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Best Debt Consolidation Loans in Michigan of 2024

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Updated: December 28, 2023

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WHAT WE’RE GEEKING OUT ON

Best Debt Consolidation Loan Lenders in Michigan

MoneyGeek examined more than 30 distinct data sets to identify the best debt consolidation loan companies in Michigan. This analysis looked into APR ranges, BBB ratings, loan amounts, minimum credit scores, various fees and penalties, payback terms, disbursement periods and other data.

Which lender is best for you for a debt consolidation loan may depend on your specific financial goals. Overall, MoneyGeek ranks Upgrade and LightStream as the best and second-best debt consolidation loan providers in the Michigan. Additionally, SoFi might be able to provide you with better terms if your credit score is excellent and if your credit is bad, Upstart is a great alternative.

Best Overall Debt Consolidation Loan in Michigan: Upgrade


  • Upgrade
    • 5.94% to 35.47%APR Range
    • 560Minimum Credit Score
    • $1,000 to $50,000Loan Amount Range
    • 36 to 60 monthsRepayment Terms
    • Same DayTime to Receive Funds

    MoneyGeek's top pick for the best debt consolidation loan lender in Michigan is Upgrade. Since its debut in April 2017, Upgrade has provided more than $15 billion in loans and credit cards. This lender has great customer reviews and an A+ rating from the Better Business Bureau (BBB).

    If you apply for a loan to pay off your debts, Upgrade will pay your creditors immediately. It may also provide cash as soon as the same day of approval, making it ideal for last-minute payments to fulfill debt repayment deadlines and prevent higher interest. Because the available funds vary from $1,000 to $50,000, it's a great choice for anyone looking for both small and mid-sized loans to consolidate debts. Upgrade also offers a 1% discount if you set up automated payments.

    Pros

    • Direct payment to creditors for debt consolidation
    • Can disburse funds within the same day
    • No prepayment fees
    • Fair minimum credit score
    • Soft credit inquiry

    Cons

    • Origination fees
    • $50,000 maximum loan amount
    • APR range: 5.94%–35.47%
    • Minimum/maximum loan amount: $1,000–$50,000
    • Minimum credit requirements: 560
    • Repayment terms: 36–60 months
    • Time to receive funds: Same day
    Upgrade

Runner-Up for Best Debt Consolidation Loan in Michigan: LightStream


  • LightStream
    • 4.49% to 20.49%APR Range
    • 660Minimum Credit Score
    • $5,000 to $100,000Loan Amount Range
    • 24 to 84 monthsRepayment Terms
    • Same DayTime to Receive Funds

    LightStream, a part of SunTrust Bank, launched its consumer loans online service in 2013. It provides personal loans around the country. It's perfect for people who need a sizable loan rapidly to consolidate debt.

    Before choosing LightStream as the second-best overall debt consolidation lender, MoneyGeek carefully considered a range of various Michigan-based providers. One of the reasons LightStream was a top pick is because it doesn't impose typical costs like origination, late and prepayment penalties. LightStream also doesn’t require proof of employment or gross income. Additionally, if your loan application is accepted on a banking business day, you could get your cash that very same day. Among the lenders on our list, it also boasts one of the lowest interest rates.

    With that said, LightStream is not for every borrower. Those with a credit score below 660 are not eligible to apply, for instance. Also, co-signers are not allowed.

    Pros

    • Maximum loan amount of $100,000
    • Low APR
    • No origination fee
    • No prepayment penalty fees
    • Joint loans available

    Cons

    • Doesn’t directly pay creditors for debt consolidation
    • No co-signers
    • APR range: 4.49%–20.49%
    • Minimum/maximum loan amount: $5,000–$100,000
    • Minimum credit requirements: 660
    • Repayment terms: 24–84 months
    • Time to receive funds: Same Day
    LightStream

Best Debt Consolidation Loan for Bad Credit in Michigan: Upstart


  • Upstart
    • 3.22% to 35.99%APR Range
    • 300Minimum Credit Score
    • $1,000 to $50,000Loan Amount Range
    • 36 to 60 monthsRepayment Terms
    • Next DayTime to Receive Funds

    For people in Michigan with bad credit but need debt consolidation loan, Upstart is a good option. In fact, with a 300 credit score requirement, it might be the only option for borrowers whose credit is at the lowest. Still, its ceiling APR is 35.99% which is very likely to be imposed on those with the lowest credit. Another favorable Upstart feature for people with weak credit scores is that it performs a soft credit pull for checking your rates, which doesn’t negatively impact your credit score further.

    It allows borrowing of up to $50,000 which is a modest amount for debt consolidation. It also charges a late penalty fee but it provides a 15-day grace period which, while appreciated, should still be avoided.

    Pros

    • Minimum credit score of 300
    • No prepayment penalty
    • Performs soft credit check
    • Low floor APR

    Cons

    • High maximum APR
    • $50,000 loan limit
    • APR range: 5.22%–35.99%
    • Minimum/maximum loan amount: $1,000–$50,000
    • Minimum credit requirements: 300
    • Repayment terms: 36–60 months
    • Time to receive funds: Next day
    Upstart

Best Debt Consolidation Loan for Good Credit in Michigan: SoFi


  • SoFi
    • 5.74% to 20.28%APR Range
    • 680Minimum Credit Score
    • $5,000 to $100,000Loan Amount Range
    • 12 to 60 monthsRepayment Terms
    • Two DaysTime to Receive Funds

    Borrowers with good credit can fully enjoy the range of financial services provided by SoFi, including debt consolidation loans. The credit score requirement for borrowers is 680 with a maximum loan amount is $100,000; higher credit scores result in better deals. Soft credit checks are also conducted to avoid harming your credit score before approval. There are no prepayment, origination or late fees which helps lower your monthly bills. Additionally, when you use autopayments you can further save 0.25%.

