Best Debt Consolidation Loans in New York 2024

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Updated: November 19, 2024

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Debt consolidation loans are personal loans that borrowers use to pay off multiple debts, including student loan debt, at a lower interest rate. MoneyGeek analyzed 26 lenders and found PenFed to be the top choice for debt consolidation loans in New York, scoring 96 out of 100.

Although PenFed stands out in our analysis, there are other lenders available in New York not included in our analysis. You may also want to check out local lending options like First New York Federal Credit Union and Island Federal Credit Union to see if they fit your borrowing needs.

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2024

Best Debt Consolidation Loans in New York

Best Overall - PenFed
Runner-Up - Alliant Credit Union
Best for Affordability - Wells Fargo
Best for Large Loans - PNC
Best for Fast Funding - Rocket Loans

Overall Best Debt Consolidation Loan Lender in New York

Company logo for PenFed
PenFed
MoneyGeek Score:
96/ of 100
APR Range8.99% to 17.99%
Loan Amount RangeUp to $50,000
Repayment TermsUp to 60 months
Time to Receive Funds1 to 2 Business Days
Overview

MoneyGeek ranks PenFed as the best debt consolidation loan lender in New York, with a MoneyGeek score of 96 out of 100. Key features contributing to an ideal lender include competitive rates, loan amount, time to receive funds, quality of service, and reputation.

PenFed offers an APR range of 8.99% to 17.99%, a loan amount range of up to $50,000. These features benefit borrowers in New York by providing affordable rates, substantial loan amounts, and quick access to funds for consolidating debt.

Runner-Up for Best Debt Consolidation Loan in New York

Company logo for Alliant Credit Union
Alliant Credit Union
MoneyGeek Score:
95/ of 100
APR RangeFrom 10.49%
Loan Amount Range$1,000 to $100,​​​​​000
Repayment Terms12 to 60 months
Time to Receive FundsSame Day
Overview

Alliant Credit Union is another solid option for a debt consolidation loan in New York, with a MoneyGeek score of 95 out of 100. One of its pros is a low APR starting from 10.49%, which can help borrowers save money on interest payments over time. Another benefit is the high loan amount range, from $1,000 to $100,000, allowing borrowers to consolidate multiple debts into one manageable loan.

Additionally, Alliant Credit Union offers flexible repayment terms ranging from 12 to 60 months. This flexibility can help borrowers choose a repayment plan that fits their budget and financial goals. With the possibility of receiving funds on the same day, borrowers can quickly address their debt consolidation needs.

Best Debt Consolidation Loan in New York for Affordability

Company logo for Wells Fargo
Wells Fargo
MoneyGeek Score:
94/ of 100
APR Range7.49% to 24.99%
Loan Amount Range$3,000 to $100,000
Repayment Terms12 to 84 months
Time to Receive Funds1 to 3 Business Days
Overview

Wells Fargo offers the best debt consolidation loan in New York for borrowers who prioritize affordability, with a MoneyGeek score of 94 out of 100. Its APR range of 7.49% to 24.99% is competitive, but affordability isn't just about interest rates. Wells Fargo also has no origination fees, which means you won't have to pay extra just to get your loan.

Additionally, the availability of rate discounts can further reduce your overall cost. For example, if you set up automatic payments, you might qualify for a lower interest rate. This combination of features makes Wells Fargo a top choice for those looking to consolidate their debts affordably.

Best Debt Consolidation Loan in New York for Large Loan Amounts

Company logo for PNC
PNC
MoneyGeek Score:
96/ of 100
APR RangeUp to 24.99%
Loan Amount Range$1,000 to $35,000
Repayment Terms6 to 60 months
Time to Receive Funds3 Business Days
Overview

PNC offers the best debt consolidation loan in New York for borrowers needing a large loan amount or longer repayment terms, with a MoneyGeek score of 96 out of 100. It provides loan amounts ranging from $1,000 to $35,000, making it suitable for various financial needs.

PNC's flexible repayment terms allow borrowers to choose a plan that fits their budget. Additionally, its quick funding process, with funds available in as little as three business days, helps borrowers consolidate their debts swiftly and efficiently.

Best Debt Consolidation Loan in New York for Fast Funding

Company logo for Rocket Loans
Rocket Loans
MoneyGeek Score:
95/ of 100
APR Range9.116% to 29.99%
Loan Amount Range$2,000 to $45,000
Repayment Terms36 or 60 months
Time to Receive FundsSame Day
Overview

Rocket Loans offers the best debt consolidation loan in New York for borrowers who need funds quickly, with a MoneyGeek score of 95 out of 100. It provides same-day fund availability, making it an ideal choice for urgent financial needs.

One feature of this lender is its fast approval process, which means you can consolidate your debts and access the funds on the same day. Another feature is its flexible repayment terms, allowing you to choose a plan that fits your financial situation, ensuring manageable monthly payments.

Should You Get a Loan to Consolidate Debt in New York?

Using a debt consolidation loan in New York can simplify your finances by merging multiple payments into one. But it’s not always the best option. For example, if the interest rate on the new loan is higher than your current debts, it might not make sense. Consider your specific situation before deciding.

