Are you looking for all the details on bad credit loans in Michigan? Then you’ve come to the right place!

There are lots of good reasons for personal loans. Personal loan products can help us tackle credit card debt, or fix a financial emergency. But, many factors play a role in our ability to borrow money.

Michigan: The Basics

Michigan is a state in the midwestern United States, located in the heart of the Great Lakes region. Once part of France’s large colony in the New World, Michigan became the 26th US state in 1837.

Michigan is home to 10.1 million residents, making it the 10th most populated state in the country.

10 Largest Cities in Michigan

1. Detroit 639,111
2. Grand Rapids 198,917
3. Warren city 139,387
4. Sterling Heights 134,346
5. Ann Arbor 123,851
6. Lansing 112,644
7. Dearborn 109,976
8. Clinton 100,513
9. Canton 98,659
10. Livonia 95,535

Michigan has been a center of agriculture and business for most of its history. Its farming industry is among America’s largest producers of cherries, blueberries, and apples. The state is also the hub of the US automotive industry. Giants like Ford and General Motors (GM) are headquartered there. In the past few years, Michigan has seen rapid growth in tech jobs and in areas of research & development.

Personal Loans in Michigan

Like any other state, people in Michigan struggle with getting an installment loan due to bad credit. But there are options available to them.  Let’s look at how you can borrow money—even with bad credit—in the great state of Michigan.

What Is a Personal Loan?

A personal loan is a loan used however the borrower wants to use it. Personal loans are usually installment loans, which means that the borrower repays in a series of payments over time. Typically, personal loans have monthly installment plans. Each installment loan payment includes a portion of the borrowed and the origination (processing) fees and interest.

How to Get a Personal Loan

Personal Loans in Michigan are available through a host of lenders. Installment loans are available through these three basic channels:


Banks can provide many options for installment loans with low-interest rates and manageable monthly payments. Your installment payments can be automatically withdrawn from your bank account if you are a customer.

Credit Unions

Credit unions are organizations that provide financial services to their members. They perform many of the same functions that a bank would, like holding checking and savings accounts and providing installment loans. Credit unions serve specific peer groups, like professionals, labor unions, and the military. Most credit unions offer a lifetime membership. Credit unions serve the best interests of their members instead of focusing on generating profit like a regular bank. Because of that fact, you can usually get an installment loan with a lower interest rate than a bank offers.

Private Lenders

Loans in Michigan are also available through private lenders. These companies finance installment loans for a wide range of needs. Additionally, many private lenders offer the option to get an installment loan online.

Secured vs. Unsecured Loans

Personal installment loans in Michigan come in two categories: secured and unsecured.

A secured loan is a loan that requires collateral—property or assets like a home, car, or even a savings account.  If you don’t repay the loan, you will lose the collateral to the lending institution. Common types of secured loans include mortgages and auto loans.

An unsecured loan is a loan backed only by the borrower’s creditworthiness. Since unsecured loans don’t have any collateral, lenders consider these as higher-risk loans. Unsecured debt examples include credit cards and student loans.

Installment Loans in Michigan and Your Credit

Many lenders will perform a credit check when you apply for an installment loan.

Installment loans are issued based on the lender’s trust in the borrower’s ability to repay the loan.  One of the most significant determining factors of that trust is your credit score.

Your credit score is a rating that shows your creditworthiness. Credit scores come from credit reports that store the details of your credit history and relationships with your creditors. Almost every consumer that has ever had a loan, credit card, or property in their name has a credit report.

The five following factors determine your credit report:

Payment History

Your payment history is the record of any late or delinquent payments across your credit accounts. The payments reported come from credit card companies and public utilities or any other entity you owe. Payment history is the most important factor in your credit report. That is why it is critical always to pay your bills on time or work out late payment arrangements with your creditors.

Credit Utilization

Credit utilization is a ratio that shows how much of your available credit you are using. For example, let’s say you have a credit card with a max limit of $1,000. At the end of the month, you have racked up credit card debt totaling $200. That makes your credit utilization 20%. To keep your credit score healthy, experts advise keeping your utilization under 30%.

Credit History

Your credit history shows how long you have been managing debt. The longer your credit history, the better your chances of getting a personal loan. Your credit history is only as good as your oldest open account, so consider not canceling any lines of credit or credit cards after you pay them off.

New Credit

New credit is all about how often you attempt to apply for credit. Multiple credit checks or hard inquiries into your account may be a sign that you are in financial trouble. If you are planning on getting an installment loan, you should avoid applying for any other line of credit beforehand.

