Best Personal Loans in Minnesota for 2024

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Updated: November 21, 2024

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First Tech and PenFed are the two top lenders for personal loans in Minnesota according to MoneyGeek. With respective scores of 98 and 96, they offer good interest rates, service and flexibility. When looking for personal loans, your credit score, debt-to-income ratio and income history are important.

In Minnesota, the average credit score is 742, based on Experian's 2023 data, suggesting the average borrower here has good credit, which can help secure a favorable loan. However, not all loans are guaranteed.

MoneyGeek considers lender reputation, annual percentage rate (APR) range and loan options when picking the best. Choose a loan that fits your financial situation and goals.

MoneyGeek Logo IconBest PersonalLoan LendersMinnesota
2024

Best Personal Loan Lenders in Minnesota

Best Overall - First Tech
Runner-Up - PenFed
Best for Bad Credit - Happy Money
Best for Debt Consolidation - Alliant Credit Union

MoneyGeek's personal loans scoring system is designed to give a comprehensive overview of each lender’s performance in key areas that matter to borrowers. We use a point-based system, assigning scores according to the presence or absence of certain desirable features in various critical categories.

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

34Lenders Analyzed

    Overall Best Personal Loan Lender in Minnesota

  • First Tech
    • 98MoneyGeek Score
    • 8.94% to 18.00%APR Range
    • UndisclosedMinimum Credit Score
    • $500 to $50,000Loan Amount Range
    • 6 to 84 monthsRepayment Terms

    First Tech Federal Credit Union is MoneyGeek's top pick for personal loans in Minnesota, with a MoneyGeek score of 98 out of 100. Offering APRs ranging from 8.94% to 18.00% — among the most competitive — it provides loans with repayment terms up to 84 months.

    Robust customer service and educational resources, coupled with reasonable fees, highlight the lender's dedication to user satisfaction and transparency, reinforcing why Minnesota borrowers should consider it for their personal financing needs.

    Pros

    • Insured by the National Credit Union Administration (NCUA)
    • No application or loan origination fee
    • Provides granular APR data for a variety of loan terms

    Cons

    • Need to be a member to apply
    • Provides limited details on the loan application process
    • Little published information about credit score requirements
    First Tech
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SEE THE BEST PERSONAL LOANS IN MINNESOTA CITIES

    Runner-Up for Best Personal Loan Lender in Minnesota

  • PenFed
    • 96MoneyGeek Score
    • 7.99% to 17.99%APR Range
    • UndisclosedMinimum Credit Score
    • Up to $50,000Loan Amount Range
    • Up to 60 monthsRepayment Terms

    PenFed Credit Union, scoring 96 out of 100, is MoneyGeek's runner-up for the best lender for personal loans in Minnesota. PenFed offers APRs from 7.99% to 17.99%, which is favorable compared with others. Its repayment terms are competitive, with loans up to 60 months. The lender particularly excels in loan term flexibility and also stands out for consistent reputation and transparency, reassuring customers of its reliability.

    Pros

    • Offers some of the lowest APRs available
    • No early repayment penalty
    • Insured by the National Credit Union Administration (NCUA)

    Cons

    • No information provided about credit score requirements
    • $50 minimum monthly loan payment
    PenFed
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UNDERSTAND YOUR DEBT-TO-INCOME RATIO

The amount of monthly debt payments you have relative to your monthly gross income is called your debt-to-income ratio, or DTI. Most lenders prefer to see a debt-to-income ratio of 35% to 40% or below for secured loans, and 40% to 45% or below for unsecured personal loans.

Debt includes items like mortgages, car loans, credit cards and existing personal loans. A debt-to-income ratio above 50% is considered high and so approval may be more difficult, or your loan may come with higher interest rates.

— Alvin Yam, CFP®

Calculate Your Monthly Minnesota Loan Payment

According to our analysis, lenders in Minnesota offer personal loan products averaging about 47 months, which can change depending on the financial institution and the borrower's credit profile. Explore your loan options with our personal loan calculator. This helpful and user-friendly tool lets you calculate your monthly payments and the total loan cost over its lifetime, using different inputs for the loan amount, rate and term length, allowing you to make an educated decision about borrowing.

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Estimate the monthly payment for your loan.

