Bad Credit Loan Lenders – The Detroit Michigan Connection

Today’s focus is on the lenders who provide loans to people who have bad credit, and we have four different lenders to highlight. All of these lenders consider unsecured signature loans to people living in the Detroit, Michigan area. All of these lenders approve loans to people who have low credit scores throughout the state of Michigan, but today’s focus will be on the city of Detroit itself.

The loan amounts are all within the $500 increment range that we have used in the past, and this will be the last publication using this same template for our borrowing and lending data. We are excited to move on and develop a completely new template for the next year.

Some of the data populating these tables you see below came from the borrowers in the Detroit area, and some of the data comes from the actual lenders who provide the loans to these applicants. The first lender approved a $2500 loan over a three month term, which was paid back with an interest rate of 14%, which is a reasonable rate when we take into consideration the borrower had a low FICO score of only 600.

The second lender qualified a borrower for a $4000 loan over a six-month term at an interest rate of 16%, and you can see all of the calculations in this lender’s table below as well. The third lender provided a loan of $6000 for a nine month term with a 38% interest rate, and the fourth lender funded a loan of $8500 over a one year term, with an interest rate of 44%.

We deliberately chose lenders based on the APR they were approving the loans at to show a variety of calculations in the lending agreements. We wanted to show how some lenders charge much more than others over the terms of their agreements, and we wanted to show the difference between a lower APR and a higher APR in relation to the overall costs assumed by the borrower.

We are going to split up the city of Detroit into four subsections, using Detroit East, Detroit West, Detroit North, and Detroit South, completely based on where the borrowers live. However, the true fact is that the lenders in these cases all service the entire city. In the tables we show the different neighborhoods and areas of city, in regards to some of the other loans the lenders have approved in the same quadrant. We decided to create our own mapping of Detroit for the purposes of this exercise, and steered clear of using City Districts as per the normal cordoning based on conventional mapping. This made it easier for us to explain and point out the different parts of the city where these lenders are operating.

Unsecured Bad Credit Loan Lender for $2000-$2500 in Detroit, MI (East)

Our first lender gave a loan to a borrower in East Detroit and the applicant was looking for a loan between $2000 and $2500, and she wanted it approved fast. The borrower didn’t disclose much information, except that she needed the funds deposited into her bank account the day after she applied for her loan online.

To specify the location of this borrower, we will go further into the details of her exact location. She lives in an area of Detroit called East English Village, and works in an area called Grosse Pointe which is closer to the shores of Lake St. Clair, and also very close to the United States/Canada border. This applicant lives very close to where she works, and at the time of application she didn’t own a vehicle. She just took the bus from the Village down to Grosse Point for work.

This lender has been doing bad credit loans for seven years now, and has been fairly active throughout the State of Michigan, with their highest concentration of approved loans in Detroit. They lend out money for all-purpose usage, and they do a variety of different lending products, including payday loans and cash advances. For this borrower however, they provided the loan over a three month period, with extremely reasonable interest rates when you consider the applicant’s low credit score.

This lender has provided loans to customers in Islandview, Grosse Pointe, West Village, English Village, Jefferson Chalmers, Marina District, and Eastpointe. They don’t do a lot of advertising, and prefer to seek out preferred borrowers using websites like ours to find leads. We haven’t had any complaints about this lender in this table yet, because they’re interest rates have been reasonable and they don’t gouge their customers.

This lender’s charge-off rate is only 3%, which is very good when you consider that these are all unsecured cash loans that they provide. The reason they don’t have a higher charge-off rate is because they are very careful when it comes to choosing who they lend money to.

The loan products this lender offers their customers are often referred to as signature loans, because the borrowers don’t have any kind of security or collateral to offer.

The reason this borrower wanted a fast cash loan is because she wanted to buy a used vehicle. She wasn’t that fussy about having a brand new car with all of the options, and this amount of money was enough for her to get a safe and reliable vehicle. Her father was an auto mechanic (retired) and he helped her pick out a car. He made sure that her $2500 went as far as possible on the purchase.

Unsecured Bad Credit Loan Lender for $4000-$4500 in Detroit, MI (West)

The second lender found their customer through our website and database as well, and they lent the borrower $4000 with a finalized interest rate of 16%, over a six month term. The monthly payments on the loan agreement came to $688.21, and the total pay back to this lender was just under $4200. The exact amount can be seen in the table below.

This lender has done loans for bad credit applicants in West Detroit many times before. In their 15 years of doing business, they have provided loans to people who have bad credit rating in areas of Detroit such as Briggs, Core city, Westland, Garden City, Dearborn, Dearborn Heights, Franklin Park, Livonia, and Canton, Michigan. This lender’s products could also be called unsecured signature loans. They don’t require security, but they are very careful about who they lend money to. They check to make sure that the applicant has a solid employment history, and they require the borrower to provide proof of employment, proof of income, and proof of DTI (debt to income ratio – how much money the borrower has to pay each month to their different creditors).

Once again, this lending transaction shows that the borrower fully understood their financial situation in regards to credit score (590), and asked for an APR of 12%. The lender here approve the loan at 16% when it was all finalized for the four thousand dollar note.

In this case the borrower tried to find a conventional lender before they ever went online to look for alternatives. This borrower lives in Dearborn, Michigan which is just West of Detroit down Highway 12 (Michigan Avenue), and tried to get approved at the Comerica Bank for a personal loan of $5000. They didn’t get approved there so they tried the Bank of America, with no help there. They also tried the Charter One Bank at the corner of Schaefer Road, and Michigan Avenue, and the Dearborn Village Community Credit Union on Maple Street. They also tried at the Chief Financial Credit Union, which is also on Schaefer Road in Dearborn. All of these conventional lenders turned her down and denied her applications. It’s very difficult to get approved with a bank if you have a credit score under 600.

