Loans » Personal Loan Lender Reviews » Marcus Personal Loan Review 2021
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Marcus Personal Loan Review 2021

Marcus is for borrowers with high-interest debt, solid credit, and strong cash flow who are interested in consolidation. Read our review of Marcus Personal Loans - how do they work, what can a personal loan be used for, Marcus application Process and Marcus loan pros & cons.
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Some products that appear here are from companies from which this website receives compensation. This may impact how and where products appear on this site (including, for example, the order in which they appear). This compensation allows us to maintain a full-time, unbiased editorial staff. Our opinions are our own.

In this Review..

Marcus is an online only lender offered by Goldman Sachs. It offers personal loans with no fees including late fees, prepayment fees or sign up fees. Since you’re only required to pay the principal loan sum and interest, the interest rates are a little higher than the competition. However, this can be a good option for those with a good credit score who want to avoid annoying fees.

Where Marcus personal loans are a little different is that there is the option of prequalification. If you’re not sure if you will be eligible for a loan, you can complete a basic, short form. This only involves a soft check, so you can avoid triggering a hard credit check and potentially compromising your credit score. Prequalification will allow you to check and compare your Marcus loan options. 

Marcus personal loans are available from $3,500 to $40,000 with fixed APR rates ranging from 6.99% to 19.99%. You can also receive a 0.25% discount if you opt for autopay. This involves a larger portion of your monthly payment being applied to the loan principal, so less interest will accrue on your account. You can have a loan with a term from three to six years. 

Marcus is for borrowers with high-interest debt, solid credit, and strong cash flow who are interested in consolidation.

APR

6.99% – 24.99%

Loan Amount

$3,500 – $40,000

Term

36-72 months

Min score

660

Marcus is an online bank started by the investment banking behemoth Goldman Sachs. Marcus was created to bring some of the financial expertise of Goldman Sachs to everyday banking. It was launched in April 2016. It offers high yielding CDs and personal loans.

Marcus personal loans specialize in debt consolidation. Marcus offers a straightforward and simple product to the personal loan space, with no fees associated.

Marcus Loan Pros & Cons

As we know, each lender has its own pros & cons – here are the relevant things we found for potential borrowers:

Pros

Cons

Loan Details

Loan Amount Range
$3,500 – $40,000
Interest Rate Range
6.99% – 24.99%
Term
36-72 months
Origination Fee
None
Late Payment Fee
None
Returned Payment Fee
None
Prepayment Fee
None
Minimum Credit Score
660
Funding
1 to 4 days

What Can a Marcus Personal Loan Be Used For?

Marcus personal loans can be used to consolidate debt, pay for home improvements, wedding expenses, moving costs or vacations. It cannot be used for any post-secondary education expenses.

Marcus home improvement is for home repairs or projects. The advantage of using a personal home improvement loan for this is the promptness of receiving the funds. Typically, it takes a month or more to get an equity line of credit on your home. Another advantage over a home equity line of credit is that it’s based on the creditworthiness of the borrower, not the equity of a home. You can use a Marcus loan to start your home improvement project immediately.

The Marcus website section on home improvement goes over the benefits of a personal loan when compared with other forms of credit. Marcus has a home addition calculator that can give you an idea of how much your home project could possibly increase the value of your home.

Marcus debt consolidation and/or credit card consolidation takes one or more loans and pays them with the new Marcus personal loan. Instead of multiple payments to multiple lenders, you can create one payment to one lender.

The advantage of a debt consolidation loan with Marcus is that the payment and term are fixed so you know exactly when you’ll be out of debt. Marcus focuses on debt consolidation loans and their website has quite a bit of information and education on what to expect. Marcus also has a debt consolidation calculator that you can use to see if a debt consolidation loan would be worth it.

Marcus personal loans can be used for wedding expenses, relocation costs, and vacations. Marcus reviews the benefits and uses of using their product for these expenses on its website. There is a cap of $20,000 for this type of loan.

