Marcus Personal Loans Review

Marcus offers no-fee personal loans to borrowers with good to excellent credit

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Marcus by Goldman Sachs logo
Investopedia’s Rating
3.0

 

If you have good to excellent credit and don’t mind waiting a few days to receive your funds, Marcus personal loans could be a good option. Marcus doesn’t charge origination or late fees, and you may qualify for unique benefits like on-time payment rewards.

  • Pros & Cons
  • specifications
Pros & Cons
Pros
  • No origination fees, late fees, or prepayment penalties

  • On-time payment reward

  • Direct creditor payments

Cons
  • Loan disbursement can take several days

  • Doesn’t specify minimum credit score or income

  • No secured or co-signed options available

specifications
APR Range
6.99% - 19.99%
Loan Amount
$3,500 - $40,000
Loan Terms
36 Months or 72 Months
Recommended Minimum Credit Score
720
Average Origination Fee
0.00% - 0.00%
Late Fee
$0.00 - $0.00
Why Trust Us Investopedia collected key data points from several lenders to identify the most important factors to borrowers. We used this data to review each lender for fees, accessibility, repayment terms, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right borrowing decision for their needs. Read our Full Methodology
38 Lenders reviewed
40 Loan features considered
1,520 Data points analyzed
112 Primary data sources used

Pros Explained

  • No origination fees, late fees, or prepayment penalties: Some personal loans have added fees, such as application or origination fees, late fees, and prepayment penalties if you pay off the loan early. With Marcus, you don't need to worry about these fees. 
  • On-time payment reward: If you make your payments on time for 12 months, Marcus will give you an on-time payment reward and allow you to skip a payment. If you take advantage of this feature, your loan term will be extended one month, but interest won’t accrue during the skipped payment period. 
  • Direct creditor payments: If you intend to use your loan to consolidate debt, Marcus offers direct creditor payments. It will pay off your existing balances directly, speeding up the debt consolidation process.

Cons Explained

  • Loan disbursement can take several days: While some lenders offer loan disbursements in as little as one day, it can take up to three business days to receive your funds from Marcus. If you have an emergency expense and need money right away, you may need to work with another lender. 
  • Doesn’t specify minimum credit score or income: Marcus doesn’t have a minimum income or credit score, and instead uses its own underwriting process to evaluate applications. 
  • No secured or co-signed options available: Many lenders offer co-signed or secured loans for borrowers with less-than-perfect credit. However, Marcus doesn’t allow co-signed applications, nor does it offer secured loans.

Introduction

Marcus is a personal loan lender that issues loans from $3,500 to $40,000 with loan terms ranging from 36 to 72 months. While Marcus doesn’t specify a minimum credit score, most of its customers have good to excellent credit. According to its annual report, the majority of its loans were issued to borrowers with scores of 660 or higher.

Marcus has some additional eligibility criteria for its personal loans. Borrowers must be at least 18 years old (19 in Alabama and 21 in Mississippi and Puerto Rico) with a valid U.S. bank account and Social Security number.

If you meet the eligibility criteria and are looking to avoid fees, Marcus personal loans may be an excellent option. Marcus doesn’t charge origination or late fees, and there are no prepayment penalties. 

Company Overview

Goldman Sachs, a major investment bank and financial services corporation, launched the Marcus platform in 2016. Marcus offers investment and banking products for individuals, including high-yield savings accounts, certificates of deposit, investment accounts, and personal loans.

Unlike some other lenders, Marcus only issues unsecured personal loans; it doesn’t have co-signed or secured loan options. Its loans are available in all 50 states.

Types of Loans Offered by Marcus

Although Marcus doesn’t specify a minimum credit score, approved borrowers generally have scores of 660 or better. 

Marcus’ personal loans are unsecured and can be used for home renovations, debt consolidation, vacations, weddings, or other personal expenses. However, Marcus' loans cannot be used to pay for postsecondary education or to refinance student loans.

Time to Receive Funds

When you take out a loan from Marcus, how the loan is disbursed is dependent on the loan’s intended use. If you plan on using the loan for personal expenses, such as travel or medical procedures, Marcus will deposit the money directly into your bank account. It can take up to three days for the money to appear in your account. 

If you are using your loan for debt consolidation, you can take advantage of Marcus’ Direct Payment feature. Through Direct Payment, Marcus will pay up to 10 creditors. Since Marcus works with your creditors directly, this process can be faster than waiting for the money to show up in your account and paying your creditors yourself.

Marcus Personal Loan Features

Marcus personal loans have several key benefits: 

No Fees

Marcus loans have no fees at all. There are no application fees, origination fees, or late fees. Marcus doesn’t charge prepayment penalties either. Its lack of fees set Marcus apart from competitors. 

Although Marcus doesn’t charge late fees, it’s still important to make your payments on time every month. Otherwise, Marcus will report the late payment to the credit bureaus, which can damage your credit score.

Discounts 

If you sign up for automatic payments for your Marcus personal loan, you can lower your interest rate by 0.25 percentage points. 

On-Time Payment Reward

Marcus rewards customers that make their payments on time by allowing them to skip a payment. Once you’ve made 12 monthly payments in full and on time, you can skip your payment for a month. The loan term is extended one month, and no interest will accrue during the payment deferral. 

