Best Debt Consolidation Loans in Minneapolis of 2024

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Edited byScott Strandberg
Edited byScott Strandberg

Updated: December 28, 2023

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WHAT WE’RE GEEKING OUT ON

Best Debt Consolidation Loan Lenders in Minneapolis, MN

MoneyGeek based the rankings on more than 30 data points to determine the best debt consolidation loan lenders in Minneapolis. Among others, we considered APR ranges, minimum credit score requirements and fees.

Overall, the best lender in the city is LightStream, which has a wide range of loan amounts and repayment terms. SoFi, having no credit score requirement, ranked as the runner-up. Borrowers with excellent credit may be able to find an ideal offer from Upgrade, whereas borrowers with bad credit may find more flexible terms and requirements from Upstart.

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Best Overall Debt Consolidation Loan in Minneapolis, MN: LightStream


  • LightStream
    • 7.49% to 25.49%APR Range
    • UndisclosedMinimum Credit Score
    • $5,000 to $100,000Loan Amount Range
    • 24 to 144 monthsRepayment Terms
    • Same day funding possibleTime to Receive Funds

    LightStream personal loans can be used for a variety of purposes, including debt consolidation. This lender is an excellent choice for borrowers eliminating a large amount of debt, as it can lend up to $100,000 with a flexible repayment period. Funds can be received as soon as the same day your loan is approved.

    Aside from low interest rates and flexible terms, MoneyGeek considered LightStream as the best debt consolidation lender in Minneapolis due to its Rate Beat Program, which offers a 0.1% rate reduction to beat a competing lender’s offer. Borrowers simply need to submit proof of loan approval two business days prior to funding. LightStream has an app where borrowers can monitor their accounts, including checking payment due dates, monitoring account balances, making payments and applying for a new loan.

    LightStream provides fixed, low-interest loans without fees or prepayment penalties. As a subsidiary of Truist, a well-known financial organization, customers can be confident that the services they receive will be of top-rated quality.

    Pros

    • Rate Beat Program beats competing offers by 0.1%
    • 0.5% autopay discount
    • Quick loan approval
    • No prepayment, origination or late fees

    Cons

    • Hard credit pull from TransUnion or Equifax
    • Restrictions on fund usage
    • High credit score requirement
    LightStream

Runner-Up for Best Debt Consolidation Loan in Minneapolis, MN: SoFi


  • SoFi
    • 8.99% to 29.99%APR Range
    • 680Minimum Credit Score
    • $5,000 to $100,000Loan Amount Range
    • 12 to 60 monthsRepayment Terms
    • 2 DaysTime to Receive Funds

    With SoFi personal loans, eligible borrowers in Minneapolis can consolidate their debt up to $100,000. SoFi loans are often preferred by borrowers for having no origination fees, closing charges or prepayment penalties. The company just requires a minimum 680 credit score, although you could obtain a better interest rate elsewhere if you have an excellent credit record.

    Founded in 2011 by a couple of Stanford alumni, SoFi started out by funding homes and refinancing student loans. Currently, SoFi has more than $50 billion in funded loans.

    Pros

    • Soft credit pull
    • Unemployment protection
    • 0.25% autopay discount
    • Wide range of repayment terms
    • No hidden fees

    Cons

    • High minimum loan amount
    • High minimum credit score
    • Co-applicant must be living at the same address
    SoFi

Best Debt Consolidation Loan for Bad Credit in Minneapolis, MN: Upstart


  • Upstart
    • 6.4% to 35.99%APR Range
    • 300Minimum Credit Score
    • $1,000 to $50,000Loan Amount Range
    • 3 or 5 yearsRepayment Terms
    • 1 business dayTime to Receive Funds

    Upstart is an AI-powered lending platform founded in 2012. Loan requirements are quite minimal with this lender, making it available to even those with credit ratings as low as 300.

    Borrowers who need large loans may need to look elsewhere, as Upstart limits loans to just $50,000. Upstart usually delivers funds the next business day after your loan is approved.

    Pros

    • Minimum credit score of 300
    • Soft credit pull
    • No prepayment penalty
    • Low minimum interest rate

    Cons

    • High maximum APR
    • Hard credit check during the application phase
    • High origination fees
    Upstart

Best Debt Consolidation Loan for Good Credit in Minneapolis, MN: Upgrade


  • Upgrade
    • 8.49% to 35.99%APR Range
    • UndisclosedMinimum Credit Score
    • $1,000 to $50,000Loan Amount Range
    • 24 to 84 monthsRepayment Terms
    • Within a dayTime to Receive Funds

    Upgrade, a financial technology business founded in 2016, offers debt consolidation loans and other types of personal loans at a low and fixed interest rate. This is especially important to borrowers working to eliminate multiple debts as they no longer need to worry about fluctuating interest.

    However, depending on the borrower's creditworthiness, the interest rates for Upgrade personal loans could be very high. Upgrade has a low $1,000 minimum loan amount, but it limits debt consolidation personal loans to no more than $50,000.

