Best Debt Consolidation Loans in St. Paul of 2024

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Edited byMorgan Hull
Edited byMorgan Hull

Updated: December 28, 2023

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WHAT WE’RE GEEKING OUT ON

Best Debt Consolidation Loan Lenders in St. Paul, MN

MoneyGeek evaluated lenders for over 30 key data points, including interest rates, loan amount, repayment terms, eligibility requirements and more. Based on these factors, we found that LightStream offers the best debt consolidation loans in St. Paul, Minnesota. However, the best lender for you will vary based on your unique needs. For instance, those with bad credit will get the best debt consolidation loan from Upstart, whereas Upgrade is the best for those with good credit.

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Best Overall Debt Consolidation Loan in St. Paul, 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

    MoneyGeek’s top pick for the best debt consolidation lender in St. Paul is LightStream. This company was established in 2012 to serve as the online consumer lending division of Truist Bank.

    LightStream’s popularity and positive reputation are supported by its quick and convenient loans that feature competitive rates and discounts for automatic payments. Those that meet the lender’s minimum credit score requirement are eligible for loan amounts ranging from $5,000 to $100,000.

    Another unique benefit is that this company offers joint loans. With this type of loan, partners and spouses can consolidate their debt into a single credit account and work together to pay it off.

    That said, if you’re looking for a lender that pays creditors directly and allows co-signers, you should explore other lenders. It also features a relatively high minimum credit score requirement that may not be attainable for some borrowers.

    Pros

    • High maximum loan amount
    • Same-day funding available
    • Autopay discount
    • No prepayment penalty
    • Mobile application

    Cons

    • Loan pre-approval not offered
    • No option for direct payment to third-party creditors
    LightStream

Runner-Up for Best Debt Consolidation Loan in St. Paul, 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

    Based on MoneyGeek’s analysis, Social Finance, Inc. or SoFi is the next-best option for borrowers who are looking for the top personal loans for consolidating debt in St. Paul. This company was founded in 2011 and has since funded loans worth over $50 billion.

    Would-be borrowers will appreciate SoFi’s high loan amounts, which reach up to $100,000, depending on creditworthiness. Those who sign up for automatic payments also benefit from a 0.25% discount. With this lender, you also won’t have to worry about origination fees, late payment charges or prepayment penalties. SoFi’s mobile application allows you to conveniently manage your loan on the go.

    Despite these many advantages, a SoFi personal loan has a few downsides. For example, only applicants with good credit scores and low debt-to-income ratios will qualify.

    Pros

    • Unemployment protection
    • Fast prequalification process
    • Doesn’t charge origination fees, late fees or prepayment penalties
    • Co-applicants accepted
    • Mobile application available

    Cons

    • Applicants with no credit history don’t qualify
    • Co-signers not permitted
    • Personal loans over $20,000 have longer waiting times due to underwriting review
    SoFi

Best Debt Consolidation Loan for Bad Credit in St. Paul, 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

    MoneyGeek recommends Upstart, an artificial intelligence lending platform, for borrowers with bad credit who are looking for the best debt consolidation loans in St. Paul. This online company was founded by former Google employees in 2012 with the goal of providing Americans with more access to affordable credit with a fully digital loan experience.

    Upstart’s low minimum credit score requirement of 300 means that even those with bad or no credit can qualify for a loan and a much-needed opportunity at establishing their credit history. Compared with other lenders who base their assessment of creditworthiness solely on a borrower’s credit profile, Upstart takes into account other factors, like education and employment history, when evaluating applications and calculating APRs. Still, it’s important to remember that those with a low credit score may receive a high APR.

    Pros

    • Low minimum credit score requirement
    • Personal loans available to borrowers with no credit history
    • No prepayment fees
    • Low starting APR
    • Joint loans available

    Cons

    • Relatively low maximum loan amount
    • Potentially high APRs
    • Mobile application not available
    Upstart

Best Debt Consolidation Loan for Good Credit in St. Paul, 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

    In 2017, a group of pioneers in the fintech industry established Upgrade to provide Americans with a better alternative to traditional banking. This online lender outperformed its competitors to become MoneyGeek’s top pick for the best debt consolidation lender in St. Paul for individuals with good credit.

    Interested borrowers will stand to gain from this lender’s fairly low credit score requirement of 560. Given that the average credit score statewide in Missouri is 675, most St. Paul residents will have little trouble securing a debt consolidation loan from this lender.

    However, the tradeoff is that Upgrade charges origination fees and late fees, which can add a considerable amount to your loan. The lender’s maximum loan amount of $50,000 is also quite low in comparison to other lenders.

    Pros

    • Fair credit score requirement
    • No prepayment fees
    • Joint loans accepted
    • Direct payment to creditors

    Cons

    • Relatively low maximum loan amount
    • Late payment fee
    • Potentially high origination fees
    Upgrade

How to Choose the Best Debt Consolidation Loan in St. Paul, MN, for You

On average, Minnesota residents have a combined credit card and personal loan debt of $20,506. A debt consolidation loan is a great way to streamline these loans into a single account with a cheaper APR.

