If you’re looking to borrow money and can’t ask friends or family for help, a personal loan is probably your best bet. They have lower interest rates than most credit cards, fixed terms and an easy application process that only takes minutes. Our partners at Consumer Affairs researched the best personal lenders in Detroit to give you reliable options for borrowing.
People seek loans for major purchases, medical bills, starting a business, vacations and weddings. Personal loans in Detroit are most commonly used for debt consolidation and home remodeling.
It’s no wonder Detroiters are ditching the credit card to cover the cost of remodeling. Personal loans have perks like fixed terms and interest rates, which means you know exactly when your loan will be paid off.
Personal loans in Detroit are also referred to as signature loans because most don’t require collateral, only your signature on the dotted line. With these loans, your home or car can’t be repossessed if you fall behind on payments.
Favorable terms are possible with strict standards for approval. Qualifications vary by lender, but most that offer low, fixed-rate personal loans have a minimum credit score and minimum income requirements. Those with poor credit are not out of luck as some types of personal loans are for people with bad credit.
Unsecured personal loan
Not backed by collateral, rate based on credit score
Secured personal loan
Backed by collateral, lower rates
Interest rate does not change
Rate subject to change
Debt consolidation loan
Rolls multiple unsecured debts into a single loan with reduced APR
Paying off debt
Backed by a co-signer with strong credit
Little-to-no credit history
Unsecured short-term loan with a very high interest rate
Credit scores above 670 are good and below 580 are poor. A low credit score doesn’t prevent you from getting a personal loan, but it does limit your options for lenders and increase your likelihood of a high interest rate. Local credit unions offer the most favorable terms for borrowers with poor credit.
Regardless of the type of personal loan you get, the process is about the same. First, check your credit score, then get pre-qualified for a loan. Pre-qualification gives you an idea of how much money lenders would be willing to loan you and at what interest rate.
Pre-qualification only requires a soft credit check, which doesn’t hurt your credit score. If you apply for the loan first and are denied, the credit check will appear on your credit report and temporarily lower your score.
Next, check out local credit unions and the online lending marketplace to compare loan amounts, interest rates, monthly payments and terms by using the information in your pre-qualified offer.
Review the fee schedule for the application fee, origination fee, late payment penalties, returned check penalties and prepayment penalties. The Truth in Lending Act requires lenders to include a list of all fees and charges that will be applied to the loan. If the fee schedule is not included in the agreement, request one or choose a different lender.
The final step is the approval process. You’ll need verification of your address, proof of income and a valid photo ID. Once approved, the money can be in your account as soon as the next day.
Repayment is easy with personal loans. You pay the amount specified once per month on the date specified, either electronically or by check. At the end of the term, your loan should be repaid in full.
Offering loans from $2,000 to $35,000, this is a premium option for employed borrowers looking for fast and easy access to a personal loan. Best Egg has originated more than $6.5 billion dollars in loans since opening in 2014 and has a 92 percent five-star rating on Credit Karma. Customers love the ease and convenience of the online application process.
An ideal lender for borrowers with good credit, FreedomPlus requires a minimum credit score of 640. Customers can borrow between $10,000 and $40,000, get low APRs and have the option of choosing their payment date. Online reviews in Detroit cheer the efficient process and caring customer service reps.
Credit Direct Loans
A five-minute application can put money in your account within 24 hours of approval. Credit Direct Loans provide Detroit borrowers with multiple loan options for amounts up to $40,000. Customers have plenty of good things to say especially about this company’s fast, courteous service and speedy results.
For approval in seconds and money the same day, this Detroit-based lender has you covered. RocketLoans provides personal loans between $1,000 and $50,000 at competitive APRs to borrowers with incomes of at least $24,000 and a minimum credit score of 640. Customers love the easy application process, prompt transactions and knowledgeable staff.
One Detroit Credit Union
Offering both traditional personal loans and short-term seasonal loans (for winter or summer), One Detroit Credit Union lets borrowers customize the loan that works for them. Clients say their experience is rewarding and that knowledgeable staff helped them save more, pay off debt, improve credit scores and get low interest rates on loans. Just be aware of long waits midday at the Detroit office.