Best Personal Loans in Michigan for 2024

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Updated: July 10, 2024

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First Tech and PenFed are MoneyGeek's top picks for personal loans in Michigan, with scores of 98 and 96, respectively. They stand out for excellent customer service, competitive rates and clear lending practices.

When looking for a personal loan, your credit score, income history and debt-to-income ratio are key. The average credit score in Michigan is 719, per Experian data from 2023, suggesting the average borrower may qualify for favorable loan terms.

MoneyGeek's analysis considered customer support, rates and fees, loan options, the application process and lender reliability. Knowing these factors can help Michiganders choose wisely for financial stability.

MoneyGeek Logo IconBest PersonalLoan LendersMichigan
2024

Best Personal Loan Lenders in Michigan

MoneyGeek's personal loans scoring system is designed to give a comprehensive overview of each lender’s performance in key areas that matter to borrowers. We use a point-based system, assigning scores according to the presence or absence of certain desirable features in various critical categories.

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Our analysis was completed in April 2024 and considers banks and personal loan lenders who are licensed to do business in Michigan. We also consider financial companies who partner with federally insured institutions to offer competitive rates.

34Lenders Analyzed

    Best Overall Personal Loan Lender

  • First Tech

    • 98MoneyGeek Score
    • 8.94% to 18.00%APR Range
    • UndisclosedMinimum Credit Score
    • $500 to $50,000Loan Amount Range
    • 6 to 84 monthsRepayment Terms

    First Tech is MoneyGeek's pick for the best personal loan lender in Michigan, with a MoneyGeek score of 98 out of 100. Its annual percentage rate (APR) range of 8.94% to 18.00% is competitively low, which, in combination with no required minimum credit score, appeals to a broad range of borrowers. This lender stands out for offering top-notch customer service and a wealth of educational resources, as well as for presenting one of the most competitive interest rates and fee structures in the market. Additionally, while its repayment terms are slightly shorter than some competitors, the flexibility in loan amounts and timelines ensures suitability for various financial needs.

    Pros

    • Insured by the National Credit Union Administration (NCUA)
    • Lots of educational resources available for consumers
    • Provides granular APR data for a variety of loan terms

    Cons

    • Requires membership for application
    • Could provide more details on the loan application process
    • Little published information about credit score requirements
    First Tech

    Runner-Up Best Personal Loan Lender

  • PenFed

    • 96MoneyGeek Score
    • 7.99% to 17.99%APR Range
    • UndisclosedMinimum Credit Score
    • Up to $50,000Loan Amount Range
    • Up to 60 monthsRepayment Terms

    PenFed Credit Union is MoneyGeek's runner-up lender for personal loans in Michigan with a score of 96 out of 100. PenFed offers an APR range from 7.99% to 17.99%, which is competitive when compared to the broader market, and repayment terms that can extend up to 60 months, offering borrowers some flexibility. MoneyGeek recognizes PenFed for exceptional transparency and reputation as well as strong customer service, which underscores its recommendation to Michigan borrowers looking for credible and supportive lending services.

    Pros

    • Offers some of the lowest APRs available
    • No early repayment penalty
    • Insured by the National Credit Union Administration (NCUA)

    Cons

    • No information provided about credit score requirements
    • $50 minimum monthly loan payment
    PenFed
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UNDERSTAND YOUR DEBT-TO-INCOME RATIO

The amount of monthly debt payments you have relative to your monthly gross income is called your debt-to-income ratio or DTI.

Most lenders prefer to see a debt-to-income ratio of 35-40% or below for secured loans, and 40-45% or below for unsecured personal loans. Debt includes items like mortgages, car loans, credit cards and existing personal loans. A debt-to-income ratio above 50% is considered high and so approval may be more difficult, or your loan may come with higher interest rates. — Alvin Yam, CFP®

Calculate Your Monthly Michigan Loan Payment

According to our analysis, lenders in Michigan offer personal loan products averaging about 50 months, but this can vary based on the borrower's credit profile and the financial institution. Explore your loan options with our personal loan calculator, a simple tool to calculate monthly payments and total loan costs based on amount, interest rate and term length, helping you make informed decisions before committing.

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Estimate the monthly payment for your loan.

Updated: Jul 11, 2024

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Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.


    Best Personal Loan Lender for Bad Credit

  • 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

    MoneyGeek's pick for the best personal loan provider in Michigan for borrowers with low credit is Happy Money, boasting a 94 out of 100 score. Despite not being a traditional lender, Happy Money partners with various institutions to offer installment loans. With an APR range of 11.72% to 17.99%, it's favorable compared to other lenders. Supplying loans for those with a minimum credit score of 640, it stands out for an informative approach and a streamlined application process.

