In 2016, Goldman Sachs began offering Marcus personal loans under its consumer banking brand. Because Marcus operated at a large loss, Goldman Sachs stopped originating new loans late in 2022 and eventually sold its existing loans to other lenders.
Since Marcus personal loans are no longer available, we’ll look at some highly-rated alternatives for borrowers with both strong and fair credit.
Best alternatives to a Marcus personal loan
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Why Credible recommends SoFi
Same-day funding, large loan amounts, perks
SoFi offers loans up to $100,000, and borrowers can qualify for same-day funding if the loan is approved and the loan agreement is signed by 5:30 p.m. on a business day.
We also appreciate that SoFi offers to pay your creditors directly when consolidating debt. (These loans don't fund the same day.) Plus, you could qualify for two rate discounts:
- A 0.25% autopay discount for scheduling automatic payments when you accept the loan
- A 0.25% direct deposit discount for setting up direct deposit into a qualifying SoFi checking and savings account (or eligible cash management account)
Optional fees
We would prefer if Sofi were a true fee-free lender, but it offers the next best thing: optional fees. You can choose to pay an origination fee to reduce your loan’s APR. And there are no late fees.
FDIC-insured bank
SoFi also offers membership benefits for personal loan borrowers, including discounts on other financial products. And, unlike many other lenders, SoFi is an FDIC-insured bank. That makes it a great choice if you want to do your banking and borrowing with the same financial institution.
Pros and cons of SoFi
Pros
- Loans up to $100,000
- Loan terms up to 7 years
- Direct-to-creditor payments
- Same-day funding available
- FDIC-insured bank accounts available
- No late fees
Cons
- Strong credit required
- Autopay required for lowest rates
- $5,000 minimum loan requirement
- Higher APR than some competitors
- Potential origination fees
Why Credible recommends Upgrade
Flexible eligibility requirements and small loans
Upgrade offers personal loans to borrowers with credit scores as low as 580, making it an ideal option if you need a personal loan with fair credit. Though Upgrade's loans have fees and a higher maximum APR than some other lenders, you’ll likely have an easier time qualifying.
We also like Upgrade for small loans. Unlike SoFi, which has a $5,000 minimum, Upgrade allows you to borrow as little as $1,000.
Pros and cons of Upgrade
Pros
- Small loans ($1,000) available
- Loan terms up to 7 years
- Available to fair-credit borrowers
- Next-day funding available
Cons
- High potential APR
- High origination fees
- $50,000 max loan amount
- Autopay required for lowest rates
What are the different ways to borrow money?
Personal loans can be a convenient, low-rate way to borrow money — especially since you can use them for nearly anything. However, they’re not the only way. Here are some other options if you're looking for alternatives to high-interest payday loans:
- Payday alternative loan (PAL): Many federal credit unions offer small payday alternative loans to members. Interest rates and fees are capped at 28% APR to protect borrowers, and the maximum borrowing limit is $1,000 or $2,000, depending on the type of PAL your credit union offers. Also, depending on the type of PAL, you could have up to 6 or 12 months to repay the loan.
- Home equity loans and home equity lines of credit (HELOC): Homeowners can tap into their home equity to borrow money for almost any purpose. Interest rates for home equity loans and HELOCs are usually lower than personal loan rates because your home guarantees the loan, but you put your home at risk if you can't make payments.
- Credit cards: Though credit cards tend to have higher interest rates, qualifying for a credit card to cover emergency expenses could be faster and easier than getting a personal loan — requiring less paperwork and providing an immediate line of credit. Make sure you have a strategy to repay your debt quickly to limit financing costs.
- Buy now, pay later (BNPL): The era of buy now, pay later has arrived, with many merchants offering customers the option to make small payments over time for goods and services. Most short-term BNPL offers are interest-free, but longer-term options often charge interest. Watch out for steep penalties for missed payments. Because access and approval are relatively easy, these loans can lead to excessive debt.
- Cash advance app: Loan apps, like Dave and EarnIn, allow you to borrow from your next paycheck. Unfortunately, many cash advance apps charge relatively large fees for same-day money that add up quickly — especially if you use them repeatedly.
- Friends and family: Borrowing money from a loved one may be uncomfortable, but it's often the best way to get help without taking on high-interest debt. Ideally, formalize the arrangement with clearly written terms, an interest rate, and payment due dates. This will help avoid triggering potential gift taxes with the IRS as well.
