Best Loans for Bad Credit in Minnesota for 2024

Happy Money provides the best loans for bad credit in Minnesota, with a MoneyGeek score of 94 out of 100. It excels in customer service, reputation and transparency.

Updated: November 21, 2024

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Happy Money stands out as Minnesota's best personal loan lender for bad credit with a MoneyGeek score of 94 out of 100. It is distinguished by its exceptional reputation and transparency, quality customer service, and fast application and approval process. As the runner-up, Avant is also a strong choice in this category with a MoneyGeek score of 92 out of 100, offering competitive interest rates, the most flexibility in loan terms, and a quick application and approval process.

MoneyGeek reviewed four personal loan lenders in Minnesota that disclosed minimum credit score requirements between 580 and 640 to help identify the best options for individuals with bad credit. In addition to the highlighted top two lenders, Minnesota Valley Federal Credit Union, Mid Minnesota Federal Credit Union and Minnco Credit Union are additional providers worth considering for their localized services.

Best Bad CreditLendersMinnesota

2024

Best Bad Credit Loans in Minnesota

Best Overall - Happy Money

Runner-Up - Avant

MoneyGeek scored personal loan lenders in Minnesota that explicitly disclose their minimum credit score requirements on their websites to find the best personal loans for bad credit. Only 12% of lenders disclose this information.

We filtered our analysis to include lenders with minimum credit score requirements between 580 and 640, which meets Experian's definition of fair credit. Our research did not find any published minimums lower than 580.

Our analysis was completed in April 2024 and considers banks and lenders who are licensed to do business in Minnesota. We also consider financial companies that partner with federally insured institutions to offer competitive rates.

34Lenders Analyzed

Overall Best Bad Credit Loan Lender in Minnesota

Happy Money

94MoneyGeek Score
11.72% to 17.99%APR Range
640Minimum Credit Score
$5,000 to $40,000Loan Amount Range
24 to 60 monthsRepayment Terms

Happy Money is MoneyGeek's pick for the best personal loan lender for bad credit in Minnesota, with a MoneyGeek score of 94 out of 100. Happy Money is not a lender but a fintech company that partners with lending entities insured by the NCUA to provide personal loans. It requires a minimum credit score of 640, offers loan amounts ranging from $5,000 to $40,000, and can disburse funds by the next day. One notable feature of Happy Money is that it doesn't charge fees for late payments or failed ACH transactions. Another is the flexibility of repayment terms spanning 24 to 60 months. However, it only extends loans for debt consolidation and charges an origination fee.

Pros

Doesn't charge late, early repayment, bounced checks, failed ACH or other fees
Flexible repayment terms from 24 to 60 months
Offers to pay creditors directly

Cons

Only offers loans for debt consolidation
Charges an origination fee
$40,000 borrowing limit

Runner-Up for Best Bad Credit Loan Lender in Minnesota

Avant

92MoneyGeek Score
9.95% to 35.99%APR Range
580Minimum Credit Score
$2,000 to $35,000Loan Amount Range
12 to 60 monthsRepayment Terms

Avant is the runner-up for Minnesota's best bad credit loan lender with a MoneyGeek score of 92 out of 100. It partners with WebBank to originate personal loans. This lender appeals to borrowers as it requires a minimum credit score of 580, offers a loan amount range of $2,000 to $35,000 and enables access to funds by the next day. Pros include no penalty for prepayment and the flexibility of repayment terms from 12 to 60 months. However, applicants should consider the administration fee of up to 9.99% and be aware of late and dishonored payment fees.

Pros

Doesn't charge a prepayment penalty
Offers next-day funding
Has a mobile app

Cons

Charges an administration fee up to 4.75%
Has late fees and dishonored payment fees
Low borrowing limits at $35,000

Calculate Your Monthly Loan Payment in Minnesota

According to the Credit Industry Snapshot report, Minnesota's average new account balance for personal loans is $11,740. For repayment, a personal loan — typically an unsecured loan — requires regular, fixed payments over a set period until the loan is fully paid off.

Managing your loan payments effectively is especially pressing if you have bad credit, as it can impact your interest rates and overall loan cost. To help you estimate your loan payments, consider using the personal loan calculator from MoneyGeek for a clear picture of your potential monthly obligations.

Personal Loan Calculator

Estimate the monthly payment for your loan.

Updated: Dec 22, 2024

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Best Bad Credit Loans by Credit Score in Minnesota

Minnesota's average credit score of 742 is higher than the national average of 715.

Several lenders in Minnesota may consider applicants with lower credit scores, though be prepared for potentially higher interest rates and more restrictive terms. Use the table below to explore personal loan lenders in Minnesota that match your credit profile.


