Is a Marcus Personal Loan Right for You?
Marcus, by Goldman Sachs gave out its first unsecured personal loans to consumers in 2016. Marcus has funded over $4 billion in personal loans in just a few years, making it a major player in a red-hot personal loan market.
Marcus, by Goldman Sachs is an online lender, another FinTech company that has taken on banks and credit unions, the traditional sources of personal loans. In 2018, a record $138 billion of unsecured personal loans were given and online, FinTech lenders gave out more loans than either banks or credit unions.
Marcus may be a new player, but it is a brand of Goldman Sachs, a financial services firm with a 150 year history and very deep pockets. Goldman Sachs holds all the Marcus loans it funds, not selling them to investors like most FinTech lenders. This helps to give Marcus the ability to keep costs low and offer a no-fee, low-interest loans to qualified customers.
Marcus Loan Purposes
Marcus unsecured personal loans are used for a variety of purposes. The most common Marcus personal loan is a debt consolidation loan. If you qualify for a rate that will pay off high interest credit card debts and save you money you can get out of debt faster and make one monthly payment. Another benefit is that Marcus will send money directly to the creditors you owe, which is efficient and protects its borrowers from using the money for another purpose.
Marcus personal loans are also used to pay for home improvements, cover unexpected expenses, and pay for a big purchases. Marcus loans can’t be used to pay off student loan debt.
Rates, Terms, and Fees
Marcus, by Goldman Sachs offers loans with:
- A minimum amount of $3,500 up to $40,000
- No fees
- Fixed interest rates that range from 5.99% APR to 28.99% APR
- Loan repayment terms of 36 to 72 months
If you qualify for Marcus’ lowest rate, you are getting one of the lowest rates available for unsecured personal loans. Marcus offers its best rates to the most creditworthy customers.
Shopping around is the only way to see how what one personal loan lender offers you compares to what other lenders offer. Use the Personal Loan Rate Table below to compare offers, without affecting your credit score.
No Fee Personal Loans
Offering no-fee loans sets Marcus apart from many, though not all personal loan lenders. It is common for personal loan lenders to let you pay off your loan early with a fee. It is not common for their to be no processing or origination fee, which can range up to 5% of the loan balance, taken off the top.
Marcus also doesn’t charge late fees. They do charge you interest for the days that the payment is late, and if you go 30-days late the delinquency will be reported to the credit bureaus, but there is no penalty fee.
Another unique benefit of a Marcus loan is that if you make 12 or more consecutive monthly payments in full and on time, Marcus allows you to defer one payment without interest.
Marcus Loan Requirements
The average Marcus customer has strong credit, with FICO scores over 700. There isn’t a stated minimum credit score requirement, but scores below 700 will have rates at the higher end of the rates they offer.
There are also no explicit minimum income requirements, but you have to show you have verifiable income sufficient to demonstrate you can afford the monthly loan payment.
In addition to completing the application, Marcus requires verifying your identity and your employment.
It takes five minutes to get your loan options from Marcus and, like many lenders, this is done with a ‘soft pull’ of your credit report that has no effect on your score. Checking your loan options is a first step. You get an idea of how much you can borrow and the rate, but the numbers you are presented are not firm until your complete application and any supporting documents are reviewed.
You will also review different repayment terms, from 36 to 72 months. Longer term loans come with higher rates.
If you submit a formal application the approval process involves a ‘hard pull’ of your credit. A ‘hard pull’ affects your score and iis visible to other lenders, unlike a ‘soft pull’ that is visible only to you.
While the vast majority of borrowers apply online, Marcus also offers a paper application you can mail in. If you submit a paper application it will result in a hard pull.
Worth Looking Into If You Have Strong Credit
If you are seeking an unsecured personal loan and have strong credit, Marcus is one of the lenders you should look at. You can get a fast answer to an estimated loan amount, interest rate and term and then compare it to other offers you research.