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You may end up with one personal loan option.
Key Point
- Goldman Sachs is exiting the personal lending space and focusing on other initiatives.
- If you have a personal loan through banking giants, check the details. But don’t think that the balance is allowed.
- If you want a personal loan, there are still many other lenders you can apply for.
Personal loans are popular with consumers for a reason. Not only do they tend to offer competitive interest rates, at least compared to credit cards, but they are also very flexible.
When you take out a personal loan, you can use the funds for any purpose. Other loans, such as mortgages, restrict the purchase of certain assets, such as a home.
However, personal loans can be risky for lenders. This is because these loans are unsecured. It is not tied to a specific asset that can be used as collateral if the borrower defaults on payments. Also, in some cases, it may not be very profitable.
Discover: These Personal Loans Are Great For Debt Consolidation
Learn more: Prequalify for personal loans without affecting your credit score
Meanwhile, investment banking giant Goldman Sachs recently announced it would halt the practice of offering personal loans to consumers through the Marcus brand. It’s part of the banking giant’s decision to cut back on consumer products.
Given these uncertain economic conditions, the news isn’t all that surprising. But that doesn’t mean all lenders are looking to exit the personal loan space.
You can also take a personal loan elsewhere
Losing a big player in the personal loan space could hurt consumers. But if you want a personal loan, Goldman never mind the fact that Sachs is turning down the loan. There are still many lenders you can apply to.
In fact, each lender ultimately sets its own interest rate, so it’s a good idea to shop around for personal loans. You should also know that the higher your credit score, the more likely you are to get competitive interest rates on your personal loan. However, there are many personal loans for people with poor credit. If you need money, I recommend doing some research and seeing what your options are.
That said, before taking out a personal loan through a new lender, checking to see if an existing lender you have a relationship with offers them can be costly. They may offer loans. And if they’ve had your business for years, it could work in your favor. is better.
What to do if you have a personal loan through Marcus by Goldman Sachs
You may no longer be able to take out personal loans through Marcus by Goldman Sachs. But what if you already have one? Rest assured that your balance will not magically disappear when the bank’s personal loan business ends. You should still expect to have to pay off that loan. However, it has yet to be determined if the loan will be sold or transferred elsewhere.
The best thing you can do is wait to hear from the lender. They will tell you what to do in light of this change.
Best Personal Loan Recommendations
Our team of independent experts has carefully scrutinized the fine print to find hand-picked personal loans that offer competitive interest rates and low fees. let’s
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