Best Low-Income Loans in Minnesota: Top Lenders and Rates for 2024

Updated: December 28, 2023

Advertising & Editorial Disclosure

WHAT WE’RE GEEKING OUT ON

Best Low-Income Loan Lenders in Minnesota

MoneyGeek reviewed more than 30 data points, including interest rates, loan amounts, APR ranges, repayment plans, minimum income levels, time to receive funds and BBB ratings, to identify the top low-income loan companies in Minnesota.

According to MoneyGeek’s data, Upgrade is the leading overall provider of low-income loans in Minnesota, and LendingClub is the runner-up. Meanwhile, Upstart is the best option for individuals with poor credit, while Prosper is a solid choice for those with good credit.

Best Overall Low-Income 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

    Upgrade is an American neobank that was founded in 2016 and is the leading lender for low-income borrowers in Minnesota.

    Individuals with fair credit may qualify for a low-income loan with Upgrade, which requires a score of at least 560. The loan amount can range from $1,000 to $50,000, making it a good option for those searching for smaller loans. Upgrade loans may be used for various purposes, including home renovations, debt consolidation, credit card refinancing and funding large purchases.

    According to MoneyGeek's research, Upgrade has very high interest rates for borrowers who lack great credit. However, its baseline APR of 5.94% for well-qualified borrowers is an appealing low rate. Upgrade also offers a broad selection of repayment term options.

    Pros

    • No prepayment fees
    • Low minimum loan amount
    • Low minimum APR
    • Many repayment term options

    Cons

    • Potentially high origination fee
    • Charges late payment fee
    • High maximum APR
    • APR range: 5.94% to 35.47%
    • Minimum/maximum loan amount: $1,000 to $50,000
    • Minimum credit requirements: 560
    • Repayment terms: 36 to 60 months
    • Time to receive funds: Same day
    Upgrade

Runner-Up for Best Low-Income Loan in Minnesota: LendingClub


  • LendingClub
    • 7.04% to 35.89%APR Range
    • 600Minimum Credit Score
    • $1,000 to $40,000Loan Amount Range
    • 36 to 60 monthsRepayment Terms
    • Next DayTime to Receive Funds

    LendingClub, based in San Francisco, was launched in 2007 and has since expanded to more than four million customers.

    This lender only accepts borrowers with credit ratings of 600 or above. However, due to the potentially high APR, it may not be suitable for borrowers looking for low-interest loans.

    LendingClub loans may be used to consolidate debt, pay off credit cards at a lower interest rate, pay for home improvements or finance unexpected medical bills. However, LendingClub restricts funds usage. You cannot, for example, utilize a personal loan from this lender to support postsecondary education, investments or unlawful activities.

    Pros

    • No prepayment penalty
    • Allows joint applications
    • Conducts a soft credit check
    • Low minimum loan amount

    Cons

    • Charges origination fees
    • Restriction on funds usage
    • High APR range
    • APR range: 7.04% to 35.89%
    • Minimum/maximum loan amount: $1,000 to $40,000
    • Minimum credit requirements: 600
    • Repayment terms: 36 to 60 months
    • Time to receive funds: Next day
    LendingClub

Best Low-Income 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

    MoneyGeek examined many Minnesota lenders and determined that Upstart was the best low-income loan platform for individuals with poor credit. The Upstart AI-powered finance platform has originated $28.6 billion in funding since its launch in 2012 and serviced more than 1.8 million customers.

    If you need a loan in Minnesota while simultaneously working to improve your credit, Upstart might be a good option. It's ideal for those with poor credit because it's one of the few companies that lend to borrowers with bad or incomplete credit. Upstart also offers a very low baseline APR of 3.22%, although its maximum 35.99% rate is quite high.

    Paying your monthly expenses on time is preferred. However, if you are unable to do so, Upstart will grant you a 10-day grace period before billing you a late charge.

    Pros

    • Low credit score requirement
    • Low baseline APR
    • A+ rating from the BBB
    • Conducts soft credit inquiry
    • Fast loan disbursement

    Cons

    • Charges late payment fee
    • Potentially high interest rates
    • Only two repayment term options
    • APR range: 3.22% to 35.99%
    • Minimum/maximum loan amount: $1,000 to $50,000
    • Minimum credit requirements: 300
    • Repayment terms: 36 to 60 months
    • Time to receive funds: Next day
    Upstart

Best Low-Income Loan for Good Credit in Minnesota: Prosper


  • Prosper
    • 7.95% to 35.99%APR Range
    • 640Minimum Credit Score
    • $2,000 to $40,000Loan Amount Range
    • 36 to 60 monthsRepayment Terms
    • Same DayTime to Receive Funds

    Established in 2005, Prosper is a peer-to-peer lending network that has facilitated over $22 billion in loans to date. Through this platform, borrowers with low incomes may get loans without having to approach a bank or other conventional lending institution. The range for the fixed-rate loans offered by Prosper is $2,000 to $40,000.

    If you do not qualify for a personal low-income loan with Prosper, you may choose to apply with a co-applicant who does. The application process is quick, and loans may be funded as soon as the same day.

    Note that Prosper charges a range of fees, including those for origination, check payment, late payment and insufficient funds. If you are looking for a loan with no fees, this lender may not be a good fit. In addition, Prosper’s 640 minimum credit score is rather high.

