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Goldman Sachs is a famous name in the financial world. This century-and-a-half old institution is renowned for its investment and banking services. Aside from traditional products, Goldman Sachs also offers a 100% online banking and lending experience through Marcus.
In addition to checking and savings accounts, Marcus provides unsecured personal loans to qualified applicants. These loans boast no fees, nine repayment options, and even a payment deferral reward program.
The catch? You need to meet Marcus’ lending requirements.
Marcus Personal Loan Pros and Cons
- No fees, including application, origination, or prepayment charges
- Rate discount for using autopay
- Direct-to-credit payments for debt consolidation loans
- Plenty of payment flexibility
- No secured, joint, or cosigned loans
- Requires good to excellent credit
- Lender doesn’t disclose all eligibility requirements
- No student loan refinancing or education-related purchases
Marcus Personal Loan Features and Benefits
Marcus charges zero fees for personal loans. Instead, the lender makes money by charging interest. Borrowers don’t have to worry about application, origination, late, or prepayment penalties. (That said, if you do make a late payment, you’ll have to pay any interest accumulated on the past-due amount.)
Simple Fixed-Rate Loans
Marcus only offers unsecured fixed-rate loans. While that may limit some borrowers’ options, fixed-rate loans are easier to plan and budget for.
Direct Payments to Creditors
If you use your funds to consolidate other loans or credit card debts, Marcus will pay your creditors directly. This eliminates the hassle of tracking down and paying each loan balance yourself.
Various Loan Terms
Borrowers may get to choose from nine repayment terms with Marcus. Terms range from 36-72 months. However, your term options may be influenced by the amount you borrow and your monthly payment amount.
Easy Online Application
Marcus touts that their online application only takes around five minutes to complete. After you fill out some basic information, Marcus will conduct a soft credit check to determine your potential rate and term. Once you agree to a loan, the lender will perform a hard credit check before approving your funds.
On-Time Payment Reward
If you make a full years’ worth of payments on time (12 consecutive months), Marcus will let you skip one payment, interest-free. (Though you’ll have to make up the deferred balance at the tail end of the loan term.)
Marcus by Goldman Sachs Personal Loan Drawbacks
No Joint, Cosigned, or Secured Loans
Marcus provides unsecured personal loans to individual borrowers. That means applicants can’t opt for a secured loan or bring on a coborrower to access better rates, terms, or amount.
Doesn’t Disclose All Requirements Online
Marcus doesn’t disclose specific lending requirements online, instead providing generalized advice like boosting your credit score above 700 to secure better rates.
Longer-Term Loans Have Higher Rates
Marcus borrowers may qualify for loans with repayment terms as long as 72 months. Unfortunately, the lender notes that borrowers who take longer terms generally pay higher rates for the privilege.
What Can Personal Loans from Marcus by Goldman Sachs be Used For?
Marcus doesn’t permit applicants to use borrowed funds to make educational purchases (including college living expenses). The lender also can’t refinance existing student loans.
However, the Marcus website details a few permissible options, such as:
How to Qualify for a Marcus by Goldman Sachs Personal Loan
Marcus doesn’t disclose all of its borrowing requirements online. Instead, the lender states that “Your credit score is a critical factor” in addition to your choice of loan purpose and term.
Credit Score Requirements
Marcus notes on its website that “Borrowers with very good or excellent credit scores (700-850) typically get lower rates and larger loan amounts. To maximize your qualification odds, we recommend a credit score of at least 660.
Marcus doesn’t list a minimum income requirement, merely requiring borrowers to have sufficient income to make their monthly payments. You may need to provide proof of your income, such as a recent bank statement or paystub.
How to Apply for a Marcus Personal Loan
Marcus accepts applicants over 18 in most jurisdictions (19 in Alabama and 21 in Mississippi and Puerto Rico). Applicants will also need to have a valid U.S. bank account and provide a Social Security or Individual Tax ID number.
To begin your application, you can fill out a quick online questionnaire that asks about your:
- Name and identification information
- Contact information
You may also have to submit copies of your government-issued ID and proof of income or employment to continue the process.
After you fill out the form, Marcus will conduct a soft credit check to check your eligibility. If you’re approved, you’ll have a chance to review your potential APR, fixed monthly payment, and up to nine repayment terms. Once you decide on a loan, Marcus will do a hard credit check before finalization.
Then, all that’s left is to sign for your loan. Typically, Marcus issues funds within a week, though some borrowers may see their money in three days or less.
How Do Marcus Personal Loans Compare to Other Lenders?
Marcus vs. Upgrade
Upgrade funds personal loans between $1,000 and $50,000 to individuals with good to poor credit. The lender generally charges between 5.49% and 36% APR and services repayment terms up to 7 years.
Unlike Marcus, Upgrade offers both secured and joint loans, which may improve your eligibility or help you qualify for a better interest rate. That said, this lender charges an origination fee up to 8%.
>> More: Upgrade Personal Loans Review
Upstart vs. Marcus by Goldman Sachs
Upstart is an AI-based lender that offers up to $50,000 per loan and repayment terms of 3-5 years. Their APR ranges from 3.50% to 36% for borrowers with credit scores as low as 580. However, Upstart charges a range of fees, including an origination fee up to 8%, and there are no secured or cosigned options available.
>> More: Upstart Personal Loans Review
Marcus Personal Loans vs. LightStream
LightStream, an online division of Truist, offers personal loans between $5,000 and $100,000, depending on your eligibility and loan purpose.
Borrowers may qualify for rates as low as 4.98% and loan terms up to 7 years. That said, LightStream has stricter qualification standards and doesn’t offer prequalification, so it’s not the best option for poor credit borrowers.
>> More: LightStream Personal Loans Review
Marcus vs. Payoff
Payoff is an unusual lender, as it only funds loans for borrowers who want to consolidate their high-interest credit card debts. The lender offers loans up to $40,000 with APRs as high as 24.99%. Borrowers can enjoy no fees and a readily available prequalification option. That said, their minimum credit score is a bit high as 640, and the lender doesn’t allow joint applications.
>> More: Payoff Personal Loans Review
Can You Prequalify for a Marcus Personal Loan?
Marcus does offer prequalification to borrowers. During this process, the lender will conduct a soft credit check that doesn’t impact your credit score. Lender prequalifications give you an opportunity to rate shop without dinging your credit score with every application.
How Long Does Marcus Take to Fund Personal Loans?
Marcus typically approves loans within 24 hours, with eligible borrowers potentially receiving approval in minutes. Upon approval, borrowers can receive their money in three days or less, though some borrowers may wait longer.
Does Marcus by Goldman Sachs Verify Income for a Personal Loan?
Marcus doesn’t list its income requirement, though you do have to make enough to support your debt payment plan. The lender may require you to provide paystubs, bank statements, or tax returns to verify your income.
Bottom Line: Marcus Personal Loan Review
Marcus is a great online lender if you have a high credit score and want a no-fee, no-hassle, lower-rate loan. The approval and application process may take just minutes, with funding generally available in a week or less.
They also offer longer repayment terms than some lenders, making them ideal if you need lower monthly payments or to consolidate larger debts. That said, they may require higher credit scores than some competitors.