Best Debt Consolidation Loans in Minneapolis of 2024
Updated: December 28, 2023
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- Best Overall Debt Consolidation Loan Lender in Minneapolis
- Runner-Up for Best Overall Debt Consolidation Loan Lender in Minneapolis
- Best Debt Consolidation Loan Lender for Bad Credit in Minneapolis
- Best Debt Consolidation Loan Lender for Good Credit in Minneapolis
- How to Choose the Right Personal Loan for You
- What to Do if You Can’t Get a Debt Consolidation Loan in Minneapolis
- Calculate Your Monthly Payment
- Frequently Asked Questions About Debt Consolidation Loans in Minneapolis
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.
Best Overall Debt Consolidation Loan in Minneapolis, MN: LightStream
Runner-Up for Best Debt Consolidation Loan in Minneapolis, MN: SoFi
Best Debt Consolidation Loan for Bad Credit in Minneapolis, MN: Upstart
Best Debt Consolidation Loan for Good Credit in Minneapolis, MN: 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.
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.
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.
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.
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.
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.
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
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
- SoFi. "Personal Loans." Accessed October 2, 2022.
- Upgrade. "Debt Consolidation Loans." Accessed October 2, 2022.
- Upstart. "Personal Loans." Accessed October 2, 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.
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