Marcus by Goldman Sachs offers unsecured personal loans, primarily to borrowers with good to excellent credit. As an online branch of Goldman Sachs Bank, the loans are backed by a traditional financial institution with a long history in the industry.
These loans can be used for a variety of reasons, perhaps the most popular are debt consolidation and home improvement.
Transparency is a major focal point for Marcus. The lender advertises no fees, stating simply that, “We make money on interest.” Lack of bedside manner aside, there’s little harm in determining whether or not you’re eligible, particularly when searching for a low-interest personal loan online.
We’ll walk you through the ins and outs of Marcus by Goldman Sachs so you can determine if this lender is a good match for you.
Marcus by Goldman Sachs Personal Loans
With Marcus, you can take out a personal loan from $3,500 to $40,000. There is no origination fee, and you can use the money for anything you want. However, when applying, you do have to specify how you intend to use the money, and this may affect how much you are approved for.
Loan terms last anywhere from three to six years, and loan rates vary depending on your credit scores. Interest rates range from 6.99% to 28.99%. However, the maximum APR for New York residents is 24.99%. How high or low of an APR you get depends on many factors, including your:
- Loan amount
- Loan term
- Credit scores
- Personal information
Marcus doesn’t have a minimum credit score. However, if your credit score is above 660 you’re likely a strong candidate.
They also don’t advertise a certain income or debt-to-income ratio. Most lenders set a max around 40% and you can likely expect the same from Marcus.
The main thing they seem to consider is whether or not you have good to excellent credit. If you do, and you’re not asking for more than you have the ability to repay in three to six years, your loan has a strong chance of being approved.
Once you fill out a standard application form, Marcus will perform a soft credit check. Depending on the information you provide, Marcus may ask for one or all of the following:
- Recent pay stubs
- Bank statements
- W2 documents
- Social Security, Tax I.D. number, or photo ID.
While applying, know that you can’t file jointly. They only accept individual loan applications. If you don’t have much of a credit history, or your score could be better, then Marcus by Goldman Sachs may not be the lender for you at this point in time.
After you apply and create an account, you can log in to your Marcus account to see the status of your application. You’ll also receive an email the moment anything changes in your application — meaning approval or declination.
When you get an approval amount back, it may be more or it might be less than the amount you had in mind. Loan amounts are determined by your credit report, your ability to repay, and what you intend to use the money for.
If the amount works for you, you can get the money typically within two business days after you e-sign the loan and connect your bank account with your Marcus account.
Once You’re Approved
Making monthly payments on your Marcus loan is very easy. You can either make a one-time payment each month by phone, online, or check, or you can set up your account for automatic payment.
Autopay is great because you don’t have to worry about ever missing a payment, and the amount that’s withdrawn is never a surprise. Interest rates are fixed, and so every amount each month is predetermined from the moment you take out the loan.
The truly great thing about personal loans from Marcus is that there are never any fees. You never have to pay origination fees or late fees. And if you decide to pay off your loan early to avoid paying interest, you won’t bed charged a prepayment penalty either.
Need to change your payment due date? With a Marcus personal loan, you can change your due date up to three times during the life of the loan. You can first make the change during the loan setup stage, but you can also do it after you make your first payment.
Note that changes take a month to process. So if an amount is already scheduled, you’ll need to make that payment before any changes take effect for the following month.
Another interesting thing Marcus does is give a reward for on-time payments. Make 12 consecutive, on-time payments, and they’ll allow you to defer one payment. You don’t get out of making the payment, one month is simply added to the life of the loan.
More spectacular still is that your loan won’t take any fees or interest during the ‘reward.’ Plus, depending on your loan terms, you can do this as many times as you want each time you make at least 12 on-time payments.
Marcus by Goldman Sachs personal loans are a very new loan option. It wasn’t released until October 2016, but it still has lots of industry respect because it’s a part of the banking giant Goldman Sachs.
Get a loan through Marcus and you’re essentially taking out a loan from an established, 147-year old bank. That’s a hefty amount of loan security right there.
What to Know About Marcus Personal Loans
Taking out a personal loan is exactly that — a personal decision. What should you consider before applying for one from Marcus? Here are a few tips to think about.
Who is a Marcus personal loan good for?
While a Marcus personal loan can be used for any number of purposes, the company’s main goal is to help make debt more affordable. So if you carry a balance on one or more high-interest credit cards, then it’s definitely worth it to consolidate debt with a personal loan.
The benefits of doing so can potentially be two-fold. First, you could receive a substantially lower interest rate than on your credit card. That could automatically lower your payments each month.
The other perk is that you repay a personal loan over a set period. A credit card, on the other hand, has an open-ended repayment plan so that your balance is continually accruing interest.
Because of that, you may actually see a higher monthly payment amount with your Marcus personal loan. But if you look at how much money you’ll spend on interest compared to a higher-interest credit card (particularly when only making the minimum payments), you may be surprised.
Play around with some interest calculators to compare figures using your exact financial situation. A personal loan is definitely worth considering, especially if you’re committed to aggressively paying down your credit card debt as quickly (and cheaply) as possible.
Who shouldn’t get a Marcus personal loan?
Again, any kind of financial decision is a personal one. But there are some instances when you should proceed with particular caution.
For instance, if you’re already overburdened with credit card debt and are getting a loan to plug yet another financial leak, think again. Even if the lender says your debt to income ratio looks good, you’re the one making that payment each month. You’re the only one who truly knows your ability to afford something.
If you’re already working hard to make each paycheck stretch until the next one, you may want to think of alternative solutions to your problems.
Marcus offers personal loans in 49 states. As of now, Maryland residents are unable to apply for a Marcus personal loan. The company is working on fixing this, but for now, it is a limitation that can affect a large chunk of people.
What happens if your loan application is denied?
Don’t be disheartened if your Marcus personal loan application gets denied. There are a number of factors that are considered in any loan decision. Luckily, Marcus mails you a letter within 10 business days that explains the reason for denied application.
Why should you care?
As the saying goes, knowledge is power. Rather than guessing what you need to work on to improve your chances of getting approved, you can instead target the exact problem. If your debt to income ratio is out of whack, you know to either pay down a little more debt or try to make a little more money.
Or, if your credit score is too low, you can work on improving that number with tons of different tips and tricks.
If your loan application is denied, Marcus does require that you wait a full six months before applying again. But this is really a good thing because you’ll need time to work on most of the issues that caused your application to be declined in the first place.
Check out our other personal loan reviews below to continue exploring your options.