    Pros

    • No prepayment penalty
    • Soft credit pull
    • Offers a mobile app
    • Low minimum APR
    • Wide range of repayment terms

    Cons

    • Potentially high interest rates
    • Loans limited to $50,000
    • Late payment fee
    Upgrade

How to Choose the Best Debt Consolidation Loan in Minneapolis, MN, for You

In Minnesota, the average borrower has a credit score of 714. The higher your credit score, the lower interest rates a lender may offer. In addition to credit scores, lenders also look at a variety of factors, like current debt, income and debt-to-income ratio, to determine a borrower’s risk profile. If you plan to take out a debt consolidation loan in Minneapolis, MoneyGeek’s step-by-step guide ensures that you don’t miss out on any step.

1

Ask Yourself the Important Questions

Asking some initial questions like how much funding you need, what is the minimum qualified credit score, how much of a monthly payment you can afford or whether you could pay your debts through other means is an important step before exploring your debt consolidation loan options.

2

Do Your Research

It’s a good idea to do your own research on lenders in your city to find the best option available. MoneyGeek ranked the top debt consolidation lenders based on specific criteria that suit the average borrower in Minneapolis. However, our recommendations might not fit your unique needs.

3

Wait

It can be overwhelming to think about multiple debts that you want to pay off as soon as possible. Although a debt consolidation loan is often the recommended solution, take as much time as you need to carefully decide on a lender’s offer. Once you have a specific lender in mind, it's best to wait a day or two before signing an agreement.

4

Read the Fine Print

While deciding on an offer, borrowers need to carefully review the fine print. This contains information about all applicable fees that could affect your loan. Aside from late payment fees and prepayment penalties, this document also tells you about origination fees and other charges specific to the lender.

5

Apply

Only when you’re confident with your chosen lender and the terms indicated in the fine print should you proceed with a loan offer. During the application process, you’ll provide financial documents. You might need to prepare these beforehand to ensure a faster application. Online applications are usually the most efficient. However, you could also visit the office to submit these documents.

What to Do if You Can’t Get a Debt Consolidation Loan in Minneapolis, MN

Loan applications are frequently denied for various common reasons, like not having a high enough credit score or income or having a high debt-to-income ratio. If debt consolidation is really the best option for you, MoneyGeek recommends taking a few steps if you plan to apply to another lender.

Call your lender and ask for any specific reason why your loan was denied. In most cases, you can make adjustments in your application, either lowering the loan amount or shortening the loan terms, to make it acceptable. If not, you can try applying to another lender, but only after improving on those factors.

Aside from a debt consolidation loan, other options like home equity lines of credit and home equity loans are viable options for those who want to pay off multiple debts. However, keep in mind that there are pros and cons to these options as well. On that note, avoid payday loans at all costs. These types of loans come with excessively high interest rates and very short repayment terms. Payday loans frequently put lenders in worse financial positions.

Calculate Your Monthly Payment

If you’re considering offers from several lenders or have been pre-approved by a few, it’s important to calculate how much you will need each month to repay the loan. MoneyGeek’s loan calculator could help you determine your monthly payments based on the loan amount and interest rate you’ve entered.

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Frequently Asked Questions About Debt Consolidation Loans in Minneapolis, MN

Take a look at the following frequently asked questions from debt consolidation loan borrowers in Minneapolis.

Overall, the best debt consolidation lender in Minneapolis is LightStream, followed by SoFi. Both lenders have competitively low rates and a wide range of loan terms. Borrowers with the highest credit scores could take a look at offers from Upgrade. Alternatively, if you have a low credit score, Upstart’s conditions may be more accommodating.

Upstart’s minimum APR is the lowest in Minneapolis.

Various lenders have different restrictions when it comes to funding usage. Some say you can’t use your loan to consolidate debts related to education expenses or gambling, whereas others have no restrictions at all.

How much you can borrow depends on your creditworthiness and your chosen lender. The minimum and maximum loan amounts vary according to each lender. The minimum you could borrow typically starts at $1,000, whereas most companies will not lend more than $100,000 for debt consolidation.

Some lenders can disburse funds on the same day as your application is approved; others take two days or more.

Yes, paying off your loan before the term ends is allowed. However, take note that some lenders may charge prepayment penalties when you do so.

Methodology

METHODOLOGY

MoneyGeek reviewed more than 30 personal loan lenders using at least 35 individual data points across six key categories: loan affordability, accessibility, consumer friendliness, customer service, flexibility and lender transparency.

Within each ranking category, we considered several individual data points that we feel carry the most weight when choosing a personal loan lender. These factors include APR ranges, available loan amounts, minimum credit scores, minimum income amounts, application fees and disbursement times.

Here at MoneyGeek, we value you, the consumer, so we also factor in each lender’s customer support, business ratings and additional features that could make your experience easier and more accessible — like prequalification, payment options and mobile apps.

After careful consideration and calculation, we make our picks with your best interests in mind. Our personal loan recommendations and expert tips are meant to help you make smart financial decisions when choosing a lender that meets your needs.

sources
Shield Insurance

The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.

Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about our editorial policies and expert editorial team.