Best Debt Consolidation Loans in Michigan 2024

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Updated: November 21, 2024

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Debt consolidation loans are unsecured personal loans that are used as part of a debt repayment strategy. It's a popular way to streamline and pay off debts you currently owe — like credit card or student loan debt — at a lower interest rate than what you're currently paying.

MoneyGeek analyzed 28 lenders and found PenFed to be the top choice for debt consolidation loans in Michigan, with a MoneyGeek score of 96 out of 100. Although PenFed stands out in our analysis, you may also want to contact local lending options like CommunityChoice Credit Union and Michigan First Credit Union to see if they fit your borrowing needs.

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2024

Best Debt Consolidation Loans in Michigan

Best Overall - PenFed
Runner-Up - Alliant Credit Union
Best for Affordability - Fifth Third Bank
Best for Large Loans - PNC
Best for Fast Funding - Rocket Loans

Overall Best Debt Consolidation Loan Lender in Michigan

Company logo for PenFed
PenFed
MoneyGeek Score:
96/ of 100
APR Range8.99% to 17.99%
Loan Amount RangeUp to $50,000
Repayment TermsUp to 60 months
Time to Receive Funds1 to 2 Business Days
Overview

PenFed offers the best debt consolidation loan in Michigan, with a MoneyGeek score of 96 out of 100. Key features that make an ideal debt consolidation loan lender include competitive rates, the amount you can borrow, how quickly you can get your funds, the quality of service and the lender's reputation.

PenFed's APR range of 8.99% to 17.99% provides competitive rates that can save you money on interest. With a loan amount range of up to $50,000, you can consolidate significant debt. The quick fund disbursement time of one to two business days ensures you can address your financial needs promptly.

Runner-Up for Best Debt Consolidation Loan in Michigan

Company logo for Alliant Credit Union
Alliant Credit Union
MoneyGeek Score:
96/ of 100
APR RangeFrom 10.49%
Loan Amount Range$1,000 to $100,​​​​​000
Repayment Terms12 to 60 months
Time to Receive FundsSame Day
Overview

Alliant Credit Union is another solid option for a debt consolidation loan in Michigan, with a MoneyGeek score of 96 out of 100. It offers low interest rates that can reduce the overall cost of the loan, saving you money over time.

Alliant Credit Union's flexible loan terms allow you to choose a repayment plan that fits your budget. Same-day funding means you can quickly pay off your existing debts and start fresh.

Best Debt Consolidation Loan in Michigan for Affordability

Company logo for Fifth Third Bank
Fifth Third Bank
MoneyGeek Score:
95/ of 100
APR Range8.74% to 21.74%
Loan Amount Range$2,000 to $50,000
Repayment Terms12 to 60 months
Time to Receive FundsNext Day
Overview

Fifth Third Bank offers the best debt consolidation loan in Michigan for borrowers who prioritize affordability. It has a MoneyGeek score of 95 out of 100. Its APR range is from 8.74% to 21.74%, making it a competitive option for those looking to consolidate their debts. Borrowers can benefit from the lender's next-day funding, allowing them to quickly pay off high-interest debts. Fifth Third Bank doesn't charge origination fees, which means more of your money goes toward paying down your debt, not extra costs.

Fifth Third Bank also offers rate discounts, which can further reduce the cost of your loan. This is particularly beneficial for borrowers who may qualify for these discounts, making their debt consolidation even more affordable. With loan amounts ranging from $2,000 to $50,000 and repayment terms between 12 to 60 months, it provides flexibility to fit different financial situations.

Best Debt Consolidation Loan in Michigan for Large Loan Amounts

Company logo for PNC
PNC
MoneyGeek Score:
96/ of 100
APR RangeUp to 24.99%
Loan Amount Range$1,000 to $35,000
Repayment Terms6 to 60 months
Time to Receive Funds3 Business Days
Overview

PNC offers the best debt consolidation loan in Michigan for borrowers who need a large loan amount or longer repayment terms. With a MoneyGeek score of 96 out of 100, it provides loan amounts ranging from $1,000 to $35,000 and repayment terms from six to 60 months.

PNC's flexible repayment terms allow borrowers to choose a manageable monthly payment, making it easier to stay on track financially. Quick fund disbursement can help a borrower consolidate debts faster, reducing the time spent juggling multiple payments.

Best Debt Consolidation Loan in Michigan for Fast Funding

Company logo for Rocket Loans
Rocket Loans
MoneyGeek Score:
95/ of 100
APR Range9.116% to 29.99%
Loan Amount Range$2,000 to $45,000
Repayment Terms36 or 60 months
Time to Receive FundsSame Day
Overview

Rocket Loans offers the best debt consolidation loan in Michigan for borrowers who need funds quickly. It has a MoneyGeek score of 95 out of 100.

