Loans > Marcus by Goldman Sachs Personal Loans Review

Marcus by Goldman Sachs Personal Loans Review

With Marcus, you could get a personal loan of up to $40,000 with fair terms.

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Looking to find the best personal loan option for your financial situation?

With the Covid-19 pandemic causing unexpected carnage to people’s finances, applications for personal loans are increasing. Consumers are looking for lower rates (tying into recent Fed rates cuts) flexible loan terms, and safety in the knowledge that they won’t be hit with sky-high fees should they miss a payment.

All of this in a bid to make repayments more manageable over the loan term.

For these reasons, Marcus by Goldman Sachs’ fee-less personal loans have attracted customers across the US. Its recent spike at $20 billion might have been accelerated by the launch of the bank’s Covid-19 resource center, which includes a proactive customer services team.

If you’re considering a Marcus by Goldman Sachs personal loan with bad credit then we do suggest you watch out for its higher end APR rates. You’ll also probably want to be aware of how the online lender calculates its loan terms – this might either be to your advantage or detriment, depending on the loan range you choose.

In this review, we explain how the loan terms are calculated, we go through the personal loans fee and lending structure, and we take you through the best and worst parts of Marcus by Goldman Sachs Personal Loan that you should know before making your decision.

Ready? Let’s jump in.

Marcus by Goldman Sachs Personal Loans range from $3,500 to $40,000. The online lender charges no fees, offers flexible loan options, and allows potential borrowers to choose a monthly payment amount that suits them.

Fast Facts

  • Loan amount: $3,500 to $40,000
  • APR: 6.99% to 19.99%
  • Minimum credit score: 680+
  • Will receive funds in: As little as five days
  • Highlight: Tailored monthly payment options to fit your budget, no fees

Ratings

  • Availability: 8.5/10
  • Flexibility: 9/10
  • Fees: 10/10
  • Customer service: 9/10
  • Credibility & Trust: 9/10
  • Overall: 9/10
Visit Marcus by Goldman Sachs on Marcus’ website

Pros

  • No fees
  • Flexible loan terms
  • Flexible payment and deferment options
  • On-time payment reward
  • Rate discount with autopay.
  • Direct payment offered to creditors with debt consolidation loans.

Cons

  • No joint loans option
  • Eligibility requirements are not clear
  • No co-signer option
  • Payments reported to just one of the three major credit bureaus.

What is Marcus by Goldman Sachs Personal Loans?

Marcus has been a key voice in the conversation around the adoption of digital (banking) tools. The bank has acknowledged a large section of its audience that has moved from a need to go into a branch to speak to humans and see their money, to understanding the benefits of doing it online. 

Marcus deposits

Marcus offers customers just this: A branchless, online only service that since its launch four years ago, has made a significant footprint on the industry with its array of products and acquisitions.

The list includes products including fee-less personal loans, high yield savings accounts , and a 2018 purchase of Clarity Money, a personal finance startup, founded by Dell.

This consumer strategy is paying dividends during the pandemic. Marcus by Goldman Sachs personal loans have served to help customers out of some financially tricky situations in the midst of the Covid-19 pandemic. Offering no fees, flexible loan terms, and an on-time payment reward has seemed to be the comfort that customers need. 

In July, Goldman reported earnings far beyond expectations, despite the crumbling economy as a whole for the U.S during the second quarter as a result of the coronavirus.

Marcus Personal Loans Overview and Summary

Marcus by Goldman Sachs Personal Loans is defined by several key points. We’ve rounded up the top five:

  1. Marcus by Goldman Sachs charges no fees, including origination fees or missed payment penalties.
  2. Marcus allows potential borrowers to choose a monthly payment amount that they feel is manageable, and loan terms.
  3. After making 12 or more monthly payments consecutively, you have the option to defer a payment. In this case, the loan term will simply be extended by a month.
  4. This lender shines through its flexible loan options. You can access smaller loans from $3,500 or larger loans up to $40,000. 
  5. The downsides to this lender is its higher-end interest rate, the fact it doesn’t accept joint applications, and that the interest rate is partly tied to the loan term.

The Higher-End Interest Rate

Some borrowers with lower credit might end up being quoted an interest rate of 19.19%. Try and avoid this by ensuring you have a high credit score when you apply.

No Joint Applications Accepted

If you were thinking of starting to build your credit score with your partner or spouse, unfortunately, this lender is not the place to do it. Marcus by Goldman Sachs personal loan does not accept joint applications.

