Best Debt Consolidation Loans in Minnesota 2024

Enter your ZIP code to get started

Shield

Free. Simple. Secure.

fact checked icon

Updated: November 21, 2024

Advertising & Editorial Disclosure

Debt consolidation loans are unsecured personal loans used as a debt repayment strategy. It's a popular way to streamline and pay off debts — like credit card or student loan debts — at a lower interest rate than what you currently pay.

MoneyGeek analyzed 26 lenders and found PenFed to be Minnesota's top choice for debt consolidation loans, scoring 96 out of 100. Although PenFed stands out in our analysis, you may also want to check local lending options like Minnesota Valley Federal Credit Union and Minnco Credit Union to see if they fit your borrowing needs.

MoneyGeek Logo IconBest Loans forConsolidationMinnesota
2024

Best Debt Consolidation Loans in Minnesota

Best Overall - PenFed
Runner-Up - Alliant Credit Union
Best for Affordability - Wells Fargo
Best for Large Loans - PNC
Best for Fast Funding - Rocket Loans

Overall Best Debt Consolidation Loan Lender in Minnesota

Company logo for PenFed
PenFed
MoneyGeek Score:
96/ of 100
APR Range8.99% to 17.99%
Loan Amount RangeUp to $50,000
Repayment TermsUp to 60 months
Time to Receive Funds1 to 2 Business Days
Overview

PenFed offers Minnesota's best debt consolidation loan, with a MoneyGeek score of 96 out of 100. An ideal debt consolidation lender has competitive rates, a substantial loan amount, quick fund disbursement, quality service and a strong reputation.

PenFed's APR range of 8.99% to 17.99% is lower than other lenders. Its loan amounts of up to $50,000 lets borrowers consolidate significant debt. With quick disbursement in one to two business days, borrowers can promptly manage and pay off their consolidated debt.

Runner-Up for Best Debt Consolidation Loan in Minnesota

Company logo for Alliant Credit Union
Alliant Credit Union
MoneyGeek Score:
95/ of 100
APR RangeFrom 10.49%
Loan Amount Range$1,000 to $100,​​​​​000
Repayment Terms12 to 60 months
Time to Receive FundsSame Day
Overview

Alliant Credit Union is another solid option for a debt consolidation loan in Minnesota, with a MoneyGeek score of 95 out of 100. It offers competitive interest rates, helping lower your monthly payments when consolidating multiple debts.

Flexible loan terms let you tailor your repayment plan to fit your financial needs. The quick approval process provides same-day access to funds, helping you manage and pay off debts quickly.

Best Debt Consolidation Loan in Minnesota for Affordability

Company logo for Wells Fargo
Wells Fargo
MoneyGeek Score:
94/ of 100
APR Range7.49% to 24.99%
Loan Amount Range$3,000 to $100,000
Repayment Terms12 to 84 months
Time to Receive Funds1 to 3 Business Days
Overview

Wells Fargo offers the best debt consolidation loan in Minnesota for borrowers who prioritize affordability, with a MoneyGeek score of 94 out of 100. Its APR range is 7.49% to 24.99%, and its loan amount ranges from $3,000 to $100,000 with repayment terms of 12 to 84 months.

Affordability goes beyond interest rates; it's also about minimizing fees and using available discounts. Wells Fargo doesn't charge origination fees and offers rate discounts, helping you lower your interest rate and save money over the loan’s life.

Best Debt Consolidation Loan in Minnesota for Large Loan Amounts

Company logo for PNC
PNC
MoneyGeek Score:
96/ of 100
APR RangeUp to 24.99%
Loan Amount Range$1,000 to $35,000
Repayment Terms6 to 60 months
Time to Receive Funds3 Business Days
Overview

PNC offers Minnesota's best debt consolidation loan for borrowers who need a large loan amount or longer repayment terms, with a MoneyGeek score of 96 out of 100. It provides loan amounts from $1,000 to $35,000 and repayment terms from six to 60 months.

PNC's flexible repayment terms can help a borrower who needs more time to pay off their debt without straining their monthly budget. It disburses funds in three business days, so you can consolidate your debts faster and reduce the time spent juggling multiple payments.

Best Debt Consolidation Loan in Minnesota for Fast Funding

Company logo for Rocket Loans
Rocket Loans
MoneyGeek Score:
95/ of 100
APR Range9.116% to 29.99%
Loan Amount Range$2,000 to $45,000
Repayment Terms36 or 60 months
Time to Receive FundsSame Day
Overview

Rocket Loans offers Minnesota's best debt consolidation loan for borrowers who need funds quickly, with a MoneyGeek score of 95 out of 100. It disburses funds on the same day, making it an excellent choice for covering urgent financial needs.