Rocket Loans' has a fast approval process, which helps borrowers consolidate debts quickly to avoid late fees. It provides same-day access to funds, making it ideal for urgent financial needs. Its flexible loan terms allow borrowers to choose a repayment plan that fits their budget.

Should You Get a Loan to Consolidate Debt in Michigan?

Using a debt consolidation loan in Michigan can simplify your finances by merging multiple payments into one. This can also lower your interest rate, saving you money.

However, despite these benefits, debt consolidation may not be the best choice for all situations. Consider other options if the new loan's interest rate is higher or if you have minimal debt.

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    Good Credit

    Having good credit can qualify you for better terms on a debt consolidation loan in Michigan, affecting your interest rates and monthly payments.

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    High-Interest Debt

    Consolidating high-interest debt with a debt consolidation loan in Michigan can lower the interest rates you're paying — for example, reducing a 20% APR to 10% APR.

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    Multiple Payments

    Combining multiple monthly payments into one with a debt consolidation loan in Michigan simplifies your finances. For example, tracking one $500 payment is easier than five $100 payments.

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    Lower Monthly Payments

    A debt consolidation loan in Michigan can lower your monthly payments. For example, it can reduce your total monthly payments from $800 to $600.

When You Shouldn't Get a Debt Consolidation Loan

  • When your new payment is higher: The increased monthly payment can strain your budget, making it harder to meet other financial obligations.
  • When you can pay off debt soon: If you can clear your debt in a year, consolidating might not save you much money. It's often better to focus on paying it off directly.
  • When your income is unstable: Unpredictable income means you might struggle to keep up with loan payments. This can lead to missed payments and damage your credit score.
  • When your debt-to-income (DTI) ratio is high: A high DTI ratio can result in loan denials or unfavorable terms. It might be better to improve your DTI before applying for a debt consolidation loan in Michigan.

How to Get a Debt Consolidation Loan in Michigan

The average personal debt in Michigan is $77,903 per year, while the overall average debt for Americans across all states is $104,215. In Michigan, the average monthly debt is around $6,492.

Using a personal loan to consolidate debt in Michigan can simplify your payments and potentially lower your interest rates. Going into the process uninformed can lead to higher interest rates and damage your credit score. To avoid these risks, follow these steps to apply for a debt consolidation loan.

  1. 1
    Review your debts and credit score

    Account for your existing debts to see which ones to consolidate, like credit card debt. Choosing the wrong ones can lead to higher interest rates. Check your credit scores and improve your credit score by paying bills on time and reducing outstanding balances.

  2. 2
    Compare loan terms from lenders

    Compare loan terms from multiple lenders. Contact lenders to ensure you can use the loan to consolidate debts. Look at APRs, loan limits and how soon you can receive the funds.

  3. 3
    Check for extra benefits

    Some lenders offer added features in addition to usual terms. For example, Keybank and Alliant Credit Union in Michigan offer rate discounts that could benefit you in the long run.

  4. 4
    Watch out for fees and penalties

    Some lender features could be drawbacks. In Michigan, Lending Club charges an origination fee, and Fifth Third Bank charges a late fee. These could impact your short and long-term finances.

  5. 5
    Get prequalified

    Prequalification helps borrowers gauge their loan eligibility without affecting their credit score. It involves a soft credit check, giving you an idea of potential loan terms.

  6. 6
    Complete your loan application

    Prepare necessary documents, such as proof of income, identification and bank statements, to complete your loan application. This can make the process faster and smoother.

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WHAT TO DO IF YOU'RE DENIED A DEBT CONSOLIDATION LOAN IN MICHIGAN

Lenders might deny your loan application due to poor credit scores or high debt-to-income ratios. Before applying for a debt consolidation loan in Michigan, check your credit report for errors and work on paying down existing debts.

You can also consider contacting credit counseling agencies to help manage your debts better, such as CC Advising, Inc. and GreenPath, Inc. Another option is to use a 0% APR balance transfer credit card, which allows you to transfer high-interest debt to a card with no interest for a promotional period, potentially saving you money on interest payments.

FAQ: Debt Consolidation Loans in Michigan

MoneyGeek addresses common questions about debt consolidation loans in Michigan. Our guides cover everything from loan eligibility to potential benefits, helping you understand how these loans can simplify your financial situation.

What is a debt consolidation loan in Michigan?
What's the best debt consolidation loan lender in Michigan?
Can I get a debt consolidation loan in Michigan if I have bad credit?
Can a credit counseling agency in Michigan help manage debt?
When should I get a debt consolidation loan in Michigan?

MoneyGeek analyzed 28 national lenders licensed to do business in STATE based on a rubric that includes APR ranges, loan amounts and repayment terms, among other key areas. We use a point-based system and assign scores according to the presence or absence of desirable features in various important categories.

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We conducted our analysis in September 2024.

28Lenders Analyzed

About Zachary Romeo, CBCA

Zachary Romeo, CBCA headshot

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.

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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.

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