Marcus Personal Loans Review

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 the most recent financial documents of its parent company, Goldman Sachs, 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 four 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 sets Marcus apart from competitors. However, since Marcus no longer accepts online personal loan applications without an invitation, there might be new terms and conditions associated with the invite code.

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 for one month, and no interest will accrue during the payment deferral. 

Apply for a Marcus Personal Loan

As of January 1, 2023, Marcus is no longer accepting online applications for personal loans unless you have a personal invitation code. See our picks for the best personal loans for other options.

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. If you’re an existing Marcus personal loan customer with questions about your account, call 1-844-627-2872. 

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

Customer Satisfaction

Marcus was ranked #1 in J.D. Power’s 2022 U.S. Consumer Lending Satisfaction Study, which measures overall customer satisfaction among top lenders. Marcus generally has a good reputation in the financial industry because it’s backed by Goldman Sachs, a leading financial services company. 

However, on Trustpilot, Marcus has an “average” rating of 2.6 out of 5 stars based on more than 250 reviews. Reviewers complain about the service provided and the long waiting period for funds to be disbursed. 

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. LightStream allows customers to borrow up to $100,000 and offers longer repayment terms of up to 144 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. 

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. The relatively low loan maximums and the longer processing time are drawbacks for certain users.

However, Marcus is no longer accepting online applications for personal loans unless you have a personal invitation code. See our picks for the best personal loans for other options.

Frequently Asked Questions

How Hard Is It to Get a Loan From Marcus?

In order to get a personal loan from Marcus, you'll need to receive a personal invitation code. You'll have a better chance of getting approved if your credit score is 660 or higher.

How Long Does Marcus Take to Approve a Loan?

While Marcus can approve your loan within the same day, it could take up to seven to 10 business days to receive a notice in the mail explaining why the loan was declined. You can log in to your account at any moment to check the status of your application.

How Long Does It Take for a Marcus Personal Loan to Deposit?

After Marcus verifies your bank account, it should take about one to four business days for your personal loan to be deposited into your bank account.

What Credit Score Is Needed for a Marcus Loan?

While Marcus doesn’t specify a minimum credit score, most of its customers have good to excellent credit. According to the most recent financial documents of its parent company, Goldman Sachs, the majority of its loans were issued to borrowers with scores of 660 or higher.

How Does Marcus Goldman Sachs Verify Income?

Marcus uses an automated system to verify your income by reviewing documents such as recent pay stubs or bank statements.

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.