Marcus Personal Loan Review

Personal loans with borrower-focused benefits

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Marcus by Goldman Sachs Logo
overall rating
3.9

Marcus offers personal loans with low rates compared to those of other lenders, and it doesn’t charge any fees. However, Marcus might not be your best option if you’re still working on building your credit because you’ll need a credit score of at least 660. It also doesn’t offer a co-signer option, which you might want if your credit isn’t the best.

  • Product Specifications
  • Pros and Cons
  • Fees
  • Company Overview
Product Specifications
  • APR Range 6.99% to 19.99% with autopay
  • Loan Amounts $3,500 to $40,000
  • Loan Terms 36 to 72 months
  • Recommended Minimum Credit Score 660
Pros and Cons
Pros
  • No fees

  • On-time payment reward

  • Option to choose your own payment date

  • Competitive APR for well-qualified applicants

  • Direct payment to your old lender for refinanced loans

Cons
  • No joint applications

  • Doesn’t offer loans for bad credit

Fees

None. Marcus doesn’t charge origination, late, prepayment, or transfer fees.

Company Overview

Marcus is a lending and banking brand of Goldman Sachs, a long-established financial institution. Marcus operates entirely online and specializes in just a few types of financial products: CDs, high-yield savings accounts, and personal loans. All of these products are good, but we especially like Marcus’ personal loans because they come with low rates compared to those from other lenders—and no fees.

Pros of Marcus Loans

  • No fees: Marcus personal loans have no fees of any kind. That doesn’t mean there aren’t consequences if you don’t pay (it’ll still be recorded on your credit report), but at least you won’t be slapped with an additional fee. 
  • On-time payment reward: If you make all of your payments on time for 12 consecutive months, you can choose to defer a payment without hurting your credit score. You won’t have to pay any interest while your payment is deferred, but it will add an extra month to the end of your payment schedule—meaning you’ll be in debt for one month longer, during which interest will accrue.
  • Choose your own payment date: You can choose your own payment due date up to three times over the course of the loan.
  • Competitive APR for well-qualified applicants: Marcus personal loan rates aren’t the absolute lowest out there. But they’re pretty good.  
  • Direct payment to your old lender for refinanced loans: If you’re refinancing credit card debt for a lower interest rate, Marcus will pay off your old lenders for you (up to 10 credit cards). Keep tabs on your old credit cards until you’re sure they’re paid off, though—you don’t want to miss a payment. 

Cons of Marcus Loans

  • No joint or co-signed applications: You’ll have to apply on your own; your spouse or partner can’t apply or co-sign with you. This might make it more difficult to be approved if your credit score isn’t the greatest.
  • Doesn’t offer loans for bad credit: Marcus recommends that you have a credit score of at least 660 in order to get a personal loan. That’s a much higher bar than most other lenders require. Remember, though, that other factors like income play a part in your approval, so you might not qualify for a loan even if you have a 660 or better credit score.

Marcus Personal Loan Rates & Terms

If you’re looking for the lowest personal loan rates, Marcus probably won’t be your first choice. As low as its rates are, many other lenders offer even lower rates, such as Laurel Road and LightStream. However, Marcus’ lowest rates are still better than those of some lenders, and its other features might be enough to win you over.

  • Interest rates: 6.99% to 19.99% APR with autopay
  • Term lengths: 36 to 72 months

If your application is accepted and you’re approved for a Marcus personal loan, you’ll need to connect your bank account. Once that is done, you should receive your funds via direct deposit within one to four days.

How Much Can You Borrow With Marcus?

You can borrow anywhere from $3,500 to $40,000. Remember, though—just like the rate and term lengths that you’re offered, the exact amount Marcus approves you for will depend on things like your income, credit score, and the information on your credit report.

Marcus Personal Loan Fees

The biggest thing that sets Marcus apart from many personal loan lenders is that it doesn’t charge any fees. You won’t pay any origination, late, prepayment, or transfer fees. Your incentive for paying on time is that Marcus may report late payments to the credit bureaus. 

You can also earn an on-time payment reward, which allows you to defer a payment once per year after you make 12 consecutive on-time payments. While several other lenders charge few or no fees, the on-time payment reward helps Marcus stand out.

Though Marcus charges no fees for late payments, any late payments you make will be reported to the credit bureaus. Your loan will also accrue interest.

How to Get a Personal Loan From Marcus

The application process for Marcus works similarly to most other personal loan lenders. You can check to see if you prequalify without affecting your credit score. Once you’re ready to apply, you can do so online or by phone at 1-844-627-2871. You’ll need to be at least 18 years old unless you live in Alabama (minimum age 19), or in Mississippi or Puerto Rico, where the minimum age is 21.

Final Verdict

There’s a lot to like about Marcus personal loans. The fact that you can defer a payment after 12 consecutive on-time payments helps you preserve your good credit if a temporary emergency pops up. Being able to choose your own due date also helps you to budget better because you can choose to make your payments shortly after you get paid each month. Perhaps the biggest draw is Marcus’ no-fee structure, which can help save you hundreds or even thousands of dollars compared to lenders that charge origination fees. 

Still, if you’re a deal-seeker, you’ll probably want to check out other options first. Marcus has low starting rates, but they’re not the lowest out there. Furthermore, there’s no option for co-signers, collateral, joint applications, or any other tools to help borrowers with bad credit qualify for a loan at a decent rate. So if your credit could use some work, you might want to consider other options.

Methodology

We look at 40 data points from dozens of financial institutions to evaluate lenders for our personal loan reviews. Because a loan’s APR can dramatically impact the total cost you pay, we weight that feature the heaviest. But since a great APR usually requires at least a good credit score, we also give points to lenders who may have a higher potential APR but offer loans to people with less-than-perfect credit scores. 

Along those lines, we favor lenders who allow you to see if you prequalify before applying for a loan, so you won’t harm your credit score just by applying. Origination, prepayment, and late fees all get counted in our assessment. And lastly, we deduct points from the ratings of lenders with restricted access—for instance, those who require you to first have another type of account with them or to join a nonprofit organization.

Article Sources

The Balance requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy .
  1. Marcus. "We're Offering Personal Loans With No Fees. Ever." Accessed Oct. 20, 2020. 

  2. Marcus. "Frequently Asked Questions," On-Time Payment Reward. Accessed Oct. 20, 2020. 

  3. Marcus. "How to Change the Payment Due Date on Your Marcus Personal Loan." Accessed Oct. 20, 2020.

  4. Marcus. "Frequently Asked Questions." Accessed Oct. 20, 2020.

  5. Marcus. "What is an Installment Loan and How Does It Work," Marcus Installment Loan Benefits. Accessed Oct. 20, 2020.