How to get a Title Loan in Michigan with Bad Credit – Tips and Advice


Want to get a credit from a bank, but can’t because of bad credit history? The offer of loan companies is insufficient for you due to the low value of services? You can take advantage of car title loans in Michigan that offer conditions similar to those offered by banks when you decide to take out a loan. This type of loan is becoming an increasingly common service available in non-bank organizations operating online. However, before you decide to take advantage of a car title loan, find out more about such an offer.

Car loans in MI – basic information

What distinguishes a non-bank title loan? First of all, it is an offer available to people who are the only owners of passenger cars included in the vehicle registration certificate. A car as security for a loan must meet several conditions. The currently paid civil liability insurance and the year of the car are important. Lenders in Michigan provide secured loans for vehicles that have not exceeded a maximum of 12 years from the date of production. These conditions are similar to those required from bank customers applying for a car loan.

When deciding on a car title loan, you must bear in mind that the loan company will co-own the car, up to 51%. After paying off a title loan taken on, the lender ceases to be a co-owner of your vehicle, in line with the agreement. During the term of the contract, the borrower can use the car without any problems. Until the loan is repaid, it is impossible to sell the car or establish another person as co-owner of the vehicle.

The rules for getting a title loan in Mich. have their own peculiarities that you need to take into account when getting fast money. Officially, title loans are considered illegal in Michigan. Title loan issuance is allowed only for a period of no more than 31 days and in the amount of 100 to 600 dollars. APR is also regulated by the State of Michigan and cannot exceed 300%. Given all the conditions for issuing title loans in Michigan, there are three top lenders that issue loans in accordance with the law and on the best terms.

Advantages of title loans in Michigan

The biggest advantage of this type of loan is the greater flexibility of the offer. You can get title loan on with the simplified number of formalities and quick access to money. Thanks to this lender, you can legally receive an amount from 100 to 600 dollars without leaving home and without spending more than 10 minutes of your time on it. The recipient can easily ensure access to fast money with just a few simple conditions. It is worth noting that credit history also does not matter for lenders in Michigan, so you do not have to worry about the fact that your creditworthiness isn’t perfect.

A big advantage of title loans is that lenders try to ensure that the customer can withdraw the money he needs as soon as possible, which of course is the result of, among others, lack of certificates from the employer or resignation from checking the creditworthiness of the borrower.

Why does state of Michigan regulate title loans?

Clients often have questions about why title loans are subject to government restrictions in one state and not at all in other states. The government assesses the financial level of the population and introduces various restrictions so that the population does not fall into a debt hole. So, the main limitations are usually:

  • the maximum interest rate that can be charged from a borrower;
  • is it possible to renew or rollover a loan;
  • rights of the lender in case of non-payment of the loan by the borrower;
  • maximum and minimum loan term/loan amount;
  • additional fees that the lender can charge.

Title Loans in Michigan are regulated by 487.2121 et seq. (Specifcally 487.2153).

Title loan requirements in Mich.

In order to get a title loan in Michigan, for instance on, you need to provide documents for you and your car.

Requirements for obtaining a title loan in the USA:

  • your full name and address;
  • valid ID card;
  • US bank account;
  • valid email and phone number for sending the contract and verification;
  • document confirming the car ownership;
  • age 18 and over;
  • proof of income. You do not need to provide proof of employment as such documents as pension, disability payments, alimony, social benefits and much more are also suitable.

Requirements for obtaining a title loan in MI:

  • ID card issued by the US government;
  • US citizenship and residency in Mich.;
  • car ownership;
  • vehicle registration number;
  • proof of income over the past few months;
  • car insurance document.

What is the process of applying for a title loan in Michigan?

After selecting the company whose services you want to use, it is necessary to complete the application, and after receiving the loan consent, the lender will send the vehicle transfer agreement and the form that allows the lender to be entered as a co-owner of the car in the communication department. The borrower has seven days to settle the formalities related to the registration certificate and send a copy of the document to the lender.

When applying for a secured loan, you are not required to provide a certificate of permanent employment or earnings. Securing the loan enables an attractive offer thanks to the minimized financial risk.

What to Look for When Choosing a Title Loan in Michigan

Even when deciding on one of Michigan’s top three lenders, there are a few factors to consider that will help you choose the loan that’s right for you. These factors are:

  • APR (annual percentage rate) which shows the final cost of your title loan;
  • interest rates;
  • consequences of late loan repayment;
  • additional fees, such as fees for submitting an application, issuing a loan or issuing insurance, for example.

Title loan obligations in MI

State of Michigan regulates the basic obligations of both parties to such a contract, such as:

The loan amount must be made available by the lender (creditor) in the agreed amount.

The borrower (debtor) is obliged to repay the loaned amount by the due date.

In addition, the loan agreement regulates how much money is involved and when and how much money has to be repaid on maturity in addition to interest.

In most cases, the monthly repayment installment for a loan contains the repayment amount and the interest portion.

Characteristics of a title loan:

  • a loan amount;
  • long terms;
  • comparatively low interest rates.

Processing fees for a title loan are also called closing fees and are charged by non-bank organizations for processing. Sometimes, the interest rate may be slightly higher due to a bad credit history, but this condition must be stipulated in the contract.

Therefore, attention should be paid to the effective interest rate in order to obtain cheap title loans in Michigan.

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The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.