Marcus by Goldman Sachs Personal Loans Review: 2019

Marcus by Goldman Sachs is the consumer lending branch of Goldman Sachs Bank USA. Marcus offers personal loans for borrowers with fair to excellent credit. Personal loans can be used for a variety of purposes and terms are flexible. You do not need to have an existing relationship with Goldman Sachs in order to qualify. 

About Marcus by Goldman Sachs

Goldman Sachs is a well-established, global financial firm. The company got started in 1869 as a commercial paper trading post. Marcus Goldman’s purpose was to provide short term capital to small businesses in order to help them get off the ground. His son-in-law, Samuel Sachs, joined him in 1882. The company’s enormous success since then has built it into the icon it is today.

Marcus was launched by Goldman Sachs in 2016. Marcus was founded with the goal of providing simplicity, transparency, and value to their customers. 

All loans from Marcus are issued by Goldman Sachs Bank USA from their branch in Salt Lake City. 

In this article, you’ll learn about:

Personal Loans Offered by Marcus by Goldman Sachs

There are a few different types of personal loans that you can get through Marcus by Goldman Sachs. Rates and terms vary slightly for each. When applying for a Marcus personal loan, you will be prompted to specify the reason for your loan. 

1. Debt Consolidation

When you consolidate debt with a personal loan from Marcus, you’re able to pay off multiple debts, such credit card bills or medical payments, with a single monthly payment. 

While debt consolidation can be used for many types of unsecured debts, Marcus makes it clear that their personal loans cannot be used to consolidate student loans or any education-related expenses.

2. Home Improvement

As an alternative to taking out a home equity loan, which requires you to use your house as collateral, a Marcus by Goldman Sachs loan can be used to finance home improvements. Marcus offers you the flexibility to use your home improvement personal loan as you see fit. For instance, if you are remodeling your kitchen and your bathroom, one loan can be used to fund both projects. 

3. Wedding

A wedding personal loan can be used to fund every aspect of your wedding, taking a lot of the stress out of the planning process. As long as a purchase is related to your wedding, your personal loan can cover it. Common costs include:

  • Deposits
  • Catering
  • Photographers
  • Wedding attire
  • Venue rental
  • Entertainment

4. Vacation

A Marcus personal loan for vacations allows you to fund all expenses related to that trip you’ve been wanting to take. This includes expenses such as airfare, hotels, experiences, food, and even clothing for your trip. 

5. Moving and Relocation

A relocation loan from Marcus enables you to cover the costs associated with moving, whether you’re going to the next town over or the other side of the country. In addition to covering moving costs, a relocation loan can also be used to cover your first and last month’s rent (if you’re moving into an apartment) and temporary living expenses.

Rates and Terms

Rates

Loan rates from Marcus vary, ranging from 5.99% to 28.99%. For New York residents, rates range from 5.99% to 24.99%. The actual rate you receive is based on several factors including your credit score, the size of your loan, and the repayment terms you select. 

Terms

Marcus by Goldman Sachs allows you to choose terms between 36 and 72 months. Terms are very flexible – once you select the term that works best for you, Marcus will customize a loan to suit your preferences. 

Generally, the shorter your loan term, the lower your interest rate. Longer terms have higher rates, but Marcus loans can be paid off early without any penalties. Available terms are determined based on your credit profile.

Fees 

A major benefit of personal loans from Marcus by Goldman Sachs is that they do not charge any fees. 

There are no origination fees or late fees with Marcus loans. If you miss a payment, you continue to accrue interest and the total of your monthly payment increases. 

Late or missed payments can show up on your credit history, and will affect your score. If you make 12 consecutive on-time monthly payments, you are eligible to defer your loan for one month. You must contact Marcus 16 days before the due date in question in order to request your deferral. This reward can be used at any time so long as you continue to make payments on-time. 

There are no fees for paying off your loan early or making additional payments. 