Making extra payments will reduce the amount of interest that accrues on your loan, helping you save money and pay off your loan faster. Marcus doesn’t charge prepayment fees, so there is no penalty for making additional payments or paying off your loan ahead of schedule.

Apply for a Marcus Personal Loan

If you’re interested in a Marcus personal loan, you can apply for a loan online by following these steps: 

  • Review your options: Marcus has a pre-qualification form so you can find out if you’re eligible for a loan and review your options without impacting your credit score. 
  • Choose a loan: Pick the loan that best fits your needs based on its repayment term, monthly payment, and interest rate. 
  • Fill out an application: Marcus will ask you to fill out a full application. Enter your personal information and details about your income and employer, and consent to a hard credit inquiry. Note that a hard credit inquiry will likely cause a temporary dip in your credit score.
  • Review the loan terms: If approved, Marcus will send you a loan disclosure agreement. Review it carefully before signing to ensure you understand the terms and conditions of your loan. 
  • Verify your information: Marcus may ask for identification before issuing you the loan. You may be asked to submit a copy of your driver’s license or other photo ID. You’ll also have to submit your bank account and routing numbers or the information for your creditors. 

If you decide to have the loan funds disbursed directly to you, it can take up to three days for the money to show up in your account. 

Can You Refinance a Personal Loan with Marcus?

Although you can use a Marcus loan to pay off existing debt, it doesn’t offer personal loan refinancing at this time. 

Customer Service

Unlike some other lenders, Marcus doesn’t have a live chat feature—the only way to reach customer support is via phone. For questions about Marcus loans or the application process, call 844-627-2871. 

If you’re an existing Marcus personal loan customer with questions about your account, call 844-627-2872. 

Customer support is available Monday through Friday from 8:00 am.m until 10:00 p.m. EST, and on Saturdays and Sundays from 9:00 a.m. until 7:00 p.m. EST. 

Customer Satisfaction

Marcus wasn’t included in J.D. Power’s 2021 U.S. Consumer Lending Satisfaction Study, which measures overall customer satisfaction among top lenders. However, Marcus generally has a good reputation in the financial industry because it’s backed by Goldman Sachs, a leading financial services company. 

On Trustpilot, Marcus has an “average” rating of 3.6 out of 5 stars based on about 150 reviews. Reviewers highlight the ease of using the site and the speed of the application process. 

Account Management

Marcus allows customers to manage their loan accounts online. Through the online dashboard, you can make payments, download statements and loan documents, and sign up for automatic payments. 

How Marcus Compares to Other Personal Loan Companies

Marcus allows borrowers to get up to $40,000 without paying origination fees. However, its loan maximum is lower than you can find elsewhere, and it could take several days for your loan to be disbursed. 

Because of those drawbacks, we compared Marcus to Lightstream, another top personal loan lender. 

Marcus vs. Lightstream

Like Marcus, Lightstream typically works with borrowers with good or excellent credit scores. However, they differ from each other in several ways. While Marcus’ maximum loan amount is just $40,000, Lightstream allows customers to borrow up to $100,000. Lightstream also offers longer repayment terms of up to 84 months.

While Marcus can take several days to disburse your loan, Lightstream boasts rapid loan disbursements. With Lightstream, you could get your money as soon as the same day you apply. 

  Marcus Lightstream
Loan Amounts $3,500 to $40,000 $5,000 to $100,000
Loan Terms 3 to 6 years  2 to 7 years 
APR  6.99% to 19.99%  2.49% to 19.99% (includes 0.50% autopay discount) 
Origination Fee $0  $0 
Late Fee  $0  $0 
Unemployment Protection Available  No  No 

Read our full review of Lightstream personal loans.

Final Verdict

If you have good to excellent credit and can wait a few days to receive your money, Marcus could be a useful borrowing option. It offers competitive interest rates, autopay discounts, and direct creditor payments if you’re consolidating high-interest debt. Marcus personal loan reviews tend to be positive, with customers praising the company’s ease of use. 

However, Marcus has relatively low loan maximums, and it can take several days to process and disburse your loan. If you need money quickly for an emergency expense or need to borrow a larger amount, you may be better off working with another personal loan lender.

Methodology

Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of personal loan lenders. To rate providers, we collected over 25 data points across more than 50 lenders, including interest rates, fees, loan amounts, and repayment terms to ensure that our reviews help users make informed decisions for their borrowing needs.  

Our full personal loans methodology, including our data collection process and weighted data points, is available for review.

Article Sources

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  2. Marcus. "FAQ - What is Direct Pay?" Accessed Nov. 30, 2021. 

  3. Marcus. "FAQ - Do You Accept Joint Applications?" Accessed Nov. 30, 2021. 

  4. Goldman Sachs. "Annual Report 10-k," Page 151. Accessed Nov. 30, 2021. 

  5. Marcus. "Get Started." Accessed Nov. 30, 2021. 

  6. Marcus. "Personal Loans." Accessed Nov. 30, 2021. 

  7. Trustpilot. "Marcus by Goldman Sachs." Accessed Nov. 30, 2021. 

  8. Lightstream. "Lending Uncomplicated." Accessed Nov. 30, 2021.