Do you need cash to buy inventory for your new side hustle? Are you low on cash with a house in desperate need of repairs? Are you trying to consolidate high-interest credit card debt onto a low-interest personal loan?
If so, you may be a good candidate for a personal loan from Marcus by Goldman Sachs. Marcus is Goldman Sachs’s newer brand for “every person” aimed at helping everyday people who don’t have million-dollar net worths.
Is the personal loan from Marcus by Goldman Sachs a good choice for you? We looked into the details of the loan to help you decide.
What Types of Personal Loans Does Marcus by Goldman Sachs Offer?
Marcus by Goldman Sachs offers unsecured personal loans. These are plain vanilla fixed-rate loans that can be repaid over three to six years.
Who Qualifies for a Personal Loan from Marcus by Goldman Sachs?
To qualify for a personal loan from Marcus by Goldman Sachs, you must be at least 18 years old (in most states), have a valid U.S. bank account, and either a Social Security number or a Tax Identification Number.
Marcus by Goldman Sachs does not advertise credit score minimums or income minimums. However, borrowers must demonstrate an “ability to repay” the loan based on both their income and their credit history. In general, this means you’ll need at least fair to good credit scores and a stable income from a W-2 job, or a higher self-employment income.
What Are the Rates and Terms on Loans from Marcus Personal Loans?
Personal loans from Marcus by Goldman Sachs have no origination fees, and are fixed-rate loans. You’ll pay back the loans in equal monthly installments over a period of three to six years. If you accidentally pay the loan late, you will not pay a late fee (although interest will continue to accrue on the loan). You also won’t face any prepayment penalties when you take out a personal loan from Marcus.
All personal loans — including home improvement loans — offered by Marcus are “unsecured” loans. That means that Marcus by Goldman Sachs cannot repossess your car, home, or another asset if you fail to repay the loan. However, if you don’t pay, Marcus can sue you for failure to repay. Assuming Marcus wins a judgment against you, it may be able to seize assets or garnish your wages.
You can borrow between $3,500 and $40,000 on a personal loan from Marcus by Goldman Sachs. Interest rates on the loans range from 6.99% to 24.99%. Since you won’t pay origination fees or other fees, these interest rates are also the APRs on the loans.
Want to know more about the rate you may qualify for? Marcus by Goldman Sachs allows potential loan borrowers to use a “soft credit pull” to check their rates. This type of credit pull will not show up on your credit report unless you decide to apply for the loan.
One cool feature of Marcus personal loans is the “on-time payment reward.” If you make 12 on-time payments, you can qualify for a 1-month loan deferral. This means you can skip your loan payment for one month.
During the deferral, interest will continue to accrue on the loan, and the extra payment will be added to the end of the loan. There is no limit to the number of deferrals you can earn (though you must make 12 consecutive on-time payments to earn a one-month reward), but if you ever pay late, you lose the option for the reward.
Is There Any Concerning Fine Print on Marcus Personal Loans?
Personal loans from Marcus are clear-cut and easy to understand. When Marcus by Goldman Sachs says, “no fees,” it means no fees. The only possible source of concerning fine print is that Marcus only accepts individual loan applications. You cannot “co-borrow” a personal loan with anyone, even if that person is your spouse.
Final Take on Marcus by Goldman Sachs Personal Loans
Marcus by Goldman Sachs has easy-to-understand, no-fee personal loans. However, the rates on the loans aren’t the best around. Borrowers with good or excellent credit should shop around to find the best possible rates on personal loans.
Additionally, before taking out any personal loan, it’s important to gain clarity on why you want to take the loan out. If you’re using the personal loan to pay for a wedding, a vacation, or optional upgrades to your house, you may be living well beyond your means. In general, it’s best to limit your consumer spending to money you’ve earned and saved.