Best Loans for Bad Credit in New York for 2024

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Reviewed byAlvin Yam, CFP
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Reviewed byAlvin Yam, CFP
Edited byDenise Cristobal
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Updated: April 24, 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.


    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.


    • 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


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

    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.


    • 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


    • 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, 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.


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.

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.


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.


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.


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.

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.


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.

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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?
Which lender in New York has the lowest APR rates for personal loans?
Which lender in New York has the lowest minimum credit score requirement for personal loans?
How long does it take to get a bad credit loan in New York?
Can I pay off my personal loan early in New York?
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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.