Review of Marcus Personal Loans by Goldman Sachs 2021
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Loan amounts and interest rates
Marcus personal loan amounts range from $ 3,500 to $ 40,000 and can be repaid over three to six years, depending on the agreement you make with the lender.
Marcus’ lowest APR of 6.99% is slightly higher than comparable lenders. With SoFi, you can get as low as 4.78% and LightStream has a minimum APR of 2.49%. Know that your credit must be in good condition to benefit from the best rates from these lenders.
On the plus side, Marcus has roughly the same maximum APR as similar companies. Marcus’ maximum rate is 19.99%, the same as Lightstream’s maximum, and SoFi’s is slightly less than 19.38%. Take a tour of the different companies to see which one will offer you the best conditions.
Advantages and disadvantages
How Goldman Sachs’ Marcus Works
Marcus offers unsecured personal loans through Goldman Sachs Bank USA (FDIC member). A collateral, such as a house or a car, is not necessary to obtain an unsecured personal loan. You can take out a personal loan for a variety of purposes, including debt consolidation, home improvement, and vacations.
The request is available online or by phone and can be completed within minutes. Marcus does not allow you to file a joint application.
Depending on when your request is approved, it will take between one and four business days to receive money in your Marcus account. You will not pay any fees with the company.
A unique feature of Marcus is that the company offers an “on-time payment reward”. You can skip a month of payments if you pay off your loan on time and in full every month for a year, and you won’t earn interest during that time. Your loan will then be extended for one month. This break in payments could help you spend money on other financial goals for a month, like your emergency fund, retirement, or higher interest debt.
To contact customer service, call the lender Monday through Friday, 8:00 a.m. to 10:00 p.m. ET, or on weekends from 9:00 a.m. to 7:00 p.m. ET. If the call doesn’t work for you, you can also send correspondence to Marcus’ address in Utah.
Marcus also has a sleek mobile app on the Google Play and Apple stores that lets you manage your loan on the go.
You will need to meet the following conditions to apply for a personal loan from Marcus:
- Be at least 18 years old (19 in Alabama, 21 in Mississippi and Puerto Rico)
- Have a valid US bank account
- Have a valid social security or individual tax identification number
What credit score do you need?
Marcus does not list a minimum APR to qualify for a loan, however, you will likely need a score of 670 or higher to qualify for good rates. This suggested score is comparable to that of similar personal lenders. For example, the SoFi minimum is 680 and the lowest score Lightstream will accept is 660.
You can find your free credit report on annualcreditreport.com from any of the three major credit bureaus each week until April 20, 2022. Although this report does not give you your credit score, it will show you information. on your credit and payment history. , which lenders use to decide whether or not to give you a loan. Examining your credit report can help you figure out what you need to improve.
You can find your score free of charge on your credit card statement or online account. You can also pay it with a credit reporting agency.
Your credit score will not be affected when you check your rates with Marcus, as the lender will only perform a gentle credit check. Keep in mind that before you finalize your loan, Marcus will do a serious credit investigation, which will likely impact your credit score. A thorough investigation gives the lender a full view of your credit history, but it can negatively impact your credit score.
Is Goldman Sachs’ Marcus Trustworthy?
Marcus is a Better Business Bureau accredited company, and the BBB, a nonprofit focused on consumer protection and trust, gives Marcus an A + rating. The BBB measures businesses by examining business responses to consumer complaints, honesty in advertising, and transparency of business practices.
However, a good BBB rating doesn’t necessarily mean you’ll have a positive relationship with Marcus, so ask friends and family about their experiences with the company and check out consumer reviews online.
Marcus has no recent controversies. You might feel comfortable choosing Marcus as your personal lender because of his sparkling history and top BBB rating.
How Marcus by Goldman Sachs Stacks Up
Marcus interest rates are similar to those offered by comparable lenders, although the rates depend on your particular profile. Here’s how Marcus stacks up against the competition:
Marcus does not have a minimum credit score requirement, but in general you will need a credit score of 670 or higher to qualify for a good rate.
You’ll need a higher minimum credit score to qualify for a personal loan with SoFi, and the company’s APR range is similar to that required by Marcus. If you have top-notch credit, you might qualify for a slightly lower APR with SoFi than Marcus, but the difference is slim.
You won’t pay any setup fees, prepayment penalties, or late fees with either lender, making this a great option to avoid the extra costs of your loan.
Marcus’ loan term range of three to six years is slightly lower than SoFi’s two to seven year range. If you want to spread your payments over more time, SoFi may be a better option for you.
Lightstream’s 2.49% minimum APR is significantly lower than Marcus’ 6.99% minimum APR, although you can only get Lightstream’s best rate with great credit. Plus, you can subscribe up to $ 100,000 with Lightstream, while you can only subscribe up to $ 40,000 with Marcus. Neither company charges origination fees or prepayment penalties.
While it’s easier to compare offers to find out which rate is right for you, Lightstream does not offer pre-approval and would require you to submit and accept a firm credit request to get your rates. Marcus offers online pre-approval.
A distinctive feature of Marcus personal loans is the company’s “on-time payment reward”. If you pay off your loan on time and in full every month for a year, you can skip a month of payments and interest won’t accrue during that time. Your loan will then be extended for one month. You may prefer Marcus if you want to take advantage of this benefit.