How Marcus is Helping its Customers Through COVID-19

Deposits to the lender spiked at $20 billion in Q2 2020 to hit $92 billion. Goldman Sachs launched its co-branded credit card last year and Marcus, its digital-only offshoot offers a high-yield savings account.

In addition, Goldman increased its loan loss provisions to $1.59 billion, an increase from $937 million in Q1 2020. Furthermore, Marcus has implemented a proactive customer relief team during the pandemic, among other Covid-19 resources, which likely accelerated the performance of the consumer’s unit, and was enabled by the diversified structure of the bank.

As a whole, Marcus has now raised $92 billion in deposits, according to Goldman – $31 billion of this was raised in the first half of 2020 alone, giving a nod to its importance during the pandemic.

Marcus by Goldman Sachs Compared

General
Estimated APR

6.99% - 19.99%

  • Term Loans: 7 - 30%
  • Startup Loans: 7.9 - 19.9%
Minimum credit score

680+

550

Loan term

3 - 6 years

1 - 5 years

Loan amount

$3,500 - $40,000

$5,000 - $500,000

Best for

Best for  borrowers with good credit

Small business loans

General
Estimated APR
  • Term Loans: 7 - 30%
  • Startup Loans: 7.9 - 19.9%

Varies (but known to be low)

Minimum credit score

550

660

Loan term

1 - 5 years

Varies

Loan amount

$5,000 - $500,000

$5,000 - $100,000

Best for

Small business loans

Borrowers with good to excellent credit

General

Estimated APR

6.99% - 19.99%

  • Term Loans: 7 - 30%
  • Startup Loans: 7.9 - 19.9%

Varies (but known to be low)

Minimum credit score

680+

550

660

Loan term

3 - 6 years

1 - 5 years

Varies

Loan amount

$3,500 - $40,000

$5,000 - $500,000

$5,000 - $100,000

Best for

Best for  borrowers with good credit

Small business loans

Borrowers with good to excellent credit

Marcus by Goldman Sachs Personal Loan Fee Structure

Marcus by Goldman Sachs offers a new collaboration with Guaranteed rate, one of the most innovative and largest retail mortgage lenders in the U.S.

This service brings together two brands with a focus on customer service to offer unsecured personal loans. This is suitable for customers looking to improve their home or consolidate their debt.

Marcus Loans Homepage

Unlike many online personal loan companies, Marcus by Goldman Sachs does not charge any origination fees for processing your loan. You also won’t need to pay any missed-payment penalties but your interest will continue to accumulate during the missed-payment period.

Missed payments, late payments, partial payments and loan defaults will appear on your credit report. To ensure that there are no errors on your credit report, resulting in a lower credit score, it’s important to know how to comprehend your credit report properly.

This will help you avoid potentially higher interest rates. However, there is no penalty fee for paying off your loan early.

Marcus Personal Loans Lending Terms

Marcus by Goldman Sachs personal loans range between $3,500 to $40,000 with a fixed annual percentage rate starting at 6.99% to 19.99%. The quote you receive is reflective of several factors, including how much you originally asked for, the length of time you would like to repay it in full, and, of course, your credit history.

The screening process for a Marcus personal loan is almost 100% online. This means that you won’t need to go through as many loan underwriting costs.

As a result, Marcus by Goldman Sachs might offer lower interest rates than traditional brick-and-mortar lenders, on top of turnaround times. With Fed rates currently near zero, lower interest rates are a good time to borrow Once you get approved for a loan, it will take only five days to receive the funds.

If you successfully make 12 payments on time, which would equate to one year of repayments, Marcus will reward you with an “on-time payment reward.” This will give you the right to defer one loan payment, and essentially skip a month of payments.

Direct Payment to Creditors

Marcus by Goldman Sachs offers payment directly to creditors for debt consolidation loans. The firm is known to offer one of the leading debt consolidation loans out there.

Some debt consolidation borrowers might be required to send part of the loan to creditors directly.

Loan Flexibility

Customers all across the U.S had plans to pay off debt before Covid-19 hit. The reality is, these plans have since gone out the window. Marcus understands that the pandemic changed the course of lending and loan repayment.

As a show of its understanding, the bank allows potential borrowers to choose a monthly payment amount that they feel is manageable, and loan terms.

