Marcus by Goldman Sachs®
Personal Loans: 2022 Review
Marcus is an online-only bank under the Goldman Sachs umbrella that offers no-fee loans and high-yield savings. Read on to learn whether Marcus by Goldman Sachs is right for you.
- Fixed-rate personal loans with no fees. They don't deduct a sign-up fee from your loan amount
- APY on savings accounts and CDs is higher than the national average
- No minimum deposit to open a savings account
- Penalty-free CDs with no minimum deposit
- No checking accounts
- No physical branches or ATM network
- No mobile check deposits
- You could receive funds in as little as 3 days
Marcus personal loans at a glance
What does Marcus offer?
Goldman Sachs has been a trusted name in investment banking for over 150 years. Marcus is ideal for clients who want to use an established bank with a long history yet don’t need the service to handle all of their banking needs.
Marcus will appeal to customers who need a personal loan with no fees and fixed rates. Customers looking for CDs with higher-than-average rates and flexibility or who want a savings account without a minimum deposit amount may also see the benefit of Marcus.
Marcus bills itself as a user-friendly, approachable online banking service aimed at helping people manage their money responsibly. Marcus' tagline, You can money®, comes across as modern, simple, and upbeat.
Marcus’ high-yield savings account has no minimum opening deposit, no monthly fee, and a 0.50% APY. You must fund your savings account within 60 days of opening it.
Marcus offers two types of CDs. Their high-yield CD has different term options, ranging from 6 months to 72 months. You can pay an early withdrawal penalty to withdraw your money from the high-yield CD before it fully matures. The no-penalty CD lets you withdraw your balance in full after it has been fully funded for seven days without giving up any of your interest.
Both types of CDs have a minimum deposit of $500. Marcus’ CDs tend to have a higher APY than those offered by other banks. Take note that when your Marcus CD matures, you have 10 days to withdraw your money, or Marcus automatically renews your CD for another term.
MarcusPay is a recently released product that lets customers pay for large purchases using an installment payment system.
Marcus offers loans from $3,500 to $40,000 and fixed rates from 6.99% to 24.99% APR. Only the most creditworthy applicants qualify for the lowest rates and largest loans amounts. Rates will generally be higher for longer term loans.
There are no origination fees, no late fees, and no fees for prepayment. Marcus personal loans are issued by Goldman Sachs. They rely on interest payments to make money on the loans.
Debt consolidation is a cornerstone of Marcus. Apply for a debt consolidation loan, and if you’re approved, Marcus will make it simple to pay down your debts. Funds will be sent directly to the credit and retail card companies you owe, without any additional fees for the service. The option of direct payment to creditors saves you time and hassle you would otherwise spend doing it yourself. By paying down your debts, you improve your credit card utilization. This makes your credit score go up. You’ll pay off your debts and improve your financial standing at the same time.
“Marcus bills itself as a user-friendly, approachable online banking service aimed at helping people manage their money responsibly”
About personal loans
Personal loans allow you to borrow thousands of dollars. The money is disbursed into your bank account within a few days, and you make monthly payments on the principal amount plus interest. Personal loans tend to have fewer limitations on their uses than home mortgages or auto loans.
Personal loans can be used to pay off debt and bills or to finance a major purchase. Personal loans often come with high interest rates. Some lenders charge additional fees such as loan origination costs, late fees, or prepayment penalties.
Before taking a personal loan, shop around to find a loan with the best rates and terms for your needs. Learn what you need to qualify for a loan with a particular lender. Finally, be sure to make timely payments, or your credit score will be damaged, and you may incur further costs.
Who is a Marcus personal loan best for?
If your credit history is strong and you don’t want to pay any extra fees beyond principal and interest, a Marcus personal loan may be right for you, Marcus personal loans are suitable for a range of purposes.
