Best Low-Income Loans in Michigan: Top Lenders and Rates for 2024

Banner image
Edited byMorgan Hull
Edited byMorgan Hull

Updated: December 28, 2023

Advertising & Editorial Disclosure

Loading...

Best Low-Income Loan Lenders in Michigan

MoneyGeek reviewed over 30 lenders for more than 35 data points to find the best low-income loans in Michigan. Our analysis factored in loan limits, APR ranges, repayment terms and minimum eligibility requirements. We also analyzed the best lenders for different borrower profiles, including borrowers with bad credit.

Based on our analysis, Upgrade offers the best low-income loans in Michigan. However, the best lender for you may vary depending on your borrower profile. For instance, Upstart is the best low-income loan lender for borrowers with poor credit, while Prosper is ideal for those with good credit.

Best Overall Low-Income Loan in Michigan: Upgrade

Loading...

Runner-Up for Best Low-Income Loan in Michigan: LendingClub

Loading...

Best Low-Income Loan for Bad Credit in Michigan: Upstart

Loading...

Best Low-Income Loan for Good Credit in Michigan: Prosper

Loading...
Loading...

How to Choose the Best Low-Income Loan in Michigan for You

In Michigan, the average credit score is 729, but it’s still possible to get a low-income loan if you have an average or poor credit score. Lenders will typically consider factors like your credit score, DTI ratio and employment history when determining APR ranges, loan limits and other terms. This means it is important to consider your financial profile when looking for the best lender for low-income loans.

We recommend taking the following steps to find the best low-income loan lender for you:

1
Ask Yourself the Important Questions

Prior to researching different lenders, you should ask yourself the following questions to ensure that taking out a low-income loan is the best option for you.

  • How much funding do you need? Start by figuring out how much you need to borrow. Different lenders have different loan limits, so knowing your loan amount can help you narrow down your lender choice. Furthermore, only borrowing the amount you need can help you avoid paying more in interest or taking out an additional loan.
  • What is your credit score? Your credit score impacts your loan eligibility and the interest rate you receive on your loan. Those with higher credit scores will typically receive lower interest rates. If your credit score is low, consider improving it first before applying for a low-income loan.
  • Can you afford the monthly payment? Consider how a low-income loan will impact your finances. Choosing a higher monthly payment amount will allow you to repay your loan faster, reducing the overall amount you pay in interest. However, it’s important to ensure you still have enough money to cover other expenses.
  • How much debt do you already have? If you have existing debt, you may want to repay it first before taking on more.
  • Is your debt manageable through other means? Look into interest-free or low-interest financing options, like borrowing from friends and family or taking out a credit card.
2
Do Your Research

It’s important to compare lenders for their APR ranges, repayment periods, eligibility requirements and other terms to find the best lender for your needs. You can use MoneyGeek’s suggestions as a guide, but keep in mind that our recommendations are based on an average borrower profile and may not reflect your unique situation.

3
Wait

After you’ve chosen the lender that’s best for you, it’s best to wait a day or two before submitting a loan application. This will give you time to consider all your options and ensure that you are making the right decision. While personal loans can help you access funds quickly, they will impact your finances for a long time, so it is best to avoid making an impulsive decision. Take time to consider how the loan will impact your finances and figure out whether it is the best financial step for you.

4
Read the Fine Print

It’s essential to read the fine print of your loan agreement to learn about any fees associated with your loan, like those for loan origination, prepayment and late payments. These seemingly insignificant costs can add up over the life of your loan, so it’s important to budget for them ahead of time. If you have any questions about the terms of your loan, you should reach out to your lender for clarification.

5
Apply

Once you’ve read and understand the fine print of your loan agreement, it’s time to submit your application. To save time, prepare any required documents in advance. Lenders typically require you to provide proof of identification, employment, address and income, but this varies depending on the lender. Some lenders allow you to apply in person at a physical branch or over the phone, while others are online-only lenders.

What to Do if You Can’t Get a Low-Income Loan in Michigan

If your application for a low-income loan in Michigan is rejected, don’t panic. Lenders deny applicants for several reasons, including an insufficient credit score, high DTI ratio or incomplete application submittal.

After your application is rejected, you should contact your lender to find out why. Often, you can modify terms of your loan agreement, like your loan amount or repayment period, to have it approved. However, applicants rejected due to a low credit should work to improve their credit before reapplying. That way, they can avoid dips in their credit score from hard credit checks during the application process.

MoneyGeek strongly advises against taking out a payday loan. These lending products feature high interest rates and short repayment terms that may cost borrowers more money in the long term. Repaying a payday loan on time also won’t help your credit score.

Calculate Your Monthly Payment

Before signing up for a loan, it’s important to calculate your monthly payments to make sure a low-income loan fits into your budget. Use MoneyGeek’s personal loan calculator to estimate your monthly payments.

Loading...

FAQs About Low-Income Loans in Michigan

If you are a low-income borrower in Michigan, the best lender for you will mainly depend on your funding needs and individual financial factors, like your credit score and DTI ratio. MoneyGeek answered some frequently asked questions about low-income loans in Michigan to help borrowers learn more.

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

Methodology

mglogo icon
METHODOLOGY

MoneyGeek reviewed over 30 personal loan lenders for more than 35 data points to find the best low-income loan lenders. Our analysis factored in data points across six main categories, including loan affordability, accessibility, lender transparency, flexibility, consumer friendliness and customer service.

For each category, MoneyGeek analyzed individual factors that we feel matter most when consumers are looking for a low-income loan lender. These factors include APR ranges, loan limits, credit score and income requirements, application fees and disbursement time.

At MoneyGeek, we value you, the consumer, so we also considered lenders’ customer support, business ratings and additional tools and features that improve user experience. These include features like prequalification and payment options as well as mobile application availability.

Our recommendations are made with your best interest in mind. We strive to provide you with expert tips and recommendations to help you make well-informed financial decisions.

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.