But before applying, it’s important to consider several factors, such as a lender’s eligibility requirements.

Before applying for a debt consolidation loan, you should take the following steps to ensure you’re making the most well-informed decision.

1

Ask Yourself the Important Questions

It’s important for you to evaluate your current finances to find out how a debt consolidation fits this picture. At a minimum, you should ask yourself the following questions:

  • How much funding do you need? To choose a lender that can meet your needs, you should try to estimate the amount of funds you need as accurately as possible. This will also help you avoid paying extra in interest.
  • What’s your credit score? Your credit score will impact your eligibility for a loan, as well as the rates available to you. If your credit score is low, and you aren’t looking to consolidate debt immediately, you may want to take the time to improve your score before applying for a loan.
  • Can you afford the monthly payments? It’s important to make sure that you can afford your monthly payments. Although making a high monthly payment will help reduce the amount you’ll pay in interest, it’s important that you still have enough left in your budget to pay for your other needs.
  • Do you have existing debts? Most lenders prefer that borrowers have a debt-to-income ratio below 43%.
  • Is your debt manageable through other means? A debt consolidation loan may not be the best way to manage your finances. Before applying for a debt consolidation loan, you should make sure it’s the best option for your financial future.
2

Do Your Research

A debt consolidation loan is a financial commitment that shouldn’t be taken lightly, especially since it can take anywhere from two to four years to repay fully. Sometimes lenders perform hard credit checks which can hurt your credit score, so it’s important to only apply with lenders who are likely to approve your application. To find the best option for your needs, you should compare providers’ rates and terms.

MoneyGeek’s guide is an excellent starting point to find the best debt consolidation loan recommendations in St. Paul, but it’s important to research providers and compare rates with your specific financial needs in mind.

3

Wait

After you’ve identified the lender that best matches your needs, you should wait a day or two before finalizing your decision to apply for a debt consolidation loan. Always keep in mind that this is a long-term commitment that can significantly impact your financial and mental well-being. Ensure that it’s the best path forward to help you meet your financial goals.

4

Read the Fine Print

Although you may be tempted to immediately sign your loan agreement and begin consolidating your debt, it’s important to read the fine print of your loan terms first. Disclosed in this document are potential charges, like those for late payments, prepayment penalties and loan origination. Being aware of all of the costs of your loan upfront can help you avoid unexpected surprises down the road.

5

Apply

After you’ve researched different lenders and selected the provider that best fits your needs, it’s time to submit your loan application. To expedite the process, ensure that you gather all the necessary documents in advance, like proof of identification, address and income. You can complete the application online, over the phone or in person, depending on your chosen lender.

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

If your debt consolidation loan in St. Paul is denied, don’t let this deter you from pursuing a debt consolidation loan. Following a rejection, we encourage you to contact the lender and ask why your application was denied.

Lenders may deny applications for a variety of reasons, including a poor credit history, insufficient income or incomplete applications. Often, simply modifying the terms of your loan agreement, like revising your repayment term or loan amount, can lead to your application being approved. However, if your application was denied due to a low credit score, you should improve it first before you reapply. This will increase your chances of being approved and you’ll avoid negatively impacting your credit score further with another hard credit check.

Although payday loans, which are easy-to-access loans with short repayment terms and high interest rates, are an appealing option, you should avoid these at all costs. These unrealistic expectations put borrowers in a difficult position for repayment and often end up costing them more money.

Calculate Your Monthly Payment

Keep in mind that debt consolidation loans are paid back in regular installments. To avoid missing payments and defaulting on your loan, make sure that your current finances can easily cover the monthly payments, especially if your loan is already pre-approved.

Use MoneyGeek’s personal loan calculator for a quick and accurate estimate of the amount that you’ll need to pay per month.

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Frequently Asked Questions About Debt Consolidation Loans in St. Paul, MN

Your personal needs and circumstances will determine which is the best debt consolidation loan lender in St. Paul for you. MoneyGeek answered the most commonly asked questions about the topic to help guide you through the process.

According to MoneyGeek’s analysis, LightStream is the best debt consolidation loan lender in St. Paul. But keep in mind that this general recommendation may not apply to all types of borrowers. For instance, borrowers with good and bad credit may get the best debt consolidation loan from Upgrade and Upstart, respectively.

Upstart offers the lowest starting APR, but you must have an excellent credit score to lock in this low interest rate.

Lenders may impose restrictions on the use of loan funds. For instance, some will not allow you to use your personal loan to consolidate debts for post-secondary education.

The maximum amount that you can borrow debt consolidation will largely depend on your creditworthiness. Generally, lenders in St. Paul offer loan amounts from $1,000 to $100,000.

Lenders vary greatly in terms of loan processing times. In general, the period from loan approval to fund disbursement can be as short as a day to as long as a week, on average. You must consider this when choosing a lender if you need the loan funds immediately.

Yes. You may choose to repay your debt consolidation loan in full earlier than the expected date. However, some lenders will charge a prepayment penalty for this. If you want the flexibility to prepay your loan without paying any charges, you must select a lender that has no prepayment fees.

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.