Best Personal Loans In New York

New York is the third most populous state in the U.S., however, most people think of New York City when they think of New York as a whole. With Wall Street, a bustling economy, and over 200 banks in Manhattan alone, New York offers some of the best personal loans to U.S. residents age 18 or older. And with an average credit score of 722, most New York residents can take advantage of low-interest rates and high borrowing limits. 

Personal loans can have both positive and negative implications on your financial situation. Applicants should be diligent in their review of options to ensure the best possible loan rates and terms. Comparing your rates across multiple lenders can ensure you get the best deal for your credit history and financial situation.

Our team of financial experts ranked lenders based on our rating methodology for personal loans and found the best loans in New York. This rating methodology evaluates lenders in New York and nationally based on loan length, APR, repayment terms, user experience, customer service, credit score history, banking and credit union use, and additional features.

Best Personal Loans in New York - Full Overview

Here are some of the best personal loans available to residents of New York City and the state of New York. 

Main Features of The Best Personal Loans in New York

If you are seeking personal loans in New York, pay attention to what is most important to you. Most borrowers want a low APR, a low credit score threshold, fast funding, and high borrowing limits. Check out this terms comparison of the lenders we discussed above.

How to Choose the Best Personal Loans in New York 

Finding the right loan places in New York can take some time and a bit of research. However, the team at FinImpact has documented helpful and easy-to-follow best practices to help you choose the best personal loan for your needs. Our experts use these parameters to rank lenders, whether you are looking for bad credit loans in New York or personal loans for good credit. 

Here’s what to look for:

• Loan features - Ensure you understand the loan terms, amount of the loan and any use limitations. Some lenders restrict how you use the money from their loans so make sure you know how you will use the money before you apply.
• Interest rates and fees - Understand your minimum monthly payment and how much of that payment is comprised of interest. Also, be on the lookout for fees such as origination fees, late payment fees, or early payoff penalties.
• Application process - Loan applications are pretty consistent across lenders, but you should know that when you apply for a loan from a New York loan company, you will be subject to a hard credit check which can impact your credit score by five points. This inquiry will remain on your credit report for up to two years.
• Qualification process - Find out about any minimum credit score requirements and if the lender has income requirements, a membership requirement, or allows a co-signer or joint application should you need it.
• Customer support - Look at their hours of operation and see if they have a chat, phone, or even a text option to schedule a call. If you want a brick-and-mortar location, check their open hours to see if they are convenient for your schedule and needs.
• Online user reviews - Check Google and TrustPilot for reviews from customers that have used the lender you are considering. Some lenders even include reviews and testimonials right on their websites.
• Perks and Bonuses - Check for perks and bonuses such as payment flexibility or advanced technology for your communication preferences. Your lender may even offer you free access to your credit score too.

Reasons to Get a Personal Loan in New York

New Yorkers’ debt per capita totaled $53,830 at the end of 2021, slightly lower than the national figure of $55,810. And though this amount is indeed less than the national average, New Yorkers seek personal loans to give them additional financial freedom. Specifically, New Yorkers often seek personal loans for the following:

• Financing a large project such as home improvements, a dream vacation, or a wedding
• Securing a debt consolidation to combine the balances of other credit cards and loans into one balance with one easier-to-manage monthly payment  
• Finding an alternative to a payday loan which often has interest rates of 400% or higher
• Funding a move or relocation
• Paying for unexpected expenses such as medical bills, funeral costs, etc.
• Purchase a new or new-to-you vehicle

How to Get a Personal Loan in New York 

The process to get a personal loan in New York is similar to the approach in other states.