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    Good Credit

    Having good credit is ideal for a debt consolidation loan in New York, as it can lower your interest rates and monthly payments.

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    High-Interest Debt

    If you have high-interest debt, a debt consolidation loan in New York can lower your interest rates. For example, reduce from 20% to 10%.

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    Multiple Monthly Payments

    Combining multiple payments into one with a debt consolidation loan in New York simplifies your finances. One payment is easier to manage than several.

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    Lower Monthly Payments

    A debt consolidation loan in New York can lower your monthly payments. For example, reduce from $500 to $300 per month.

When You Shouldn't Get a Debt Consolidation Loan

  • When your new monthly payment is higher: A higher payment increases financial strain, making it harder to manage expenses and save money.
  • When you can pay off debt within a year: If you can clear debt in a year, consolidation may add unnecessary costs.
  • When your income and employment are uncertain: Unpredictable income can make it difficult to meet loan payments consistently.
  • When your DTI ratio is high: High DTI can lead to loan denial or unfavorable terms, making consolidation less effective.

How to Get a Debt Consolidation Loan in New York

The average amount of personal loan debt in New York is $93,361, which is below the overall average debt in the U.S. of $104,215. In New York, the average monthly debt is approximately $7,780.

Using a personal loan to consolidate debt in New York can simplify your payments and potentially lower your interest rates. Going into the process blindly can lead to higher interest rates and damage your credit score. To avoid these risks, follow these steps to apply for a debt consolidation loan.

  1. 1
    Review your debts and credit score.

    Account for existing debts to see which ones to consolidate, like credit card debt. Choosing the wrong debts can lead to higher interest rates. Check your credit scores and improve your credit score by paying bills on time and reducing outstanding balances.

  2. 2
    Compare loan terms from lenders.

    Compare loan terms from multiple lenders to find the best deal. Contact lenders to ensure the loan can be used for debt consolidation. Look at APRs, loan limits, and how soon you can receive the funds.

  3. 3
    Check for extra benefits.

    Some lenders offer added features that benefit you long-term. For example, in New York, Keybank and Lightstream offer rate discounts, which can save you money over time.

  4. 4
    Watch out for fees and penalties.

    Some lender features could be drawbacks. In New York, Universal Credit charges an origination fee, and Prosper charges a late fee. These fees can impact your short- and long-term finances.

  5. 5
    Get prequalified.

    Prequalification helps you gauge loan eligibility without affecting your credit score. It uses a soft credit check, allowing you to explore options without impacting your credit.

  6. 6
    Complete your loan application.

    Complete your loan application by preparing necessary documents like proof of income and identification. This makes the process faster and smoother.

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WHAT TO DO IF YOU'RE DENIED A DEBT CONSOLIDATION LOAN IN NEW YORK

Lenders might deny your loan application due to a low credit score or a high debt-to-income ratio. Before applying for a debt consolidation loan in New York, review your credit report and take steps to improve your credit score.

You can also consider reaching out to some credit counseling agencies to help you manage your debts better. Parachute Credit Counseling, Inc. and CC Advising, Inc. are two options for borrowers in New York. Another option is to use a 0% APR balance transfer credit card, which allows you to transfer existing high-interest debt to a new card with no interest for a promotional period, potentially saving you money on interest payments.

Local Lenders for Debt Consolidation Loans in New York

Consolidating debt can be beneficial because it often results in lower interest rates. The average APRs you can qualify for vary between cities. For example, in Rochester, the average APR is 9.0%, while in Brooklyn, it is 12.5%.

Another option to find the best debt consolidation loan in New York is to consider other local lenders. Below is a table of local lenders that you may find helpful.

M and T BankBrooklyn9.49% to 15.69%12 to 84 months$2,000 to $50,000100
Family First of NY Federal Credit UnionRochesterFrom 8.24%1 to 60 monthsFrom $1,500100
The Summit Federal Credit UnionRochester7.95% to 15.75%13 to 60 monthsUndisclosed99
ESL Federal Credit UnionRochesterFrom 9.95%Up to 120 monthsUndisclosed98
Rochester and Monroe County Employees Federal Credit UnionRochesterFrom 8.50%UndisclosedUp to $25,00094

FAQ: Debt Consolidation Loans in New York

MoneyGeek addresses common questions homeowners have about debt consolidation loans in New York. Our precise and reliable information helps you understand your options and make informed decisions. We maintain high journalistic standards to ensure clear and direct communication.

What is a debt consolidation loan in New York?
What's the best debt consolidation loan lender in New York?
Can I get a debt consolidation loan in New York if I have bad credit?
Can a credit counseling agency in New York help manage debt?
When should I get a debt consolidation loan in New York?

MoneyGeek analyzed 27 national lenders licensed to do business in New York, based on a rubric that includes APR ranges, loan amounts and repayment terms, among other key areas. We use a point-based system and assign scores according to the presence or absence of desirable features in various important categories.

We score lenders differently when recommending the best for affordability, loan amounts and fast funding.

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We conducted our analysis in September 2024.

27Lenders Analyzed

About Zachary Romeo, CBCA

Zachary Romeo, CBCA headshot

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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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.

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