Consolidate your debt or pay off large expenses with rates starting at 6.99% and no fees.
If you’re not quite satisfied by typical bank loans, there’s something in it for you too: Marcus combines the name recognition of a top bank with the speed of an online lender to provide personal loans for any occasion.
Read on to find out if Marcus by Goldman Sachs is right for you.
|Product Name||Marcus by Goldman Sachs Personal Loans|
|Min Loan Amount||$3,500|
|Max. Loan Amount||$40,000|
|APR||6.99% to 24.99%|
|Interest Rate Type||Fixed|
|Minimum Loan Term||3 years|
|Maximum Loan Term||6 years|
|Requirements||Established credit, valid US bank account|
- Meet your state’s majority age
- Have a valid US bank account
- Have proof of income
- Be a US resident with an SSN or Individual Tax ID
- Not reside in Maryland
What makes Marcus by Goldman Sachs personal loans unique?
Marcus by Goldman Sachs specializes in debt consolidation — in particular, credit card debt — for creditworthy applicants. Consolidating high-interest or variable-rate debt with Marcus’s relatively competitive fixed-interest personal loans could help you save if you have excellent credit.
Even if you break even, its streamlined process could potentially make your payments a lot less of a hassle each month.
Bigger still: Marcus turns a profit on interest only — not by charging origination fees. And if you find yourself in a position to pay off your loan early, you won’t pay prepayment fees for the privilege.
What can I use a Marcus by Goldman Sachs personal loans for?
Debt consolidation is Marcus’s speciality, but it’s not the only option. You can apply to use its personal loans for any legitimate purpose outside of educational expenses. Its loans are best suited to cover big expenses — like medical procedures, wedding expenses and once-in-a-lifetime vacations.
You can use a Marcus by Goldman Sachs personal loan for:
- Debt consolidation. Pay off all of your debts at once with lower interest by consolidating them into one fixed-rate personal loan.
- Credit card consolidation. A type of debt consolidation tailored to help pay off high-interest credit card debt.
- General purposes. Marcus by Goldman Sachs offers unsecured fixed-rate term loans that can be used for almost any legitimate purpose, with a quick online application and no collateral.
The average personal loan by this lender comes with a 12.99% APR and a 48-month term.
What are the benefits of a personal loan from Marcus by Goldman Sachs?
- No fees. Marcus by Goldman Sachs doesn’t charge any application or origination fees. And no prepayment penalties mean you have the option of paying off your loan early to save on unnecessary interest.
- On-time payment reward. Customers who consistently make on-time repayments for a year can defer one payment without accruing any extra interest.
- Speed and name recognition. Marcus by Goldman Sachs combines the comfort of borrowing from a recognized leader with the speed of an online lender.
- Servicemember discount. US servicemembers can qualify for interest rates as low as 4%.
Goldman Sachs to team up with Apple in 2019
You might have another iPhone financing solution to choose from in the near future. Goldman Sachs and Apple announced in May 2018 that they would be partnering up to offer in-store financing for Apple products. Goldman Sachs also plans on issuing an Apple Pay branded credit card, replacing Apple’s current Barclays rewards card. Both could be available to US Apple customers as soon as 2019.
What to watch out for
Marcus by Goldman Sachs advertises no-fee loans, but that doesn’t mean you can get away with late payments. Instead, Marcus penalizes delinquency with extra interest rather than a fixed late payment fee — which could total a lot more than what other lenders charge.
Here are potential drawbacks to Marcus by Goldman Sachs:
- Penalizes late payments with interest. You won’t pay a fixed fee every time you’re late, but you will pay more interest, making for a more expensive loan overall. Late payments can also affect your credit score.
- Higher costs for long-term loans. This is true for most lenders, but it’s worth pointing out that your credit score isn’t the only determining factor in your loan’s APR.
- Income from self-employment might not count. You might have trouble getting the right documentation to prove your personal income if you’re self-employed.
- Don’t be fooled by preapproval letters. Marcus often sends out promo letters that appear to prequalify you for a personal loan. They don’t mean you’re guaranteed to get the loan, however.
Compare Marcus by Goldman Sachs to other online lenders
What do customers say about Marcus?
Marcus by Goldman Sachs gets mixed online reviews. It’s not accredited by the Better Business Bureau (BBB) as of June 2018, which gives it a C+ rating based on factors like transparency and advertising practices. Nearly 90% of its 24 BBB reviews are negative. Over 15 customers have also filed complaints against the lender. It also has no reviews on Trustpilot.
Customers were most frustrated by the quality of customer service — or lack thereof. One reviewer was upset that their application was rejected with no explanation. More than on reported inconsistencies in information given by representatives. Some also reported trouble with the online loan application.It’s not all bad, however. Reviews in other online forums mainly praise Marcus for its speed and convenience.
Am I eligible?
For eligibility with Marcus by Goldman Sach, you need to meet a few minimum requirements:
- You must meet your state’s majority age. Majority age is 18 in most states, 19 in Alabama and 21 in Mississippi and Puerto Rico.
- You must have a valid US bank account. Marcus isn’t licensed to lend internationally.
- You must have a Social Security number or Individual Tax ID. In other words, you won’t qualify if you’re not a US resident.
- You cannot live in Maryland. For now, Marcus by Goldman Sachs is not available in the Old Line State.
Marcus by Goldman Sachs doesn’t have any hard credit requirements, but the average borrower credit score is between 700 and 740. It also doesn’t have any minimum income requirements, though you must prove you can pay back your loan.
If you’re currently paying off a high-cost installment or payday loan, you could be denied — even if you have excellent credit.
Document checklistGet these documents together before you apply:
- Proof of income. Marcus considers personal income, household income, alimony, child support, pensions and government benefits.
- A photo ID. Your ID must be issued by a US state or territory.
- Individual or joint bank statements. Marcus asks to see the past three months of your banking activity.
How do I apply?
You have a choice of two applications: online or by paper. To submit a paper application, call 844-627-2871 and ask to have one sent to your address.
To apply with Marcus by Goldman Sachs online:
- Go to the website. Select the amount you’d like to borrow and a monthly payment you can afford, and click Find my loan options.
- Select a loan that fits your budget from the options that Marcus sends you.
- Complete the online application for your loan and upload any required documents before you submit it.
What happens after I apply?
After applying, Marcus by Goldman Sachs will review your finances and conducts a hard credit check. If approved, you’ll be able to look over your final offer — it might not be exactly the same as the rates you prequalified for, so read the terms carefully before signing your loan documents.
The whole process can take as little as two business days, depending on how involved your application is.
I got a personal loan from Marcus by Goldman Sachs. Now what?
Congratulations. First, you need to start repaying your loan. You can do this by check or money order, but it’s far more convenient to set up autopay with a bank account — that way you don’t need to remember due dates.
If you find yourself unable to make a payment, contact Marcus immediately. You might be able to adjust your repayment due date or renegotiate the terms of your loan.
Marcus by Goldman Sachs could be an option for people with high-interest debt and solid credit who are interested in consolidation. Servicemembers and their spouses might want to take a close look at its discounted rates. Just make sure to make on-time repayments and go with the shortest loan term you can afford to avoid paying unnecessary interest.
Before you make any decision, you may want to compare your personal loan options. There could be a better loan out there for your needs.
Frequently asked questions
Image source: marcus.com