Lending Club vs Marcus – Personal loans let you borrow money and repay in fixed monthly payments. Marcus and LendingClub are such services that offer personal loans.
In this article, we’ll be comparing both the service and help you decide on one which can be a perfect choice for you. So, without any late, let’s get started!
Lending Club vs Marcus: Overview
It is a financial service company that offers a wide variety of loans in all 50 US states and is one of the largest providers of unsecured personal loans in the United States.
It let you create unsecured personal between $1,000 and $40,000, and the standard loan period is three years. Based on the borrower’s debt-to-income ratio, credit history, credit score, and desired loan amount, LendingClub determines whether the borrower is creditworthy.
The standard loan period is three years, that you can make it to a five-year period at a high-interest rate and extra fees. And even though it has a lower maximum loan amount than other providers, its repayment terms and APRs are competitive.
Like Lending Club, Marcus by Goldman Sachs provides personal finance tools and trackers to help you borrow, save, and invest money.
It is a recent addition to the 150-year-old investment bank Goldman Sachs that offers no-fee personal loans, high-yield savings accounts, and penalty-free certificated deposits or CDs.
Its portfolios of ETHs are designed to keep costs low and optimized to help balance risk and returns. Furthermore, you can tailor your investing approach by selecting one of its investment strategies.
Lending Club vs Marcus: What do they Offer?
Lending Club: It offers an unsecured personal loan that you can use to fund things like wedding costs, debt consolidation & balance transfers, home improvements, moving or relocation costs, emergencies, and funerals, and more.
Marcus: Its offerings include –Savings accounts and CDs. Marcus’s savings account is the only traditional bank account offering no monthly maintenance fee, no minimum deposit, and a 1.25% APY.
And there are two types of CDs that you can access through Goldman Sachs’s Marcus – No-Penalty CD and High-Yield CD. Both types of CDs have a minimum deposit of $500.
The high-yield version has two more options, ranging from 6 months to 72 months. It also offers a 10-day CD rate guarantee. So, open a CD and deposit at least $500 within 10 days, you’ll automatically get the highest rate available during it.
Remember that if you need early access to the money in your High-Yield CD before its maturity date, you must pay an early withdrawal fee.
And the no-penalty CDs don’t have the same rates as the High-Yield CDs as you can withdraw the entire balance without giving up any interest.
|No penalty CD Rates|
|High-Yield CD Rates|
At the time of writing this article, CDs rates are these.
How to Qualify for Lending Club and Marcus Loans?
Loans are approved or rejected depending on various factors and all the lenders have exclusive requirements which generally include the applicant’s credit profile, ability to repay the loan, and more.
Although meeting these requirements won’t assure approval, they can help you decide whether a personal loan is fit for you or not.
Here are some requirements of Lending Club and Marcus, that you should meet to increase your approval chances.
- Income Requirements: Should provide proof of income during the application process
- Credit Score Requirements: Must have a FICO credit score of at least 600
- Co-signers and Co-applicants: You can apply with a co-borrower, which help less creditworthy applicants qualify for larger loan amount or a better APR
- Income Requirements: Have enough income to support the repayment of your loans. Nevertheless, Marcus didn’t provide the minimum income requirement or the average income
- Credit Score Requirements: It is suggested to have at least 660 to qualify
- Co-signers and Co-applicants: Accept only individual loan applications and co-applicants or co-singers are not allowed
Lending Club vs Marcus: How to Apply for a Personal Loan?
Once you meet the eligibility requirements, you can submit a formal application and wait for your loan approval. Here is how you can apply for a loan in Lending Club and Marcus.
Lending Club: Get started by providing your name, home address, income, and contact information. Then it performs a soft credit inquiry which will not impact your credit score. And before getting started, check the APRs.
Next, you can choose from various loan offers with several interest rates, monthly payments, loan amounts, APRs, and loan terms, which you can alter.
Once you’ve decided on a loan offer, give your social security number and employment information. As soon as you complete the application process and your information is verified, Lending Club will finalize a funding match.
You’ll either get the money directly to your bank account within five business days or the funds may be sent to a third party for debt consolidation resolutions.
Marcus: Before getting started with Marcus, you can use its online loan eligibility tool to choose how much you want to borrow and pay every month.
Then, after you provide your information, they will perform a soft credit inquiry, so that it won’t impact your credit. Once it is done, Marcus will provide a list of loan options by using the data points that you’ve entered.
Next, choose your preferred loan and complete the application process. But, before that, it’ll check your income data, perform a hard credit check, and might ask you for extra documentation.
Once it is all done, the approval process will take less than 24 hours and as soon as you are approved, you’ll get your funds directly to your account within 1 to 4 business days.
More Details on Personal Loans of Lending Club and Marcus by Goldman Sachs
|Loan Amount & Terms||Lending Club||Marcus|
|Loan amount||From $1,000 to $40,000 with an average of $15,800||From $3,500 to $40,000. But the maximum amount depends on your income, loan purpose and creditworthiness|
|Loan terms||36 to 60 months or 3 to 5 years with an average of 36 months||36 to 72 months|
|APR||6.34% to 35.89% with an average of 15.95%||Fixed APRs from 6.99% to 19.99%|
|Origination Fees||One-time origination fee between 3% and 6% with an average of 5%||No origination fees|
|Late Fees||5% of the late payment amount or $15||No late payment fees, but the interest accumulates during a missed-payment period|
|Prepayment Penalties||No prepayment penalties||No prepayment penalties|
|Flexible Payment Date||Ability to change the payment date either temporarily or permanently||You can change your due date up to three times|
Marcus by Goldman Sachs vs Lending Club: Which One is Better for You?
Both Lending Club and Marcus offer the same loan amount, and both can be better options for those who have fair credit and want to take more than one loan.
If you are willing to borrow a loan with a co-applicant or co-signer, then Lending Club can be a perfect choice for you because Marcus accepts only individual loan applications.
However, Marcus can be a good fit for you if you are looking for flexible CDs, want higher average savings and CD rates, or need a personal loan with a fixed rate and no fees.
Nonetheless, remember that the eligibility of both the apps are different and before deciding on anything, don’t forget to consider the fees and interest rates associated with each app.
So, do your research and choose one that meets your needs. We hope this article has helped you to get a detailed comparison on lending club vs Marcus loans.
Does a loan from Lending Club hurt your credit?
No. Even though it performs a soft credit inquiry, getting a loan with Lending Club won’t affect your credit score.
What credit score do you need for Marcus pay?
Although Marcus didn’t mention its minimum credit score requirement, it is suggested to have at least 660 to qualify.
Is a Marcus loan hard to get?
To qualify for a loan with Marcus, you’ll need to be seen as creditworthy by the lender and should have enough income to support the repayment of your loans