Goldman Sachs is well-known the world over for its 148-year history of investment banking and financial services. The billion-dollar company provides several services, mainly revolving around financial investments and securities, but its most recent endeavor tackles the consumer lending sector. The new service has reached a fantastic milestone recently, and will achieve even greater success very soon. Could it be an alternative to traditional credit cards?
Marcus by Goldman Sachs is the financial firm’s new consumer lending service. Marcus, which was started in late 2016, offers loans of up to $30,000 to well-qualified applicants. What makes the service unique from other lending programs, such as credit cards, is its fixed-rate loans. According to a survey conducted by the development team behind Marcus, consumers are stressed out by fluctuating interest rates associated with credit cards. With Marcus, consumers can take out loans with interest rates as low as 6.99% APR, and that rate will never change throughout the duration of the loan.
Another outstanding feature of Marcus is the lack of fees. In that same survey, the Marcus team realized that consumers hate fees in general. In order to make the Macus program more appealing, the team has removed any and all fees. In fact, it is a major part of the service’s marketing strategy. There is also no prepayment fee, meaning you can pay off your loan earlier than the initial term.
The Marcus website features a loan calculator that shows you just how much you can save by using Marcus as opposed to a standard credit card.
And the service is picking up momentum. According to an article from Business Insider, Goldman Sachs’ CEO, Lloyd Blankfein, confirmed that the service has, “just crossed over a billion dollars.” He also noted the service’s bright future, stating, “by the end of this year, we’ll be crossed two billion dollars.” Marcus, if managed properly, will continue to see exponential growth and could severely disrupt the credit card industry.
If you are considering getting a credit card or have a pre-existing credit card debt that you want to pay off, you may want to consider applying for a loan through Marcus. It may just save you years of headaches and debt. I should note that, neither Alexi Harding nor the Opes Group advocate taking out a loan through Marcus, we simply like to stay abreast on financial markets and believe this to be a new development worth sharing.