Updated: Nov 21, 2024

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    Best Personal Loan Lender in Minnesota for Bad Credit

  • 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 provider for borrowers with low credit in Minnesota, boasting a 94 out of 100 score. While not a traditional provider, Happy Money collaborates with various institutions to offer competitive rates — they're within an APR range of 11.72% to 17.99%. Requiring a minimum credit score of 640, this service stands out for its high standards in customer education and an excellent reputation for transparency, ensuring borrowers are well-informed and supported throughout the loan process.

    Pros

    • Works with 10 federally insured lenders to originate installment loans
    • Transparent eligibility requirements, including credit score minimum
    • No application fee

    Cons

    • Participating lenders charge an origination fee
    • Longer time to wait for loan approval compared with other lenders analyzed
    Happy Money

How does MoneyGeek score lenders for bad credit loans?


    Best Personal Loan Lender in Minnesota for Debt Consolidation

  • Alliant Credit Union
    • 96MoneyGeek Score
    • 10.99% to 13.99%APR Range
    • UndisclosedMinimum Credit Score
    • $1,000 to $100,000Loan Amount Range
    • 12 to 60 monthsRepayment Terms

    MoneyGeek's pick for the best personal loan provider for debt consolidation in Minnesota is Alliant Credit Union. This institution requires personal loan applicants to be members in good standing for 90 days before they are eligible. With a MoneyGeek score of 96 out of 100, Alliant has an APR range of 10.99% to 13.99% — competitive over that of others. It also shows transparency with consumers and offers reasonable rates and fees.

    Pros

    • Among the highest loan limits available in our analysis
    • Insured by the National Credit Union Administration (NCUA)
    • No prepayment penalties

    Cons

    • An online-only credit union — no physical branches
    • Have to be a member for 90 days to apply
    Alliant Credit Union

How does MoneyGeek score lenders for debt consolidation?

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IS INTEREST ON PERSONAL LOANS TAX DEDUCTIBLE?

Interest on personal loans is generally not tax deductible because personal loans are considered consumer debt. But there are some exceptions where the interest may qualify:

  • When consolidating high-interest qualifying debts like credit cards or student loans, if used to pay off those debts.
  • If used for home improvements that increase the home's value.
  • If the loan proceeds can be demonstrated as used exclusively for business expenses or starting a business.
  • In some cases, if the loan is used for investment purposes related to income-generating assets.

— Alvin Yam, CFP®

Impact of Credit Score on Loan Repayment in Minnesota

When you apply for a personal loan in Minnesota, lenders will evaluate your credit report, income and debt-to-income ratio to determine your creditworthiness. Your credit score heavily influences the loan terms you're offered. Higher credit scores often lead to lower APRs, so it might benefit you to improve your credit score before applying.

Refer to the table below to see how your credit score can affect your monthly loan payments.

Data filtered by:Results filtered by:
Credit Band:
Credit Band:690 to 719
Loan Amount:
Loan Amount:$2,000
$3486
$18012
$9724
$6936
$5548
$4760
$4272
$3884

This table approximates monthly payments, calculated using median personal loan interest rates typical for various credit score ranges. These numbers are median estimates provided for general guidance. They should not be taken as precise rates for everyone in each credit score category. Actual interest rates can differ due to lender-specific policies, prevailing market conditions and unique borrower profiles.

Pros and Cons of Personal Loans in Minnesota

Personal loans offer a multitude of advantages, such as the potential for lower interest rates compared with credit cards and the convenience of consolidating multiple debts into one manageable payment. They also provide quick financial access and can enhance your credit mix if managed responsibly.

However, personal loans are not without risks, including possible origination fees and the jeopardy of losing assets with a secured personal loan. For a balanced view on personal loan benefits and drawbacks, first do your homework.

The pros and cons of personal loans

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  • Comparatively low interest rates
  • Consolidation of multiple debts
  • Expedited funding availability
  • Flexible use of funds
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  • Increased overall loan costs due to origination fees
  • Financial penalties for early loan repayment
  • Potential loss of assets with secured personal loans
  • Risk of accumulating excess debt through facile approval systems
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MORE ON MINNESOTA LOANS

FAQ About Minnesota Personal Loans

If you have questions about personal loans, MoneyGeek has answers to help you make an informed decision before applying.

What is the best lender in Minnesota for personal loans?
Where is the best place to get a personal loan in Minnesota?
What has the best personal loan interest rates in Minnesota?
What can I use a personal loan for in Minnesota?
What are some personal loan red flags to look out for?
Do lenders consider income level when applying for a personal loan?

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 »
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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.

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