Once you decide the amount that suits your budget and circumstance, the lender tries to meet you at a place you’re happy. To do this, it will design several loan options that match your preferences, provided you qualify for a loan.

Borrowers also have the option to change their payment date up to three times throughout the loan term.

Marcus by Goldman Sachs Loan Terms

Repayment terms range can vary from three to six years, but you can choose between nine options within those three years – the lifetime of a loan is not always rounded to a year. A loan term could be anywhere from 39 months, 45 months, or potentially 66 months, all depending on your desired loan amount and monthly repayment amount.

Defer a Payment

After making 12 or more monthly payments consecutively, you have the option to defer a payment. In this case, the loan term will simply be extended by a month. You will pay more interest, but not over the month you defer.

Autopay Discount

If you set up autopay, Marcus will cut your loan’s annual percentage rate by 0.25%.

Marcus Loans Customer Service

Marcus has U.S.-based loan specialists who provide customer support seven days a week. To get in touch with the team you can call a toll-free number at 1-855-730-7283, Monday to Friday between 8am – 10pm E.T and Saturday to Sunday from 9am – 7pm E.T.  Or, those outside of the U.S can call 1-212-357-0026.

How Do I Qualify for a Marcus by Goldman Sachs Personal Loan?

Marcus doesn’t disclose any hard borrower requirements though the lender does say that it looks for borrowers that have enough income to support their existing expenses, in addition to a loan repayment. 

The minimum requirements for a Marcus by Goldman Sachs personal loan are:

  • A valid U.S. bank account, Social Security number or tax ID.
  • Be 18 or older, 19 in Alabama; 21 in Mississippi and Puerto Rico.
  • A 680 or higher credit score.

Loan Example

For a borrower with good credit, a $20,000 personal loan with a repayment term of 48 months at 18% APR would be required to repay $587. These rates prove why Marcus sits at the #2 spot in our top loans for good credit.

  • Personal Loan Amount: $20,000
  • Repayment Term: 48 months
  • APR: 18%
  • Repayment Amount: $587

What Credit Score is Needed for a $10,000 Loan?

You will need a good credit score of 680 to qualify for a $10,000 loan. Typically, 740 to 799 is considered good.

Where Marcus by Goldman Sachs Shines

With investment banking soaring as Covid-19 rattles the economy, now is the time to understand what exactly Marcus by Goldman Sachs personal loans can do for you.

Unsecured Loans

Here are some of its highlights:

No Fees with a Marcus Personal Loan

Marcus by Goldman Sachs tagline is truly, no fees. Ever. A tagline that should put many potential borrowers at ease during a time when our financials are so unsure. This reflects the lender’s policy of charging no application fees, origination fees or late payment fees (though, let us repeat that late payments will still result in accruing interest).

Potential borrowers will really appreciate that the lender does not charge a prepayment fee, so you can pay off a Marcus by Goldman Sachs personal loan early and not have to worry about being penalized. Were there a list of the most borrower-friendly lenders, this policy would place Marcus on top.

Payment Deferral

Especially in today’s Covid-19 era, borrowers will probably come to need the firm’s payment deferral option throughout the lifetime of the loan. With this, borrowers who make 12 full consecutive payments, on time, can defer one monthly payment. 

This can be really helpful should you be met with some unexpected expenses that affect your ability to make monthly payments temporarily — you can skip a payment without worrying about your credit score taking a hit.

Low APRs

Depending on your credit score, Marcus offers one of the top low interest personal loans on the market. If you have a great credit score then you might be able to qualify for an APR as low as 6.99%. This is particularly good for an unsecured loan.

Marcus by Goldman Sachs App

In January, Goldman Sachs Group Inc launched its app for online banking customers of Marcus. Until this, customers were frustrated by the lack of an app which restricted customers to only being able to view their account information, make balance transfer or loan payments on the bank’s website.  

Goldman Sachs App

Since its launch, customers have praised it, with one customer writing that it was “exactly what [they] were waiting for.” Goldman Sachs spokeswomen Kristen Greco admitted it had been one of the most popular requests from customers, causing its engineers and developers to spend the best part of 2019 creating one.             

Simple Debt Consolidation

If you are in need of a debt consolidation loan, Marcus by Goldman Sachs Personal Loans disburses funds directly to your creditors and Marcus will send the specified amounts. 