• Consider the lender(s) you might like to work with - do you want an online lender or one with a brick-and-mortar location?
• Jot down how you will use the loan - writing down some of this first, along with some napkin math to understand the amount you have available to put towards a personal loan payment each month will ensure you don’t bite off more than you can chew.
• Narrow down your list of lenders after you have compared rates, loan terms, and how you can use the loan - keep in mind that every time you apply for a loan, a hard credit inquiry will be conducted, so don’t just apply for all the options out there.
• Fill out the application and include any requested documentation (such as the identification information listed below).
• Wait for your loan approval - depending on the lender, this can take several minutes to several days. 
• Review your loan agreement - after you have been approved - review all loan terms and what will be expected of you throughout the loan. Specifically, look to ensure the date of the agreement is accurate and that the interest rate and repayment terms are called out as part of the Truth in Lending Agreement.
• Sign the loan agreement and submit it as requested - ensure you meet the loan requirements before signing.

To obtain a personal loan in New York, you will need to be prepared with the following documentation:

• A government-issued photo ID  such as your driver’s license, passport, permanent resident card, etc.
• Proof of income which could include bank statements, pay stubs, income statements, invoices, etc.
• Proof of your residency in New York or a surrounding community, such as bank statements, a utility bill that has come in the mail, etc.

Interest Rates of Personal Loans in New York

The average personal loan interest rate as of early March 2023 was 10.71%. Consumers need to understand that their rates could be higher or lower depending on their unique financial circumstances. Further, there are no specific APR discounts for residents of New York regarding personal loans.

How to Deal with Loan Scams in New York 

Hundreds of consumers all over the U.S. fall victim to loan scams each year. And with over 8.8 million people living in New York City and over 19.5 million living in the state, New York creates a perfect opportunity for loan scammers. Understanding how to spot loan scams can save you time, money, and headache. 

Here is what to be on the lookout for.

• The lender guarantees approval before receiving any of your personal information.
• The lender isn’t registered in New York - check with the Attorney General, Better Business Bureau, or one of the two New York Better Business Bureaus.
• The lender demands payment up front - even with a secured personal loan, you will not be asked to provide a deposit until you have signed your loan agreement.
• The lender calls you, sends you a letter, or appears on your doorstep. According to the FTC, it is not legal for companies to over a loan in the U.S. over the phone or asks you to pay before the loan is delivered.
• You are unable to locate a physical address for the lender.
• The lender pressures you to take action immediately. A reputable lender will give you time to review the offer and loan terms and your loan agreement.
• The lender has hidden fees.
• The loan and terms sound too good to be true.

If you believe you have been the target of a loan scam, notify the Department of Financial Services at (800) 342-3736. Further, if you believe payday loans in New York are being offered to New York residents, or if a debt collector is seeking to collect on a payday loan in New York, file a complaint with the CFPB or by calling (855) 411-2372.

Personal Loan Alternatives in New York

If you are unable to get a personal loan in New York, there are installment loan alternatives. The best alternatives are:

• Taking out a personal line of credit from your credit card issuer - however, note that this might come with a cost for a cash advance and may be subject to a higher interest rate
• Using the available credit on your credit card - if you can keep your balance below 30% of your credit limit
• Consider emergency loans in New York - however, understand that emergency loans often come with very high-interest rates and early payoff penalties
• Taking out a home equity loan or home equity line of credit against your mortgage
• Taking out a peer-to-peer (P2P) loan from an investor
• Taking out a small business loan if you are a small business owner
• Taking a 401(k) loan from your employer or investment firm
• Asking for a salary advance from your employer
• Getting a second job or a side hustle is a great way to earn some extra money to help you pay off debt or save up for a big purchase 

If you need temporary assistance (TA) in New York, contact the Office of Temporary and Disability Assistance. You may be eligible for family assistance which provides cash support to eligible needy families. You may also be eligible for safety net assistance that provides cash support to eligible needy individuals and families who are not eligible for family assistance.

Conclusion

New York is the third largest state in the U.S. and there is no shortage of great personal loan places for your financial needs. Whether you need a bad credit loan in New York or simply want to work with a loan company in New York with a brick-and-mortar presence, you won’t have trouble finding the right solution for you. The key to finding the right personal loan is to ensure the terms align with your financial goals and that you can always make your minimum monthly payment.