topic Re: Marcus in Personal Finance

Marcus

Anonymous — Fri, 18 Nov 2016 06:43:43 GMT

So, evidently there is a new player in the consolidation loan market. Marcus is a new retail bank started by Goldman Sachs to enter the non-filthy-rich market.

This is so new, I can't find any consumer reviews. The oldest news story is about a month old. Evidently the only way to apply is to get a coded invitation in the mail (such as I received today). Is there any information that anyone has seen/heard/experienced about Marcus?

Thanks,

Re: Marcus

Anonymous — Wed, 23 Nov 2016 05:19:29 GMT

Nope came across this looking for reviews...did you apply? I dont want to be the guinea either...

Re: Marcus

Anonymous — Wed, 23 Nov 2016 09:30:25 GMT

@Anonymous wrote:
So, evidently there is a new player in the consolidation loan market. Marcus is a new retail bank started by Goldman Sachs to enter the non-filthy-rich market.

This is so new, I can't find any consumer reviews. The oldest news story is about a month old. Evidently the only way to apply is to get a coded invitation in the mail (such as I received today). Is there any information that anyone has seen/heard/experienced about Marcus?

Thanks,

I found several links from different blogs discussing Marcus. Like you stated, most posts are from last month. I had never heard of them before you created this thread. Thanks for the heads up.

Re: Marcus

Xarquinn — Mon, 02 Jan 2017 19:01:07 GMT

I received an invite and applied. After plugging in my invitation code, I was asked for how much i would like to be considered for (a soft pull). Tried 30k (the max) and was pre-approved for 25k with interest rates varying from 11.9 to 16.9 depending of length. I retried asking for 12k the following day and was given similar rates. Settled on 48 months @ 12.9%.

The application then asked for employer info and did a hard pull when submitted. I was immediately asked for my most recent pay stub and given a 1 -2 day message. Will update with results.

Re: Marcus

SouthJamaica — Tue, 03 Jan 2017 01:54:05 GMT

@Xarquinn wrote:
@I received an invite and applied. After plugging in my invitation code, I was asked for how much i would like to be considered for (a soft pull). Tried 30k (the max) and was pre-approved for 25k with interest rates varying from 11.9 to 16.9 depending of length. I retried asking for 12k the following day and was given similar rates. Settled on 48 months @ 12.9%.

The application then asked for employer info and did a hard pull when submitted. I was immediately asked for my most recent pay stub and given a 1 -2 day message. Will update with results.

Wouldn't these loans be given the 'finance company" treatment by FICO, and therefore hurt our credit scores?

Re: Marcus

Revelate — Tue, 03 Jan 2017 07:28:24 GMT

@SouthJamaica wrote:
@Xarquinn wrote:
@I received an invite and applied. After plugging in my invitation code, I was asked for how much i would like to be considered for (a soft pull). Tried 30k (the max) and was pre-approved for 25k with interest rates varying from 11.9 to 16.9 depending of length. I retried asking for 12k the following day and was given similar rates. Settled on 48 months @ 12.9%.

The application then asked for employer info and did a hard pull when submitted. I was immediately asked for my most recent pay stub and given a 1 -2 day message. Will update with results.
Wouldn't these loans be given the 'finance company" treatment by FICO, and therefore hurt our credit scores?

Not sure how FICO determines what's a CFA and what isn't. It's probably by lender name as I can't see anything specific in my tradeline details on Equifax which is complaining about a CFA on some models (granted it's way down the list).

Most others with it have had to do process of elimination, nothing saying "This is a CFA!" unfortunately. Wasn't my best move back in 2011 that tacked one onto my account but it's gone in 2021 I guess.

Re: Marcus

SouthJamaica — Tue, 03 Jan 2017 14:02:38 GMT

@Revelate wrote:
@SouthJamaica wrote:
@Xarquinn wrote:
@I received an invite and applied. After plugging in my invitation code, I was asked for how much i would like to be considered for (a soft pull). Tried 30k (the max) and was pre-approved for 25k with interest rates varying from 11.9 to 16.9 depending of length. I retried asking for 12k the following day and was given similar rates. Settled on 48 months @ 12.9%.

The application then asked for employer info and did a hard pull when submitted. I was immediately asked for my most recent pay stub and given a 1 -2 day message. Will update with results.
Wouldn't these loans be given the 'finance company" treatment by FICO, and therefore hurt our credit scores?
Not sure how FICO determines what's a CFA and what isn't. It's probably by lender name as I can't see anything specific in my tradeline details on Equifax which is complaining about a CFA on some models (granted it's way down the list).

Most others with it have had to do process of elimination, nothing saying "This is a CFA!" unfortunately. Wasn't my best move back in 2011 that tacked one onto my account but it's gone in 2021 I guess.

