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Should you use Marcus by Goldman Sachs?
| You may like Marcus by Goldman Sachs if you ... | You may not like Marcus by Goldman Sachs if you ... |
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Loan amounts and interest rates
Marcus' lowest APR of 6.99% is marginally higher than comparable lenders. With SoFi, you can get a rate as low as 4.78%, and LightStream has a minimum APR of 2.49%. You should note that your credit will have to be in good shape to qualify for the best rates with these lenders.
On the bright side, Marcus has roughly the same maximum APR as similar companies. Marcus' top rate is 19.99%, the same as Lightstream's maximum, and SoFi's is slightly lower at 19.38%. Shop around with different companies to see which will offer you the best terms.
How Marcus by Goldman Sachs works
Depending on when your application is approved, it will take between one to four business days to receive money in your account from Marcus. You won't pay any fees with the company.
A unique feature of Marcus is that the company offers an "on-time payment reward." You can skip a month of payments if you pay your loan on time and in full every month for one year, and you won't rack up interest during that period. Your loan will then be extended by one month. This pause in payments could help you put money toward other financial goals for a month, like your emergency fund, retirement, or higher-interest debt.
To contact customer support, call the lender Monday through Friday, 8:00 a.m. to 10 p.m. ET, or on weekends from 9:00 a.m. to 7:00 p.m. ET. If calling doesn't work for you, you can also mail correspondence to Marcus' Utah address.
Marcus also has a sleek mobile app on the Google Play and Apple stores that allows you to manage your loan on the go.
You'll need to meet the following requirements to apply for a personal loan with Marcus:
- Be at least 18 years old (19 years old in Alabama, 21 in Mississippi and Puerto Rico)
- Have a valid US bank account
- Have a valid social security or individual tax ID number
Pros and cons
How to get a Marcus by Goldman Sachs personal loan
The application is available online or over the phone and can be completed in several minutes. Marcus doesn't allow you to file a joint application. You'll need basic information for the initial application, including:
- Name
- Date of birth
- Contact information including your address, phone number, and email
- Total annual income
- Monthly housing payment
- Source of income
- Employment status
- Social Security number
- A bank statement
- Recent pay stubs
- Contacting your employer directly
After you apply and your loan is approved, you will probably get your money within one to four business days.
What credit score do you need?
You can find your credit report for free on annualcreditreport.com from any of the three major credit bureaus weekly through April 20, 2022. While this report won't give you your credit score, it will show you information about your credit and payment history, which lenders use to decide whether to give you a loan. Reviewing your credit report can help you know what you need to improve.
You can find your score at no cost on your credit card statement or online account. You can also pay for it from a credit reporting agency.
Your credit score won't be affected when you check your rates with Marcus, as the lender will only perform a soft credit inquiry. Keep in mind that before finalizing your loan, Marcus will perform a hard credit inquiry, which will likely impact your credit score. A hard inquiry offers a lender a complete view of your credit history, but it might negatively affect your credit score.
If you are interested in getting a personal loan from Marcus but need to improve your credit score to do so, here are some tips that may help you boost your score:
- Request and review a copy of your credit report. Look for any mistakes on your report that could be lowering your score. If so, ask the credit bureau about fixing the errors.
- Keep low credit card balances. Maintaining a credit utilization rate — the percentage of your total credit you're using — of 30% or less will prove to lenders that you can manage your credit responsibly.
- Create a system for paying bills on time. Your payment history makes up a substantial portion of your credit score, and lenders want to see consistent and reliable past payments. Make calendar reminders or automatic payments to make sure you don't forget any of your obligations.
Is Marcus by Goldman Sachs trustworthy?
However, a great BBB rating doesn't necessarily mean you'll have a positive relationship with Marcus, so ask friends and family about their experiences with the company and look over consumer reviews online.
Marcus does not have any recent controversies. You might feel comfortable choosing Marcus as your personal loan lender due to its sparkling history and top-tier BBB rating.
How Marcus by Goldman Sachs compares
| Image may be NSFW. Clik here to view.  | Image may be NSFW. Clik here to view.  | Image may be NSFW. Clik here to view.  |
Min. credit score Unspecified | Min. credit score 680 | Min. credit score 660 |
APR | APR | APR |
Origination fee? No | Origination fee? No | Origination fee? No |
Marcus by Goldman Sachs review vs. SoFi review
You'll need a higher minimum credit score to qualify for a personal loan with SoFi, and the company's APR range is similar to what Marcus requires. If you have top-notch credit, you might qualify for a marginally lower APR with SoFi than Marcus, but the difference is slim.
You won't pay any origination fees, prepayment penalties, or late payment fees with either lender, making both a great option to skip out on added costs to your loan.
Marcus' loan term range of three to six years is slightly smaller than SoFi's range of two to seven years. If you want to spread out your payments over more time, SoFi may be a better option for you.
Marcus by Goldman Sachs review vs. Lightstream
Lightstream's minimum APR of 2.49% is substantially lower than Marcus' minimum APR of 6.99%, though you'll only qualify for Lightstream's best rate with excellent credit. Additionally, you can take out up to $100,000 with Lightstream, while you can only take out a maximum of $40,000 with Marcus. Neither company charges origination fees or prepayment penalties.
While it would be easiest to compare offers to find out which rate is better for you, Lightstream does not offer preapproval and would require you to submit an application and agree to a hard credit pull to get your rates. Marcus offers preapproval online.
A distinguishing feature of Marcus' personal loans is the company's "on-time payment reward." If you pay your loan on time and in full every month for one year, you can skip a month of payments, and interest will not accrue during that period. Your loan will then be extended by one month. You may prefer Marcus if you'd want to take advantage of this perk.