Marcus by Goldman Sachs Personal Loan Review 2021

Marcus has competitive rates and offers loans to borrowers at a slightly lower credit score than many lenders that work with high credit score borrowers. They won the JD Power 2019 award for the best customer service for personal loan lenders.

Best for no fees and good credit

marcus logo
Overall rating:
4.8
Bills.com rating
Fixed APR6.99 - 19.99%
Loan Amounts$3,500 - $40,000
Repayment36 to 72 months
FeesNo fees
Time to fundBetween 1-5 days
Min. Credit Score660
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Pros:
  • No Fees.
  • Can defer payment after 12 on-time payments.
  • The direct payoff of your creditors.
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Cons:
  • No joint applications.
Compare to leading lenders
marcus logo
4.8
Bills.com rating
Fixed APR6.99 - 19.99%
Loan Term36 to 72 months
Loan Amount$3,500 - $40,000
Min. Credit Score660
light stream logo
4.9
Bills.com rating
Fixed APR2.49 - 19.99% with AutoPay
Loan Term24 to 84 months
Loan Amount$5,000 - $100,000
Min. Credit Score660
sofi logo v1
4.9
Bills.com rating
Fixed APR5.99 - 18.53% APR (with .25 % auto pay discount)
Loan Term24 to 84 months
Loan Amount$5,000-$100,000
Min. Credit Score680

Marcus: Top loan features

Marcus by Goldman Sachs offers low rates on personal loans to borrowers with strong credit. Marcus gives customers some unique payment options that give you greater flexibility or can save you money. Marcus loans are available in all 50 states.

Goldman Sachs, which owns Marcus, is a leading investment banking and securities firm. Its wealth gives it the ability to offer loans with unique features.

LightStream offers loans with:

Low rates: Marcus offers loans that range in size from $3,500 to $40,000 with interest rates from 6.99%APR to 19.99% APR. Auto-payment discount: If you set up automatic payment by withdrawal from a checking account, Marcus will reward you with an interest rate deduction of .25%

No fees: Marcus stands out from most lenders by charging no fees. The most unusual is that they charge no late fee. There are other lenders who don’t charge application or origination fees, and It is common for there to be no prepayment fees. No late fees are very uncommon.

Payment due date flexibility: You can change the payment due date three times over the life of your Marcus loan if your loan is in good standing.

Direct creditor payoff: Marcus is an attractive option for a debt consolidation loan, as they will send payment from your loan funds to up to 10 of your designated creditors.

On-time payment reward: Once you make 12 payments on time, Marcus allows you to defer one payment, tacking it on to the end of your loan with no additional interest. If you defer, then make another 12 payments in full and on time, you will earn another deferment reward.

Limited Credit bureau reporting: Marcus reports your monthly payment history to only one of the three main credit bureaus, TransUnion. They don’t report to Equifax or Experian, so you won’t boost your score with those two bureaus. Marcus does report to two other credit bureaus, Innovis and SageStream.

No joint applications: You apply for a Marcus loan on your own. Marcus doesn’t accept co-signers or co-borrowers.

Slow Funding your loan: Marcus is not the fastest funder. It takes 1-4 business days to get the loan funds after approval of your application.

Qualifying for a Marcus loan

Marcus doesn’t publish a minimum credit score requirement nor a maximum debt to income ratio. However, they offer loans to borrowers with good credit, which they define as anything over 660. 

To be eligible for a Marcus loan you have to be:

  • over 18 (19 in Alabama, 21 in Mississippi and Puerto Rico)
  • have an active U.S. bank account in good standing
  • Social Security or Individual Tax I.D. Number.

How to apply for a Marcus loan

The loan prequalification process is simple. It takes a few minutes to answer specific questions about your income, housing expense credit, job history, the purpose for your loan, how much you want to borrow, and the size of the loan payment you want to make.

Marcus pulls your credit report without affecting your credit score. The information you provided and your credit report is analyzed to determine the monthly payment you can afford. If you are prequalified, Marcus will offer a loan that specifies the loan size, interest rate, number of payments, and size of the monthly payments. They also tell you the maximum amount you can borrow.

At this point, you can customize loan options, trying different size monthly payments, rates, and lengths to repay.

Any offer they show you is one on which Marcus determined that you are prequalified. You can submit an application on any loan option Marcus presents.

Loan approval and getting money from Marcus

If you apply, be ready to provide pay stubs to prove your income, bank statements, and documents that verify your identity. Self-employed borrowers must supply three months of personal bank statements.

Approval can be within 24 hours of application. You can monitor the status of your application on their app. Assuming your documents are consistent with the information you supplied during prequalification, it should not take more than a couple of days for approval.

During the approval process Marcus will access your credit report with a hard pull that shows as an inquiry on your report and can lower your score slightly. They will present a loan agreement for you to sign electronically and send back.

Funding the loan after you return the paperwork takes 1-4 days.

Marcus - Customer Service and Customer Satisfaction

Marcus has excellent customer service. Their representatives are available by phone 7 days a week. You can monitor your account online or by using their Apple or Android app. They have responsive Social Media teams, too.

Though an online lender, Marcus accepts applications by phone for customers without a computer or smartphone. Marcus has a BBB rating of A+ and is an accredited business.

Marcus by Goldman Sachs ranked #1 overall in the J.D. Power 2019 Personal Loan Satisfaction Study,