Best Personal Loans in Michigan

How to choose the best personal loan in Michigan?

Personal loans can be a useful tool to fill in any gaps in your budget. When used smartly, a personal loan can give some financial flexibility and improve your financial health. So, it is important to find a loan that meets your financial needs. With that in mind, here are some strategies for comparing and choosing the best personal loan in Michigan.

Annual Percentage Rates

The annual percentage rate (APR) is one of the most important features of a loan to consider. The APR is usually a more accurate indicator of how much you will pay than just the interest rate as APR also includes fees into the amount. Comparing APR instead of simple interest rates can tell you which loan will cost you more in the long run.

The APR in Michigan varies from 2.99% to 35.99%.

Loan Amount

You might not know the exact sum of money you need, so it helps to research loan amount options and pick a lender that provides a substantial amount. In Michigan you can find loans from $300 to $100,000. There is an option to find a lender that allows you to withdraw a loan in parts and only pay interest on the money that you actually use. These kinds of flexible loans are useful for projects where it may not be clear how much you will need at each particular period of time, like home renovations or car repairs.

Monthly Payments

The monthly payment is the total amount you have to pay every month. Make sure that the monthly amount is something that fits comfortably into your budget. You have to be able to pay your other bills while also paying back the loan plus interest.

Credit Requirements

Generally speaking, most lenders prefer borrowers with good to excellent credit (670 or higher). However, some lenders will accept those with poor to fair credit. Having a high credit score does not necessarily mean that you will get approved with a better rate, but it will increase your chances. The lowest credit score acceptable in Michigan is Poor (300-579). So you need to tailor your search to your credit score to get the best possible loan terms.

Collateral

Most personal loans are unsecured, meaning that they do not require collateral. However, some loans will require it. Secured loans often have lower interest rates as the lender incurs less risk with the collateral present. Unsecured loans, in contrast, usually have higher interest rates. So if you are worried about high interest rates (which can be as high as 35.99% in Michigan), a secured personal loan might be an option.

Origination Fee

Most lenders charge processing fees in addition to interests. Most of the time, the processing fee, also called loan origination fee, is a percentage of the total loan amount. The typical loan origination fee is around 0.5%-1% of the loan amount, but amounts vary from lender to lender. Choosing a personal loan with low processing fees can save you money in the long run.

Compare and choose the best personal loan in Michigan

Personal loans are a useful financial tool and can help simplify your finances. The side-by-side comparison of all loan options available in Michigan will help you when choosing a loan with optimal terms for your financial situation.

These particular characteristics of the loan were added to the table because we consider them the most important ones when comparing personal loans.

5 simple tips for increasing personal loan approval odds in Michigan

The last thing you want is to go through the loan process and get denied. Taking the time to maximize your odds of personal loan approval will undoubtedly benefit you in the future. So, if you are considering a loan in Michigan, here are five steps to maximizing your personal loan approval odds.

1. Get Your Credit in Shape

The best way to increase your loan approval odds is to improve your credit score. Though the minimum credit score requirements we have found in Michigan is Poor (300-579) having a high credit score will make it more likely that you will be approved. Here are some ways to improve your credit score:

• Don’t miss any debt payments. Your payment history is one of the most significant factors determining your credit score.
• Keep total credit utilization low. The less of your total credit limit you are using, the better.
• Don’t apply for new credit too much. Hard inquiries can damage your credit score, so avoid applying for new credit lines.
• Dispute errors. About 1 in 5 credit reports have errors in them. You can dispute errors and have them removed to increase your credit score.

2. Increase Your Income

Lenders examine your debt-to-income ratio when considering approval, so one way to improve your odds is to increase your income. Of course, it is easier said than done, nevertheless, there are still some options to achieve an income increase. You can ask for a raise at your job, or you can pick up a part-time job to make extra money. Any income increase makes your debt-to-income ratio lower and improves your odds.

3. Avoid Debt

Avoid taking on any new debt while you are in the process of applying for a personal loan. Lenders consider debt to be a risk, so any debt you have will have a negative impact on your odds. So try to avoid acquiring new debt and try to pay off any existing debts. The less debt you have, the easier it will be to get the personal loan.

4. Be Realistic About Amounts

The lenders are not keen on giving large amounts of money, as it means more risk for them. The maximum amount available in Michigan is $100,000, but it’s not very easy to get this amount. The more money you want, the more income you will need to pay it off. As such, you are much more likely to be approved for smaller loan amounts. Small loans do not impose as much risk to lenders, and you will have an easier time paying off a small loan. Figure out exactly how much money you need, and ask for the minimum amount. The minimum amount lenders offer in Michigan is $300.

5.Get a Joint Applicant

You can also consider finding a joint applicant. If you sign up with a joint applicant, lenders will take into consideration both of your credit scores and incomes. You can also find a co-signer. A co-signer agrees to pay the loans if you default. Make sure that you trust your joint applicant or co-signer as your finances will be tied together.

Conclusion

Getting a personal loan may sometimes be a desperate measure, so you need to be ready for the possibility. If you start working this out today, you will have more chances of being approved for a personal loan.