So I'll take that as a 'yes'; loans from entities other than banks & credit unions are viewed slightly negatively by FICO algorithms.

Re: Marcus

Revelate — Tue, 03 Jan 2017 14:24:56 GMT

@SouthJamaica wrote:
@Revelate wrote:
@SouthJamaica wrote:
@Xarquinn wrote:
@I received an invite and applied. After plugging in my invitation code, I was asked for how much i would like to be considered for (a soft pull). Tried 30k (the max) and was pre-approved for 25k with interest rates varying from 11.9 to 16.9 depending of length. I retried asking for 12k the following day and was given similar rates. Settled on 48 months @ 12.9%.

The application then asked for employer info and did a hard pull when submitted. I was immediately asked for my most recent pay stub and given a 1 -2 day message. Will update with results.
Wouldn't these loans be given the 'finance company" treatment by FICO, and therefore hurt our credit scores?
Not sure how FICO determines what's a CFA and what isn't. It's probably by lender name as I can't see anything specific in my tradeline details on Equifax which is complaining about a CFA on some models (granted it's way down the list).

Most others with it have had to do process of elimination, nothing saying "This is a CFA!" unfortunately. Wasn't my best move back in 2011 that tacked one onto my account but it's gone in 2021 I guess.
So I'll take that as a 'yes'; loans from entities other than banks & credit unions are viewed slightly negatively by FICO algorithms.

To be safe, probably. I do know if I ever need a loan again I'll be talking to a CU presumably regardless of my credit score... should've done that back then too but I didn't know much beyond realizing I needed to get some tradelines on my report. Live and learn like all things .

Ultimately though have to do what's financially smart, if that mandates getting a loan from Marcus or wherever, and if that winds up being a CFA tacked onto your report /shrug.

Re: Marcus

Anonymous — Sun, 22 Jan 2017 19:40:29 GMT

I got one of these invitations as well, "Pre-Approved for up to 30k" at interest rates as low as 5.99%

The huge up side, no fees, of any kind. They state right on their mailer "No fees. Ever".

On their web page, they state clearly "We make money from interest, not fees." Kinda refreshingly honest!

Having asked for quotes from places like Sofi, Bestegg and peer lending groups, and getting quoted credit card interest rates between 11.9 to 17.9 for loans of 5k to 30k, I didn't have much faith this offer would be any better, but needing to consolidate some credit card debt I requested a quote.

First they ask you what size loan you want, and how much per month you are looking to pay. I picked the full 30k @1000 a month payment. (planning to pay it off in 3 years or less)

After a soft pull, it came back with an offer of 30k for 48 months @730 a month payment...and...ready for this?.......6.99%

Thats only about 2.5% above what HELOC loans are going for right now, and I don't own a house.

I applied, uploaded my pay slip, and a few hours later got a call from a reviewer asking to clarify information on the pay slip. After a few questions, she cheerfully said she was all done, and 15 min later I got an approval email. I got back onto the site, uploaded a scan of a voided check where I want to money sent, and now wait for Monday to e-sign the final paperwork.

I will let you all know how the rest of the experience goes.

Re: Marcus

fullstackdev — Thu, 26 Jan 2017 03:18:06 GMT

@Anonymous wrote:
I got one of these invitations as well, "Pre-Approved for up to 30k" at interest rates as low as 5.99%

The huge up side, no fees, of any kind. They state right on their mailer "No fees. Ever".

On their web page, they state clearly "We make money from interest, not fees." Kinda refreshingly honest!

Having asked for quotes from places like Sofi, Bestegg and peer lending groups, and getting quoted credit card interest rates between 11.9 to 17.9 for loans of 5k to 30k, I didn't have much faith this offer would be any better, but needing to consolidate some credit card debt I requested a quote.

@Anonymous they ask you what size loan you want, and how much per month you are looking to pay. I picked the full 30k @1000 a month payment. (planning to pay it off in 3 years or less)

@After a soft pull, it came back with an offer of 30k for 48 months @730 a month payment...and...ready for this?.......6.99%
Thats only about 2.5% above what HELOC loans are going for right now, and I don't own a house.

I applied, uploaded my pay slip, and a few hours later got a call from a reviewer asking to clarify information on the pay slip. After a few questions, she cheerfully said she was all done, and 15 min later I got an approval email. I got back onto the site, uploaded a scan of a voided check where I want to money sent, and now wait for Monday to e-sign the final paperwork.

I will let you all know how the rest of the experience goes.

That's a pretty nice deal! Congrats on the approval. Which CRA did they pull?

Re: Marcus

Xarquinn — Thu, 26 Jan 2017 17:23:19 GMT

Congratulations - awesome interest rate.

I went through the same process but eventhough preapproved through their website the final decsision was a rejection for DTI being too high. Its about 50% but I was planning on using the Marcus loan to re-finance two prosper loans which would have lowered it.

