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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.

Best Overall Debt Consolidation Loan in Detroit, MI: LightStream


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

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


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

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


  • Upstart
    • 8.49% to 35.99%APR Range
    • $1,000 to $50,000Loan Amount Range
    • 36 to 60 monthsRepayment Terms
    • Next DayTime to Receive Funds
    Upstart

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


  • Upgrade
    • 11.69% to 35.47%APR Range
    • $1,000 to $50,000Loan Amount Range
    • 36 to 60 monthsRepayment Terms
    • Same DayTime to Receive Funds
    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.

years
months
%

Principal

+ $114.98

Interest

+ $8.33

Origination Fee Percentage

+
%

Origination Fee Fixed amount

+

Total monthly payment

$123.31

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.

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

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.