    Pros

    • Works with 10 federally insured lenders to originate all loans
    • Transparent eligibility requirements, including credit score minimum
    • No application fee

    Cons

    • The lenders it works with charge an origination fee
    • Longer time to wait for loan approval compared to other lenders analyzed
    Happy Money

How does MoneyGeek score lenders for bad credit loans?


    Best Personal Loan Lender for Debt Consolidation

  • Alliant Credit Union

    • 96MoneyGeek Score
    • 10.99% to 13.99%APR Range
    • UndisclosedMinimum Credit Score
    • $1,000 to $100,000Loan Amount Range
    • 12 to 60 monthsRepayment Terms

    MoneyGeek recommends Alliant Credit Union as the best in Michigan for debt consolidation personal loans due to its competitive APR range of 10.99% to 13.99%, positioned well among alternatives, and a MoneyGeek score of 96 out of 100. This online-only bank stands out particularly for its attractive interest rates and clear upfront information provided to consumers. The union's personal loans require membership in good standing for at least 90 days.

    Pros

    • No prepayment penalties
    • No origination fees
    • Wide variety of loan types available

    Cons

    • Have to be a member for 90 days to apply
    • An online-only credit union, no physical branches
    Alliant Credit Union

How does MoneyGeek score lenders for debt consolidation?

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IS INTEREST ON PERSONAL LOANS TAX DEDUCTIBLE?

Interest on personal loans is generally not tax deductible as personal loans are considered consumer debt. But there are some exceptions where the interest may qualify:

  • When consolidating high-interest qualifying debts like credit cards or student loans, if used to pay off those debts.
  • If used for home improvements that increase the home's value.
  • If the loan proceeds can be demonstrated as used exclusively for business expenses or starting a business.
  • In some cases, if the loan is used for investment purposes related to income-generating assets.

Alvin Yam, CFP®

The Impact of Credit Score on Loan Repayment in Michigan

When considering a personal loan in Michigan, be aware that your credit report, income and debt-to-income ratio are critical factors lenders evaluate to determine your eligibility and the terms of the loan. The rankings by MoneyGeek for the best personal loan lenders in the state include considerations of the lender's reputation and transparency, APR ranges, minimum credit score requirements and the flexibility of loan repayment terms.

A higher credit score can significantly improve your loan terms, often resulting in lower APRs, so taking steps to boost your credit score before applying could be beneficial.

Refer to the table provided to understand how your credit score may influence your monthly loan payments when securing a personal loan.

Data filtered by:Results filtered by:
Credit Band:
Credit Band:690 to 719
Loan Amount:
Loan Amount:$2,000
$348Term Length (Months)6
$180Term Length (Months)12
$97Term Length (Months)24
$69Term Length (Months)36
$55Term Length (Months)48
$47Term Length (Months)60
$42Term Length (Months)72
$38Term Length (Months)84

This table offers an approximation of monthly payments, calculated using median personal loan interest rates typical for various credit score ranges. Please remember that these numbers are median estimates, provided for general guidance. They should not be taken as precise rates for everyone in each credit score category. Actual interest rates can differ due to lender-specific policies, prevailing market conditions and unique borrower profiles.

Understanding Personal Loans: Pros and Cons

Personal loans offer several advantages, such as potentially lower interest rates compared to credit cards and the convenience of consolidating various debts into a single payment. Often providing quick access to funds, they allow for flexibility in usage, ranging from unexpected expenses to planned projects, and may help improve your credit score with timely repayments.

However, it's important to consider the associated risks, including possible origination fees and the danger of asset loss with a secured personal loan; for further insights, consider weighing the pros and cons of personal loans.

The good and bad of personal loans

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  • Lower interest rates than many credit cards
  • Ability to consolidate multiple debts into one
  • Quick funding times for immediate expenses
  • Eligibility for better terms with a co-signer
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  • Origination fees increase the total borrowing cost
  • Early repayment may incur penalty charges
  • Secured loans pose a risk to personal assets
  • Easy approvals can lead to excessive debt accumulation

Frequently Asked Questions About Michigan Personal Loans

If you have questions about personal loans, MoneyGeek has answers to help you make an informed decision before applying.

Who is the best lender in Michigan for personal loans?
Where is the best place to get a personal loan in Michigan?
Who has the best personal loan interest rates in Michigan?
What can I use a personal loan for in Michigan?
What are some personal loan red flags to look out for?
Do lenders consider income level when applying for a personal loan?
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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.