Best Personal Loans in Sioux Falls, SD: Top Lenders & Best Picks for You

Ask Yourself the Important Questions

Taking out a personal loan is a huge financial decision that requires years of commitment. Prior to comparing personal loans in your city, it’s important to answer the following questions:

• How much funding do I need? It’s important to only borrow the amount of money you need to avoid paying more in interest or having to take out a second loan. How much you need will be based on how you intend to use your personal loan. If you want to use it to consolidate debt, add up your existing debt. If you want to use it to pay for a home renovation, obtain a quote from a contractor. Taking the time to accurately approximate your loan needs will save you money in the long term.
• What is my credit score? It’s important to know your credit score because this will dictate the lenders and rates available to you. Most lenders have a minimum credit score requirement. They also assign interest rates based on a borrower’s credit score; if you have a high credit score, you’ll likely receive a lower interest rate. If you aren’t in a rush to take out a loan, consider improving your credit score first to receive the best interest rate.
• Can I afford the monthly payment? Calculate your approximate monthly payment to ensure you can afford it. Making a higher monthly payment will reduce the amount you’ll pay in interest, but you should also make sure that you’re able to pay for your daily living expenses.
• How much debt do I already have? Unless you’re seeking a personal loan for debt consolidation, obtaining another personal loan may simply become a financial burden. Consider alternative funding sources if you already have a significant amount of debt. You can start by evaluating the pros and cons of taking out a personal loan.

Do Your Research

It’s important to compare different lenders for their APRs, loan amounts, repayment terms and eligibility requirements to find the best option for you. While MoneyGeek’s guide is a great place to start, our recommendations are based on generic borrower profiles, rather than your unique situation. As such, there’s no substitute for your own research.

Wait

After you’ve selected your lender, we recommend waiting a few days before you submit your application. During this time, you can review other lenders’ rates or consider alternative funding options. A personal loan is a huge time commitment — most take between two and four years to repay — so it’s important that you’re confident in your decision.

Read the Fine Print

Some borrowers make the mistake of skimming through the fine print, but not you. Because you’ve read MoneyGeek’s guide you know that the fine print can include hidden fees, like origination fees, late payment and prepayment penalties. While these may seem insignificant, these costs can add up over the life of your loan. Knowing the details of your loan agreement can help you budget accordingly or reconsider applying with the lender altogether.

Apply

Once you’ve read through and understand the fine print of your loan agreement, it’s time to apply. To make the process as fast and stress-free as possible, you should prepare the required documents ahead of time, including proof of identification, address and income. Depending on how you apply — online, in person or over the phone — your application processing time will vary.