Rocket Loans' fast approval process allows you to promptly consolidate your debts. Flexible loan terms enable you to choose a repayment plan that fits your budget.

Should You Get a Loan to Consolidate Debt in Minnesota?

Using a debt consolidation loan in Minnesota can simplify your finances by merging multiple payments into one. Yet, debt consolidation may not be ideal if the new loan's interest rate is higher than your current debts. Always assess your situation before deciding.

    carInsurance icon

    Good Credit

    Good credit can secure better interest rates and lower monthly payments for a debt consolidation loan in Minnesota.

    uninsured icon

    High-Interest Debt

    Consolidating high-interest debt with a debt consolidation loan can reduce your overall interest rates.

    calendar icon

    Multiple Monthly Payments

    Combining multiple payments into one with a debt consolidation loan simplifies debt management.

    securePayment icon

    Lower Monthly Payments

    A debt consolidation loan can help achieve lower monthly payments, easing financial strain.

When You Shouldn't Get a Debt Consolidation Loan

  • When your new monthly payment is higher: The new loan payments may strain your budget more than the current ones.
  • When you can pay off debt within a year: Consolidating debt might not be necessary if you can clear it quickly.
  • When your income is uncertain: An unpredictable income makes committing to new loan payments risky.
  • When your DTI ratio is above 40%: High DTI can lead to loan denial or unfavorable terms.

How to Get a Debt Consolidation Loan in Minnesota

Minnesota's average annual personal loan debt is $106,981, higher than the national average of $104,215. The monthly debt averages $8,915.

Using personal loan to consolidate debt can simplify your payments and lower your interest rates. Going into the process unaware can lead to higher interest rates and damage your credit score. To avoid these risks, follow these steps to apply for a debt consolidation loan.

  1. 1
    Review your debts and credit score

    Account for your existing debts to see which ones to consolidate, such as credit card debt. Wrong choices can lead to higher costs. Check your credit score to gauge your chances of approval from lenders. To improve your credit score, pay bills on time and reduce outstanding balances.

  2. 2
    Compare loan terms from lenders

    Compare loan terms from multiple lenders. Confirm with them that you can use the loan for debt consolidation. Check the APRs, loan limits and how soon you can receive the funds.

  3. 3
    Check for extra benefits

    Some lenders offer added features that could benefit you. For example, in Minnesota, Rocket Loans and Santander offer rate discounts.

  4. 4
    Watch out for fees and penalties

    Some lender features could be drawbacks. In Minnesota, Upgrade charges an origination fee, and Rocket Loans charges a late fee. These fees can impact your short-term and long-term finances.

  5. 5
    Get prequalified

    Prequalification helps borrowers understand their loan options without affecting their credit score. It involves a soft credit check and gives you an idea of the loan terms you might receive.

  6. 6
    Complete your loan application

    Prepare the necessary documents, such as proof of income, ID and bank statements, to complete your loan application faster.

mglogo icon
WHAT TO DO IF YOU'RE DENIED A DEBT CONSOLIDATION LOAN IN MINNESOTA

Lenders might deny your loan application due to a poor credit score or a high debt-to-income ratio. Before applying for a debt consolidation loan in Minnesota, check your credit report for errors and work on improving your credit score. Reducing your existing debts can also improve your chances of approval.

You can also contact credit counseling agencies to help you manage your debts better. Another option is a 0% APR balance transfer credit card, which allows you to transfer high-interest debt to a card with no interest for a limited time and helps you save on interest payments.

FAQ: Debt Consolidation Loans in Minnesota

MoneyGeek addresses common questions about debt consolidation loans in Minnesota, helping you understand how debt consolidation can simplify your finances.

What is a debt consolidation loan in Minnesota?
What's the best debt consolidation loan lender in Minnesota?
Can I get a debt consolidation loan in Minnesota if I have bad credit?
Can a credit counseling agency in Minnesota help manage debt?
When should I get a debt consolidation loan in Minnesota?

MoneyGeek analyzed 26 national lenders licensed to do business in Minnesota, based on a rubric that includes APR ranges, loan amounts and repayment terms, among other key areas. We use a point-based system and assign scores according to the presence or absence of desirable features in various important categories.

We score lenders differently when recommending the best for affordability, loan amounts and fast funding.

recency icon

We conducted our analysis in September 2024.

26Lenders Analyzed

About Zachary Romeo, CBCA

Zachary Romeo, CBCA headshot

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.

Read Full Bio »
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