Best Debt Consolidation Loans in Detroit of 2024

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Edited byScott Strandberg
Edited byScott Strandberg

Updated: December 28, 2023

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WHAT WE’RE GEEKING OUT ON

Best Debt Consolidation Loan Lenders in Detroit, MI

MoneyGeek selected the top lenders for debt consolidation loans in Detroit after analyzing more than 30 firms across more than 35 parameters. We looked at the lenders' BBB ratings, funding restrictions, APR ranges, fees and interest rates.

According to MoneyGeek's data, LightStream is the leading lender of debt consolidation loans in Detroit. Ultimately, the circumstances of each borrower will determine who their best lender is. For instance, Upgrade is the best for borrowers who have maintained good credit. To find out which debt consolidation loan provider is most suited to your needs, check out our guide.

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Best Overall Debt Consolidation Loan in Detroit, MI: LightStream


  • LightStream
    • 7.49% to 25.49%APR Range
    • UndisclosedMinimum Credit Score
    • $5,000 to $100,000Loan Amount Range
    • 24 to 144 monthsRepayment Terms
    • Same day funding possibleTime to Receive Funds

    A part of Truist Financial Corporation, LightStream is an online lending platform that was established in 2019 as a result of the merger of SunTrust and BB&T banks. It offers qualifying customers $5,000 to $100,000 in debt consolidation loans without origination or appraisal costs, with the prospect of funds being disbursed the same day.

    In addition, there are no fees associated with early repayment. The lender offers a variety of repayment options that range from 24 to 84 months. Also, by setting up automated payments, borrowers can reduce their interest rates by up to 0.5%.

    LightStream's A+ certification from the Better Business Bureau strengthens its position as the leading lender in the region. However, only individuals with good to excellent credit will be eligible for debt consolidation loans from LightStream, as a score of 660 is required. LightStream also does not offer debt consolidation loans if you already have LightStream loans.

    Pros

    • No origination fee or prepayment penalty
    • Loans of up to $100,000
    • Autopay discount
    • Same-day funding
    • Wide range of repayment terms

    Cons

    • Minimum loan amount of $5,000
    • High credit score requirement
    • Hard credit inquiry
    LightStream

Runner-Up for Best Debt Consolidation Loan in Detroit, MI: SoFi


  • SoFi
    • 8.99% to 29.99%APR Range
    • 680Minimum Credit Score
    • $5,000 to $100,000Loan Amount Range
    • 12 to 60 monthsRepayment Terms
    • 2 DaysTime to Receive Funds

    SoFi, originally known as Social Finance, is a company that offers a number of loans and other financial products. SoFi is the second-best lender in Detroit for debt consolidation, offering loans between $5,000 and $100,000 with no origination or late fees. If you choose the Direct Pay option, SoFi will pay your lender directly, and you may be eligible for a 0.25% rate reduction.

    SoFi's unemployment protection program is an additional benefit. Those who unexpectedly become unemployed might defer or lower their monthly loan payments. Be prepared, though, for a temporary drop in your credit score if you apply for a loan, as loan applications include a hard credit check. Applying with a co-applicant will increase your application's prospects.

    Pros

    • Large loans of up to $100,000
    • No origination fee or prepayment penalty
    • 0.25% autopay discount
    • Unemployment protection

    Cons

    • Conducts hard credit inquiry during the application phase
    • High minimum credit score requirement
    SoFi

Best Debt Consolidation Loan for Bad Credit in Detroit, MI: Upstart


  • Upstart
    • 6.4% to 35.99%APR Range
    • 300Minimum Credit Score
    • $1,000 to $50,000Loan Amount Range
    • 3 or 5 yearsRepayment Terms
    • 1 business dayTime to Receive Funds

    Borrowing money becomes more difficult if you have a limited credit history or a low credit score. Upstart, which has an A+ rating from the Better Business Bureau, is an online marketplace that uses AI to bring together lenders and borrowers of all credit profiles. Since it works with people who have credit scores as low as 300, this lender was picked as the best option for people in Detroit who don't have perfect credit or are just starting out financially.

    You can apply for an amount of between $1,000 and $50,000 for an origination fee, and the interest rate will depend on how creditworthy you are. Because the lender is willing to work with borrowers on joint loans, you can boost your chances of approval by applying with a co-borrower.

    Pros

    • Low minimum credit score requirement of 300
    • Soft credit inquiry to verify eligibility
    • Full-time, part-time and self-employed borrowers are accepted
    • No prepayment penalty
    • Minimum loan of $1,000

    Cons

    • Potentially high interest rates
    • Hard credit check while applying
    • Origination fees
    Upstart

Best Debt Consolidation Loan for Good Credit in Detroit, MI: Upgrade


  • Upgrade
    • 8.49% to 35.99%APR Range
    • UndisclosedMinimum Credit Score
    • $1,000 to $50,000Loan Amount Range
    • 24 to 84 monthsRepayment Terms
    • Within a dayTime to Receive Funds

    Upgrade, a fintech company, was founded in 2016 with the intention of fostering responsible financial behavior among its customers by providing easy access to credit health tools and financial products.

    The BBB has granted it the highest possible rating of A+. The majority of loans will be released on the same day, allowing you to pay off your bills quickly. Those who choose to prepay may do so without paying additional fees.

    Despite the advantages of Upgrade loans, for those with less-than-stellar credit, the APR on an Upgrade debt consolidation loan might be high. Additionally, origination fees ranging from 1.85% to 8.99% may make it unattractive to certain borrowers.

