Marcus Personal Loans Review – Debt Consolidation Loans Up to $30,000
Marcus from Goldman Sachs offers fixed-interest debt consolidation loans to credit-worthy borrowers up to $30,000. The annual percentage rate depends on your credit score, with the most credit-worthy consumers receiving APRs starting at 5.99 percent. Most of Marcus’ debt consolidation loans have loan terms that range from 24 to 72 months with longer loan terms typically carrying higher interest rates. One of the big selling points is Marcus personal loans do not carry any additional fees.
Who is Eligible for a Personal Loan From Marcus?
For now, Goldman Sachs plans of offering personal loans to consumers with healthy or “prime” credit scores. On the FICO scale, a prime credit score is usually 660 or above, but every bank and personal loan company consider prime credit scores differently. Therefore, the higher your credit score, the better chance you have of qualifying for Marcus personal loans.
Another good rule of thumb is to try and keep your debt-to-income ratio below 40 percent. Known as your DTI, if your monthly debt is more than 40 percent of your income, Marcus may deny you for a personal loan. Keep in mind that if you have recently missed one of your monthly debt payments, Marcus will likely deny you regardless of your credit score.
What Can I do With a Debt Consolidation Loan From Marcus?
You can use your debt consolidation loan to pay off high-interest credit cards, financed purchases such as a car or furniture or pay off your medical bills. However, Marcus does not allow you to pay off student loan debt. Once you have consolidated your debt, Marcus will allow you to defer payments if you make timely payments for the first year of the loan.
What are Some of the Pros and Cons of a Marcus Loan?
Marcus does not charge an origination fee, which lowers the APR on your loan. Marcus does not charge late fees if you miss a payment, but the company will report the late payment to the credit bureaus, which will lower your credit score. If you miss too many payments, your loan could go into default status and drop your credit score by 100 points or more. Although Marcus does not charge any fees, do not let that stop you from shopping around for other debt consolidation loans, especially if you want to transfer the balances on your high-interest credit cards.
Learn how you can qualify for a low-interest debt consolidation loan with favorable terms by applying today.
What are Alternative Online Personal Loans?
There are some good alternative online personal loans that we have listed below. Another provider who offers peer-to-peer personal loans is Lending Club. They also require good to excellent credit. If you have credit scores that may be less than good, the other two alternative lenders will be a better choice.