Microfinance schemes which provide financial services such as (micro) credit, insurance and savings to the poor have become popular tools in the fight against poverty in Ghana. The popular assumption is that enabling poor households with access to credit helps households begin small and medium scale business which would enable them improve their incomes and eventually escape poverty. The main objective of this research was to analyze microfinance schemes on household income as well as measure household vulnerability to poverty after access to microfinance. The study used qualitative and quantitative research methods and approaches in the collection and analysing data. The results indicate a positive and significant impact of microfinance on household income. The research therefore argues that there is a role played by microfinance institutions on the improvement of household incomes. The research also reasserts that providing affordable financial services to the rural population still remains to be an important component of development strategy. On the other hand the research emphasizes that there is need to come up with innovative microfinance schemes that are supportive of their own role in assets accumulation and wealth creation for their clients. This will involve innovative targeting of potential clients, as well as streamlined microfinance regulations to protect their clients.