New York state placed a ban on high-interest loans to protect their citizens from exorbitant interest fees. The state considers loan interest over 25% as civil usury. The definition of usury is the practice of lending money with high-interest charges. 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 only 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 use the interest rates from the state of their head office. The issue with the banks and credit unions is that they require a credit score near 650 to apply and require a solid work history making it very difficult to get a loan when your credit score has slipped.

Loan Providers in New York State by Credit Score

This list of online lenders offer unsecured personal loans in New York with credit scores starting at 620.

Auto Refinance

If you have a vehicle that is paid off or you have some equity in it, you can refinance the vehicle. This provides the lender security to approve your loan even if your credit is a bit tarnished. We recommend LendingTree because they have some many providers with only one application. They offer new car purchase, used car purchase, refinancing, and lease buy out.

Student Loan Refinancing

With so many people carrying large (co-signed) student loan debt, refinancing your student loans can be a great option to lower your monthly expenses. 90% of student loans are co-signed, and most student loan providers will release the co-signer after the first year. This is a very important option for you and your parents. Cleaning up multiple student loans can take the pressure off your day to day finances and help you get back to living. Here are some of the best student loan options.


Another alternative to getting a personal loan is requesting a family member or friend to co-sign a 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 or have never applied for credit yet.

Why Would You Need a Co-signer?

You may have recently graduated from university or college and never had the opportunity to establish your credit. A lot of lenders want a few years of credit history before they will offer you as a loan.

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 this new payment?

2. Is your current job and salary stable enough to take money from a friend or family member?

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 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.

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. 

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)

If you are trying to consolidate debt and your credit score is blemished, it is nearly impossible to find money without security to consolidate debt. The point of debt consolidation is to lower the overall interest rate of your debt, and that is almost impossible with bad credit. Getting a secured loan is another option when you are searching for capital. A home equity loan, a home equity line of credit or mortgage refinancing are all great options for capital. Taking capital out of your home can be a lifesaver if you are earning enough income to carry the cost. Here are a few options for obtaining a secured loan. The HELOC will allow you to pay interest only for a while to help you catch up. The credit line can stay in place even after the loan is paid off.

Secured Credit Card

A 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 trying to 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 the secured card and then use it as a credit card. When the cash runs out, you deposit more cash.

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.  

Loan Options For Small Business Owners with Bad Credit

Small business loans can be a great option if you have bad credit. Many of the small business loan providers will look at your business income as well as your credit score. Here are a few options for getting a line of credit or financing some of your equipment to get the funding you require.

Six, Twelve and Eighteen Month 0% Interest Balance Transfer Credit Card

If your credit score is considered fair, apply for a 0% balance transfer credit card. This balance transfer could help you with lowering your monthly payments and improve your credit score while you lower your debt.

Most credit card companies offer 0% interest balance transfer credit cards. If your credit score is above 620 and you have a full-time job and zero collections, a 0% interest balance transfer credit card may be a good option for you.

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.

  1. New York Payday Information - New York Payday Information DFS NY GOV acquired June 2018
  2. New York Usury Laws - New York Usury Laws Lexisnexis acquired June 2018
  3. Supreme Court Kills State Usury Laws for Banks and Credit Card Providers - Supreme Court Kills State Usury Laws for Banks and Credit Card Providers