Minnesota is a highly picturesque state with farmlands and forests but it is not doing well on the job front because of high taxes and anti-business polices.
The North Star State also enjoys prosperity as its median household income level at $63,488 outpaces national median income of $55,775 but this does not mean much when there is less opportunities around you to earn a living and taxes are high.
The income is fairly smoothly distributed across the residents as Minnesota has one of the lowest poverty rates in the United States. Only 10.2 percent of its population lives below poverty line.
Due to its high-income level, the state of Minnesota is a safe haven for personal loan providers as borrowers with robust credit histories are less likely to default.
This also allows the loan providers to offer lower interest charges and better repayment options to the borrowers, further boosting the demand for such loans. The following are the main areas where Minnesota residents like to spend their personal loan proceeds.
Personal Loans to Pay off Credit Cards
Personal loan proceeds may be used for paying off credit card balances. There are several advantages associated with this strategy. First off, credit card debt are generally the most expensive kind of debt as they charge very high-interest rate. By paying off such debt, the borrower may reduce their overall debt and interest burden.
Further, if the borrower defaults on credit card repayments, it may reflect negatively on their credit report, lowering their credit score. Lower credit score increases the chances of being charged high-interest rates on future debt. In many cases, such borrowers may be denied any debt at all. In order to avoid these issues, it is advisable to opt for a personal loan and pay off credit card debts.
Personal loans also provide more flexible and convenient repayment options, ensuring that the borrower is able to meet their commitments.
Personal Loans for Funding Vacations
Since Minnesota has high taxes, the demand for personal loans for meeting basic expenses is low. However, the state’s residents may use such loans for discretionary expenses such as luxury holidays and exotic vacations which are becoming more common because of low taxes and less regulations being implemented from the nation’s capital.
While a vacation is a pleasant experience it may entail a substantial cash outlay. With the help of a personal loan, the borrower may take a vacation and defray the expenses.
A lump sum payment may put a dent in the borrower’s financial and liquidity position. However, personal loans allow the person to spread such expenses over a period of time. It also ensures that the borrower is able to meet their other expenses without damaging their overall financial position.
Best Banks for Personal Loans in Minnesota
To increase your chance of getting the best rates possible for your personal loan, these banks are worth checking out:
First Alliance Credit Union
Unlike most banks and credit unions, First Alliance Credit Union sets itself apart by allowing you to borrow as little or as much as you need starting at $200.
Northeast Bank was established in 1947 to fulfill the need of a local branch in the Northeast Minneapolis area. Since then, it has helped thousands of customers achieve their goals through various loan options.
Founded in 1939, Liberty Bank had loaned the residents of Central Minnesota over a billion dollars at the turn of the millennium.
Citizens Bank Minnesota
As a credit union, Citizens Bank Minnesota’s biggest selling points are quick approvals and low-interest rates.
Affinity Plus Federal Credit Union
With Affinity Plus Credit Union, you can get approved for a personal loan at 7.99 APR. With an on-site calculator, you’d be able to see how much you’d pay given a certain amount, a payment term, and APR.
Firefly Credit Union
Firefly Credit Union is a highly-transparent and non-profit bank that gives lower interest rates on all their loans, allowing you to get a bang for buck deal.
Robert is our in-house expert on personal loans and finance. He got an MBA, specializing in Finance, before joining the workforce. After working for multiple Fortune 500 companies in the past decade, he brings a wealth of knowledge and experience to the table.