Credit Mix

A credit mix shows your ability to manage different types of debt. For example, a person with a good credit mix would manage debt from credit cards and personal installment loans. Your credit mix is the least considered factor of your credit report; good credit doesn’t rely on a solid credit mix, but it doesn’t hurt to have one.

All of this information is compiled by agencies called credit bureaus. Credit bureaus analyze the information and create credit reports for every consumer, along with issuing a 3-digit credit score. Credit scores range from 300-850:

  • 300–499 Very Bad Credit
  • 500–600 Bad Credit
  • 601–660 Fair Credit
  • 661–780 Good Credit
  • 781–850 Excellent Credit

Equifax, Experian, and Transunion are the three major credit bureaus reporting on Americans. Each credit bureau produces its credit reports, so your credit score will likely differ at each bureau.

Options for Personal Loans in Michigan

Here are some more personal installment loans in Michigan:

Peer-to-Peer (P2P) Lending

P2P lending shifts the power in lending away from traditional financial institutions and towards private investors, who are looking to provide loans to people in need as investments.

With P2P lending, borrowers connect with lenders that can offer rates on a sliding scale based on the borrower’s needs and the risks to the lender. Investors involved in P2P lending will look towards factors like payment history and income to help them decide on approvals. Investors simply want a return on their money. P2P lenders are more concerned about whether or not you can pay back their loan now and less concerned about past mistakes.

Emergency Loans

We can never prepare for everything in life. In those instances, emergency loans can help.

Emergency loans are personal loans used for those unforeseen circumstances, like medical expenses or critical car and home repairs. Emergency loans can either be repaid as a short-term loan or through an installment plan.

The application process for an emergency loan is a lot like applying for any other loan. But instead of looking at your credit score, emergency loan lenders consider your payment history and income to ensure that you can repay the loan. There are also emergency loans you can get with no job, but they tend to have higher interest rates than most loans.

If approved, lenders can disburse emergency loans quickly. And just like any other unsecured personal loan, an emergency loan will almost always come with a higher interest rate than a secured loan.

Before you apply for an emergency loan, see if you can prequalify with several lenders so that you can compare loan terms and interest rates. This loan will have monthly payments that you will have to include in your monthly budget, so you want to be sure that you can afford to take on this loan in addition to covering your basic needs and other responsibilities.

In addition to an unsecured personal loan lender, types of emergency loans include:

Pawn Shop Loans

In exchange for a valuable item (collateral), a pawnbroker can issue a borrower a loan amount anywhere from 25% to 60% of the item’s value. A Pawn shop loan usually carries an interest rate of about 25% every month, the annual percentage rate of many credit cards. And, if a borrower misses loan repayments, they cannot get their item back; it entirely becomes the pawnbroker’s property to sell.

Auto Title Loans

Auto title loans are emergency loans that use a car’s title (proof of legal possession) as collateral. In exchange, a lender will usually provide a loan up to 25% of your car’s current value. Car title loans require no credit check and are repaid either in installments or a lump sum. Missing payments could mean having your car repossessed by the auto title loan company.

Payday Loans

Payday loans are expensive short-term personal loans designed to address short-term cash flow problems.

To apply for a payday loan, a borrower only needs a valid ID, active checking account, and proof of employment. If approved, the borrower signs the loan agreement and writes the lender a personal check for the cash they want to borrow, plus the lender’s origination fees and interest. The lender then gives the borrower the loan amount and then cashes the check at the end of the loan term, anywhere between 14-30 days.

Payday lenders process their applications within a day or two. If you use an online payday loan service, you could see the cash in your bank account within hours of loan approval. If you do not repay a payday loan in full by the end of the loan term,  the outstanding balance will roll over into a new loan. This is how payday loans get very, very expensive.

Since interest compounds over time, payday loans can have a Annual percentage rate (or APRs) of 300-400 percent. That kind of debt can be crushing.

Get Personal Loans in Michigan with CreditNinja

Are you looking for personal loans in Michigan? CreditNinja can help you get your finances back on track with a cash loan!

The best personal loan you can get is the one you can get as soon as possible. And that’s why CreditNinja’s application process is ready whenever you are.

  • Our online loan application takes just a few minutes.
  • CreditNinja approves most applications within 24 hours.
  • Funds are deposited to your bank account the next business day.

CreditNinja customers avoid the hassle and expense of predatory online payday loans with competitive loans and quality customer service. We even offer loans for bad credit that can get you the extra cash you need now!

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