Best Loans for Bad Credit in New York for 2024

Happy Money provides the best loans for bad credit in New York, with a MoneyGeek score of 94 out of 100. It excels in reputation, customer service and application process.

Updated: December 13, 2024

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Happy Money stands out as the best personal loan lender for bad credit in New York, with a MoneyGeek score of 94 out of 100. It provides quality service, offers competitive interest rates, has credibility and is transparent about its loan terms and process. The runner-up, Achieve, follows closely with a MoneyGeek score of 92 out of 100. It is commendable for its strong customer service and broad payment options and for being credible and transparent about its loan terms and processes.

To find the best personal loans for bad credit in New York, MoneyGeek reviewed three lenders that set and disclosed their minimum credit score requirements between 580 and 640. In addition to the highlighted companies, other lenders like First New York Federal Credit Union, Island Federal Credit Union and Northern Credit Union also offer personal loan options that cater to those looking for localized services in New York.

Best Bad CreditLendersNew York

2024

Best Bad Credit Loans in New York

Best Overall - Happy Money

Runner-Up - Achieve

MoneyGeek scored personal loan lenders in New York that explicitly disclose their minimum credit score requirements on their websites to find the best personal loans for bad credit. Only 12% of lenders disclose this information.We filtered our analysis to include lenders with minimum credit score requirements between 580 and 640, which meets Experian's definition of fair credit. Our research did not find any published minimums lower than 580.

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

34Lenders Analyzed

Overall Best Bad Credit Loan Lender in New York

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 lender for bad credit in New York, with a MoneyGeek score of 94 out of 100. It is not a lender but a fintech company that collaborates with lending partners that are federally insured by the National Credit Union Administration to originate personal loans. It requires a minimum credit score of 640 and offers loan amounts ranging from $5,000 to $40,000. Applicants typically receive funds by the next day. The company doesn't levy fees for late or early repayment, offering a degree of flexibility. However, borrowers should note that loans are exclusively for debt consolidation, and an origination fee applies.

Pros

Doesn't charge late, early repayment, bounced check, failed ACH or other fees
Flexible repayment terms from 24 to 60 months
Offers to pay creditors directly

Cons

Only offers loans for debt consolidation
Charges an origination fee
$40,000 borrowing limit

SEE THE BEST BAD CREDIT LOANS IN NEIGHBORING STATES

Runner-Up for Best Bad Credit Loan Lender in New York

Achieve

92MoneyGeek Score
8.99% to 35.99%APR Range
620Minimum Credit Score
$5,000 to $50,000Loan Amount Range
24 to 60 monthsRepayment Terms

Achieve is the runner-up for the best bad credit loan lender in New York, with a MoneyGeek score of 92 out of 100. This lender's personal loans are originated by Cross River Bank (a New Jersey State Chartered Commercial Bank) or Pathward (an FDIC member). Achieve caters to borrowers with a minimum credit score requirement of 620, offers loan amounts ranging from $5,000 to $50,000 and provides same-day funding. Additionally, it offers a rate discount for qualified co-applicants and does not impose a prepayment penalty. However, applicants should consider that it charges an origination fee between 1.99% and 6.99% and caps loans at $50,000.

Pros

Offers an interest rate discount when you add a qualified co-borrower to your application, show proof of sufficient retirement funds in an eligible account or use your loan funds to directly pay your creditors when consolidating debt
Doesn't charge a prepayment penalty
Offers same-day funding

Cons

Charges an origination fee between 1.99% and 6.99%
Loan amount caps at $50,000
High minimum loan amount

Calculate Your Monthly Loan Payment in New York

According to TransUnion's Credit Industry Snapshot, the average new account balance for personal loans in New York is $12,713. When you take out a personal loan, typically an unsecured loan, you agree to a fixed repayment period — you pay back the principal plus interest, typically through monthly installments.

Appropriately calculating your monthly loan payments is especially crucial if your credit is not ideal, as it impacts the interest rate offered and the total cost of the loan. To get a clearer picture of your potential costs, use MoneyGeek's online personal loan calculator. This tool can help estimate your loan payments, giving you a better understanding of how the loan fits into your financial plan.

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Updated: Dec 21, 2024

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Best Bad Credit Loans by Credit Score in New York

The average credit score in New York is 721, slightly higher than the national average of 715, based on Experian data.

