Marcus loans by Goldman Sachs

The Good

• No early prepayment fees
• Easy application process
• No hard-credit pull to see rates

Fix Rate Loans Without Fees

Marcus personal loans are fixed rate loans that come with no fees. They don’t charge origination fees, prepayment fees or even late fees. When you apply for a loan, Marcus will perform a soft credit pull which does not have an effect on your credit score. Marcus will then offer a set of loan options for you, and you can choose among the options that best fit your financial situation.

There are many reviews from clients that the application process is quick and hassle-free from initial application to receiving their funds.

The Bad

• Erroneous pre-qualification
• No fee reduction for auto-payment
• Confusing payback policy

A number of clients claimed receiving a pre-qualification letter but were immediately declined after going through the proper application and sending their personal information and documents, which had an effect in their credit standing. It seems that Marcus is misleading people with pre-qualification letters and promises that it won’t hurt their credit standing but there is no explicit information for the client on when a soft pull becomes a hard pull on their credit score.

Marcus also is aggressive in trying to have borrowers setup auto-payments so that the loan will be paid automatically.  This makes sense, and it is a common practice.  However, many lenders offer a small discount – such as 0.25% – on the APR rate if you set up auto-payments.  Marcus does not.  In addition, some consumers have complained about the way in which loans are paid back.  Marcus has a two week window before the payment due date.  Borrowers can make a payment at any point before this window.  However, if a borrower makes a payment prior to this date (for example, on the 5^th of the month), that payment is applied to the principal.  While early pre-payment is a great option, it seems that customers have complained about inadvertently pre-paying the principal, rather than paying towards the interest.

The Summary

Goldman Sachs has been in the banking industry since 1869 with its headquarters located in Salt Lake City, Utah.  In 2016, they moved away from strictly offering services to super-wealthy clients and allowed for checking accounts with as little as $1.  The product, Marcus, was named for founder Marcus Goldman (see the man below), and has proven popular and now includes checking accounts, savings accounts, and personal loans.

Marcus Goldman

Marcus personal loans is a good option if you are confident of your credit standing, proficient online, and looking for a longer-term loan that will both provide cash as well as help build credit.  .