Best Personal Loans in Minnesota for 2024

Q: What are some personal loan red flags to look out for?

When considering personal loans , be wary of extremely high APRs, unusual repayment penalties and a lack of transparency about the loan originator. Also be cautious of lenders with a high frequency of poor consumer reviews or negative press about predatory practices.

With a MoneyGeek score of 98, First Tech stands out as the best personal loan lender in Minnesota with top-notch customer service, competitive rates and a transparent lending process.

By Zachary Romeo, CBCA

Reviewed by Alvin Yam, CFP

Edited by Lukas Velunta

Updated: November 27, 2024

Advertising & Editorial Disclosure

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.

Best 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.

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

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

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.

Personal Loan Calculator

Estimate the monthly payment for your loan.

Updated: Dec 21, 2024

Loan Amount

Loan Term

5 Years

Interest Rate

Payment:

$0/Month

Total Principal Paid:

Total Interest Paid:

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Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.

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

How does MoneyGeek score lenders for bad credit loans?

We use our standard methodology and weights, but we limit our analysis to lenders that explicitly mention their minimum credit score requirements on their public websites. Only 12% of lenders that offer personal loans fit this criteria.

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

Getting a personal loan is still possible if you have a lower credit score than 580, but you will not have access to the best interest rates and terms available. Some lenders allow prequalification, which won't affect your credit score, to help you understand what you might be eligible for.

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

How does MoneyGeek score lenders for debt consolidation?

We looked only at interest rates and fees (60% weight) and loan terms and flexibility (40% weight). If the winner in our analysis also won Best Overall or Runner-Up, we selected the next-best winner for diversity.

Some lenders have minimum interest rates that are higher for debt consolidation loans compared to their rates for general-use loans. When consolidating debts, finding the lowest interest rate possible will help you save the most money over the long term.

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

Select

Credit Band:690 to 719

Loan Amount

Select

Loan Amount:$2,000


$348	6
$180	12
$97	24
$69	36
$55	48
$47	60
$42	72
$38	84

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

Comparatively low interest rates
Consolidation of multiple debts
Expedited funding availability
Flexible use of funds

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

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?

According to MoneyGeek's analysis, the best lender in Minnesota for personal loans is First Tech with a MoneyGeek score of 98. The average APR is approximately 14%.

Where is the best place to get a personal loan in Minnesota?

In Minnesota, personal loans can be obtained from online lenders, banks and credit unions. For those preferring in-person services, local credit unions like Minnesota Valley Federal Credit Union, Mid Minnesota Federal Credit Union and Minnco Credit Union offer personal loans.

What has the best personal loan interest rates in Minnesota?

PenFed offers the lowest starting APR at 7.99% according to MoneyGeek's analysis. The best low rate for you may vary based on your individual financial needs and securing such rates commonly requires an excellent credit score.

What can I use a personal loan for in Minnesota?

In Minnesota, the use of personal loans funds varies by lender but typically can be used for wedding expenses, vacation or travel, and emergency circumstances. They cannot generally be utilized for gambling purposes or any illegal activity.

What are some personal loan red flags to look out for?

When considering personal loans, be wary of extremely high APRs, unusual repayment penalties and a lack of transparency about the loan originator. Also be cautious of lenders with a high frequency of poor consumer reviews or negative press about predatory practices.

Do lenders consider income level when applying for a personal loan?

Yes, lenders factor in your income level alongside your debt-to-income ratio, credit score, employment history, and whether you have a W2 or are self-employed. Avoid opening new lines of credit concurrently when seeking a personal loan as this might affect your application's success.

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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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sources

Experian. "What is the Average Credit Score in the US?." Accessed October 13, 2024.

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.