Marcus Personal Loan Review: Unsecured Personal Loans for Strong Credit

Marcus Personal Loan Review: Unsecured Personal Loans for Strong Credit

A Marcus personal loan is a great choice for creditworthy borrowers who want to consolidate debt or make a large, one-time purchase or investment. You should consider a personal loan from Marcus if you have strong credit and at least several years of credit history.

Good for

  • Borrowers with good to excellent credit
  • Payment flexibility

Bad for

  • Joint applications
  • Using funds for educational purposes
  • Borrowers in Maryland

Editor's Rating

4.0/5.0

You should consider a personal loan from Marcus if you have strong credit and at least several years of credit history. Marcus offers unsecured personal loans up to $40,000 with rates starting at 6.99% and terms up to six years. One nice thing about Marcus is the lender does not charge fees, meaning there are no origination fees, prepayment penalties or late fees associated with a Marcus loan. If you're worried about taking out a loan through an online lender, Marcus is a branch of Goldman Sachs bank.

Marcus Personal Loan Review: Should You Apply?

A Marcus personal loan is a great choice for creditworthy borrowers who want to consolidate debt or make a large, one-time purchase or investment. Through Marcus, you can borrow up to $40,000 with rates between 6.99% and 24.99%. Terms range from three to six years.

Good for...Bad for...
  • Borrowers with good to excellent credit
  • Payment flexibility
  • Joint applications
  • Using funds for educational purposes
  • Borrowers in Maryland

To qualify for a Marcus loan, you’ll generally need established credit history and a good credit score. We recommend that borrowers have FICO credit scores of at least 660 with at least two years of credit history. Many Marcus borrowers have credit scores between 700 and 750. While Marcus does not require a minimum debt-to-income ratio, you’ll have a better chance of getting approved if yours is under 40%. It will also help to have a verifiable source of income, whether through personal employment or some other source.

One area where we think Marcus shines is its transparent fee structure. If you take out a personal loan through Marcus, there are no fees -- no origination fees, no prepayment penalties, no application fees, no check processing fees and no late fees. If you pay late, for instance, you will only pay the extra interest accrued on the loan during the period you are late. Another feature of Marcus we like is the lender’s payment deferral program. If you make 12 or more consecutive payments on your loan, you can defer one payment. Interest accrued during the deferral will be waived, and your loan terms will be extended one month (interest will be charged during this extra month). However, if you are late or miss a loan payment, you will not be eligible for this feature.

You cannot use a Marcus loan for educational expenses or to refinance existing student loans. Marcus is available in all states except Maryland.

Eligibility Criteria

To qualify for a Marcus personal loan, we recommend that borrowers meet the following criteria:

  • Must have Social Security or Individual Tax I.D. Number
  • At least 18 years old
  • Must have U.S. bank account

Marcus will evaluate your credit history, your application information, planned use of funds and your ability to repay when approving you for a loan offer.

Marcus Personal Loan Terms and Requirements

Marcus offers unsecured personal loans up to $40,000 for qualified borrowers. Rates range from 6.99% to 24.99%.

Loan Amount Range$3,500 - $40,000
APR Range6.99% - 24.99%
Fees
  • No origination fee
  • No late payment fee
  • No NSF/returned payment fee
  • No check processing fee
  • No prepayment penalty
Loan Terms3 to 6 years
Repayment OptionsMonthly
Direct Payment to CreditorsNo

Application Process

To see your loan offers, you’ll need to enter some basic personal information, such as your name, address, email address and birthdate. You’ll also need to enter the planned use of the funds, the loan amount, your total annual income and your monthly housing payment. Depending on this information, you may be presented with a variety of loan offers.

Application ProcessOnline
Time to Get Funds2+ days
Credit Check
  • Soft credit check to get rate
  • Hard credit check when you apply
Credit ReportingYes
Cosigners/Co-borrowers Allowed?No

If you select a loan offer, you’ll need to provide Marcus with more information to verify your identity and employment. This includes your Social Security Number or recent W-2s from your employer. At this point, Marcus will conduct a hard pull on your credit report, which can affect your score. The lender will contact you within one to two business days to let you know their loan decision.

How Does Marcus Compare to Other Lenders?

Marcus offers competitive rates and terms on unsecured personal loans. However, you may want to shop around. We took a look at some of Marcus’ competitors, and have summarized the major comparisons below.

Marcus vs. LendingClub

If you cannot qualify for a Marcus personal loan or if you want more than $40,000, consider a personal loan from LendingClub. Rates at LendingClub start at 6.16% (and go up to 35.89%) and you can borrow up to $40,000. The minimum credit score required to qualify at LendingClub is 600, so it can be a good choice for average credit borrowers who cannot meet the requirements at Marcus. LendingClub can also directly pay your creditors, which some borrowers may prefer if they are looking to consolidate debt. Finally, if you want to apply with a co-signer, LendingClub does allow joint applications in some situations.

Marcus vs. SoFi

SoFi is a great choice if you need to borrow more than $30,000. Through this lender, you can borrow up to $100,000 with rates between 5.8% and 16.25% and terms of three, five or seven years. One nice thing about SoFi is that the lender offers both fixed and variable rates. Most personal loans come with fixed interest rates, but in certain cases, a variable rate can be a better choice. Like Marcus, SoFi looks for creditworthy borrowers, so you’ll need established credit history and a good to excellent credit score to qualify. If you have a lower credit score, you may be better off considering other lenders besides SoFi or Marcus.

Marcus vs. Prosper

One area where Prosper wins out over Marcus is for medical financing. The lender offers medical financing up to $100,000 for qualified borrowers and works directly with medical offices in most states. If you want a loan for another purpose, you can borrow up to $40,000 through Prosper with rates between 6.95% and 36%. Prosper does require a minimum FICO score of 640 to apply, but it can be a good backup if you can’t quite meet the criteria recommended for a Marcus personal loan.

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