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Marcus is an online lender that offers personal loans mostly to people with good or better credit. If you have fair credit or worse, you might have difficulty getting approved. But if your credit history is strong, Marcus could be an attractive option thanks to its competitive interest rates and no-fee promise.
| Pros | Cons |
|---|---|
| Possible low APR | Top APR is higher than some credit card APRs |
| No origination, prepayment or late fees | Applicants with poor or bad credit scores might not qualify |
| Reward for on-time payments | No physical branches |
| Marcus Customer Service 844-627-2871 Marcus by Goldman Sachs 11850 South Election Road Draper, UT 84020 |
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Marcus is the online bank operated by Goldman Sachs, a global banking and investment giant. Its financial products include personal loans, which are designed for applicants with good or better credit and are available in all 50 states.
Interest rates for Marcus personal loans are competitive, ranging from 6.99% to 24.99%.
Marcus lets you prequalify for a loan by supplying basic information, including your total annual income and your reason for wanting the loan. This process doesn't require a hard credit inquiry until you complete the full application. That means prequalification won't affect your credit score.
When you apply online for a Marcus personal loan, you could be approved within 24 hours. Marcus says its online application process takes as little as five minutes and that many Marcus customers receive funds in as little as three days.
While Marcus loans offer competitive interest rates and don't charge many fees that other lenders do, keep in mind that the highest APR is higher than some credit card interest rates. Depending on what rate you qualify for, you might be better off using another lender.
No Fees and an On-Time Payment Reward
Unlike some other lenders, Marcus doesn't charge origination, prepayment or late fees for its personal loans. Origination fees are assessed by several lenders and can reach 8% of the loan amount, significantly increasing the cost of borrowing.
And while the lack of late fees can help when you're in a pinch, it doesn't erase all the consequences of making a late payment. If you miss a payment or pay less than the amount due, you'll end up paying more interest and your final loan payment will be bigger as a result.
Also, failing to make a loan payment on time or in full might be reported to the credit bureaus and show up on your credit report. That, in turn, could cause your credit score to drop.
On the flip side, if you make at least 12 consecutive payments on your Marcus loan that are in full and on time, you'll receive an on-time payment reward: You can defer one payment without accruing extra interest. Your loan term will be extended by one month, but you won't be charged interest during that time. Another bonus: You can repeat this one-month payment deferral after another 12 payments in a row as long as you maintain your on-time, in-full payment record.
How to Apply for a Marcus Personal Loan
Marcus lets you prequalify for a loan by doing a soft credit check, which won't affect your credit score. You can apply for a Marcus personal loan online or by phone, but not in person.
When you apply online, you'll start by entering some basic information. This includes the requested loan amount, the purpose of the loan, your total annual income, and your monthly mortgage or rent payment.
You'll also be asked for your:
- Age
- Email address
- Home address
- Sources of income
In addition to filling out the application, you might be asked to supply recent pay stubs or bank statements to verify your income, or a U.S. photo ID to verify your identity.
The data you supply on your application, along with information found in your credit report, will help determine the interest rate you'll be charged on your Marcus personal loan. The amount and length of the loan also will be factors. Marcus says only those applicants with excellent credit will qualify for the lowest APRs; also, rates generally are higher for longer-term loans.
While Marcus doesn't reveal its credit score requirement, it explains on its website that it considers a credit score of 660 or more good, while anything above 800 is considered excellent.
Who Is Eligible for a Marcus Personal Loan?
Among the eligibility requirements for a Marcus personal loan are:
- You must be a U.S. citizen, permanent resident or visa holder.
- You must be at least 18 years old. If you live in Alabama, you must be 19 or older; Mississippi and Puerto Rico residents must be at least 21.
- You must have a valid U.S. bank account, along with a Social Security number or individual tax ID number.
It's important to note that Marcus accepts individual loan applications but not joint loan applications. So if you can't qualify for a Marcus loan on your own, you'll need to seek another source of funding.
Fixed Rates and Payments
Marcus personal loans offer fixed rates, meaning the APR won't change during the life of the loan. So, if the APR for a 36-month loan is 6.99%, you'll be charged that rate for the entire 36 months.
As a result, your monthly payments will be fixed, too. This makes it easier to budget your monthly expenses and gives you certainty about when you'll be able to pay off the loan.
The payment due date for a Marcus loan isn't necessarily fixed, though. The lender lets you change the due date as many as three times during the loan period.
Speaking of payments, Marcus will lower your APR by 0.25% when you sign up for its autopay option. So, if the APR for your loan was 7.25%, the APR would drop to 7% if you agree to make automated loan payments. When you're enrolled in autopay, a larger portion of your monthly payment is applied to your principal loan amount and less interest will accrue over the life of the loan due to the lower rate, according to Marcus.
Relatively Low Starting APR and Flexible Loan Amounts
If you've got excellent credit, you could qualify for a Marcus personal loan with an APR as low as 6.99%. Marcus lists the highest APR as 24.99%.
Marcus loan amounts range from $3,500 to $40,000. The loan amount will depend on these five factors:
- Information provided on your application
- Your credit history
- Your credit score
- Your planned use for the money: Potential uses include debt consolidation, wedding expenses, home improvement projects, vacations, or moving and relocation expenses. Loan proceeds can't be used to cover education-related expenses or refinance a student loan.
- Assessment of your ability to make loan payments
Loan terms, which vary depending on creditworthiness and other factors, can range from 36 to 72 months. Rates for shorter-term loans generally are lower than they are for longer-term loans.
Track Your Loan Progress on the Mobile App
The Marcus mobile app for iOS and Android lets you:
- Check your loan balance
- Make a payment
- Review recent payments
- Set up and manage autopay
Additional Info*
| Loan amount: $3,500 - $40,000 | Origination fee: None |
| Estimated APR: 6.99% - 24.99% (fixed) | Late fee: None |
| Loan terms: 36 - 72 months | Prepayment fee: None |
| Funds received: Many Marcus customers receive funds in as little as 3 days |
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†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs.
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The Bottom Line
Marcus personal loans offer a competitively low APR if you qualify for the best rate, yet its highest available interest rate is above the APR you might find with a credit card or other online lenders. Perhaps the most attractive aspect of Marcus is that, unlike several other online lenders, it doesn't charge any fees. But, also unlike several other online lenders, it accepts only individual applications—so you won't have the benefit of a cosigner if you need it.