Loan customers who want to avoid paying extra fees will appreciate Marcus’ no-fee pledge. Marcus won’t charge anything beyond principal and interest, so there are no application fees, origination fees, late fees, or annual fees. Marcus also doesn’t charge a penalty should you wish to prepay your loan, which sets it apart from many other lenders.
To be eligible for a loan through Marcus, you’ll need to have proof of income and proof of identity. While an official minimum credit requirement is not officially disclosed, Marcus loans are generally recommended for borrowers with a credit score of at least 720+ FICO. According to Marcus, they evaluate loan applications by reviewing various credit history factors such as credit scores, along with a customer’s debt obligations and income. Those with higher credit scores may qualify for lower rates and better loan terms.
Applying for a Marcus personal loan
If you’re over 18 years old (19 in Alabama, 21 in Mississippi and Puerto Rico) and have a US bank account and a social security number or tax ID, you can apply for a Marcus personal loan. Here are the steps you’ll need to take to apply:
- Complete a soft credit check This prequalification form lets you know right away whether you qualify for a Marcus personal loan. If you go ahead with the application process, Marcus will run a hard inquiry on your credit, which may temporarily lower your credit score by a few points.
- Specify your loan amount Enter the amount you want to borrow and your intended use for the loan. You can also put in what you’d like your monthly payment to be. This helps you determine how much you can afford to borrow.
- Enter your income information Fill in your annual income, other income sources, and your monthly housing costs.
- Explore loan options Find the Marcus personal loan option that suits your needs. You’ll see your potential APR and monthly payment information so you can make an informed decision.
- Enter additional information You may be asked to supply other information like bank statements, W-2 forms, and pay stubs to show proof of income. You may be asked to verify your employment by providing your employer’s information. You’ll be asked to provide proof of identity such as a driver’s license, social security number, tax ID number, or other photo identification.
Why we liked Marcus personal loans
Quick prequalification check You can find out if you qualify for a Marcus personal loan by filling out a short prequalification form. This form doesn’t run a hard inquiry on your credit, so there’s no risk to your credit score to learn whether you qualify.
No extra fees, period. There are no extra fees associated with Marcus’ personal loans, so you only need to pay back your principal amount plus interest. Even if you’re late making a payment, there are no late payment fees. Note that there are still interest charges that will accumulate, and your late or partial payments may impact your credit score.
Repay, your way Repayment terms are highly customizable and can be divided across 36, 39, 42, 45, 48, 54, 60, 66, or 72 months. You have the option to change your monthly payment date three times over the life of your loan. Borrowers who have outstanding payments cannot take advantage of this feature.
Rewards for timely payments After 12 consecutive monthly payments, Marcus offers borrowers an on-time payment reward. You have the option to defer one payment provided you made all of your prior payments on time and in full. You’ll pay no interest during the deferral period, but deferring a payment will extend the life of your loan by one month. If you ever make a late or partial payment, this reward won’t be available to you for the remainder of your loan term.
Autopay discount If you sign up for autopay, you’ll enjoy a savings of 0.25% on your monthly payments. You’ll save money by paying more towards principal and less money on interest, plus you won’t miss a payment. Direct pay If you took out your loan for debt consolidation, Marcus will pay your creditors directly.
Direct Pay is a free feature and can apply to other personal loans and credit or retail cards (for a maximum of 10 total cards).
“Even if you’re late making a payment, there are no late payment fees”
Marcus personal loan caveats
- Marcus doesn’t offer checking accounts, so it won’t cover all of your banking needs. There is talk of Marcus eventually expanding to offer checking as well as an investing service in the coming year, but whether it will do so remains to be seen. Should Marcus expand its offerings, it will join the ranks of other mobile banks with a broader range of services.
- Marcus doesn’t allow you to deposit a check via their mobile app. To deposit a check into your Marcus account, you’ll have to send it by US mail, which feels rather antiquated. You can also set up a linked external account, make direct deposits into savings, and send a wire transfer.
