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Best Debt Consolidation Loans in Minnesota of 2024

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Updated: December 28, 2023

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Best Debt Consolidation Loan Lenders in Minnesota

To come up with our top recommendations for debt consolidation in Minnesota, MoneyGeek analyzed more than 30 data points, including the specific terms, conditions, fees and penalties associated with the loan, as well as the minimum requirements for application.

Based on MoneyGeek’s extensive study, the best overall debt consolidation loan lender in Minnesota is Upgrade. But keep in mind that what will work best for you depends on your situation and financial needs. For instance, if you have bad credit, Upstart is a better choice since its credit score requirement is only 300.

Best Overall Debt Consolidation Loan in Minnesota: Upgrade


  • Upgrade

    • 5.94% to 35.47%APR Range
    • 560Minimum Credit Score
    • $1,000 to $50,000Loan Amount Range
    • 36 to 60 monthsRepayment Terms
    • Same DayTime to Receive Funds

    Credit-focused neobank Upgrade is MoneyGeek’s top pick for the best debt consolidation lender in Minnesota. It was established by a team of fintech pioneers in 2017 with the goal of providing customers with innovative products and services alongside a better banking experience. Since its launch, Upgrade has provided loans and credit cards to more than 15 million customers, totaling over $15 billion in affordable and responsible credit.

    Interested borrowers will appreciate the fair minimum credit score requirement, zero prepayment fees and quick turnaround time for loan disbursement. Personal loans can also be customized to fit your monthly budget and schedule to help you get out of debt faster. In addition, Upgrade offers an automatic payment discount.

    However, there are drawbacks to this lender. Upgrade charges an origination fee of up to 8% and a late payment fee.

    Pros

    • Same-day funding
    • Fair minimum credit score
    • No prepayment fees
    • Automatic payment discount available
    • Soft credit pull doesn’t impact your credit score

    Cons

    • Has high origination fees (2.9–8%)
    • Charges a late payment fee
    • APR range: 5.94%–35.47%
    • Minimum/maximum loan amount: $1,000–$50,000
    • Minimum credit requirements: 560
    • Repayment terms: 36–60 months
    • Time to receive funds: Same day
    Upgrade

Runner-Up for Best Debt Consolidation Loan in Minnesota: LightStream


  • LightStream

    • 4.49% to 20.49%APR Range
    • 660Minimum Credit Score
    • $5,000 to $100,000Loan Amount Range
    • 24 to 84 monthsRepayment Terms
    • Same DayTime to Receive Funds

    LightStream is MoneyGeek’s runner-up for the best debt consolidation lender in Minnesota. It was established in 2012 and is a division of Truist Bank.

    There are many benefits to taking out a LightStream personal loan for debt consolidation. For one, this lender allows joint loans, making it possible for partners to channel their debts into a single account and help each other in settling the monthly payments. It also offers high loan amounts of up to $100,000, which is a plus if you need to consolidate lots of high-interest debts. LightStream’s Rate Beat Program allows borrowers to get an interest rate that is 0.1% lower than the rate offered on a competing lender’s unsecured loan.

    However, there are some significant drawbacks to this lender as well. It doesn’t allow co-signers and doesn’t directly pay creditors.

    Pros

    • High maximum loan amount of $100,000
    • Joint loans are available
    • No prepayment penalty fees
    • 0.5% autopay discount
    • Provides competitive rate match

    Cons

    • Doesn’t directly pay third-party creditors
    • Lowest APRs require excellent credit
    • APR range: 4.49%–20.49%
    • Minimum/maximum loan amount: $5,000–$100,000
    • Minimum credit requirements: 660
    • Repayment terms: 24–84 months
    • Time to receive funds: Same day
    LightStream

Best Debt Consolidation Loan for Bad Credit in Minnesota: Upstart


  • Upstart

    • 3.22% to 35.99%APR Range
    • 300Minimum Credit Score
    • $1,000 to $50,000Loan Amount Range
    • 36 to 60 monthsRepayment Terms
    • Next DayTime to Receive Funds

    Founded in 2012, Upstart is an artificial intelligence lending platform that has made it its mission to enable effortless and affordable credit to Americans. Proof of this claim is its low minimum credit requirement of 300, which makes this lender suited to borrowers with bad credit, as well as those without enough credit history. Upstart also looks beyond one’s credit score and considers other factors, such as education and employment, in calculating APRs. Would-be borrowers will also appreciate the lack of prepayment penalties.

    The downside is that it charges origination fees. Also, if you prefer tracking your debt consolidation loan via a mobile app, we encourage you to look for another lender since Upstart currently doesn’t have one.

    Pros

    • No prepayment fees
    • Low credit score requirement
    • Few restrictions on fund usage
    • Offers personal loans to borrowers with no credit score
    • Excellent minimum APR

    Cons

    • Charges origination fees
    • Doesn’t have a mobile app
    • Very high maximum interest rate
    • APR range: 3.22%–35.99%
    • Minimum/maximum loan amount: $1,000–$50,000
    • Minimum credit requirements: 300
    • Repayment terms: 36–60 months
    • Time to receive funds: Next day
    Upstart

Best Debt Consolidation Loan for Good Credit in Minnesota: SoFi


  • SoFi

    • 5.74% to 20.28%APR Range
    • 680Minimum Credit Score
    • $5,000 to $100,000Loan Amount Range
    • 12 to 60 monthsRepayment Terms
    • Two DaysTime to Receive Funds

    MoneyGeek’s top pick for the best debt consolidation loan lender in Minnesota for borrowers with good credit is Social Finance, Inc., or SoFi. It was founded in 2011 by Stanford business students and has since funded over $50 billion in loans to around four million members.