    Pros

    • No origination fee or prepayment penalty
    • 0.25% autopay discount
    • Offers unemployment protection

    Cons

    • Conducts hard credit inquiry during the application phase
    • High minimum credit score requirement
    • Extremely high maximum APR
    • Loans capped at $50,000
    Upgrade

How to Choose the Best Debt Consolidation Loan in Detroit, MI, for You

Consolidating multiple debts into one convenient monthly installment, often at a lower interest rate, is a major selling point for debt consolidation loans. For instance, a debt consolidation loan could help the average Michigander, who owes a combined average of $19,606 in credit cards and personal loans, manage their finances better.

If you're considering a debt consolidation loan in Detroit, these steps can help you through the process.

1

Ask Yourself the Important Questions

Before applying for a loan to consolidate your debt, carefully assess your financial standing and monetary needs:

  • How much funding do you need? Under- or over-borrowing might add unnecessary financial pressure. You must determine your borrowing requirements by getting a sense of your current financial standing or consulting a financial advisor.
  • What’s your credit score? A lender will normally consider a minimum credit score requirement when assessing your capacity to repay a loan. Your eligibility and interest rate are typically based on your credit score.
  • Can you afford the monthly payments? Monthly installments are normal for debt consolidation loans, so assess if you can afford the new payment amount.
  • Do you have existing debts? Lenders may examine the ratio of your monthly debt payments to your monthly income (debt-to-income ratio) when determining your loan eligibility, so keeping this ratio as low as possible is advisable.
  • Is your debt manageable through other means? Instead of depending on a loan, consider whether you may complete your debt consolidation requirements through alternative methods.
2

Do Your Research

You commit to a substantial sum of money when you agree to repay a debt consolidation loan over a number of years, including the loan's interest and fees. Debt consolidation loan quotes may differ significantly from one loan provider to the next due to possible variations in rates and fees. Additionally, some lenders perform "hard credit checks," which might harm your credit rating temporarily.

In light of this, it is advisable to look around for other lending programs prior to actually submitting an application. Before making any decisions, you should conduct your own research and compare offers because MoneyGeek only offers general advice.

3

Wait

Comparing the features, rates, fees and other aspects from several lenders might be daunting. A debt consolidation loan is a large investment, so it may be advisable to delay a final choice for a few days. Before you apply, it would be a good idea to take a step back and weigh your options.

4

Read the Fine Print

Comparing personal loans might lead one to overlook some important factors. Check the fees, interest rates and penalties before signing a contract with a lender to be sure your deal is a fair one. Over time, you may end up saving hundreds, if not thousands of dollars, if you focus your attention on even the slightest details.

5

Apply

If you've already settled on a certain lender, then you may proceed with the loan application. Be prepared to provide proof of your identity, address, income and previous employment. Although many lenders may be more receptive to an in-person application, it is likely more convenient and practical to submit your application online.

What to Do if You Can’t Get a Debt Consolidation Loan in Detroit, MI

For a number of reasons, a debt consolidation loan application may be rejected. If your application is turned down, don’t worry. Some applicants are turned away because of things like inadequate income, bad credit scores, insufficient credit history, a significant amount of existing debt or incomplete paperwork.

If your loan application was not approved, you should contact the lender to discuss the matter and assess what measures to take next. In order to boost your chances of acceptance, the lender may suggest adjustments to your loan agreement, such as a shorter loan term or a smaller loan amount. If you still have trouble getting a loan, a cosigner, collateral or joint loan may help.

Regardless, you shouldn't resort to predatory loans, such as payday loans, even in a pinch. These loans typically have shorter repayment periods and higher-than-average interest rates. Paying back a payday loan on schedule will not elevate your credit score. If you don't pay or pay late, a collection agency may be brought in, which may further lower your credit score.

Calculate Your Monthly Payment

Keep in mind that interest will be added to your debt consolidation loan in Detroit and that you will have to make monthly payments to pay it off. If you've been pre-approved for a debt consolidation loan, the MoneyGeek loan calculator may help you figure out if the monthly payments will fit into your budget.

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Frequently Asked Questions About Debt Consolidation Loans in Detroit, MI

Your credit score and history, monthly income, loan amount, funding purpose and personal preferences will all play a role in helping you determine which lender will best suit your needs. MoneyGeek has collated the answers to some of the most often-asked questions concerning Detroit debt consolidation loans.

For anyone looking to consolidate their debt in the Detroit area, MoneyGeek recommends LightStream. Nonetheless, your needs should direct you to the best lender for you. When comparing multiple lenders, MoneyGeek found that Upstart was the best option for people with bad credit, whereas Upgrade works best if you have good credit.

The lowest interest rates in Detroit are offered by Upstart for well-qualified borrowers.

The restrictions imposed on the fund's usage depend on the lender you choose. Some lenders might not allow you to consolidate loans for business or investment purposes, but others might not impose any limitations at all.

The maximum amount of debt that can be consolidated depends on the lender and can go as high as $100,000.

There is some variability in processing times among lenders. However, it may take as long as two business days, or you could receive the funds the same day you apply.

Yes. However, certain lenders charge prepayment penalties. You can check with your lender to see if it imposes any fee for paying off your loan early.

Methodology

METHODOLOGY

MoneyGeek reviewed more than 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 amounts, minimum credit scores, minimum income amounts, application fees and disbursement times.

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, we make our picks 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.