Avant	580	9.95% to 35.99%	$2,000 to $35,000	12 to 60 months	Next Day	92
Prosper	600	8.99% to 35.99%	$2,000 to $50,000	24 to 60 months	1 business day	90
Achieve	620	8.99% to 35.99%	$5,000 to $50,000	24 to 60 months	Same Day	92
Happy Money	640	11.72% to 17.99%	$5,000 to $40,000	24 to 60 months	3 to 6 Business Days	94

What to Do if Your Loan Application Is Denied in Minnesota

It's not uncommon to face a personal loan application denial in Minnesota, but this doesn't halt your borrowing journey. Here are some measures to enhance your chances for approval on future applications.

1
Find out the reason for the denial
If a lender denies your loan application, it could be due to a poor credit score, a high debt-to-income ratio, insufficient income, or mistakes in your application. Review these reasons carefully to strengthen your application for next time.
2
Modify your loan terms
You might reconsider approaching your lender to see if there is flexibility with the loan amount or repayment terms to secure approval.
3
Find another lender
Lenders have their own approval criteria. This warrants a thorough comparison to identify a suitable lender based on your needs and credit profile.
- Eligibility requirements: Different lenders set specific benchmarks for credit scores, income levels, debt-to-income ratios and employment history. Understand these before applying.
- Interest rates: It's beneficial to look for competitive interest rates tailored for less-than-perfect credit.
- Additional fees: Be aware that lenders may apply origination, late, or prepayment fees. Some lenders, however, do not. This is particularly relevant for individuals with bad credit.
- Loan terms: Loan terms vary, and the choice between a shorter and a longer term impacts overall costs.
- Customer service and reputation: The quality of customer support and the lender's reputation are pertinent when seeking personal loans, especially with a bad credit history.
4
Look for alternatives
Aside from personal loans, there are other options that may suit individuals with bad credit. Researching these alternatives is advisable to ensure you make an informed financial decision.
5
Improve your credit score
Enhancing your creditworthiness is a process that unfolds over time. Methods to improving your credit score include paying bills on time, reducing outstanding debt and keeping credit card balances low.

EXPERT TIP

Work on improving your credit score before applying for a personal loan to increase your chances of approval and getting better terms. Here are some long-term steps to consider:

Monitor your credit utilization ratio: Keep your credit utilization ratio low, as high credit utilization can negatively impact your credit score. Aim to use less than 30% of your available credit limit.
Don’t close old credit cards: The length of your credit history contributes to your credit score. Even if you no longer use a credit card, keep it open unless it has an annual fee.

—Alvin Yam, CFP

FAQ About Bad Credit Loans in Minnesota

When shopping for personal loans in Minnesota, it's common for borrowers, especially those with bad credit, to have questions or concerns. To assist in this process, we compiled answers to some frequently asked questions, offering clarity and guidance to help you make well-informed decisions.

Who is the best personal loan lender for bad credit in Minnesota?

The best personal loan for bad credit in Minnesota is offered by Happy Money with a MoneyGeek score of 94 out of 100.

Which lender in Minnesota has the lowest APR rates for personal loans?

Achieve and Prosper both offer the lowest starting APR for personal loans at 8.99%. Keep in mind that only borrowers with excellent credit will likely qualify for this rate.

Which lender in Minnesota has the lowest minimum credit score requirement for personal loans?

The lender with the lowest minimum credit score requirement in Minnesota is Avant, with a requirement of a 580 credit score.

How to apply for a personal loan for bad credit in Minnesota?

To apply for a personal loan with bad credit in Minnesota, begin by checking your credit report to understand your financial standing. Look for lenders that cater to bad credit borrowers, including online lenders, local credit unions and banks. Compare various loan offers based on interest rates, repayment terms and fees. Accurately complete the application, whether online or in person, and provide any additional information requested by the lender. After approval, review the loan terms carefully before accepting the funds.

How long does it take to get a bad credit loan in Minnesota?

The time to receive funds from a bad credit loan in Minnesota varies by lender. Some lenders offer same-day funding, while others may take from the next business day up to a week.

Can I pay off my personal loan early in Minnesota?

Yes, you can pay off your personal loan early in Minnesota. It's recommended to consult with your lender regarding any possible prepayment penalties.

Is there a difference between personal loans and installment loans in Minnesota for bad credit?

In Minnesota, personal loans and installment loans for bad credit are essentially the same, both involving borrowing a fixed amount and repaying it through regular, scheduled installments over a defined period.

Best Personal Loans

Best Bad Credit Loans

Sources

Experian. "What Is the Average Credit Score in the U.S.?." Accessed April 10, 2024.

TransUnion. "Credit Industry Snapshot." Accessed April 10, 2024.

About Zachary Romeo, CBCA

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.

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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.