Bad Credit Personal Loans in Michigan

If you’re thinking about taking out a personal loan in Michigan but have bad credit, there are some basic things you may want to know. Fortunately, securing loans (even with bad credit) has become more attainable in recent years. In this article, you’ll learn:

  • What kind of loans are available in Michigan?
  • What products or services can a loan for bad credit be used for?
  • How can I apply for a bad credit loan with Bad Credit?

 

Read on to understand how bad credit personal loan options* work in the great state of Michigan.

Bad Credit Personal Loan Options in Michigan

Bad credit loans are short-term financial solutions for individuals in Michigan who may need to borrow money but may have a less than perfect credit score to qualify for a loan with a conventional financial institution. While in the past this was challenging to get access to funds with bad credit, the good news is now, whether you have bad credit or no credit, loan products may be available to help you access the products you need.

 

Since lending laws vary from state to state, there may be differences in lending products available for you to consider.

 

For instance, although car title loans are legal in Kentucky, they are considered illegal in Michigan. The laws around a payday loan in Maine mean the max you may be able to borrow is $2,000, yet in Michigan, this caps at $600. Consumers with bad credit will have to consider the differences between each lending product based on their individual needs including:

  • Bad Credit Personal Loans in Michigan
  • Bad Credit Auto Loans in Michigan
  • Bad Credit Home Loans in Michigan
  • Bad Credit Payday Loans in Michigan

Understanding Michigan Loan Types for Bad Credit

Several legal financing options are available for borrowers with bad credit who may reside in Michigan. Options include personal loans, auto loans, home loans, and payday loans. While home and auto loans must be used for specific categories (like housing and transportation), personal and payday loans may be more generalized and typically do not have restrictions on reasons for funding.

Bad Credit Personal Loans

Bad credit loans are similar to personal loans and work much the same way. Money is borrowed from a direct lender, and repayment is made via fixed monthly payments over a predetermined period. Terms tend to be short at six months to five years.

 

There are generally two types of personal loans that consumers can apply for: secured and unsecured. Many alternative lenders may offer secured and unsecured loans for consumers and in most cases, in terms of the unsecured loans, the funds can be accessed as soon as the next business day.

 

**Please Note: Payment solutions vary based on the merchant and will be indicated at the beginning of the application process. Be sure to confirm that the merchant you select offers the lease, loan, or alternative payment solution you intend to apply for.

Bad Credit Auto Loans

Car title loans are illegal in Michigan due to state restrictions. Fortunately, there are loans available for those interested in purchasing a vehicle.

 

Traditional auto loans are available through loan companies but qualifying for reasonable loan rates with a credit score less than 600 may be difficult. Many used car dealerships offer in-house financing options to help borrowers with bad credit get a vehicle within their budget.

Bad Credit Home Loans

Acquiring a home in Michigan with bad credit may be a challenge. The general credit score standard for conventional home loans is a 620 minimum with no recent bankruptcies, foreclosures, judgments, or collections. However, borrowers who have a 580 credit score may qualify through the FHA. The VA has no minimum credit requirement, though lenders can set their own.

Bad Credit Payday Loans

Bad credit payday loans, also known as deferred presentment service transactions, cash advances, and check advance loans, are small, short-term loans for a period of two to four weeks. These loans need to be paid back quickly, however, usually by the next paycheck, so be sure to learn about the terms and conditions to see if this meets your financial needs.

 

Currently, bad credit payday loans are legal in Michigan. However, some restrictions have been put in place to protect borrowers. Some of those restrictions include loan terms that are 14-31 days with a maximum allowable loan of $600. In addition, borrowers cannot have more than two loans outstanding at any time, although these loans can be from different lenders.

What Products or Services Can a Bad Credit Loan Get You?

Borrowers in Michigan may use bad credit loans in various ways. In general, you may be able to finance almost any product or service you may need through a bad credit loan.

You might be wondering: Is a lease the same as a loan?

Leases & loans are quite different – here’s what you need to know:

  • A loan (or personal loan) is generally a lump sum of funds provided on the recipient’s behalf that is paid back over time (and, like most loans, includes interest.)
  • A lease (or lease-to-own option) allows the recipient to possess the leased item for a pre-determined period of time and includes the option to purchase the item outright. It does not include interest but has leasing fees.

Uses for Bad Credit Loans in MI

Home repairs and replacements often happen at the most inconvenient times. Small personal loans may help bridge the gap in funds to access goods and services quickly.

 

Products financed through bad credit loans include refrigerators, air conditioners, washers and dryers, mattresses, furniture, and electronics. Below you will find some uses for bad credit loans in Michigan, and their average cost:

 

 

Product Average Price** Link
Furniture $400 – $10,000 Find a Store*
Mattresses $250 – $3,000 Find a Store*
TVs $300 – $3,500 Find a Store*
Refrigerators $1,000 – $2,500 Find a Store*
Washers and Dryers $300 – $2,000 Find a Store*

**Please Note: Payment solutions vary based on the merchant and will be indicated at the beginning of the application process. Be sure to confirm that the merchant you select offers the lease, loan, or alternative payment solution you intend to apply for.