Application Process

You can apply for a Marcus loan online or by paper. You can call Marcus at 1-844-627-2871, and have a paper application sent. If you would like to check your options online with Marcus, you first choose the loan amount you want with the associated potential payment. If after checking this you want to move forward, click “find my options.”

Then you enter some basic personal and financial information as well as the loan purpose. Marcus will then do a soft pull. A soft pull does not affect your credit. After the soft pull, Marcus will then present a few loan options for you based on the information you provided. If there is a loan you see as a good fit, you can then apply for that loan and Marcus will do a hard credit pull.

 They will usually let you know within a day if you are approved or not. If not, you will get a letter in the mail outlining the reasons for the decline.

Marcus may need additional information after the application is filled out. This is common. They may request verification items like paystubs, bank statements, W-2s, social security card, or state ID. Marcus typically does a good job of verifying information through automated systems, so you may not have to provide any of this information.

You can sign loan documents online and it then takes 1 to 4 days for your funds to be deposited into your banking account.

Marcus is for borrowers with high-interest debt, solid credit, and strong cash flow who are interested in consolidation.

APR

6.99% – 24.99%

Loan Amount

$3,500 – $40,000

Term

36-72 months

Min score

660

Alternatives Lenders For Consideration

Here are our 3 choices of lenders which can use as a great alternative to Marcus personal loan: 

This is a unique lender created in 2012 by a group of former Google executives. They are the first lending platform to use artificial intelligence with an automated lending process. The company aims to go the extra mile for its customers.

Most lenders primarily focus on a FICO score to approve a loan. However, Upstart uses its advanced technologies to look beyond this and explore the risk of your loan. These calculations are used to assess your ability to repay your loan.

The company has a strong belief that if lenders would use its intuitive credit model, they would probably be approving more loans.

For borrowers, this means that Upstart can offer high quality loans at low interest rates. With fair terms for borrowers with bad credit, this company has a strong reputation with excellent reviews on Trustpilot and other sites.

Best Egg is an online lender that was founded in 2014. Best Egg specializes in personal loans and has funded over 600,000 loans.

Like Marcus personal loans, Best Egg also offers prequalification. This allows you to check your initial rate without affecting your credit score. A hard inquiry will only be conducted if you decide that you want to move on with your application.

If you have good credit, you can expect a very low-interest rate, and loan processing is fast, taking just a few minutes to complete.

SoFi has moved away from that business model and moved to a “non-traditional underwriting approach focused on lending to financially responsible individuals. SoFi uses an underwriting model that examines free cash flow, professional history and education in addition to a history of responsible bill payment to evaluate its borrowers.”
SoFi personal loans have no origination or late fees. They also do not have a prepayment penalty so the loan can be paid off early without additional costs. SoFi gives borrowers flexibility in payments and allow you to change payment due dates and do not charge late fees.

Marcus Loan is Best for..

Marcus is for borrowers with high-interest debt, solid credit, and strong cash flow who are interested in consolidation. Marcus has competitive rates but the biggest advantage of using Marcus is that they have no fees. Even if you get a lower rate with another provider, that lender may have an origination fee of up to 6%, which definitely eats into the amount you can borrow and increases your overall costs.

If you are looking to pay off your credit card debt, Marcus is a good option, and with their initial soft pull you can check your options without affecting your credit. You can also take comfort in the fact that Marcus is backed by one of the largest banks in the world, Goldman Sachs.

Compare Rates

Loan Amount

$0$100,000

Credit Score

Goal

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Loan Reviews Methodology

When it comes to choosing personal, student or car loans, we make sure that we evaluate all of the different products and services that are available for the lender we review. 

The Smart Investor’s selection of loan providers for inclusion here was made based on key areas we evaluated: loan types and loan products offered, fees, and APR. We also considering customer satisfaction and reliable external ratings such as J.D power/Trustpilot.

Cutting fees is now table stakes in the personal and student loans market. In addition, the most valuable loan products tend to offer a deep bench of options that meet a wide array of customer needs. These include a diverse range of loan amounts and terms, as well as loan structures. We also make sure that you’re going to save money by cutting down on the APR that goes along with the loans offered.