Re: Marcus

Anonymous — Fri, 27 Jan 2017 11:19:24 GMT

Ok, so the rest of the story....

The loan process closed today, with disbursement to occur in 1-4 business days.

You can e-sign your paperwork, and set your "payment due" day, including setting up auto bill.

They pulled Transunion (my worst score)

They use FICO Score 9 (which translated to a 701 out of 850

At Credit Pull... My Transunion FICO 8 was 727

My RBTC ratio was 22%

My DTI is about a 1 to 3 ratio

My AAOA on Transunion is 5.5 years

I had 2 inquirys on TU, both over a year old

I have a very diverse credit portfolio with absolutely no bads and quite a few high credit limit cards.

Let me know if there is anything else that may seem helpful.

Best of luck!

Re: Marcus

SouthJamaica — Fri, 27 Jan 2017 17:59:40 GMT

@Anonymous wrote:
Ok, so the rest of the story....

The loan process closed today, with disbursement to occur in 1-4 business days.
You can e-sign your paperwork, and set your "payment due" day, including setting up auto bill.

They pulled Transunion (my worst score)
They use FICO Score 9 (which translated to a 701 out of 850

At Credit Pull... My Transunion FICO 8 was 727
My RBTC ratio was 22%
My DTI is about a 1 to 3 ratio
My AAOA on Transunion is 5.5 years
I had 2 inquirys on TU, both over a year old
I have a very diverse credit portfolio with absolutely no bads and quite a few high credit limit cards.

Let me know if there is anything else that may seem helpful.

Best of luck!

Wow, a lender actually using FICO 9. Interesting. My TU FICO 9 is 828.

Re: Marcus

Anonymous — Fri, 27 Jan 2017 21:52:14 GMT

Sounds like you might qualify for 5.99!! ;-)

The ironic thing here is all my scores should be going up by 40-50 points once I pay off all my credit card debt.

Transunion will be the only one under 800, and only because they are hitting me hard for 3 closed "consumer finance" accounts, long paid off timeshare loans!

Re: Marcus

SouthJamaica — Fri, 27 Jan 2017 23:28:14 GMT

@Anonymous wrote:
Sounds like you might qualify for 5.99!! ;-)

The ironic thing here is all my scores should be going up by 40-50 points once I pay off all my credit card debt.

Transunion will be the only one under 800, and only because they are hitting me hard for 3 closed "consumer finance" accounts, long paid off timeshare loans!

Aren't you about to be adding a new "consumer finance" account, with 100% utilization?

Re: Marcus

Anonymous — Mon, 30 Jan 2017 17:20:12 GMT

@SouthJamaica wrote:
@Anonymous wrote:

The ironic thing here is all my scores should be going up by 40-50 points once I pay off all my credit card debt.

Transunion will be the only one under 800, and only because they are hitting me hard for 3 closed "consumer finance" accounts, long paid off timeshare loans!
Aren't you about to be adding a new "consumer finance" account, with 100% utilization?

Now thats an interesting question whos answer is compleatly unclear at this point. I did a lot of looking around before applying, and from everything I have read, "consumer finance" accounts seem to be considered "sub-prime" lender loans and the like. There dosnt seem to be any definitive criteria, its all very subjective to the CB thats tagging it.

As an example, TU is the only CB that considers my 3 timeshare loans to be consumer finance accounts, the other two dont penalize me for them.

This Marcus loan is backed by Goldman Sachs Bank, which is one of the reasons I went with them. Goldman Sachs is hardly considered a sub-prime lender or bank, and the terms are hardly sub prime either.

So, we will see when the new account hits my credit reports what happens. It may be another case of TU following its own drummer.

Re: Marcus

SouthJamaica — Sun, 29 Jan 2017 02:07:57 GMT

@Anonymous wrote:
@SouthJamaica wrote:
@Anonymous wrote:

The ironic thing here is all my scores should be going up by 40-50 points once I pay off all my credit card debt.

Transunion will be the only one under 800, and only because they are hitting me hard for 3 closed "consumer finance" accounts, long paid off timeshare loans!
Aren't you about to be adding a new "consumer finance" account, with 100% utilization?
Now thats an interesting questions whos answer is compleatly unclear at this point. I did a lot of looking around before applying, and from everything I have read, "consumer finance" accounts seem to be considered "sub-prime" lender loans and the like. There dosnt seem to be any definitive criteria, its all very subjective to the CU thats tagging it.

As an example, TU is the only CU that considers my 3 timeshare loans to be consumer finance accounts, the other two dont penalize me for them.

This Marcus loan is backed by Goldman Sachs Bank, which is one of the reasons I went them them. Goldman Sachs is hardly considered a sub-prime lender or bank, and the terms are hardly sub prime either.