    However, SoFi requires not just a high credit score but also a minimum gross income of $50,000, which cuts off many borrowers during the application process. Moreover, it keeps its rate-setting process a secret and does not make it easy to find such prices on its website.

    Pros

    • Up to $100,000 loan amount
    • No origination fee
    • No late fees
    • Offers loss of employment protection

    Cons

    • $50,000 Gross income requirement
    • Requires good credit score
    • APR range: 5.74%–20.28%
    • Minimum/maximum loan amount: $5,000–$100,000
    • Minimum credit requirements: 680
    • Repayment terms: 12–60 months
    • Time to receive funds: Two days
    SoFi

How to Choose the Best Debt Consolidation Loan in Michigan for You

The average Michigan resident owes $4,850 on credit cards and $14,756 on personal loans with an interest rate of 9.71%. Through debt consolidation, you may consolidate your multiple debt streams to optimize payments and save money by receiving a lower interest rate.

If you're thinking about getting a debt consolidation loan in Michigan, be aware that lenders will take a number of things into account, including your credit score, your present debts, your employment situation, your income history and more. In the steps below, MoneyGeek explains how to apply for debt consolidation lenders in Michigan to get the best deals.

1
Ask Yourself the Important Questions

There’s a lot of thought that needs to go into making a decision like consolidating debt. It may not be the right choice for you based on your current financial situation. The right questions, when asked to oneself, may sometimes go a long way into making the best decisions. Think about the following:

  • How much funding do you need?
  • What’s your credit score?
  • Can you afford the monthly payments?
  • Do you have existing debts?
  • Is your debt manageable through other means?
2
Do Your Research

The rates and costs charged by different lenders may vary, as do how they function. You should research multiple providers to see which one is ideal for you before submitting a loan application. This will aid in narrowing your pool of choice for debt consolidation lenders.

This type of loan is a big commitment because you’ll pay it back over the course of 2-4 years, maybe longer. Make sure the action you take is the best one for you before committing. Remember that our suggestions are only recommendations and while we do consider different types of consumers, our data still speaks for a more general audience; therefore, you should still conduct your own research.

3
Wait

Once you've finished comparing the features, offers, rates, and expenses of various lenders, you should consider your options for a few days. To decide which lender would be the best for you, sit back and think about your financial obligations. Because getting a personal loan to combine your debts is such a significant financial commitment, you should consider if it's the best course of action for you. This might include taking the wait time to do your research again to ensure you’ve explored all possible options.

4
Read the Fine Print

Reading the terms and conditions of the debt consolidation loan's fine print is the next step. Pay attention to the factors that could drive you to spend more money or potentially save you some money. Examples of these include origination charges and prepayment costs. Most lenders charge late fees, however, some have lower rates than others.

5
Apply

After deciding on a lender and defining all the information you'll need, you may submit an application. Lenders are required to request identity documentation, proof of address and income documentation throughout the application process. Although an in-person visit or phone call allows you to clarify more facts, an online application is typically more convenient.

What to Do if You Can’t Get a Debt Consolidation Loan in Michigan

If the lender first rejected your application, get in touch with them to ask why and what changes you may make. By reducing the loan amount or decreasing the loan period, you might improve the acceptability of your application. An alternative for you if you're having trouble getting authorized would be a loan with a cosigner or one based on collateral. If a loan is truly necessary, you can submit an application with a new lender. However, unless you've resolved the problem that led to your application being turned down in the first place, you should avoid this option.

After being turned down, some people might feel tempted to apply for payday loans with exorbitant interest rates, but this is not a good option. Even if you make on-time, complete payments, your credit score won't increase. You can also be responsible for any unpaid interest in addition to the remaining balance if you don't make your payment on time. If you make a late payment, a collection agency can get in touch with you, which might hurt your credit.

Calculate Your Monthly Payment

The repayment period often lasts for several years, so knowing how much your monthly payment will help you choose if debt consolidation is the best course of action given your current and projected financial status. It will also enable you to adjust some loan parameters, such as the loan's repayment schedule and size, if necessary. Use the MoneyGeek debt consolidation loan calculator below to assist with that.

years
months
%
Principal
+ $114.98
Interest
+ $8.33
Origination Fee Percentage
+
%
Origination Fee Fixed amount
+
Total monthly Payment
$123.31

FAQs About Debt Consolidation Loans in Michigan

Your unique circumstances, along with a number of other credit and income aspects, will determine which Michigan debt consolidation loan provider is right for you. To help you get up to speed, here are a few of the most often asked questions.

What is the best debt consolidation loan lender in Michigan?
Which lender in Michigan has the lowest interest rates for debt consolidation?
What kind of debts can I not use my debt consolidation loan for in Michigan?
How much debt can I consolidate in Michigan?
How long does it take to get a debt consolidation loan in Michigan?
Can I pay off my loan early in Michigan?
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METHODOLOGY

MoneyGeek reviewed over 30 personal loan lenders using at least 35 individual data points across six key categories: loan affordability, accessibility, consumer friendliness, customer service, flexibility and lender transparency.

Within each ranking category, we considered several individual data points that we feel carry the most weight when choosing a personal loan lender. These factors include APR ranges, available loan amount, minimum credit score, minimum income amount, application fees and disbursement time.

Here at MoneyGeek, we value you, the consumer, so we also factor in each lender’s customer support, business ratings and additional features that could make your experience easier and more accessible — like prequalification, payment options and mobile apps.

After careful consideration and calculation, our picks are chosen with your best interests in mind. Our personal loan recommendations and expert tips are meant to help you make smart financial decisions when choosing a lender that meets your needs.

sources
Shield Insurance

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.

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