders
Personal loan lenders offer different rates, loan amounts and special features, so it pays to weigh other options. The best personal loan is usually the one with the lowest APR.
Marcus by Goldman Sachs vs. SoFi
Marcus and SoFi are both no-fee lenders for borrowers with good and excellent credit. SoFi offers a wider range of loan amounts than Marcus and the option to add a co-signer to the loan. But Marcus has a lower minimum loan amount for borrowers looking for a smaller loan.
» MORE: Read our review of SoFi
Marcus by Goldman Sachs vs. LendingClub
Like Marcus, LendingClub is a good option for debt consolidation. LendingClub offers personal loans for fair- and good-credit borrowers and a wide range of loan amounts. But Marcus has no fees, unlike LendingClub, which charges an origination fee.
» MORE: Read our review of LendingClub
How we rate Marcus by Goldman Sachs personal loans
NerdWallet writers rate lenders against a rubric that changes each year based on how personal loan products evolve. Here’s what we prioritized this year:
Category | Star rating |
|---|---|
Affordability | |
Transparency | |
Loan flexibility | |
Customer experience | |
Overall |
- Category definitions
Affordability An affordable loan has low rates and fees compared to other similar loans and may offer rate discounts. Transparency A transparent lender makes information about the loan easy to find on its website, including rates, terms and loan amounts. Transparency also means allowing users to pre-qualify online to preview potential loan offers and reporting payment information with the major credit bureaus. Loan flexibility A flexible loan is one that lets users customize terms and payments. That means offering a wide range of repayment term options, allowing the borrower to change their payment date, offering loans in most states and funding it quickly. Customer experience A good customer experience can include a fully online application process, financial education on the lender’s website and a customer service team that’s available most of the time and can be reached multiple ways.
A previous version of this review misstated information about proof of income and photo ID. Marcus does not require proof for all income sources nor does it require a photo ID to qualify for a loan. This article has been corrected.
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NerdWallet’s review process evaluates and rates personal loan products from more than 35 technology companies and financial institutions. We collect over 50 data points from each lender and cross-check company websites, earnings reports and other public documents to confirm product details. We may also go through a lender’s pre-qualification flow and follow up with company representatives. NerdWallet writers and editors conduct a full fact check and update annually, but also make updates throughout the year as necessary.
Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. Our ratings award fewer points to lenders with practices that may make a loan difficult to repay on time, such as charging high annual percentage rates (above 36%), underwriting that does not adequately assess consumers’ ability to repay and lack of credit-building help. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for personal loans and our editorial guidelines.
