Pros and cons of Marcus by Goldman Sachs personal loans
Before signing up for a loan with Marcus, take a look at this breakdown of some of its benefits and drawbacks.
- Flexible loan terms: Marcus loan terms range from 36 to 72 months, so you have some flexibility in your repayment schedule.
- No fees: Unlike many of its competitors, Marcus doesn’t have application fees, origination fees and prepayment fees. This gives you the freedom to take advantage of Marcus’ lower APRs and even pay your loan off early without penalty.
- On-time-payment reward: If you make 12 or more consecutive monthly payments in full and on time, Marcus allows you to defer one payment without accruing additional interest. This is a great safety net if you need the extra cash one month.
- No joint loans: Marcus, like most lenders, does not allow multiple borrowers on a single loan.
- Undisclosed eligibility requirements: Marcus doesn’t list any specific credit score, income or debt-to-income ratio requirements to help you learn whether the lender is a good option for you.
Marcus personal loans can range from $3,500 to $40,000 with a fixed annual percentage rate between 6.99 percent and 19.99 percent (borrowers who use auto-pay get a 0.25 percent discount). 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.
The screening process for a Marcus personal loan is almost entirely virtual. This means that 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. Once you’re approved for a loan, it takes as few as three days to receive the funds in your bank account.
If you make 12 payments on time, equaling a full year of repayments, Marcus rewards you by offering an “on-time-payment reward.” This means that you can defer one loan payment, thereby skipping one month of payments. Your skipped payment will be added to the end of your loan, during which time interest will continue to accrue. Once you’ve paid an additional 12 times in a row, you’ll qualify for another deferment month.
Fees and penalties
Unlike some of the other online personal loan companies, Marcus by Goldman Sachs does not charge any origination fees to process your loan. There are also no late fees, but you’ll continue to accumulate interest on the past-due amount, and your total payment amount will increase as a result.
Late payments, missed payments, partial payments and loan defaults will show on your credit report. However, you won’t be penalized for paying your loan off early.
How to apply for a loan with Marcus by Goldman Sachs
To apply for a Marcus personal loan, you’ll have to enter some basic information on the Marcus website, including the loan amount, the loan purpose and your yearly individual income.
Marcus then will conduct a “soft” credit check, which won’t impact your credit rating. Upon approval, you will be able to review your options, including the possible fixed monthly payments and what the APR might be.
Before finalization, Marcus will do a “hard” credit check (which will impact your credit score).
The minimum requirements to apply for a loan are as follows:
- Proof of employment, loan purpose, income and creditworthiness
- Applicant over the age of 18 (19 in Alabama and 21 in Mississippi and Puerto Rico)
- Valid U.S. bank account and Social Security number or Individual Taxpayer Identification Number
Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. 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.
Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.