Loan Amounts

Marcus by Goldman Sachs offers personal loans ranging from $3,500 up to $40,000. Your minimum loan amount may be different depending on your state’s loan regulations. The maximum amount you are eligible for will be primarily determined by your credit history.

How Long Until You Receive Funding?

Once your loan has been approved, it can take anywhere from one to four days to receive your funds. If you need money immediately, Marcus loans may not be the best option for you. 

Loan Requirements

Qualifying for a Marcus by Goldman Sachs Personal Loan

Credit Scores

Marcus does not make it clear on their website what the required minimum credit score is in order to qualify for a personal loan. According to a report done by the lender, the vast majority of borrowers for 2016 and 2017 had FICO scores greater than 660. 

Marcus states that several factors, including credit score, are used to determine whether or not an applicant qualifies for a loan. It is possible to get a loan with a lower score, but interest rates will be higher and terms may be more limited. 

Checking Your Rates

It’s very easy to check your rates with Marcus. When filling out your initial application, you can use their sliding scale widget to determine what your monthly payments would be for different loan amounts. After selecting the purpose of your personal loan, you will be asked for some basic information, including your:

  • Name
  • Birthdate
  • Monthly housing payment
  • Annual income and income source
  • Address

Once you have submitted this information, you will be presented with a list of loan options. Doing so will trigger a soft pull of your credit history, which will not appear on your credit report or affect your score. 

The Formal Application Process

Marcus will let you know within a few minutes if you qualify for a loan. If you do, you will be shown a page that details your options for loan amount, terms, rates, and monthly payments. 

After selecting your preferences, you will continue on to the formal application process. At this point, a hard pull of your credit history is performed. A hard pull will appear on your credit report and can temporarily affect your credit score. 

During the application process, you may be asked to upload additional documentation. Commonly required documentation includes:

  • Driver’s license or other form of state-issued identification
  • Employment status
  • Proof of income

If your loan is approved, you will be provided with all of your loan documentation, which will include the actual interest rate and terms of your loan. You will then be asked to e-sign the documents and provide your bank information so that your funds can be transferred. It can take anywhere from one to four days to receive your funds. 

Repaying your Personal Loan

Marcus does not state on their website when your first payment is due following receipt of your loan capital. You can change your payment due date up to three times during the life of your loan. If you opt to change your payment date, Marcus will let you know when this change takes effect.

Accepted Payments

Payments can be made online through your Marcus account. AutoPay, phone, check, and money order payments are also accepted. 

Early Repayment

There are no penalties for paying your loan off before the end of its term. 

Customer Service

Custom service agents are available 7 days per week. 

Hours

  • Monday to Friday: 8:00 am to 10:00 pm EST
  • Saturday and Sunday: 9:00 am to 7:00 pm EST

Phone

  • Questions and general inquiries: 1-844-627-2871
  • Existing customers: 1-844-627-2872

Customer Feedback

Marcus by Goldman Sachs has been accredited by the Better Business Bureau since 2018. At the time of this review, they have an A+ rating. The company only has a 2-star customer rating due to extensive complaints about the quality of its customer service. 

There are currently no reviews for Marcus on Trustpilot. However, it should be noted that Marcus did receive the highest score on the JD Power 2019 US Personal Loan Satisfaction Study for customer satisfaction with their personal loan experience.

Summary of Marcus by Goldman Sachs

Pros:

  • Flexible lending terms
  • Personal loans can be used for many reasons
  • No origination fees
  • No late fees
  • No fees or penalties for early repayment

Cons:

  • Generally only accepts borrowers with higher credit scores (good to excellent)
  • Borrowers with lower credit scores will have higher interest rates and more limited terms
  • Application with a co-signer is not permitted
  • It can take one to four days to receive funds

Marcus by Goldman Sachs is an excellent option for borrowers with high credit scores who are seeking flexible loan terms. The absence of origination and late fees is also a plus. Borrowers with lower credit scores can be accepted, although their interest rates will be higher. 

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