Personal Loans

LendingClub vs. Marcus by Goldman Sachs Personal Loan Comparison

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To help you get a handle on your personal loan options, we’re comparing these two companies in the lending space: Marcus by Goldman Sachs® and LendingClub.

While Marcus by Goldman Sachs is a traditional lender with no fees and a longer maximum loan term than its competitor, LendingClub is a peer-to-peer marketplace through which borrowers will find a low minimum borrowing amount of $1,000 and a slightly lower minimum APR.

Keep reading to see which of these lenders may be best for your money:

LendingClub vs. Marcus by Goldman Sachs®

Key differences in personal loan offerings

When it comes to how you can spend your funds, there are some differences between personal loans offered through LendingClub and by Marcus by Goldman Sachs.

  • Personal loans through LendingClub fall into four categories: Credit card consolidation, balance transfer loans, debt consolidation loans and home improvement loans. You may also use your loan for “major” expenses.
  • Marcus by Goldman Sachs loans can be used for: Debt consolidation, home improvement, weddings, moving and relocation, and vacations.

Here’s an in-depth look at how LendingClub and Marcus by Goldman Sachs compare.

Personal loan terms
LendingClub Marcus by Goldman Sachs
  • 8.05% to 35.89%
  •  6.99% to 19.99%
  • 36 or 60 months
  • 36 to 72 months
Borrowing limits
  • $1,000 to $40,000
  • $3,500 to $40,000
Origination fee
  • 3.00% - 6.00% of the loan amount
  • No origination fee
Other fees
  • Late fee if more than 15 days late: 5% of the unpaid amount or $15, whichever is greater
  • None
Credit requirement
  • Not specified
  • Not specified

Although neither Marcus by Goldman Sachs nor LendingClub offer minimum credit requirements, LendingClub specifies that a high credit score, low debt-to-income ratio and a long history of “successful” credit lines will make you more likely to secure favorable terms through its platform.

When it comes to Marcus by Goldman personal loans, the company says that applicants must have an income that demonstrates an ability to repay the loan in order to qualify. It’s also worth pointing out that, as of September 2018, the average FICO credit score for Marcus by Goldman Sachs borrowers was 700 or higher, though they did accept some with scores as low as 660.

Eligibility requirements

To be eligible for a personal loan, you’ll need great credit to qualify and avoid exorbitant rates. But beyond that, the requirements that you’ll have to meet vary from lender to lender, and company to company.

For example, LendingClub is not available to those who live in Iowa or U.S. territories. And while citizenship is generally something that is required to apply for a personal loan, Marcus by Goldman Sachs will accept either a Social Security number — which is a typical form of proof of citizenship — or an individual tax identification number (ITIN).

Here’s an overview of the eligibility requirements for both LendingClub and Marcus loans:

Eligibility requirements
LendingClub Marcus by Goldman Sachs
  • Be at least 18 years old
  • Be over 18 (or 19 if you live in Alabama; 21 if you live in Mississippi or Puerto Rico)
  • Have a verifiable bank account
  • Have a valid U.S. bank account
  • Be a U.S. citizen or permanent resident, or live in the states with a valid, long-term visa
  • Have either a Social Security number or individual tax ID number (ITIN)
  • Do not live in Iowa or U.S. territories

How peer-to-peer lending and traditional lending differ

When it comes to getting a Marcus by Goldman Sachs loan, the process is simple and, likely, familiar:

  1. You’d provide your personal information, like how much money you need and your preferred monthly payment amount as well as your name, email address, date of birth and annual income
  2. You’d check out potential loan offers, if any, and select the one that best fits your needs.
  3. You’d complete your application. This is where a hard credit check would come into play and, if approved, officially accept your loan offer.

LendingClub’s model, however, works differently. Rather than directly providing you an offer which they’d fund, applicants must attract investors through the peer-to-peer lending platform to fund a loan:

  1. You’d go through the prequalification process, which does not impact your credit score. If necessary, this is when you’d be able to add a co-borrower.
  2. You’d then get several loan offers, assuming you got through the prequalification process. You’d choose between those offers.
  3. You’d complete the application by providing information like your Social Security number and income and employment documents. Your credit score would be impacted and you’d also be asked to confirm your information before receiving final approval.
  4. You’d then have to wait for investors to fully fund your loan before you’d be able to access funds and begin the repayment process.

Funding can be completed in seven days and, as of 2018, most people received their funds within four days, according to LendingClub. But it may take longer, so that’s something to consider if you need fast access to cash.

LendingClub or Marcus by Goldman Sachs: Which is the better fit?

For lower rates: Marcus by Goldman Sachs personal loan may be the lower-cost option for those who qualify. For one thing, it does not charge any fees, including an origination or late fee (LendingClub does). And for those who might not be able to access the lowest rates, it’s important to consider that Marcus by Goldman Sachs’ rate cap is significantly lower than that of LendingClub’s.

For fast funding: Marcus by Goldman Sachs is also the safer option for those who need to get access to their funds quickly. Many Marcus customers receive funds in as little as 5 days. LendingClub funds can take more than seven days since you’d have to wait for investors to fund your loan, after approval.

For payment flexibility: Both LendingClub and Marcus by Goldman Sachs allow you to change your payment due date, which can help you more easily manage your finances. However, Marcus by Goldman Sachs may yet offer more flexibility.

The lender offers borrowers the opportunity to defer a payment after the first 12 on-time payments without paying additional interest or fees. That’s not something you’ll find with LendingClub’s loans.

For ease of qualifying: Those who may not be able to qualify on their own due to less-than-perfect credit may find LendingClub to be the better option. The peer-to-peer lending platform allows borrowers to use a joint application, whereas Marcus by Goldman Sachs does not.

Further, because you’ll be appealing to investors, a loan through LendingClub may rely less on your credit profile than a Marcus by Goldman Sachs loan.

Ultimately, the best lender for you will depend on your unique circumstances. So you’ll have to weigh your options carefully, and shop around, to ensure the one that you get provides the best rates and terms while meeting your needs.


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