Marcus is the banking and lending arm of investment bank, Goldman Sachs, and it functions entirely online. It offers unsecured personal loans with no fees for borrowers with an impeccable credit score, and it has a reputation for unique features, such as many options for repayment plans to help you customize your personal loan solution. Marcus personal loan reviews show a number of pros and cons , which we’ll dig into below.
- Wide and flexible variety of repayment term options
- Offers small discount for setting up Marcus AutoPay
- Offers direct payment to creditors for debt consolidation loans
- No origination, late payment, insufficient fund, or prepayment fees
- Borrowers can change their payment date
- Reward for on-time payments
- Soft credit pull
- No co-signed, joint, or secured loan options
- Cannot refinance existing student loan
- Good credit scores needed
Why Choose Marcus For Your Personal Loan?
Expanding on the pros of Marcus, here are reasons to consider them for your personal loan.
Marcus does not charge fees on its personal loans. This includes the usual fees, such as origination, prepayment, paying the loan off early, or late fees. It’s important to note that if you miss a payment, the interest that builds during this time, as well as late or partial payments, may reflect on your credit report.
Direct Payment to Creditors
When you apply and qualify for a loan for debt consolidation, Marcus pays your creditors directly. This free feature, which speeds up your debt consolidation process, applies to credit cards, retail cards, and other loans. Bear in mind that there is a limit of ten cards total.
Diverse Variety of Loan Terms
Marcus offers convenient and customizable repayment terms. Although their terms have a wide range up to six years, there are nine different term options to pick from. These range from 36 to 72 months. Your term depends on the amount you want to borrow and the monthly repayment you can afford.
Bigger Loans and Longer Terms
Marcus differs from most loan companies in that they offer personal loans as big as $40,000. Their repayment terms are also available for longer, such as over six years. Most lenders don’t go over $25,000 with five-year repayment terms. Remember that a longer repayment term creates a higher APR.
Payment Deferral Feature
One of the advantages of paying your monthly installments consecutively for 12 months is that you can defer a payment. The condition of deferral is that you’ve made your previous payments on time and in full. The deferral lengthens the loan term by a month, but you won’t need to pay interest during that deferral month. It also won’t affect your credit score. This is a huge help when you have an unexpected expense and suddenly need extra funds.
Marcus offers some of the best personal loans with low interest. Provided that you are creditworthy, you may qualify for an outstanding interest rate. This is an important factor for those wanting an unsecured loan with low interest.
Marcus AutoPay Discount
By signing up for Marcus AutoPay, your loan’s APR can decrease by 0.25 percent. Marcus AutoPay automates your payments, which ensures that you never miss one.
Soft Credit Pull
Marcus only needs a soft credit check to send you a quote, which means that it won’t affect your credit score. This enables you to shop around for the most suitable personal loan without worrying about losing points on your credit score. Once you accept the loan, only then does Marcus conduct a hard check to verify your information.
Marcus offers an online dashboard, which is user-friendly and allows you to see all your financial accounts with the company in one place. If you already have an account with Goldman Sachs, this tools helps you manage your options.
Why Look Elsewhere?
There are a few reasons why you may decide against using Marcus for your personal loan.
No Co-Signed, Joint, or Secured Loans
If you wish to get credit with your partner, Marcus is not for you. They don’t offer secured loans. This means that they do not accept joint applications. Sometimes borrowers with poor credit apply for a loan with a co-borrower or secure a loan with collateral to receive a better rate or larger amount. This is not an option with Marcus.
Limited Customer Service Channels
The only way to contact Marcus for personal loans is by phone. They have loan specialists available every day over extended business hours.
Borrowers Need High Credit Scores
Marcus has an upper-end interest rate that is lower than most lenders, but you need a good credit score to apply and benefit.
Loan Disbursement May Take a Few Days
It may take as much as three business days for Marcus to disburse your funds. In urgent circumstances when you need money quickly, this is a disadvantage.
No Specific Minimums Given
Marcus doesn’t give much information on a minimum income or credit score as they use their underwriting process to go through individual applications.
How to Qualify For a Personal Loan With Marcus
Although Marcus doesn’t give much information on borrower requirements, there are a few guidelines to qualify:
- Minimum credit score of at least 660, preferably 770
- Proof of income includes recent pay stubs or bank statements
- Provide Social Security number, Individual Tax ID number, or a photo ID
To qualify for a personal loan, you’ll need to have sufficient income to repay your loan. Marcus doesn’t share what their minimum income requirements are.
The customer service is excellent. Marcus representatives are available every day to help customers who don’t own a computer or smartphone. Although they’re an online lender, applications take place via phone.
Looking at Marcus personal loan reviews, this is a perfect lender for borrowers with decent credit scores who would like a no-fee loan. The fee-free structure mixed with the flexible loan terms and generous loan amounts are a big advantage. Despite the minimum credit score requirements, Marcus loans are available to many borrowers at great rates. However, for those looking to co-sign, it’s best to look elsewhere.
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