New York state placed a ban on high-interest loans to protect their citizens from exorbitant interest fees. The state considers any loan interest over 25% as civil usury. Here are a few ideas that may help you with your search for a bad credit personal loan in New York. This civil usury law applies to bad credit loan lenders, but not to banks or credit card companies. The banks and credit card companies are exempt from New York usury laws and can use the interest rates from the state of their head office. Well New York, if your credit score is considered fair, why not take advantage of the credit card provider loophole. A 0% balance transfer credit card could help you with lowering your monthly payments and improve your credit score while you lower your debt.

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America Loan Service works with many lending partners and we have searched for personal loan options for people in New York. We are contacted daily by New York residents inquiring about personal loans and many have a credit score near or below 600. If your credit score is above 600+, you will have a lot of options from online lenders, peer to peer lenders, banks and credit unions. Once you fall below the 600 credit score, it can become very difficult to find lending solutions and you may want to consider a co-signer.

Personal Loan New York

If your credit score is above 620, you have options for a loan in New York State. Upgrade offers loans in New York starting at 620. This can be a good options if you are trying to clear up high interest credit card debt.

Loan Providers in New York State by Credit Score

Personal Loan Min. Max. Credit Score Loan Term Origination Fees Time to Funding
2,000 35,000 660+ 36-60 mo. 1%-6% 1 day


1,000 50,000 620+ 36-60 mo. 1%-6% 1-2 days


5,000 35,000 660+ 24-60 mo. 2%-5% 2-5 days


5,000 100,000 660+ 36-72 mo. 0% 1-7 days


1,000 50,000 640+ 24-60 mo. Varies 1 day


5,000 75,000 680+ 36-60 mo. 0% 2-4 days


Another alternative to secure a personal loan is requesting a family member or friend to co-sign a personal loan for you. This process is quite simple. Your family member or friend becomes responsible for this loan if you miss a payment or default. So many students return home from school and have not had the opportunity to establish their credit.

Common reasons for requiring a co-signer

You may have recently graduated from university or college and never had the opportunity to establish your credit. 

You've hit a rough spot and messed up your credit and now you're trying to clean it up.

What to Consider Before asking Someone to Co-sign

1. Are you earning enough to support the new payment for the new loan amount?

2. Is your current job and salary stable?

3. A great rule to follow for you and your cosigner's comfort level is your debt to income ratio of 35-40% or less. Your debt to income ratio is all of your monthly payments divided by your gross monthly income.

4. Will you be paying off or consolidating debt when you take this loan?

5. You want to be sure that you will be able to live and afford this new monthly payment.

6. If you are planning on a life change like moving out? Consider your new expenses along with this new monthly loan payment. 

The last thing anyone wants is to damage a close relationship over money.

Credit Score Rebuilding

If you are living with bad credit today, you'll understand just how crippling it is when you are unable to borrow, have a credit card or any other form of credit. We all dream of purchasing a home, condo or apartment at some point in our lives. Maybe buy a car, getting married, planning a trip and all the other great American dreams. When your credit is tarnished, options become very limited.  

With the lending laws that are in place today in NY, you cannot live a full life with bad credit. The government officials that implemented the usury laws honestly are doing their residents a huge favor. Just imagine how much you would have borrowed if someone would have given you the money? 

Free Credit Score Rebuilding Help

By the time most of us are in a position to understand budgeting and making our payments on time, we've already ruined our credit score. The state of New York is telling you to figure out how to manage your money.

America Loan Service is developing a new credit rebuilding program. The credit rebuilding offer is free today as we continue to develop the product.  We are looking for a few hundred people to come to join Novita. We will be talking with you one on one, looking for your feedback to understand what you need. If you are serious about getting your credit back on track, we are here to help.  

Home Equity Loan or Home Equity Line of Credit (HELOC)

The equity in your home or property can be a great way to secure a loan with great interest rates. The lender is not required to take as much risk when you put up your property for security. There are two ways to complete this.

The home equity loan is secured against your home and set up as a monthly or bi-weekly payment until its paid off.

HELOC is a credit line that is secured against your property. The HELOC will allow you to pay interest only or make a monthly payment to pay it down. The credit line can stay in place even after the loan is paid off. 

Auto Refinance

If you have a vehicle that is paid off or you have some equity in it, you can refinance the vehicle. This will provide the lender security to approve your loan even if your credit is a bit tarnished. 

Secured Credit Card

secured credit card is a great way to develop new habits and improve your credit score. This card is perfect for someone trying to establish credit for the first time or repair credit. This card will feel more like a debit card than a credit card, but it helps your credit score. You deposit an amount of money on this card and then use it as a credit card. When the cash runs out, you deposit more cash. There are lots of options for secured credit cards.  There are many secured credit cards that do not charge a fee so shop around. 

Debt Settlement or Debt Relief

If you are really in a difficult situation and are unable to get help, debt settlement or debt relief may be an option. if you have time and can repair your credit before applying for a loan, this will save you a lot of money.  

The Risks of Co-Signing a Loan

If you are considering co-signing for someone, we recommend that you and the borrower prepare yourself for the downside of co-signing a loan. We call them the borrower because when you arrive in court, that is how the judge will refer to them not your friend or family member.

1. We suggest that you budget this new loan into your monthly expenses for the term of the loan. If the borrower defaults, this becomes your loan. You can pay it off early without penalty, but it's now your loan.

2. If you are planning any future purchases that require credit, the co-signed loan amount will be sitting on your credit history. It will increase your credit risk and may drive up the interest rate offered on any new loan you're trying to apply for. 

3. Consider how the loan default will affect your relationship with the person you are co-signing for. If you are doing this for one of your children to improve their credit score, that is a great benefit to them as long as they are responsible. 

4. If you are co-signing for a friend that has a poor credit history, we would suggest giving them the money from your bank account and consider the money gone. If you can afford the gift, then no problem. If you cannot, the issues that come up from co-signing are not worth the friendship.

5. If the borrower fails to pay, it's your loan. You can sue your friend or family member to pay you back, but they did not have money in the first place and you are assured you will never speak to each other again in the same way.  You can get a judgment and go through the hassle of going into the court system but for what? It's a hassle for you that you do not want or need.   

6. If you are considering co-signing for a mortgage, we suggest going to your attorney to discuss all of the look term ramifications. 

New York Payday Loan and Usury Information

See reference links attached below on New York state interest rules. 


  1. New York Loan - New York Loan onecle New York penal acquired June 2018
  2. New York Payday Information - New York Payday Information DFS NY GOV acquired June 2018
  3. New York Information Dangerous Loans - New York Information Dangerous Loans DFS NY GOV acquired June 2018
  4. New York Usury Laws - New York Usury Laws Lexisnexis acquired June 2018