Best Personal Loans in South Dakota for 2024

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Reviewed byAlvin Yam, CFP
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Updated: April 11, 2024

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First Tech and PenFed are MoneyGeek's top picks for personal loans in South Dakota, with scores of 97 and 96, respectively. First Tech stands out for its excellent customer service and education, while PenFed is known for flexible loan terms.

When searching for a personal loan, your credit score, income history and debt-to-income ratio are important. In South Dakota, the average credit score is 734, according to Experian data from 2023. This suggests the average borrower might get good loan terms, but this isn't certain.

MoneyGeek considered lender reputation, transparency, APR ranges, required credit scores and loan term flexibility when choosing the top lenders. With these factors in mind and a trusted lender, South Dakotans can confidently manage their finances.

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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 35-40% or below for secured loans, and 40-45% 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 South Dakota Loan Payment

According to our analysis, lenders in South Dakota offer personal loan products averaging about 57 months. Explore your loan options with our personal loan calculator, a simple tool to calculate monthly payments and total loan costs based on amount, interest rate and term length, helping you make informed decisions before committing.

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Interest on personal loans is generally not tax deductible as 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®

The Impact of Credit Score on Loan Repayment in South Dakota

When seeking a personal loan in South Dakota, consider your credit score, income and debt-to-income ratio — key factors that lenders examine to determine your creditworthiness. The best lenders, as identified by MoneyGeek, were evaluated on reputation, transparency, interest rates (APR), minimum required credit scores and the option for various loan terms.

Reinforcing your credit score can yield considerable benefits, potentially securing you lower annual percentage rates (APR), and a credit score enhancement may be advantageous prior to applying for a loan.

For insight into how your credit score influences your monthly payments, refer to the accompanying table.


This table offers an approximation of monthly payments, calculated using median personal loan interest rates typical for various credit score ranges. Please remember that 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.

Understanding Personal Loans: Pros and Cons

Personal loans often offer lower interest rates and the flexibility to consolidate various debts into one manageable payment, making them a versatile financial tool for those looking to address a range of expenses. They may also provide a quick influx of cash, often with the option for a co-signer to help secure more favorable terms.

Despite their advantages, personal loans also carry certain risks, such as the potential for origination fees or asset loss in the case of secured loans; it's important to carefully consider these factors when evaluating loan options. Learn more about personal loan benefits and drawbacks to make an informed decision.


Frequently Asked Questions About South Dakota Personal Loans

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

The best lender in South Dakota for personal loans according to MoneyGeek is First Tech, with a MoneyGeek score of 97. Its average APR is approximately 12%.

In South Dakota, personal loans can be obtained from online lenders, banks and credit unions. Local credit unions, such as Aspen Federal Credit Union and Black Hills Federal Credit Union, offer in-person services for those seeking local access.

According to MoneyGeek's analysis, PenFed offers the lowest APR for a personal loan in South Dakota, starting at 7.99%. However, the best low rate for you might vary based on your financial situation, and securing a low rate usually requires an excellent credit score.

Restrictions on the use personal loans funds tend to vary by lender. Generally, they can be used for emergency circumstances, to consolidate debt or for home or auto repair. They typically can't be used for gambling or illegal activity.

When considering personal loans, watch out for extremely high APRs, unusually strict repayment penalties and a lack of information about how the application process will impact your credit score. Also, be cautious of lenders with a high frequency of poor consumer reviews.

Yes, lenders consider income level when assessing a personal loan application. They also evaluate the debt-to-income ratio, credit score, employment history and credit history. It's advisable to avoid opening new lines of credit during this process, as it can affect the likelihood of approval.

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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.