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Best Debt Consolidation Loans in Minnesota of 2024
Updated: December 28, 2023
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- Best Overall Debt Consolidation Loan Lender in Minnesota
- Runner-Up for Best Overall Debt Consolidation Loan Lender in Minnesota
- Best Debt Consolidation Loan Lender for Bad Credit in Minnesota
- Best Debt Consolidation Loan Lender for Good Credit in Minnesota
- How to Choose the Right Personal Loan for You
- What to Do if You Can’t Get a Debt Consolidation Loan in Minnesota
- Calculate Your Monthly Payment
- Frequently Asked Questions About Personal Loans in Minnesota
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
Runner-Up for Best Debt Consolidation Loan in Minnesota: LightStream
Best Debt Consolidation Loan for Bad Credit in Minnesota: Upstart
Best Debt Consolidation Loan for Good Credit in Minnesota: 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.
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?
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.
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.
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.
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.
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.
Based on our extensive research, Upgrade is the best debt consolidation loan lender overall in Minnesota. But, bear in mind that the ideal lender depends on your needs and financial profile. For example, individuals with good credit will find that SoFi is a great option, while those with bad credit will have better chances of having their personal loan application approved with Upstart.
Upstart has the lowest interest rate, starting at 3.22% for personal loans for debt consolidation.
This varies depending on the lender. For instance, SoFi doesn’t allow borrowers to consolidate debt related to post-secondary education, real estate, business, investments, purchases of securities or short-term bridge financing. We advise you to check with your lender to see if they have any restrictions on fund usage before you apply.
Depending on your creditworthiness and chosen lender, you can borrow up to $100,000 to consolidate debt in Minnesota. This maximum loan amount tends to vary greatly depending on the lender.
Loan processing times tend to vary across lenders. Generally, the time between application and fund disbursement can take anywhere from one day to a week.
Yes, but some lenders charge prepayment fees, so it is best to inquire with your lender if they impose penalties on borrowers who pay off their debt consolidation loans early.
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
- LightStream. "About Us." Accessed June 27, 2022.
- LightStream. "Debt Consolidation." Accessed June 27, 2022.
- SoFi. "About Us." Accessed June 28, 2022.
- SoFi. "Frequently Asked Questions." Accessed June 28, 2022.
- SoFi. "Personal Loans." Accessed June 28, 2022.
- Upgrade. "About Us." Accessed June 27, 2022.
- Upgrade. "Debt Consolidation Loans." Accessed June 27, 2022.
- Upstart. "Debt Consolidation Loans." Accessed June 28, 2022.
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
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