    There are several benefits to getting a personal loan from SoFi for debt consolidation. SoFi offers one of the highest personal loan amounts, capped at $100,000, which is a plus if you need to consolidate multiple high-cost debts. It also offers unemployment protection, which will let you pause your monthly payments temporarily and assist you in finding a new job.

    The average Minnesota resident will find it easy to qualify for a debt consolidation loan with SoFi since it only requires a minimum credit score of 680, while the state’s average credit score is 714.

    Pros

    • No origination, prepayment and late fees
    • Offers loss of employment protection
    • Quick prequalification
    • Accepts co-applicants
    • Has a mobile app

    Cons

    • Many restrictions on fund usage
    • Co-signers not allowed
    • Loans over $20,000 may require additional underwriting review time
    • APR range: 5.74%–20.28% (variable-rate APR capped at 14.95%)
    • Minimum/maximum loan amount: $5,000–$100,000
    • Minimum credit requirements: 680
    • Repayment terms: 12–60 months
    • Time to receive funds: Two days
    SoFi

How to Choose the Best Debt Consolidation Loan in Minnesota for You

The average Minnesotan has a total of $20,506 in personal loan and credit card debt. Personal loans make paying and tracking one’s payments easier and also help you save by locking in lower interest rates.

In evaluating your application, lenders will assess your creditworthiness as reflected in your credit score, income and any current debts you may still be paying off.

MoneyGeek outlines the steps you’ll need to take when looking for the best debt consolidation loan lender in Minnesota.

1
Ask Yourself the Important Questions

The first step requires you to take a hard look at your current financial status and make sure that a debt consolidation loan is perfectly suited to your financial goals.

Answer these questions to figure out if you’re fully capable of meeting the monthly payments of a debt consolidation personal loan on top of your living expenses and other obligations.

  • How much funding do you need?
  • What is your credit score?
  • Can you afford the monthly payment?
  • How much debt do you already have?
  • Is your debt manageable through other means?
2
Do Your Research

We highly recommend that you shop around and compare rates from multiple lenders before applying for a debt consolidation loan. A loan carries with it the commitment of making regular monthly payments which take two to four years, on average, to pay off completely. During the application process, your lender will also perform a hard credit inquiry which can temporarily harm your credit score. For these reasons, you need to be certain that a debt consolidation personal loan is well-suited to your needs.

MoneyGeek developed this expert guide to help you pick out the best lenders for various types of borrowers. However, we still recommend that you explore other options that we might not have covered.

3
Wait

Once you’ve done your research and identified your preferred lender, consider waiting a day or two before proceeding with your loan application. The stress associated with needing to settle debt obligations, looking for a loan and preparing the required documentation may cloud anyone’s judgment. Use this time to allow your emotions to settle and arrive at a logical and objective decision, especially since a personal loan is a significant long-term financial commitment.

4
Read the Fine Print

Don’t make the critical mistake of overlooking the small details. Thoroughly read the fine print of your debt consolidation loan so you won’t be blindsided by any hidden fees and charges. Make sure you fully understand the loan terms and conditions, as well as the associated fees. Check if there are prepayment penalties, origination fees and late fees that might eat up your loan funds. Carefully looking at these details can help you save a lot of money in the long run.

5
Apply

At this point, if you’re already sure that you’ve chosen the best lender for your financial goals and have checked that you meet the loan eligibility requirements, you may prepare the necessary documents and submit your application. Generally, lenders will ask you to provide proof of your identification, address and income. Depending on the lender, you may either complete the application online, over the phone or by visiting a physical office.

What to Do if You Can’t Get a Debt Consolidation Loan in Minnesota

Don’t worry if your debt consolidation loan in Minnesota gets denied. This doesn’t spell the end of your journey toward getting out of debt. Generally, lenders send an adverse action notice which states the reason why your application was rejected. If your loan was denied due to incorrect information, such as an error on your credit report, you can submit the correct documentation as proof that you qualify. However, if you were denied because you didn’t meet the lender’s underwriting criteria, you cannot always appeal the decision.

Although that is the case, we still strongly advise you to reach out to your lender to confirm the reason why your application was denied. This also gives you the chance to inquire whether certain tweaks to your application, like reducing the term or decreasing the amount, might make it more favorable to the lender.

Before reapplying either with the same lender or another company, make sure that you’ve already resolved the issues that caused your previous loan to be denied.

We also caution you from getting subprime and payday loans since these tend to charge exorbitant fees that could go as high as 400%.

Calculate Your Monthly Payment

Personal loans are paid off in monthly installments with interest. Before applying for a personal loan, it is best to check if you can afford the monthly payments, even if you’ve already been pre-approved by a lender.

Use MoneyGeek’s personal loan calculator below to determine if you’re financially capable of meeting the monthly payments.

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FAQs About Debt Consolidation Loans in Minnesota

Here are MoneyGeek’s answers to the most commonly asked questions about debt consolidation loans in Minnesota to help you decide if this is the best option for your personal needs and financial situation.

What is the best debt consolidation loan lender in Minnesota?
Which lender in Minnesota has the lowest interest rate for debt consolidation?
What kind of debts can I not use my debt consolidation loan for in Minnesota?
How much debt can I consolidate in Minnesota?
How long does it take to get a debt consolidation loan in Minnesota?
Can I pay off my loan early in Minnesota?
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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 range, available loan amount, minimum credit score, minimum income amount, application fee and disbursement time.

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, our picks are chosen 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
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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.