If you’re reading this, then odds are, you might be considering a loan. Well, figuring out what kind of loan you really want is a great first step.
After all, you wouldn’t try to fly a plane without reading the manual beforehand—and also taking a few classes. And doing a simulator. And getting a license . . . Flying a plane must be hard.
But with Marcus, getting an installment loan doesn't have to be.
It’s called an installment loan because you pay back the loan principal and interest in monthly installments, thus “installment loan.”
The borrower repays the loan over a mutually agreed-upon amount of time with a specific set number of scheduled payments.
Simple as that.
Most lenders are looking at a few key things when you’re looking to qualify for an installment loan. One of the main factors will be your credit score. Your credit score will help determine not only if you qualify for a loan but also the rate, or APR, on that loan. In general, if you have good or excellent credit, you’ll be able to receive lower interest rates as opposed to someone with a lower credit score. If you are applying for a secured loan, the lender may also look at what you can pledge as collateral. Additionally, a lender will most likely review your income and living expenses to assess your ability to pay back your loan.
When you apply for an installment loan, there are two types of inquiries into your credit report, a hard inquiry and a soft inquiry. For Marcus, receiving loan options will not appear on your credit report and do not impact your credit score because this is a soft inquiry. After you’ve selected your loan option, a hard inquiry occurs to check your credit for the loan. This type of inquiry appears on your credit report and can affect your credit score.
Learn more about what affects your credit score.
Installment loans and credit cards each serve a different purpose and can be useful in their own way.
At the end of the day, though, an installment loan could be the best option to consolidate your debt—or for when you are in need of a large lump sum for an upcoming expense.
You could place personal expenses on your credit card, only to be hit with late fees if you forget to make a payment. Plus, the interest rate on your credit card could go up. This means your debt may just grow and grow, faster than you could say “higher interest rates.”
With Marcus, you could get an installment loan of up to $40,000—which may have a lower interest rate than a higher-interest credit card—to finance many of life’s needs.
Another thing to consider is, unlike your credit cards, Marcus loans have fixed interest rates. This could help you save money over higher-interest credit cards that, sometimes, increase their rates, forcing you to shell out more money each month.
Rather than worry about fluctuating payment amounts, you can select your loan amount and desired monthly payment.
No sign-up fees. No late fees—you just pay interest for the additional days. No prepayment fees when you pay off your loan early. No fees, period.
Your interest rate is fixed, so you won’t have to worry about changing rates over the life of the loan or fluctuating monthly payments.
The application process is easy. Many Marcus customers receive their funds within 5 days.
Marcus installment loans range from $3,500 to $40,000 with terms from 3 to 6 years.