Marcus Personal Loans Review

Marcus is the consumer-lending branch of the investment bank, Goldman Sachs, and it’s revolutionizing the online personal loan industry with its outstanding customer satisfaction and the promise of “No fees. Ever.” A personal loan from Marcus by Goldman Sachs may be a good fit for you if you have a good credit score and you’d like to borrow an amount between $3,500 and $40,000. On the other hand, it may not be a good fit if you have a lower credit score or want to opt-out of corporate banking and lending structures.

Pros

  • No fees
  • Mobile app available
  • Competitive APRs

Cons

  • Strict eligibility requirements
  • No cosigners are allowed
  • Loan amounts may be limiting

Marcus by the numbers

  • APR range: 6.99% to 28.99%
  • Min-max loan range: $3,500 to $40,000
  • Repayment term range: 36 to 72 months
  • Minimum credit score: 660
  • Minimum gross income: Not specified
  • J.D. Power Customer Satisfaction Score: Among the Best (5 out of 5)

Fees

  • Origination fee: $0
  • Late payment fee: $0

Restrictions

  • Borrowers can not use a Marcus loan to refinance a student loan.

Who should consider a Marcus personal loan?

A personal loan from Marcus can be a great fit for those who have a good overall credit score, 660 or higher. This lender offers competitive APRs and has been ranked No. 1 by J.D. Power and Associates for customer satisfaction on its personal loans. Additionally, Marcus sets itself apart from competitors like Prosper, Discover and Lending Club with no sign-up fees, no prepayment fees, and no late fees. The recommended uses for these loans are to consolidate multiple balances with higher APRs into one loan with a lower APR, to fund home improvements, to cover the costs of moving or relocating.

Consumers who already have certificates of deposit or a high-yield savings account with Marcus would benefit from a personal loan here since its banking mobile app allows customers to stay updated on all financial products through the company.

Who should avoid a Marcus personal loan?

A loan from Marcus bank will probably not be a good option for you if you have serious issues on your credit report or a poor-to-fair credit score. You most likely won’t be able to qualify. 

Furthermore, those who need a fast loan would be better served elsewhere, as Marcus’ personal loans can take anywhere between one and four business days. Customers who need quick cash in an emergency can apply for OneMain Financial or use a credit card to access funds quickly. 

Because of the myriad of scandals that Goldman Sachs executives have been involved in, anyone who wants to avoid corporate banks with legal action against its employees should avoid Marcus as well.

How to apply for a Marcus personal loan


The entire application process for this loan is done online by following the steps below:

  1. Visit Marcus’s website and enter your basic information including your desired loan amount, the purpose of your loan and your yearly income.
  2. Click “Find my loan options” and Marcus will then conduct a soft credit check which won’t impact your credit rating.
  3. If approved, you’ll be given a list of options that includes your potential fixed monthly payments along with an estimate of what the APR might be.
  4. Once you choose your options, Marcus will conduct a hard credit check before finalizing your loan.

Alternatives to Marcus

If you decide that a loan from Marcus bank isn’t the best option for you, there are other similar options that borrowers may find more suitable.

Upgrade

A loan from Upgrade may be a good alternative to Marcus if you don’t have a credit score of 660 or higher. Upgrade’s credit requirements are a bit more flexible and the lender offers some great credit-building tools. It’s “Credit Health” feature helps borrowers understand their credit score and the factors influencing it. Additionally, Upgrade’s loans start at $1,000 so it could be a good alternative if you need to borrow less than $3,500. However, the loans do come with an origination fee that can be as high as 6% of the loan amount.

Earnest

If you need a loan in excess of $40,000 then a loan through Marcus won’t be your best option. However, you might want to consider Earnest if your credit score is at least 680. Earnest approves loans up to $75,000, offers competitive APRs ranging from 5.99% to 17.24% and does not charge an origination fee. Much like Marcus, Earnest also offers a mobile app so borrowers can easily stay updated on the status of their loans and make payments in the app. 

SoFi

If you want to borrow even more and have excellent credit,  SoFi may be a better option for you. SoFi’s APRs range from 5.99% to 21.99%, which is a lower range than Marcus offers and loan amounts go up to $100,000. If you can qualify, SoFi has rates and terms that are hard to beat. SoFi also provides exclusive career coaching and networking opportunities to its customers, who are awarded “membership” status when buying a loan. 

Closing thoughts

If you’re looking to borrow a lump sum to make financial moves like consolidating debt or investing in a home improvement project, Marcus can be an attractive option. The company is leading the market in customer satisfaction, it’s a good middle-of-the-road option in terms of rates and eligibility requirements and it charges no fees, ever. You don’t have to worry about prepayment penalties, origination fees or even late fees. 

However, it may not be the best option for those with credit scores or borrowing needs on the lower and higher ends of the spectrum. There are other lenders that can better meet the needs of those with lower credit scores who need to borrow less and those with higher scores that want to borrow more. 

Jessica Walrack

Contributing Writer

Jessica Walrack is a personal finance writer at SuperMoney, Interest.com, The Simple Dollar, and PersonalLoans.org. She specializes in taking personal finance topics like loans, credit cards, and budgeting, and making them accessible and fun.