    Pros

    • Conducts soft credit check
    • Accepts co-applicants
    • No prepayment penalty fees
    • Several repayment term options

    Cons

    • Charges origination fees
    • High credit score requirement
    • Potentially high APR
    • APR range: 7.95% to 35.99%
    • Minimum/maximum loan amount: $2,000 to $40,000
    • Minimum credit requirements: 640
    • Repayment terms: 36 to 60 months
    • Time to receive funds: Same day
    Prosper

How to Choose the Best Low-Income Loan in Minnesota for You

Make sure you take a variety of factors into consideration when applying for a low-income personal loan. For example, your credit score, current debts and income are all important to consider when determining what type of loan is best.

In Minnesota, the average personal loan debt is $15,391, so you are not alone in seeking a personal loan. Below, MoneyGeek analyzed steps to help you choose the best low-income personal loan based on your particular needs.

1
Ask Yourself the Important Questions

Choosing a low-income loan in Minnesota can be confusing. Thankfully, there are plenty of resources available to help you find the best option for your needs. Here are some questions to ask yourself before you start your search:

  • How much funding do you need?
  • What’s your credit score?
  • Can you afford the monthly payments?
  • Do you have existing debts?
  • Is your debt manageable through other means?

Answering these questions beforehand should make your research easier, which means that finding the right low-income loan won’t be such a daunting task.

2
Do Your Research

When shopping around for the best low-income loans in Minnesota, it's important to do your research. When it comes to low-income loans, there are a lot of options available. Paying attention to the rates and terms of these options can help you make an educated decision about which one is right for you. It's also important to think about how long you want your repayment term to be, as this affects your monthly payment.

3
Wait

Before deciding on a low-income personal loan, you should consider waiting a day or two to make your decision. Getting a personal loan is an important long-term commitment, so be sure it’s the right option for you.

4
Read the Fine Print

One mistake that people often make when they are looking into a loan is not reading the fine print. They might miss things like prepayment penalties, origination fees or other types of fees. These little details can have huge implications on a person's finances because they will affect their ability to get out of debt faster. It is important to read the fine print so that you know what you are getting into with the loan agreement before signing it.

5
Apply

When you are sure of your decision, gather the documents you need to apply. It’s standard for lenders to require identification, address verification and proof of income. Although it may be easier for some people to apply online, there’s no harm in calling or visiting the lender if available.

What to Do if You Can’t Get a Low-Income Loan in Minnesota

Applications for low-income loans are occasionally declined owing to poor credit ratings, lack of income or failure to fulfill other qualifying requirements. If you are unable to get a low-income loan in Minnesota, ask the lender why your application was denied.

You may be able to modify your application so that it meets the lender's requirements. Reducing the duration of your loan terms or the amount you want to borrow are two examples. These adjustments may qualify you for a loan.

If you really need a low-income loan in Minnesota but cannot get one from a certain lender, you may choose to apply with another lender after addressing the issue that led to your denial. Although payday loans may seem alluring, be wary of the high interest rates and short payback terms demanded by payday lenders, which often leave you paying back more money than you borrowed.

Calculate Your Monthly Payment

A low-income loan's affordability is defined by the interest rate, loan period and the number of installments. Before applying for a personal loan, you should determine if you can afford the monthly payment.

MoneyGeek's personal loan calculator makes it simple to calculate the monthly payment for any personal loan. Simply enter the required loan information into this widget and click the calculate button.

years
months
%
Principal
+ $114.98
Interest
+ $8.33
Origination Fee Percentage
+
%
Origination Fee Fixed amount
+
Total monthly Payment
$123.31

FAQs About Low-Income Loans in Minnesota

The ideal personal loan lender in Minnesota for you will depend on your individual demands and other credit- and income-related criteria. MoneyGeek responded to the most often-asked questions in order to select the best provider for your specific needs.

What is the best low-income loan lender in Minnesota?
Which lender in Minnesota has the lowest interest rates for low-income?
What kind of debts can I not use my low-income loan for in Minnesota?
How much debt can I consolidate in Minnesota?
How long does it take to get a low-income loan in Minnesota?
Can I pay off my loan early in Minnesota?

Methodology

mglogo icon
METHODOLOGY

MoneyGeek analyzed more than 30 personal loan providers by collecting and analyzing 35+ data points across six major categories: loan affordability, accessibility, consumer friendliness, customer service, flexibility and lender transparency.

We ranked these personal loan providers based on a number of criteria that we believe are most important to you when making your final decision, including disbursement times, application costs, minimum credit scores, minimum incomes and APR ranges.

As a consumer-focused company, MoneyGeek considers not just the rates and terms of each lender but also their customer service reputations, business ratings and any extra features (including prequalification, payment options and mobile applications) that can make your experience more convenient.

Our recommendations are made with your best interests in mind after much thought and analysis. To assist you in finding a suitable personal loan provider, we have included our recommendations and professional insights.

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.

Insurance
Mortgage
Credit Cards
Loans
About MoneyGeekPressPrivacy PolicySitemap
Copyright © 2024 MoneyGeek.com. All Rights Reserved Terms of Use