Best Personal Loans in Michigan

How to choose the best personal loan in Michigan?

Personal loans can be a helpful tool to fill in any gaps in your budget. When used wisely, a personal loan can give some financial flexibility and improve your financial health. So, it is important to find a loan that is compatible with your finances. 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 4.49% to 36%.

Loan Amount

You might not know exactly how much 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 $100 to $500,000. There is an option to choose 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 a good match for projects where it may not be immediately apparent 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 general 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 definitely 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, which means 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 want to avoid high interest rates (which can be as high as 36% 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 may 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 that simplifies 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

At some point in your life, you may need to borrow money. The last thing you want is to go through the loan process and get refused. 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 increasing 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 important 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 too often.
• 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 look at 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, however, there are still some options to get 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 owe will decrease your odds. So try to avoid acquiring new debt and try to pay off all existing debts. The less debt you have, the easier it will be to get the personal loan.

4. Be Realistic About Amounts

If you ask for more money, then you are asking the lender to take on more risk. The maximum amount available in Michigan is $500,000, 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. Thus, 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 back a small loan. Figure out exactly how much money you need, and ask for the minimum required amount. The minimum amount lenders offer in Michigan is $100.

5.Get a Joint Applicant

You can also consider getting a joint applicant. If you sign up with a joint applicant, lenders will consider 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 can rely on 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 can maximize your odds of being approved for a personal loan.