So, we will see when the new account hits my credit reports what happens. It may be another case of TU following its own drummer.

Well I hope for the best for you.

Re: Marcus

Anonymous — Mon, 30 Jan 2017 16:49:00 GMT

Disbursment occured today and the account payoffs have begun. So from application to payout, it took 10 days, probably because I applied on a Saturday.

I will let you all know how this effects my credit as accounts report.

The inquery did hit TU a few days ago, but had no effect at all, probably since it was the only inquery younger than 13 months.

Re: Marcus

dragonfly66 — Wed, 01 Feb 2017 23:06:13 GMT

@SouthJamaica wrote:
@Anonymous wrote:
@SouthJamaica wrote:
@Anonymous wrote:

The ironic thing here is all my scores should be going up by 40-50 points once I pay off all my credit card debt.

Transunion will be the only one under 800, and only because they are hitting me hard for 3 closed "consumer finance" accounts, long paid off timeshare loans!
Aren't you about to be adding a new "consumer finance" account, with 100% utilization?
Now thats an interesting questions whos answer is compleatly unclear at this point. I did a lot of looking around before applying, and from everything I have read, "consumer finance" accounts seem to be considered "sub-prime" lender loans and the like. There dosnt seem to be any definitive criteria, its all very subjective to the CU thats tagging it.

As an example, TU is the only CU that considers my 3 timeshare loans to be consumer finance accounts, the other two dont penalize me for them.

This Marcus loan is backed by Goldman Sachs Bank, which is one of the reasons I went them them. Goldman Sachs is hardly considered a sub-prime lender or bank, and the terms are hardly sub prime either.

So, we will see when the new account hits my credit reports what happens. It may be another case of TU following its own drummer.
Well I hope for the best for you.

I'm not so sure that's the case for these kinds of loans. I just got a $15K loan through Lending Club and it just started reporting with EX and I got a 16 point increase. I also got an increase with EQ of 36 points, but it was mixed with one of my last two baddies falling off plus the decreased utilization on some of my credit cards. I would imagine the baddie that fell off was probably the bulk of that score increase, but I believe the loan was probably second in terms of the increase in points. I say that because I noticed that just the decrease in utilization (due to me paying down/off my credit cards) seemed to get me only a handful of points on TU and EX (less than 10 points each), even though some of those cards had 70%-80% utilization previously. Just thought I'd share what my experience has been since it just happened. I'd be curious to know how the CRA's react when your loan posts.

Re: Marcus

Anonymous — Wed, 01 Feb 2017 23:27:36 GMT

@dragonfly66 wrote:
@SouthJamaica wrote:
@Anonymous wrote:
@SouthJamaica wrote:
@Anonymous wrote:

The ironic thing here is all my scores should be going up by 40-50 points once I pay off all my credit card debt.

Transunion will be the only one under 800, and only because they are hitting me hard for 3 closed "consumer finance" accounts, long paid off timeshare loans!
Aren't you about to be adding a new "consumer finance" account, with 100% utilization?
Now thats an interesting questions whos answer is compleatly unclear at this point. I did a lot of looking around before applying, and from everything I have read, "consumer finance" accounts seem to be considered "sub-prime" lender loans and the like. There dosnt seem to be any definitive criteria, its all very subjective to the CU thats tagging it.

As an example, TU is the only CU that considers my 3 timeshare loans to be consumer finance accounts, the other two dont penalize me for them.

This Marcus loan is backed by Goldman Sachs Bank, which is one of the reasons I went them them. Goldman Sachs is hardly considered a sub-prime lender or bank, and the terms are hardly sub prime either.

So, we will see when the new account hits my credit reports what happens. It may be another case of TU following its own drummer.
Well I hope for the best for you.
I'm not so sure that's the case for these kinds of loans. I just got a $15K loan through Lending Club and it just started reporting with EX and I got a 16 point increase. I also got an increase with EQ of 36 points, but it was mixed with one of my last two baddies falling off plus the decreased utilization on some of my credit cards. I would imagine the baddie that fell off was probably the bulk of that score increase, but I believe the loan was probably second in terms of the increase in points. I say that because I noticed that just the decrease in utilization (due to me paying down/off my credit cards) seemed to get me only a handful of points on TU and EX (less than 10 points each), even though some of those cards had 70%-80% utilization previously. Just thought I'd share what my experience has been since it just happened. I'd be curious to know how the CRA's react when your loan posts.

I will post as changes hit. I already got a 3 point increase from TU for some unknown reason as nothing has changed since the 21st of Jan.

Now, Lending Club is interesting because I have been reading that most peer lending loans ARE typically considered "Consumer Finance" accounts. Are any of the CRAs telling you that you are being penalized for having one?