- Marcus doesn’t provide ATM service, which makes accessing the money in your Marcus accounts somewhat challenging. There are no physical branches to Marcus as it is an online-only bank.
- Marcus doesn’t have a chat tool for borrowers (though there is one for savings account customers) or an account on social media dedicated to answering customer questions.
- Though no minimum credit score is officially required, you’ll likely need a score of 720+ FICO or higher to qualify for a Marcus personal loan.
- You could receive funds in as little as 3 days. Other lenders take less time to make your funds available.
- Marcus doesn’t allow for loan cosigners or joint applications, so consider other personal loan providers if you don’t qualify on your own.
- Marcus personal loans can’t be used for business purposes, home purchases, or to refinance student loans.
How does Marcus rate?
Customer service with Marcus
Marcus customers can log in to their accounts to access a live chat option. An automated customer service phone line is available 24/7. To talk to a specialist, call Monday - Friday from 8 a.m. to 10 p.m. EST, or Saturday and Sunday from 9 a.m. to 7 p.m. EST.
The Marcus website features an in-depth FAQ section that answers many questions in a simple yet thorough way. The Marcus app features an Insights section that allows customers to link external accounts and track their financial goals in one location. Insights lets you see balances, trends, and data from all of your linked accounts on the Marcus app.
What customers say about Marcus
Reviews of Marcus products are mixed. Many happy customers felt that the application was quick and easy, and they were pleasantly surprised by how quickly they got their loan. Marcus received positive reviews about their smooth approval process and how their loan helped them pay down debts. In a 2019 J.D. Power Personal Loan Satisfaction Study, Marcus scored highest in overall customer satisfaction.
However, some people said they waited a long time to hear back about their application, struggled to contact customer support, or were offered higher interest rates than anticipated.
“Marcus received positive reviews about their smooth approval process and how their loan helped them pay down debts”
How does Marcus stack up against competitors?
Several other personal loan providers work similarly to Marcus. Here’s how they compare:
Marcus vs. SoFi
SoFi requires you to have a higher credit score than Marcus. SoFi lets you borrow between $5,000 and $100,000 for a range of two to seven years.
Marcus vs. Lightstream
Lightstream’s personal loans range from $5,000 to $100,000, and you can borrow money for two to 12 years. If your credit score is 710 or higher, you could be eligible for attractive low interest rates with Lightstream.
Marcus vs. Upgrade
Upgrade offers personal loans for people with less-than-stellar credit. Upgrade’s loans are available for between $1,000 and $5,000, and term lengths range from two to seven years.
Marcus: the bottom line
While Marcus by Goldman Sachs doesn’t have all the bells and whistles of a traditional bank, it offers good value to customers on its limited selection of financial products. Marcus’ savings accounts and CDs have competitive APYs, and their no-fee personal loans can be attractive to the right clients. Marcus lacks mobile check deposits, ATM access, and the option to have a checking account. It won’t meet anyone’s complete banking needs, but will likely appeal to a specific group of people looking for no-fee personal loans.
Is a personal loan from Marcus a good idea? While applying for and taking out a personal loan can lower your credit score, in the long run it can improve your score provided you repay your loan responsibly. If you make your payments on time and in full, and use your loan to consolidate or pay off existing debts, you may be in a better financial position at the end of your loan term. Learn more about Marcus here.
Marcus by Goldman Sachs Terms & Conditions:
Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. Rates range from 6.99% to 24.99% APR, and loan terms range from 36 to 72 months. For NY residents, rates range from 6.99%-24.74%. Only the most creditworthy applicants qualify for the lowest rates and longest loan terms. Rates will generally be higher for longer-term loans. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans). Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions. Receive a 0.25% APR reduction when you enroll in AutoPay. This reduction will not be applied if AutoPay is not in effect. When enrolled, a larger portion of your monthly payment will be applied to your principal loan amount and less interest will accrue on your loan, which may result in a smaller final payment. See loan agreement for details.