Personal loans

Marcus by Goldman Sachs 2022 Personal Loan Review

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Marcus personal 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 a rate as low as 4.78% and LightStream has a minimum APR of 2.49%. You should note that your credit will need to be in good shape to qualify for the best rates from these lenders.

On the bright side, Marcus has about the same maximum APR as similar companies. Marcus’ maximum rate is 19.99%, the same as Lightstream’s maximum, and SoFi’s is slightly lower at 19.38%. Shop around for different companies to see which one will give you the best deal.

Advantages and Disadvantages of Marcus Personal Loans

How Marcus by Goldman Sachs Personal Loans Work

Marcus offers unsecured personal loans through Goldman Sachs Bank USA (Member FDIC). Collateral, such as a house or car, is not required to obtain a unsecured personal loan. You can take out a personal loan for a variety of purposes, including debt consolidation, home improvement, and vacations.

The application is available online or by phone and can be completed in minutes. Marcus does not allow you to file a joint application.

Depending on when your application is approved, it will take between one and four business days to receive money in your account from Marcus. 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 repay your loan on time and in full every month for a year, and you won’t accrue interest during that time. Your loan will then be extended for one month. This break in payments could help you invest money in other financial goals for a month, such as 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 weekends, 9:00 a.m. to 7:00 p.m. ET. If the call does not work for you, you can also send correspondence to Marcus’ address in Utah.

Marcus also offers a sleek mobile app on the Google Play and Apple stores that lets you manage your loan on the go.

What credit score do you need?

Marcus doesn’t list a minimum APR to qualify for a loan, however, you’ll likely need a score of 670 or higher to qualify for good rates. This suggested score is comparable to similar personal lenders. For example, SoFi’s minimum is 680, and the lowest score Lightstream will accept is 660.

You can find your credit report for free at from one of the three major credit bureaus every week until April 20, 2022. Although this report does not give you your credit score, it will show you information about your credit and payment history, which lenders use to decide whether or not to grant you a loan. Reviewing your credit report can help you know what you need to improve.

You can find your score for free on your credit card statement or online account. You can also pay it at a credit reporting agency.

Your credit score will not be affected when you check your rates with Marcus, as the lender will only perform an indirect credit check. Keep in mind that before finalizing your loan, Marcus will perform a thorough credit check, which will likely impact your credit score. A thorough investigation gives the lender a complete view of your credit history, but it could negatively affect your credit score.

Is Marcus of Goldman Sachs trustworthy?

Marcus is a Better Business Bureau accredited company, and the BBB, a non-profit organization focused on consumer protection and trust, gives Marcus a A+ rating. The BBB rates businesses by looking at companies’ responses to consumer complaints, honesty in advertising, and transparency in 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 stellar history and top BBB rating.

Marcus by Goldman Sachs Personal Loan Comparison

Marcus interest rates are similar to those offered by comparable lenders, although rates will depend on your particular profile. Here’s how Marcus compares to the competition:

Marcus does not have a minimum credit score requirement, but generally 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 what Marcus requires. 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 origination fees, prepayment penalties, or late payment fees with either lender, making this a great option for avoiding additional costs on your loan.

Marcus’ loan term range of three to six years is slightly lower than SoFi’s range of two to seven years. If you want to spread your payments out over a longer period of time, SoFi may be a better option for you.

Lightstream’s minimum APR of 2.49% is significantly lower than Marcus’ minimum APR of 6.99%, although you can only get Lightstream’s best rate with excellent credit. Additionally, you can withdraw up to $100,000 with Lightstream, while you can only withdraw a maximum of $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 an application 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 repay your loan on time and in full every month for one year, you can skip a month of payments and no interest will 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 advantage.