Therefore, if you have a few credit cards that have a combined total of $10,000, you could get a $10,000 loan from Marcus and request the lender sends a check to each one. Not only is this a far more convenient way of paying multiple bills, it also typically means you will pay less interest, allowing you to pay off your debt quicker. 

Spend some time to make sure you fully understand how debt consolidation works. Essentially, it streamlines several payments with high interest rates into one manageable payment with lower interest rates. This should help you pay off your debt quicker.

Large Loan Sizes and Lengthy Repayment Terms

Where some lenders have a max limit of $25,000 and shorter, four to five year loan ranges, Marcus by Goldman Sachs Personal Loan offers loans of as much as $40,000 for periods of six years. For this reason, Marcus is ideal if you need a bigger loan and more time to repay it.

Flexibility with a Marcus Personal Loan

A key area this lender shines is through flexible loan options. You can access smaller loans from $3,500 or larger loans up to $40,000.

Another perk of Marcus by Goldman Sachs is that potential borrowers can customize their loans to compliment their monthly payment options. This will help ensure you start off with manageable terms that will see you through the term of the loan.

Furthermore, you can get a quote from Marcus by Goldman Sachs without damaging your credit score: Something that is far from unique to Marcus but, none-the-less, is an advantage worth shining a light on.

Marcus can protect your credit and offer you a quote for a loan at the same time, by using a soft credit check. Only once you accept the loan offer will a hard pull to confirm your information, so you can continue to compare lenders without negatively impacting your credit score.

Where Marcus by Goldman Sachs Could Improve

Here we highlight some areas you should be aware of when considering a Marcus by Goldman Sachs personal loan.

The Higher-End Interest Rate

Some borrowers with lower credit might end up being quoted an interest rate of 19.19%. Try and avoid this by ensuring you have a high credit score when you apply.

No Joint Applications Accepted

If you were thinking of starting to build your credit score with your partner or spouse, unfortunately, this lender is not the place to do it. Marcus by Goldman Sachs personal loan does not accept joint applications.

The Interest Rate is Partly Tied to the Loan Term

The interest rate offered by Marcus by Goldman Sachs is higher the longer the loan range is. Therefore, you will get better rates if you take out a shorter term. Ideally, the shortest one you can afford.

How to Qualify for a Marcus by Goldman Sachs Personal Loan

As we mentioned, there are four minimum qualification criteria to meet. These are:

  • Have a FICO® credit score of at least 680
  • Ability to provide Social Security or Individual Tax ID Number
  • Be at least 18 years of age (19 in Alabama, 21 in Mississippi and Puerto Rico)
  • Have a valid U.S. bank account
Fico-Score

How to Apply for a Marcus Personal Loan in 5 Steps

The application process for a Marcus by Goldman Sachs Personal Loan can be done either online, or if you prefer, you can do it over the phone, too. A soft credit check is conducted, initially, meaning that you won’t need to worry about your credit score being impacted when you request a quote.

At a later stage, you might need to show financial documents like, bank statements (or W-2s), pay stubs, individual Tax ID Number, your social security number, and/or photo ID.

In addition, you will be asked to choose the loan amount that you would like to borrow, and state a monthly repayment amount that you can manage. Only once you accept the loan will a hard credit check be conducted. Lastly, you will sign a loan agreement and your funds will be dispersed into your account. It will take only five days for funds to reach your account.

Which Is Better: A Personal Loan With Marcus or Discover?

With a Marcus by Goldman Sachs personal loan you may need a slightly higher credit score. You will have access to a higher amount of up to $40,000 and its higher-end APR is lower than Discover’s, at 19.99%. 

MarcusDiscover
Loan amount$3,500 to $40,000$2,500 - $35,000
APR 6.99% to 19.99%6.99% to 24.99%
Minimum credit score680660
Time to receive fundsFive business days3 business days
Repayment penaltyNoneNone
HighlightTailored monthly payment options to fit your budgetLong payment timelines starting at 36 months up to 84 months

You can potentially access a Discover personal loan with a lower minimum loan amount, receive the loan in just 3 business days and take advantage of the lender’s long payment timelines. 

Summary

Marcus by Goldman Sachs is a good option for those with a good credit score. You could be offered an APR of only 6.99%, utilize its flexible loan options during current harsh economic times, and receive funds of up to $40,000. 

The downside to this lender is its higher ender APR fee of 19.99%. It also does not accept join applications, and the interest rate is tied, partly, to the loan term. This means that the longer the term of your loan, the higher the interest. All in all, Marcus has appeared in the number two spot in our best personal loans report.

