Best Personal Loans in Michigan for 2024

With a MoneyGeek score of 98, First Tech is the best choice for personal loans in Michigan, known for excellent customer service, competitive interest rates and a transparent lending process.

Updated: November 27, 2024

Advertising & Editorial Disclosure

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.

Best PersonalLoan LendersMichigan

2024

Best Personal Loan Lenders in Michigan

Best Overall - First Tech

Runner-Up - PenFed

Best for Bad Credit - Happy Money

Best for Debt Consolidation - Alliant Credit Union

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.

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

SEE THE BEST PERSONAL LOANS IN MICHIGAN CITIES

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

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.

Personal Loan Calculator

Estimate the monthly payment for your loan.

Updated: Dec 21, 2024

Loan Amount

Loan Term

5 Years

Interest Rate

Payment:

$0/Month

Total Principal Paid:

Total Interest Paid:

Total Paid

Why You Can Trust MoneyGeek

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

How does MoneyGeek score lenders for bad credit loans?

We use our standard methodology and weights, but we limit our analysis to lenders that explicitly mention their minimum credit score requirements on their public websites. Only 12% of lenders that offer personal loans fit this criteria.

We filtered our analysis to include lenders with minimum credit score requirements between 580 and 640, which happens to meet Experian's definition of fair credit. Our research did not find any published minimums lower than 580.

It's still possible to get a personal loan if you have lower credit than this, but you will not have access to the best interest rates and terms available. Some lenders offer prequalification, which doesn't affect your credit score, to help you understand what you might be eligible for.

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

How does MoneyGeek score lenders for debt consolidation?

We looked only at interest rates and fees and loan terms and flexibility, with a 60% and 40% weighting respectively. If the winner in our analysis also was won as Best Overall or Runner-Up, then we selected the next best winner for diversity.

Some lenders have minimum interest rates that are higher for debt consolidation loans compared to their rates for general-use loans. When consolidating debts, finding the lowest interest rate possible will help you save the most money over the long-term.

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

Select

Credit Band:690 to 719

Loan Amount

Select

Loan Amount:$2,000


$348	6
$180	12
$97	24
$69	36
$55	48
$47	60
$42	72
$38	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

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

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?

According to MoneyGeek's analysis, the best lender in Michigan for personal loans is First Tech, with a MoneyGeek score of 98 and average APR of 12%.

Where is the best place to get a personal loan in Michigan?

In Michigan, you can obtain personal loans from online lenders, banks and credit unions. For in-person services with local access, consider credit unions, such as CommunityChoice Credit Union, Michigan First Credit Union and Lake Michigan Credit Union.

Who has the best personal loan interest rates in Michigan?

PenFed offers the lowest APR in Michigan for personal loans, according to MoneyGeek, at 7.99%. Note that the best rates are often reserved for individuals with excellent credit scores, and the best offer for you might differ based on your financial needs and circumstances.

What can I use a personal loan for in Michigan?

The use of personal loan funds may differ by lender, but typically, you can use personal loans for home or auto repair, to consolidate debt or for wedding expenses. They usually cannot be used for college tuition or gambling.

What are some personal loan red flags to look out for?

When considering personal loans, beware of red flags, such as extremely high APRs, lack of transparency about loan originators and a high number of poor consumer reviews. Also, be cautious if there’s little information on how the application will impact your credit score.

Do lenders consider income level when applying for a personal loan?

Yes, lenders do consider your income level when you apply for a personal loan. They evaluate your debt-to-income ratio, credit score, employment history and credit history. It's advisable to avoid opening new lines of credit during the application process as it can affect your application negatively.

Personal Loans

Best Personal Loans

Personal Loans

Best Bad Credit Loans

About Zachary Romeo, CBCA

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.

Read Full Bio »

sources

Experian. "What Is the Average Credit Score in the US?." Accessed October 13, 2024.

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.