Unsecured Bad Credit Loan Lender for $6000-$6500 in Detroit, MI (North)

The third lender in this selection of loans, lent out $6000 over a nine month term to a customer living in North Detroit. They have lent money to applicants living in Royal Oak, Pontiac, Highland Park, Ferndale, Southfield, Sterling Heights, Hamtramck, and Warren, all based on unsecured cash and signature loans.

What sticks out about this particular lender is the extremely high interest rate they charged this borrower. This particular lender’s charge off rate is around 8%, which is fairly high, telling us that they service bad credit applicants who are deemed to be extremely high risk. This is typical in the high risk loan sector of the small consumer-based loan market. They justify these high APR levels because they have to recoup their losses from customers that walk away from their financial responsibilities.

This lender is extremely flexible when it comes to the terms of their loan agreement, the amounts they lend out, and the financial stability of the borrower. Our borrower here had only been employed for six months at the time of their pre-application, and they had a severely damaged credit rating. Considering all of the knocks against her credit score, it was surprising to find out that her FICO number was only as low as 580. With all of her blemishes on her rating, we would’ve expected her FICO to be around 520. No question about it – this borrower was an extremely high risk applicant at the time of their online application.

This borrower didn’t even bother to apply for a loan with any of the banks in the Detroit area, because they knew full well that they would not be approved for a conventional loan. She couldn’t even get approved for a credit card with a low limit of $500. The only credit card she could get approved for was a secured credit card whereby she provides the funds upfront to the credit card company. You know the kind I mean. The actual residence of this applicant at the time of application was in Pontiac, Michigan. This lender has done many different loans in Pontiac.

Unsecured Bad Credit Loan Lender for $9000-$10,000 in Detroit, MI (South)

For the fourth loan we go to an applicant living in South Detroit, to highlight the bad credit lender in this deal. The loan agreement was $8500 cash money to be paid back over a 12 month term at a whopping 44% APR. Just as in the last lender we highlighted, the borrower in this case was a high risk customer, and an APR this high also makes sense. The FICO score of the borrower was 570 at the time of approval, and they had a scant work history of only 11 months at the time of application.

This lender provides bad credit loans to people living all throughout the State of Michigan as well, and also approves a high volume of personal reasons in the Detroit area. They have approved loans to people who have bad credit in South Detroit, Lincoln Park, Southgate, Taylor, Troy, Melvindale, Allen Park, River Rouge, and Flat Rock. The applicant in this transaction lives in Lincoln Park.

This borrower didn’t quite understand how bad their credit rating was before applying a loan, and therefore made the mistake of applying with many different banks in their area. He applied for a $10,000 loan with the Chase Bank on Fort Street (in Lincoln Park). He also tried to get approved at the PNC Bank on Dix Highway, at the Charter One Bank, the Comerica Bank, the Lincoln Park Community Credit Union, and at the Michigan First Credit Union. He thought that if he tried more and more banks he would finally get approved for a loan. Unfortunately, he didn’t understand that the banks keep track of all of his requests for credit, further damaging his rating with the three major credit reporting agencies (Experian, Equifax, and TransUnion).

When you see interest rates as high as 44% one starts to think that perhaps the lender uses strong-arm tactics when it comes to debt collection, assuming that they may be a predatory lender or loan shark. This is not always the case. For instance, on our website (and on our database) we work hard to make sure that unscrupulous predatory lenders don’t get access to our growing list of applicants. We are always concerned when it comes to the prospect of having loan sharks using our database in order to gain access, and collect leads of well-meaning people who temporarily have bad credit. We don’t want to see these kinds of lenders taking advantage of people, so we have a reporting system.

If you have an application in process on our website, and you have been contacted by a lender that asks for upfront fees, or interest rates that are above 50%, we encourage you to report this to us using our contact page. We quickly remove all lenders who don’t follow the rules, and offer illegal loans, as per State law (in this case, Michigan usury limits). There are usury limits in most States of the USA that have to be adhered to, and followed as per existing legislation. We do our utmost to make sure that illegal predatory lenders, and loan sharks, don’t get access to our database of borrowers and applicants, but we need the cooperation of our users to make sure that we keep things clean.

All of the lenders from this publication are legit and trustworthy companies, and don’t use malicious tactics when collecting on overdue debts. They charge higher interest rates when the borrowers applying have bad credit ratings and somewhat sketchy information. Don’t get me wrong, all of these lenders will walk away from a borrower’s request if they see any signs of dishonesty and nondisclosure of personal and financial information.

If you are going to make an application on our website you must make sure that you disclose ALL of your creditors, and ALL of your financial responsibilities. Most lenders are very good at identifying which borrowers are being honest with them, and which borrowers have a low enough risk factor that they feel comfortable with going forward and setting up a loan agreement.

One last thing that we should point out with all of these bad credit loan lenders, and that is the time lapse between the pre-application taken on this website, and the actual funding of the loans. In the loan #1 it took three days, in the loan #2 it took 48 hours, in loan #3 it took one week, and loan #4 it took a week and a half.

You can see that the higher the risk brought upon by the borrowers financial situation (and credit score), the higher the interest rate was, and the longer the wait before funding. This all makes sense. There are hundreds of pre-applications made by applicants in Detroit and throughout the State of Michigan every week, and these four specific lenders were picked from the bunch because they varied in interest rate levels, loan amounts, and communication style. Some use phone, some use e-mail, some use fax machines, some don’t use fax machines, some use Teletrack, and some use conventional credit agencies for sussing out applicants. Either way, they all want to sniff out the borrower the best they can before making a commitment to lend.