 

**Retail prices may vary based on extras and the type of product you purchase. For example, a TV can have a retail price as low as $300, however, some models may have a retail price upwards of $3,500 or more.

Michigan Bad Credit Loans in Summary

If you live in Michigan and have a less-than-stellar credit history, there are financing options available to help you secure the products or services you may need.

 

You may be able to obtain a loan with flexible repayment terms. Also, a loan application process may be completed online, and the approval process can be quick. If your loan application is approved, the funds may be deposited into your bank account as early as the following business day.

 

Find a store near you* to apply for financing products and services you need today.

**Please Note: Payment solutions vary based on the merchant and will be indicated at the beginning of the application process. Be sure to confirm that the merchant you select offers the lease, loan, or alternative payment solution you intend to apply for.

Michigan Bad Credit Loans FAQs

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What Kinds of Loans for Bad Credit Can You Get in Michigan?
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What Does a Lender Consider to Be “Bad Credit”?
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Where’s the Best Place to Get a Bad Credit Loan?
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How Can I Apply for a Bad Credit Loan?
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How Much Money Can I Borrow with a Bad Credit Loan?

**Please Note: Payment solutions vary based on the merchant and will be indicated at the beginning of the application process. Be sure to confirm that the merchant you select offers the lease, loan, or alternative payment solution you intend to apply for.

© 2025 American First Finance. All Rights Reserved.

1 Application Terms: Your application, including the amount, cost, and approval, is subject to review and is not guaranteed. Applications are reviewed based on data you provide and one or more of the following: identity verification, bank verification, information from a third-party, a credit reporting agency, and/or prior experience through American First Finance (AFF).

Bank Loan: A consumer installment loan is originated by FinWise Bank, a Utah-chartered bank, Member FDIC and sub-serviced by AFF. The loan may be funded by the bank to the merchant for you to purchase item(s) and/or service(s). In some cases, the loan for returning customers is funded directly to your checking account for personal, family or household use.

Retail Installment Sale Agreement: A retail installment agreement is not a loan. You may enter into a Retail Installment Sale Agreement with a merchant to purchase item(s) and/or service(s). AFF may purchase the Agreement from the Merchant. An example of a retail installment transaction based on a 12-month term with 26 biweekly payments: if you make a purchase of $1,000 and make a $50 down payment with an Annual Percentage Rate (APR) of 169.53%, you will have 25 bi-weekly payments of $74.79 and 1 bi-weekly payment of $75.06. The total amount repayable will be $1,944.81 with full, timely payments over 12 months.

Lease: A lease is not a loan or credit transaction. It has several names: lease, lease-to-own, rent-to-own, or rental-purchase. With a lease, you select the item(s) and AFF purchases the item(s) from a Merchant. You take the item(s) home. AFF retains ownership until you pay for the item(s) plus rental fees. Other fees may be included, such as late, non-sufficient funds, delivery, and optional Liability Damage Waiver fees. As a result, the total amount you pay for leasing an item may be more than double the retail cost. You can cancel your lease at any time without penalty by contacting AFF. An example of a 12-month lease with weekly payments: if you lease a $1,000 item and pay a $50 (plus tax) processing fee, you will have 52 additional weekly rental payments of $46.11 to complete your lease. Your total lease payments will be $2,452.21 with full, timely payments over 12 months.

2 You will save money on interest, finance charges, or leasing fees when you pay the discounted amount during the Early Payoff Discount (EPD) period or by exercising the Early Buyout Option (EBO). You must make payments larger than your regularly scheduled payments by the EPD/EBO expiration date. You will make additional payments through the customer portal or by contacting the customer service team.

3 Decisioning may take additional time and not be same day. Additional information may be required.

4 This loyalty program is offered by FinWise Bank. The program provides loyal customers the opportunity to qualify for a lower rate. A rate reduction is valid on new loans only and cannot be applied to existing loans. The rate reduction is only applicable to customers with a prior loan open for at least 150 days, with all payments posted and cleared on time for the life of the loan, and the loan has been paid in full. Maximum of two (2) rate reductions per customer. Loans are originated by FinWise Bank, a Utah-chartered bank, Member FDIC. Terms and conditions subject to change at any time without prior disclosure or notice.

5 Approval is possible without a credit score, but credit may be checked.

6 Testimonials reflect the real-life experiences of customers who used our products and/or services. Individual results may vary.

To report a problem or complaint with this lender, you may write info@americanfirstfinance.com or call customer service at (855) 721-1188.

American First Finance, LLC – NMLS ID 1757007

© 2025 American First Finance. All Rights Reserved.