Marcus by Goldman Sachs Review – Fixed Rate, No Fee Personal Loans
Marcus by Goldman Sachs® is a fixed-rate, no-fee, unsecured personal loan provider positioned as a straightforward and potentially lower-cost alternative to credit cards. Its biggest selling point bears repeating: Loans from Marcus by Goldman Sachs® never carry fees, ever.
You can borrow up to $40,000 in a single loan from Marcus by Goldman Sachs®, much higher than credit limits allowed by most entry-level cash back credit cards and bank-issued unsecured personal loans. Though loans from Marcus by Goldman Sachs® have multiple use cases, they’re particularly useful for consumers looking to get a handle on high-interest debts without enduring arduous periods of credit counseling.
Marcus by Goldman Sachs® does have fairly strict underwriting requirements, rendering its loan options unsuitable for consumers who might qualify for secured credit cards. And the company doesn’t make secured loans. If you have substantial equity in your home or another major tangible asset, you’ll likely qualify for a lower rate by borrowing against it – for example, with a home equity loan or line of credit.
Marcus by Goldman Sachs® also offers high-yield savings accounts and CDs. You don’t have to be a loan customer to open a deposit account with Marcus by Goldman Sachs®.
Not sure whether a loan from Marcus by Goldman Sachs® is the right choice to address the financial pressures you’re currently facing down? Read on to learn more about these loans’ features, advantages, drawbacks, and overall suitability.
Loan principals range from $3,500 to $40,000. You can request any amount within this range, but your borrower profile and intended loan use may affect your upper borrowing limit. Featured use types include debt consolidation, credit card consolidation, and home improvement.
Loan terms range from 36 to 72 months. Longer-term loans generally have lower monthly payments, though you’ll likely pay more interest over the life of the loan. Longer-term loans are reserved for Marcus’s most creditworthy borrowers.
Rates on loans from Marcus by Goldman Sachs® range from 6.99% to 24.99% APR. Your rate will depend on your credit score and other factors specific to your financial situation. Once established, it remains fixed for the entire term. Lower rates are reserved for Marcus’s most creditworthy borrowers.
Marcus by Goldman Sachs® generally requires a minimum FICO score of 660. Loans aren’t designed for credit-impaired borrowers.
The Marcus by Goldman Sachs® application process is relatively straightforward:
By law, you can’t refinance or consolidate student loan debt with your loan from Marcus by Goldman Sachs®.
Per company policy, you can’t have more than one outstanding loan at once. If you’d like to apply for a second loan, you need to pay off your original loan first.
Loans from Marcus by Goldman Sachs® are available to U.S. consumers aged 18 and older in most states and the District of Columbia. Certain states have higher age requirements – for instance, it’s 21 in Mississippi and Puerto Rico. Loans aren’t available in Maryland.
You can make payments on your loan via automatic direct debit (AutoPay), manual phone or online payments, and mailed check. When paying by check, you need to allow sufficient time for the payment to reach Marcus’s processing facility before the due date.
You can choose your preferred payment date during the application process. Marcus by Goldman Sachs® allows you to change it up to three times during your loan term.
When you make 12 consecutive on-time payments, you’re rewarded with an on-time payment reward: a one-month payment deferral that you can use at your leisure, whenever you could use the financial breathing room. Each additional 12-month stretch of on-time payments earns you another one-month deferral. There’s no limit to the number of deferrals you can earn over the life of your loan.
Marcus by Goldman Sachs® offers 2 high-yield savings products:
You don’t need to have an existing loan account to apply for a savings account or CD with Marcus by Goldman Sachs®. The application process is streamlined for loan customers, but it’s not particularly onerous even for first-timers.
Marcus by Goldman Sachs® has a customer service hotline for loan and savings account customers available Monday through Friday, from 8am to 10pm Eastern, and Saturday and Sunday, from 9am to 7pm Eastern.
As we’ve seen, Marcus by Goldman Sachs® isn’t the only option for liquidity-seeking consumers. While every type of credit product has its own set of benefits and drawbacks, you owe it to yourself to remain educated about the possibilities – and cognizant of the risks associated with any loan or line of credit.
As you research your options and zero on in the right product for your needs, take a few minutes to review our tip sheet on using credit cards and credit card rewards responsibly. If you decide that Marcus by Goldman Sachs® isn’t the right loan product for you, check out our full lineup of credit card reviews. And, if you’re aiming to rebuild your credit with a secured credit card, our roundup of the best secured credit cards on the market might be of interest.
Updated: October 12, 2018
Marcus by Goldman Sachs® loans are designed for borrowers who have relatively good credit, love straight talk, and hate tacky fees (though who doesn’t). For those who qualify, loans from Marcus by Goldman Sachs® have key advantages over credit card balance transfers – namely, higher borrowing limits and easier-to-understand terms. For those who don’t, high-yield savings products provide solace.
Marcus by Goldman Sachs® isn’t ideal for consumers with modest debt loads that can be squared away before balance transfer cards’ 0% APR promotional periods end. Nor is it appropriate for consumers with significantly impaired credit or substantial student loan debt. And, for those seeking a one-stop deposit institution, the lack of checking accounts is problematic.
Key advantages include no loan fees, fixed rates for the life of all loans, higher borrowing limits than most credit cards, multiple loan options for each applicant, flexible payments, on-time payment rewards after 12 consecutive payments, and competitive savings products.
Notable drawbacks include strict underwriting requirements, no 0% APR interest period, one main type of loan, no P2P element, restrictions on refinancing student loan debt, and geographical restrictions.
Overall, Marcus by Goldman Sachs® is a great resource for qualified borrowers with substantial, but not overwhelming, high-interest revolving debt burdens and no patience for nickel-and-diming or smoke-and-mirrors marketing. It’s also a great place to perk savings over the short to medium terms.
Brian Martucci writes about frugal living, entrepreneurship, and innovative ideas. When he’s not interviewing small business owners or investigating time- and money-saving strategies for Money Crashers readers, he’s probably out exploring a new trail or sampling a novel cuisine. Find him on Twitter @Brian_Martucci.
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Marcus by Goldman Sachs Review – Fixed Rate, No Fee Personal Loans
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