Marcus by Goldman Sachs Personal Loan FAQs

Below we answer some of your most asked questions about Marcus by Goldman Sachs Personal Loan.

Is Marcus by Goldman Sachs legit?

Though Marcus hasn’t as many types of financial products on offer as other online banks, the ones it does offer are top quality. Marcus was ranked number one in customer satisfaction by J.D Power in 2019.

Is Marcus by Goldman Sachs a good loan?

Marcus loans are sought after for their no fees, low rates, and flexible loan terms and payment options. This puts this lender on top for an ideal option for good-credit borrowers considering debt consolidation. 

What credit score do you need for a Marcus loan?

To get a personal loan off Marcus by Goldman Sachs you will need a credit score of 680+.

What credit score is needed for a $5000 loan?

To qualify for a loan of $5,000 you will need a fair credit score. This is usually a score of between 670 – 793. It’s always a good idea to try and improve your credit score before applying for a loan. This can be done using one of the top credit repair software. Hopefully then, you get considered for bigger loans with better terms.

Can you pay off a Marcus loan early?

Marcus by Goldman Sachs charges no fees for its personal loans. This includes no prepayment fee, which allows you to pay off your loan early without any penalty. This lack of fees makes Marcus by Goldman Sachs one of the most popular lenders out there.

Is my money safe with Marcus Goldman Sachs?

You can rest assured, your money will be safe with Marcus by Goldman Sachs. It is fully authorized by the Financial Conduct Authority (FCA). It’s FSCS protected too. This means that the Government will protect deposits up to £85,000, in the event that the lender goes bankrupt.

Currently, U.S Rep. Mary Gay Scanlon is fighting to discharge student loans in bankruptcy by introducing a bill to expand bankruptcy laws. Scanlon argued, “Why are we providing protections to banks and services of student loans? Given where we’re at now, it has to change.

The Bill, named the Covid-19 Student 5 Loan Relief Act of 2020 would apply to all Americans affected by the pandemic, and cover both private and federal student loans.

With that, if you have a student loan you could review the pros and cons of SoFi Lending, one of the best lending institutions in the business.

How long does it take to get money from Marcus by Goldman Sachs?

When you get approved for a Marcus by Goldman Sachs personal loan you should receive funds into your account within five days. 

How does Marcus verify income?

Marcus asks potential borrowers to verify income by including their total annual income amount in the application to start. Then, the lender might ask for personal bank statements, recent pay stubs, W-2s, and tax transcript among some other documents.

Does Marcus do a hard credit pull?

Marcus will initially conduct a soft credit check only. This will not impact your credit rating. Once you approve the loan, you will be asked to review all options available to you, including the possibility of fixed monthly payments and the potential APR. 

Before everything is finalized, Marcus will conduct a “hard” credit check. This will impact your credit score.

How much of a loan can you get with a 600 credit score?

Credit scores help determine not just the loan amount you qualify for but the loans terms, too. Typically, when applying for a personal loan, you will need a minimum credit score of 660.

If you have excellent credit, Marcus makes the top five for top loans for excellent credit. The better your credit, the higher chance you have of getting better rates.

What is Goldman Sachs personal line of credit?

A line of credit is kind of like a credit card. It allows you to access funds up to a certain amount, and you can borrow that amount. A personal loan, however, is money that you borrow, usually at a fixed rate.

Do debt consolidation loans hurt your credit?

Debt consolidation could hurt your credit score if you miss your payment by 30 days or more. This is because your payment history is one of the biggest influences on your credit score.

Marcus by Goldman Sachs for Business

Marcus by Goldman Sachs offers both Certificates of Deposits (CDs) and online savings accounts with competitive rates. For business lending, you can contact 1-833-906-2224. 

Marcus and the Competition

See how Marcus by Goldman Sachs compares to the top lending platforms by reading one of the reviews below.

All reviews, research, news and assessments of any kind on The Tokenist are compiled using a strict editorial review process by our editorial team. Neither our writers nor our editors receive direct compensation of any kind to publish information on tokenist.com. Our company, Tokenist Media LLC, is community supported and may receive a small commission when you purchase products or services through links on our website. This may influence how and where offers are located on this site. The Tokenist does not include all lenders or available loan offers in the marketplace. Click here for a full list of our partners and an in-depth explanation on how we get paid.

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