Marcus Loans For Debt Consolidation Review 2021

Marcus is a FinTech startup founded and run by Goldman Sachs. Their debt consolidation loans are from $3,500-40,000. The offer loans with an APR starting at 6.99 and ranging to 19.99%.

Pros & Cons


  • No fees (no origination, late payment or prepayment fees)
  • Wide variety of repayment term options. For example you can change your payment dates up to three times over the life over the loan.
  • Discount for autopay.
  • Direct payment to creditors for debt consolidation loans.


  • Doesn’t allow co-signers joint or secured loan options.
  • Can’t be used for student loan refinancing
  • Requires very good credit scores.

Loan Amounts & Terms 

Loan Size.
Marcus offers personal loans ranging from $3,500 to $40,000, with the maximum loan amount varying depending on the loan purpose, income, and creditworthiness of the client.

Conditions of the loan.
A personal loan with a repayment period of 36 to 72 months is available to borrowers.
The most creditworthy applicants are given the longest repayment durations.Furthermore, rates for loans with longer repayment periods are often higher.

Loan Fees

Marcus offers fixed APRs ranging from 6.99 percent to 19.99 percent on personal loans.
Marcus, like many other leading lenders, offers borrowers a 0.25 percent rate discount for signing up for autopay, which is higher than what some other lenders offer.

Origination Fees
There are no origination costs with Marcus.

Fees for late payments.
Marcus does not impose any penalties for late payments.
Borrowers must, however, pay the interest that accrues during a missed payment period, resulting in a higher final payment.

Penalty costs for early payment.
If borrowers pay off their loans early, there are no prepayment penalties.

Benefits and Features

Marcus borrowers can benefit from the following features in addition to saving 0.25 percent APR by enrolling in autopay:

Payment on time is rewarded.
Borrowers who consistently make on-time payments are rewarded by Marcus.
Borrowers who pay their loan on time and in full for 12 months in a row are eligible to avoid a month of payments. Furthermore, there will be no interest charged, but the loan duration will be extended by one month.

Date of payment is flexible.
Borrowers can also adjust their due date up to three times during the life of their loan with Marcus. Borrowers who have past-due payments will not be able to use this function.

Where Marcus stands out from the crowd

Marcus does not impose any fees for personal loans, including origination, prepayment, or late fees. If you skip a payment, however, you must still pay the interest that has accrued during this time, and late or partial payments may appear on your credit record.

Direct payment to creditors:
If you acquire a debt consolidation loan, the lender will pay your creditors directly.This direct pay function is free and can be used to pay off credit cards, retail cards (up to a total of ten), and other personal loans.

A wide range of loan terms are available:
Marcus offers a wide range of repayment options. There are nine alternatives for durations ranging from three to six years: 36, 39, 42, 45, 48, 54, 60, 66, or 72 months. The amount you want to borrow and the monthly payment you want to make define your term.

Payment deferral option:
If you’ve paid 12 consecutive monthly payments in a row, you can defer one payment if you’ve made all of your previous payments in full and on time. The loan period is lengthened by one month if a payment is postponed. While your payment is being deferred, you will not be forced to pay interest.

Where Marcus Fails When It Comes to Personal Loans

No co-signed, joint, or secured loan options:
Marcus only offers unsecured personal loans, which means you can’t add a co-borrower or secure the loan with collateral to receive a better rate or get accepted for a greater amount.

Marcus encourages customers to contact them by phone, and loan specialists are available seven days a week during extended work hours.

Marcus, unlike several lenders, does not have a borrowers’ chat function (although there is one for savings account clients) or a customer service-focused social media presence.

Who Is Marcus the Most Appropriate For?

Marcus is a versatile option for consumers with good credit because of its fee-free structure, extensive loan terms, and healthy available loan amounts. Although Marcus doesn’t specify a minimum credit score, it’s a good idea to have a score of at least 660 to improve your chances of getting approved. With that in mind, Marcus loans are still available to a big number of people—and at rates that are competitive with those offered by other top lenders. It does not, however, permit co-signers or co-borrowers.

What are the Credit Score Requirements for a Marcus Personal Loan?

Marcus does not specify a minimum credit score, although a score of at least 660 is recommended to qualify for a Marcus personal loan. Higher-scoring applicants, on the other hand, will be eligible for reduced interest rates and better loan terms. Marcus also refuses to reveal its borrowers’ average credit score.

Demands for Income
Borrowers must be able to repay their debts, which Marcus mandates.Marcus, on the other hand, does not disclose the minimum income criteria or Marcus borrowers’ average income.

Client Feedback
Marcus has a TrustPilot rating of 3.3 stars, although this includes evaluations for all of Marcus’ products, including savings accounts. Customers love how swiftly the lender handles loan applications and transfers the funds. In the aftermath of Covid-19, however, there have been multiple complaints of borrowers who were only offered a high interest rate, had trouble reaching customer service, and were unable to acquire a loan deferral.

How to Get a Personal Loan from Marcus

Marcus has a three-part application process for personal loans:

1.Prequalify by submitting your personal data.
Prospective borrowers can use Marcus’ online loan eligibility tool to figure out how much they want to borrow and how much they want to pay each month before completing a formal application.Marcus will also want information on your home, income, and other aspects of your ability to repay.

This is only a mild credit inquiry, so your credit won’t be affected.Marcus will generate a list of loan possibilities based on the information you entered.Select your selected loan and proceed to the formal application stage.

2. Fill out the form completely.
Marcus will ask you to verify your identity and complete your personal loan application after you have selected your personal loan. Marcus will perform a hard credit check, verify your income, and may ask for extra documentation to back up your application.

3.Sign the agreement
Once you’ve been authorized, you’ll need to sign the loan agreement and other paperwork to get your money.

When Will I Get My Money?

The Marcus approval procedure can be completed in as little as 24 hours. After a borrower’s bank account has been validated, the loan funds normally take one to four days to reach their account after approval. However, depending on the financial institution and when the loan documents are processed, it may take longer or shorter to obtain loan funds.