Top Lenders & Best Picks for You
Best Personal Loans in Detroit, MI
Updated: December 28, 2023
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- The Best Overall Personal Loan Lender in Detroit
- The Best Personal Loan Lender for Bad Credit in Detroit
- The Best Personal Loan Lender for Good Credit in Detroit
- The Best Personal Loan Lender for Debt Consolidation in Detroit
- The Best Personal Loan Lender for Home Improvements in Detroit
- How to Choose the Right Personal Loan for You
- Frequently Asked Questions About Personal Loans in Detroit
MoneyGeek's Picks for Best Personal Loan Lenders in Detroit, MI
MoneyGeek considered more than 30 data points to choose the best personal loans for borrowers with different backgrounds and needs. For instance, borrowers with bad credit can find the best deal with Upstart, while those with good credit may find SoFi their best pick. Upgrade is our recommendation for debt consolidation and Best Egg for home improvement.
Each lender has its positives. For example, SoFi offers unemployment protection to help borrowers repay their loans if they lose their jobs. Below are the strengths and weaknesses of the companies that made it to the top of MoneyGeek’s list.
Best Overall Personal Loan Lender in Detroit: Lightstream
Best Personal Loan Lender for Bad Credit in Detroit: Upstart
Best Personal Loan Lender for Good Credit in Detroit: SoFi
Best Personal Loan Lender for Debt Consolidation in Detroit: Upgrade
Best Personal Loan Lender for Home Improvement in Detroit: Best Egg
How to Choose the Best Personal Loan Lender in Detroit for You
A wide range of factors, including credit score, current debt and income, affect your eligibility for a loan. In Michigan, the average personal loan debt is $14,756. Borrowers use their funds for different reasons, like debt consolidation, home improvement, weddings, vacations and emergency expenses. If you want to take out a personal loan, the steps below will guide you in making the right decision.
Ask Yourself the Important Questions
Before deciding to apply for a loan, make sure you’re fully prepared for the commitment of having one. Ask yourself these questions:
- How much do I need?
- What is my credit score?
- How much monthly payment can I afford?
- How much existing debt do I have?
Do Your Research
Loans require a long commitment – from the application process to your last monthly payment. Do your research before applying for a loan to understand the different terms and concepts lenders use, compare rates and determine how they’ll affect your financial obligations.
For example, Michigan’s average personal loan interest rate is 9.71%. If you want to find a loan with a lower interest rate, research can help you explore your options.
To help you with this process, MoneyGeek has compiled some of the information you need. Use our recommendations and resources as your cheat sheet for finding the best loan as you explore your options further.
Wait
After deciding what loan to get and which lender to get it from, wait. Take time to weigh the pros and cons and spot any disadvantages. Remember that a loan is a long-term commitment you must be fully prepared for.
Read the Fine Print
There are so many things you need to understand when looking for a loan that it’s easy to miss a few details. While some of these details have minor effects on your loan, others can cost you. Therefore, take time to read the fine print.
Get into the nitty-gritty of a lender’s terms and conditions and look for hidden charges. Take note of fees, like prepayment penalties, early payoff and origination fees. By reading the fine print, you can save money in the long run.
Apply
If you’re confident about your decision, it’s time to apply. The application process may vary from lender to lender. Some lenders have an online application you can start on their official website. Others allow you to apply by talking to an agent onsite or over the phone. It’s best to choose the option you're most comfortable with.
It’s standard practice for lenders to ask for identification, address verification and proof of income. So, being ready with the appropriate documents will make the process go quickly and smoothly.
What to Do if You Can’t Get a Personal Loan in Detroit
Lenders deny applications for a wide range of reasons. The most common are low credit score, insufficient income and inaccurate information. If your application has been denied, you can take steps to try and fix the situation.
Contact your lender and ask for the exact reason behind the denial. You can also ask if there’s anything you can do to solve the problem.
Sometimes, lenders allow you to alter some application details. For example, you can choose a longer repayment term to decrease your monthly payments. As a result, your loan becomes more affordable and more suitable for your income.
You can also apply for a loan from a different lender. However, your application can still be denied if you haven’t worked on the factor(s) that caused the previous lender to decline you.
Payday loans are also available, though it’s better to avoid them. While you can quickly get funds from these loans, they have steep interest rates that may hinder you from completely paying off the debt.
Frequently Asked Questions About Personal Loans in Detroit
There’s no one-size-fits-all personal loan in Detroit, as the best loan for you depends on many factors. Your income, credit score and needs may determine which lender you choose. Additionally, the purpose of your loan will also influence the loan that fits your needs. The following are frequently asked questions about personal loans in Detroit:
The best personal loan lender in Detroit is LightStream. Loan amounts range from $5,000 to $100,000, with an APR range of 4.49% to 20.49%. Applicants need a credit score of at least 660.
Your APR depends on your credit score. If you have a high credit score, Upstart offers an APR as low as 3.22%.
Yes, you can use a personal loan for vacations. Personal loans are quite flexible when it comes to how you can use the funds.
Yes, you can use a personal loan for home improvement in Detroit. In fact, MoneyGeek recommends Best Egg as the best personal loan lender in Detroit for this purpose. You can get a loan of $2,000 to $50,000 from Best Egg, though you will need a credit score of at least 700.
Restrictions on using your personal loan funds depend from lender to lender. Common conditions include not allowing the use of funds for gambling or illegal activities. Some lenders also prohibit borrowers from using the funds for business purposes.
In Detroit, you can borrow a minimum amount of $1,000 and up to $100,000, depending on your lender. Some lenders offer wide loan amount ranges that allow you to take out a small loan or a larger one.
Personal loan lenders in Detroit can release funds the same day the loan is approved. However, some lenders release funds the next day or up to three business days after loan approval. For a quicker release of funds, make sure your application is complete, and the information you provide is accurate.
Yes, you can pay off your personal loan in Detroit early. Some lenders charge a prepayment penalty which means you’ll need to pay a fee when you want to pay early. Other lenders don’t have this penalty, so you can pay early anytime without paying extra.
Our Personal Loan Methodology
We evaluated over 30 personal loan lenders based on 35+ individual data points in six major categories: loan affordability, accessibility, consumer friendliness, customer service, flexibility and lender transparency.
For every category, we analyzed unique factors we believe have the biggest influence on a borrower’s decision when choosing a personal loan lender. These include APR ranges, possible loan amount, minimum credit score, income, application costs and disbursement time.
Because MoneyGeek appreciates you, the consumer, we consider each lender's customer service, business ratings and other features that could make your experience easier and more accessible, such as prequalification, payment alternatives, and mobile apps.
After careful consideration and calculation, our picks are determined with your best interest in mind. Our personal loan recommendations and expert tips are meant to help you make the best decision when choosing a lender that meets your needs. Therefore, MoneyGeek has committed to showing you our top picks for personal loans as well as providing our expert advice.
sources
- SoFi. "Personal Loans." Accessed June 15, 2022.
- Upgrade. "What are the benefits of a personal loan through Upgrade?." Accessed June 15, 2022.
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.