Best Loans for Bad Credit in Michigan for 2024

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Reviewed byAlvin Yam, CFP
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Reviewed byAlvin Yam, CFP
Edited byRae Osborn
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Updated: April 26, 2024

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Happy Money is rated as the best personal loan lender for bad credit in Michigan, with a MoneyGeek score of 94 out of 100. It offers competitive interest rates, quality service and credibility and transparency. Meanwhile, Avant is identified as the runner-up, having a MoneyGeek score of 92 out of 100. Its flexible payment options, quick application and approval process and strong customer service distinguish it.

The lenders featured here are among the top choices, but it's also worthwhile to consider other institutions. CommunityChoice Credit Union, Michigan First Credit Union and Lake Michigan Credit Union are additional options for those seeking personalized local services in Michigan. MoneyGeek reviewed four personal loan lenders in Michigan that set and disclosed their minimum credit score requirements ranging from 580 to 640 to determine the best options for bad credit personal loans.


    Overall Best Bad Credit Loan Lender in Michigan

  • Happy Money

    • 94MoneyGeek Score
    • 11.72% to 17.99%APR Range
    • 640Minimum Credit Score
    • $5,000 to $40,000Loan Amount Range
    • 24 to 60 monthsRepayment Terms

    Happy Money is MoneyGeek's pick for the best personal loan lender for bad credit in Michigan with a MoneyGeek score of 94 out of 100. Happy Money is not a lender but a fintech company that works with lending partners that are federally insured by the National Credit Union Administration (NCUA) to originate personal loans. It offers personal loans for borrowers with a minimum credit score of 640, with loan amounts ranging from $5,000 to $40,000, and the possibility of receiving funds by the next day. Happy Money directly pays creditors, has flexible repayment terms, but applicants should note it only provides loans for debt consolidation and charges an origination fee.


    • Doesn't charge late, early repayment, bounced check, failed ACH or other fees
    • Offers to pay creditors directly
    • Conducts soft credit pulls


    • Only offers loans for debt consolidation
    • Charges an origination fee
    • No co-signers or co-borrowers
    Happy Money

    Runner-Up for Best Bad Credit Loan Lender in Michigan

  • Avant

    • 92MoneyGeek Score
    • 9.95% to 35.99%APR Range
    • 580Minimum Credit Score
    • $2,000 to $35,000Loan Amount Range
    • 12 to 60 monthsRepayment Terms

    Avant is the runner-up for the best bad credit loan lender in Michigan, with a MoneyGeek score of 92 out of 100. It collaborates with WebBank, a state-chartered member FDIC bank, to originate personal loans. This lender accommodates borrowers with a minimum credit score of 580, offers loan amounts ranging from $2,000 to $35,000, and promises funds as soon as the next day. Avant provides flexibility with repayment terms from 12 to 60 months and doesn’t penalize for prepayment. However, applicants should consider it charges an administration fee of up to 9.99% and imposes late fees.


    • Doesn't charge a prepayment penalty
    • Offers next-day funding
    • Has a mobile app


    • Charges an administration fee up to 9.99%
    • Has late fees and dishonored payment fees
    • Low borrowing limits at $35,000

Calculate Your Monthly Loan Payment in Michigan

In Michigan, the average new account balance for personal loans stands at $6,782, as detailed in TransUnion's Credit Industry Snapshot. When you take out a personal loan, the repayment typically involves making regular monthly payments until the loan amount and interest are paid in full. It’s beneficial to calculate your monthly loan payments, and this becomes even more pertinent if your credit standing isn't strong to ensure that you can manage the payments within your budget. To estimate your loan payments, you can utilize the personal loan calculator provided by MoneyGeek for an immediate estimate.


Best Bad Credit Loans by Credit Score in Michigan

In Michigan, the average credit score is 719, which is slightly higher than the national average of 715 according to Experian data.

Even with a substandard credit score, it is possible to secure a personal loan. Numerous lenders in Michigan may consider applications from those with less-than-ideal credit, albeit typically at increased interest rates and with more restrictive conditions. To identify personal loan lenders in Michigan that align with your credit score, review the table below.

What to Do if Your Loan Application Is Denied in Michigan

It's not uncommon to have your personal loan application denied in Michigan, but this doesn't halt your borrowing journey. Understanding the next steps can help you navigate this setback. Here are some measures to enhance your chances for approval on future applications.

Find out the reason for the denial

Lenders may reject your loan application for many reasons, such as a high debt-to-income ratio, a poor credit score, insufficient income or inaccuracies in your application. Review the reasons provided by the lender to understand what factors to focus on to prevent future denials.

Modify your loan terms

Consider discussing with your lender whether adjusting the loan amount or repayment terms could lead to an approval.

Find another lender

Different lenders have varied criteria for loan approval, so it's worth shopping around. Below are key factors to consider:

  • Eligibility requirements: Requirements like credit score, income level, debt-to-income ratio and employment history vary by lender.
  • Interest rates: Seek lenders with competitive interest rates, which can be particularly beneficial if your credit is less than perfect.
  • Additional fees: Be aware of varying fees such as origination, late and prepayment fees. Identifying these can save on costs.
  • Loan terms: Choose between different repayment terms, noting that short and long terms affect monthly payments and total interest paid.
  • Customer service and reputation: Research customer service feedback and lender reputation to ensure satisfactory assistance throughout the loan process.
Look for alternatives

If personal loans aren't the right fit, consider other options like secured loans, credit builder loans or borrowing from friends and family. Exploring these alternatives can provide solutions more suitable for a borrower with bad credit.

Improve your credit score

Enhancing your credit score is a process that can lead to loan approval in the future. Strategies include paying bills on time, keeping low credit card balances and managing existing debt. For more guidance on improving your credit score, commit to regular reviews and adjustments to your financial habits.

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Work on improving your credit score before applying for a personal loan to increase your chances of approval and getting better terms. Here are some long-term steps to consider:

  • Monitor your credit utilization ratio: Keep your credit utilization ratio low, as high credit utilization can negatively impact your credit score. Aim to use less than 30% of your available credit limit.
  • Don’t close old credit cards: The length of your credit history contributes to your credit score. Even if you no longer use a credit card, keep it open unless it has an annual fee.

Alvin Yam, CFP

FAQ About Bad Credit Loans in Michigan

When shopping around for personal loans in Michigan, it's common for borrowers, especially those with bad credit, to have concerns. To assist in this process, we compiled answers to some frequently asked questions to help you make well-informed decisions.

Who is the best personal loan lender for bad credit in Michigan?
Which lender in Michigan has the lowest APR rates for personal loans?
Which lender in Michigan has the lowest minimum credit score requirement for personal loans?
How long does it take to get a bad credit loan in Michigan?
Can I pay off my personal loan early in Michigan?

Experian. "What Is the Average Credit Score in the US?." Accessed April 11, 2024.

TransUnion. "Credit Industry Snapshot." Accessed April 11, 2024.

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The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.

Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about our editorial policies and expert editorial team.