Some lenders in New York are prepared to consider applicants with less-than-ideal credit, though the interest rates could be higher and the terms less beneficial. Review the table below to explore personal loan lenders in New York that match your credit score level.


Prosper	600	8.99% to 35.99%	$2,000 to $50,000	24 to 60 months	1 business day	90
Achieve	620	8.99% to 35.99%	$5,000 to $50,000	24 to 60 months	Same Day	92
Happy Money	640	11.72% to 17.99%	$5,000 to $40,000	24 to 60 months	3 to 6 Business Days	94

What to Do if Your Loan Application Is Denied in New York

It's not uncommon to face a personal loan application denial in New York, but this doesn't halt your borrowing journey. Understanding the next steps can help you navigate this setback. Here are some measures to enhance your chances of approval for future applications.

1
Find out the reason for the denial
If your loan application is denied, it could be due to a poor credit score, a high debt-to-income ratio, a low income level or errors in your application. Review the lender's reasons to understand where you need to improve to avoid future denials.
2
Modify your loan terms
Consider reaching out to your lender to discuss whether altering the loan amount or the repayment terms might lead to approval for your personal loan application.
3
Find another lender
Understand that lenders have their own criteria for loan approval. Shop around to find the best lender for your needs, assessing these factors:
- Eligibility requirements: Check each lender's requirements for credit score, income, debt-to-income ratio and employment history.
- Interest rates: Seek lenders offering competitive rates, which is especially beneficial if you have bad credit.
- Additional fees: Be aware of fees such as origination, late and prepayment charges, which can vary between lenders.
- Loan terms: Compare different lenders' repayment terms, understanding the implications of short vs. long terms.
- Customer service and reputation: Research the quality of customer service and the reputation of potential lenders.
4
Look for alternatives
Explore alternatives to personal loans that may be suited for those with bad credit, such as secured loans, credit union loans or borrowing from friends and family.
5
Improve your credit score
Focus on improving your credit score over time to increase your chances of loan approval. Methods to enhance your score include making payments on time, reducing debt levels and correcting inaccuracies on your credit report.

EXPERT TIP

Work on improving your credit score before applying for a personal loan to increase your chances of approval and getting better terms. Here are some long-term steps to consider:

Monitor your credit utilization ratio: Keep your credit utilization ratio low, as high credit utilization can negatively impact your credit score. Aim to use less than 30% of your available credit limit.
Don’t close old credit cards: The length of your credit history contributes to your credit score. Even if you no longer use a credit card, keep it open unless it has an annual fee.

— Alvin Yam, CFP

FAQ About Bad Credit Loans in New York

When shopping for personal loans in New York, it's common for borrowers, especially those with bad credit, to have questions or concerns. We compiled answers to frequently asked questions to assist in this process, offering clarity and guidance to help you make well-informed decisions.

Who is the best personal loan lender for bad credit in New York?

The best personal loan for bad credit in New York is offered by Happy Money, with a MoneyGeek score of 94 out of 100.

Which lender in New York has the lowest APR rates for personal loans?

The lenders in New York with the lowest starting APR for personal loans are Achieve and Prosper, both offering rates as low as 8.99%. It's worth noting that only borrowers with excellent credit are likely to secure this rate.

Which lender in New York has the lowest minimum credit score requirement for personal loans?

The lender with the lowest minimum credit score requirement for personal loans in New York is Prosper, with a minimum credit score of 600.

How to apply for a personal loan for bad credit in New York?

To apply for a personal loan with bad credit in New York, you need to first review your credit report to understand your financial situation. Then, research lenders that specialize in bad credit loans, including online lenders, local credit unions and community banks. Compare loan offers by evaluating interest rates, repayment terms and fees. Accurately complete the application process, either online or in person, and provide any additional information required by the lender.

How long does it take to get a bad credit loan in New York?

The time it takes to receive a bad credit loan in New York depends on the lender. Some lenders offer same-day funding, whereas others may release funds the next day, in a few business days or up to a week.

Can I pay off my personal loan early in New York?

You can pay off your loan early in New York. However, it's necessary to check with your lender regarding any potential prepayment penalties.

Is there a difference between personal loans and installment loans in New York for bad credit?

In New York, personal loans and installment loans for bad credit are essentially the same, both involving borrowing a fixed amount and repaying it through regular, scheduled installments.

Best Personal Loans

Best Bad Credit Loans

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 December 13, 2024.
TransUnion. "Credit Industry Snapshot." Accessed December 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.