Marcus by Goldman Sachs Review
Marcus is the retail banking division of Goldman Sachs, a high-profile investment bank and financial services firm headquartered in New York City. Operating under the tagline “You Can Money,” Marcus offers no-fee, fixed-rate personal loans. They can be used for any approved purpose.
Let’s take a closer look at the Marcus by Goldman Sachs borrowing program and check out the pros and cons.
Pros and Cons of Marcus by Goldman Sachs
- No application, origination, or prepayment fees
- Competitive interest rates
- Flexible repayment plans
- Get funding in as little as five days
- Relatively low borrowing limits
- Secured loans and joint or cosigned borrowing options are not available
What Does Marcus by Goldman Sachs Offer?
Marcus offers a simple, straightforward personal loan program: its loans come with zero fees, competitive fixed interest rates, and rewards for borrowers who make their payments on time. Customers can also earn discounts by enrolling in Marcus’s automatic payment system.
Here’s a detailed breakdown of key facts and figures:
- Loan amounts: $3,500 to $40,000
- Annual percentage rates (APRs): 6.99% to 19.99%
- Repayment terms: 36 months (3 years) to 72 months (6 years), including fixed repayment periods of 36, 39, 42, 45, 48, 54, 60, 66 or 72 months
- On-time payment rewards: Customers who make scheduled payments in full and on time for 12 consecutive months can skip one month interest-free
- Autopay discount: 0.25%
A little bit of fine print applies: not all borrowers will qualify for the lowest rates and longest repayment periods. To unlock the best rates and most generous repayment terms, Marcus by Goldman Sachs recommends a personal FICO credit score of 740 or higher.
One nifty feature of doing business with Marcus applies to borrowers using their loan proceeds for debt consolidation. Marcus can configure your plan to make direct payments to your creditors, freeing you from the need to manage individual payments and ensuring you will not miss scheduled payments.
What To Expect on the Site
Borrowing through Marcus begins with an easy three-step application process:
- Fill in a personal questionnaire for customized results.
- Select a loan option from the choices for which you qualify and indicate your preferred repayment term.
- Verify your identity and supply a few final details to complete your application.
Marcus will then automatically generate loan offers for you, returning results in as little as five minutes.
Prospective borrowers do not have to submit to “hard” credit checks. Instead, Marcus by Goldman Sachs does a “soft pull,” meaning that your credit score will not be affected by your application.
Unfortunately, Marcus by Goldman Sachs does not support joint or cosigned loan applications as of February 2021. It also does not offer secured loans to borrowers who would be willing to offer the institution some collateral as consideration for more advantageous rates and terms.
Costs and Pricing
Affordability is a key advantage of the Marcus by Goldman Sachs loan program. Unlike many other institutional lenders, Marcus does not charge application fees, origination fees, late fees, or penalties on prepayments or early loan repayments.
Interest rates are fixed and remain relatively affordable even at the high end of the range (19.99%). By contrast, it’s not uncommon for lenders to apply APRs as high as 35.99%.
Marcus applies fixed APRs to a very flexible lineup of repayment plans, which allow borrowers to customize their repayment schedules in three-month increments. Borrowers with excellent credit scores enjoy the widest and most flexible range of options, but practically all qualified customers will be offered some degree of choice.
What Others Are Saying about Marcus by Goldman Sachs
As of February 2021, Marcus by Goldman Sachs holds an A+ rating on the Better Business Bureau (BBB) website. Marcus has been BBB accredited since 2018, and Goldman Sachs has a 150+ year track record.
On Trustpilot, Marcus by Goldman Sachs sports an aggregate score of 3.5 out of 5 on more than 120 reviews as of February 2021. Of those reviews, 54% awarded Marcus a perfect 5 out of 5, while 61% gave it a score of 4 out of 5 or higher.
The Bottom Line
Marcus offers flexibility, competitive APRs, and a generous no-fee policy on small to medium-sized personal loans. The program has limited appeal to borrowers seeking large sums of money, but it could be a good option for those who want $40,000 or less in funding. As you compare the best personal loan providers, we think Marcus is worth checking out.