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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 Loan Specification
- Loan amount range$3,500 – $40,000
- Interest rate rage6.99% – 24.99%
- Terms36-72 months
- Origination feeNone
- Late payment fee None
- Returned payment None
- Prepayment feeNone
- Minimum credit score660
- Funding1 to 4 days
- Bank statements
- Social security card/State ID
Soft Pull Inquiry – Marcus does an initial soft pull inquiry so the borrower can get an idea of the options for which they may qualify.
Simple Application Process and Average Turnaround Times – Marcus has a quick and simple application process and the loan is usually funded in about 4 days.
Competitive Interest Rates – Interest rates are competitive for borrowers with good credit histories and strong cash flow.
No Fees – Marcus 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.
More than One Loan – The borrower can get multiple loans at a time from Marcus.
Multiple Payment Options – A Marcus loan can be paid online, automatically, by phone, or by mail. Many online personal loan providers only allow for online payment and in many cases will charge processing fees for payments not done online.
Multiple Loan Options – After the soft pull, Marcus presents many different options for the borrower and they can choose the best fit for them.
One Time Payment Deferment – Once a borrower has made 12 consecutive on-time payments, the borrower is eligible to defer a payment. So if there is a month where money is short, you can call up Marcus and ask them to defer the payment that month.
7 Days a Week Customer Support – You can call Marcus any day of the week and talk to someone who can help.
High FICO –Marcus has a higher minimum FICO than many other personal loan providers.
Not Available in All States –Marcus does not operate in Maryland.
No Joint Applicants –The application is based on the applicant alone. Marcus does not allow for joint applicants.
Pre-Approval Does Not Mean Approval –Marcus does mass mail marketing and sends many pre-approval letters out to potential borrowers. Be aware that this does not mean you will be approved for a Marcus loan, it is just an invitation to apply.
Limits on Loan Amount for Loan Use –Depending on the loan use, Marcus may limit the amount you can borrow to $20,000. See loan uses above – any loan for weddings, moves, or vacation expenses can be limited to $20,000.
Poor or Limited Credit –Marcus is not the lender for borrowers who do not have good to excellent credit.
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 Debt Consolidation and Credit Card Consolidation
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 Home Improvement
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.
Wedding Expenses, Relocation Costs, and Vacations
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.
Marcus 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 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.