Marcus Personal Loan Alternatives

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

Why Credible recommends LightStream

LightStream is Credible’s top choice for personal loans, making it a top alternative to discontinued Marcus personal loans. However, you’ll need a 700 FICO score or higher (in the good credit range) to qualify.

Low interest rates, long repayment terms, large loan amounts

LightStream is one of just a few lenders offering loans up to $100,000, but LightStream's interest rates are often lower, and loan terms are much longer. Plus, LightStream is a fee-free lender — there are no origination fees and no late fees.

We found that LightStream loans had the lowest interest rates, on average, compared to all other Credible partner lenders for borrowers with good, very good, and excellent credit (based on 12 months of closed loans data). And you can borrow for up to 20 years with a LightStream home improvement loan, depending on the loan amount — most competitors limit you to a five- or seven-year term. This can make payments on LightStream's large loans more manageable. 

Wide range of loan purposes, fast funding

You can use LightStream loans for almost anything, from debt consolidation and weddings to moving expenses and medical bills. 

The lender also offers same-day funding if your loan is approved and you complete all paperwork by 2:30 p.m. ET. This feature earned LightStream the title of best same-day loan option from Credible. 

Just note that while LightStream loans can fund the same day, it’s not a guarantee. You should apply early in the day and carefully review your application to avoid errors that could slow the approval process.

Pros and cons of Lightstream

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, like LightStream, 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

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 the other lenders on this list, you’ll likely have an easier time qualifying.

We also like Upgrade for small loans. Unlike LightStream and SoFi, which both have a $5,000 minimum, Upgrade allows you to borrow as little as $1,000.

Pros and cons of Upgrade

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.