Marcus by Goldman Sachs personal personal loan: 2017 comprehensive review
Goldman Sachs

If you have good to excellent credit, you might consider Marcus by Goldman Sachs. Borrowers do not need to have an existing relationship with Goldman Sachs in order to eligible. And, while a Marcus personal loan may not be used for educational expenses, they can be utilized to pay off credit cards and fund major purchases.

Who is a Marcus loan good for?
Lending terms
Minimum borrower requirements
Fees and penalties
How to apply
What to do if you’re turned down

Who is a Marcus personal loan good for?

  • Anyone with good to excellent credit. Most borrowers have a minimum FICO score of 700. Check your credit score for free before you apply.
  • Consumers with a low debt-to-income ratio. Calculate your debt-to-income ratio before applying. It may be difficult to get approval if you have a debt-to-income ratio of 40% or higher.
  • Borrowers who don’t need to file a joint application. Marcus, like most lenders, does not allow multiple borrowers on a single loan.
  • Anyone looking to improve their credit score, as Marcus reports to the three major credit bureaus.

Who should not accept a Marcus personal loan

  • Anyone with bad credit. If Marcus quotes a high interest rate, you may be better off with a different type of loan.

Consider applying for a balance transfer credit card or a home equity loan if either of those offer more favorable terms.

The screening process for a Marcus personal loan is almost entirely virtual. This means there are fewer loan underwriting costs. As a result, Marcus by Goldman Sachs may offer better interest rates and quicker turnaround times than brick-and-mortar lenders.

Because Marcus personal loans are issued by Goldman Sachs Bank, the online lender charges no sign-up or origination fees. It relies on interest payments to make money on the loans.

Lending terms

Marcus personal loans can range from $3,500 to $40,000. They can carry a fixed annual percentage rate of between 6.99 percent to 24.99 percent. The quote you receive is based on multiple factors, including credit history, the amount you’re asking for, and the length of time you’re looking to pay it off.

How Marcus compares
Marcus Lending Club
Loan amounts $3,500 to $40,000 $1,000 to $40,000
APR range 6.99% to 24.99% 5.98% to 35.89%
Origination fee None 1% to 6%
Minimum credit score 700 600
Time to funding About 2 business days A week or longer
Soft credit check with application? Yes Yes

The figures above are accurate as of April 12, 2018.

Unlike some of the other online personal loan companies, Marcus by Goldman Sachs does not charge any origination fees to process your loan.

Once approved for a loan it takes about two business days to receive the funds in your bank account.

Minimum borrower requirements

  • Good to excellent credit (most Marcus borrowers have a score above 700)
  • Proof of employment, loan purpose, income, and creditworthiness
  • Over the age of 18 (19 in Alabama and Nebraska, 21 in Mississippi and Puerto Rico)
  • Valid U.S. bank account and Social Security or Individual Tax I.D. Number

Fees and penalties

  • There are no late fees, but you’ll continue to accumulate interest on the past due amount and final payment will increase as a result.
  • Late payments, missed payments, partial payments and loan defaults will will show on your credit report.
  • You won’t be penalized for paying off your loan early.

How to apply

  1. Go to their site and enter some basic information including the loan amount, loan purpose, and your yearly individual income.
  2. Marcus then will conduct a “soft” credit check, which won’t impact your credit rating.
  3. Upon approval, you will be able to review your options including the possible fixed monthly payments and what the APR might be.
  4. Before finalization, Marcus will do a “hard” credit check (which will impact your credit score).

What to do if you’re turned down

If Marcus rejects your application and you believe your financial standing is strong enough, consider asking for clarification. The explanation could be as simple as a processing error. Or there may be a negative mark on your credit report that you need to investigate.

If your credit is weak, consider applying for a personal loan at a credit union. You may find more favorable rates and fewer lending restrictions. A secured credit card is another option, which can help you rebuild your credit.

A brief history of Marcus by Goldman Sachs

Launched in 2016, Marcus by Goldman Sachs offers unsecured personal loans to borrowers with good to excellent credit. Named for company co-founder Marcus Goldman, the lender is investment bank Goldman Sachs’ entry into the online personal loans market.