The Ultimate Guide to Getting Poor Credit Loans in New York 

Did you know that the average credit score in the United States is currently at an all-time high of 695? If you live in New York and you have a poor credit score, keep reading to learn how you can still get approved for a short term loan.

The good news is if you've been down on your luck and have poor credit, there are options. Poor credits loans are personal loans offered to people with weak, bad or no credit. Banks, credit unions, and online lenders offer them.

If you're trying to buy a home or car in New York, we've got the lowdown on getting poor credit loans.

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How Do Poor Credit Loans Work?

Unfortunately, a lender will charge you extra interest. If you have bad credit, that means you have a history of paying your debts late or not at all.

It's a big risk for lenders to let you borrow more money. You already have a history of not paying your debts, so why should they believe you've changed?

Even if they lend you $1,000, they're taking a risk that they're not going to be repaid. To compensate themselves, lenders charge higher interest rates to people with bad credit.

Higher interest rates is how they compensate for higher defaults.

Poor credit loans sound like a great idea if you need the cash in New York, but by doing your research, you'll see they make your financial life worse.

Unsecured Loans in NY

Rules and regulations for consumer loans in New York.

The state of New York capped the interest rate lenders can charge consumers at 25%. - N.Y. Penal Code 190.40

Your first option is an unsecured poor credit loan. This means you sign a contract and promise to repay the loan according to the terms and conditions.

If you fail to repay the loan, the lender may pursue a collections agency or take legal action. Credit cards and student loans are your typical unsecured poor credit loans.

New York Department of Financial Services Offices

New York City - Main Office

New York State Department of Financial Services
One State Street
New York, NY 10004-1511

Albany

New York State Department of Financial Services
One Commerce Plaza 
Albany, NY 12257

Buffalo

New York State Department of Financial Services
Walter Mahoney Office Bldg
65 Court Street, Room 7
Buffalo, NY 14202

Garden City

1399 Franklin Avenue
Suite 203
Garden City, NY  11530

Oneonta

New York State Department of Financial Services
28 Hill Street, Room 210
Oneonta, NY 13820

Syracuse

New York State Department of Financial Services
333 East Washington Street
Syracuse, NY 13202

How to file a complaint

New York City | Buffalo | Rochester | Yonkers | Syracuse | Albany

What is a Secured Loan?

You have to use your car or home as collateral to secure the loan. This means that if you're unable to repay it, the lender can take your car or home (collateral) and sell it.

Don't let this happen to you!

Mortgages and car title loans are the biggest examples of a secured loan.

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Lenders for Poor Credit Loans in New York

Now that you know your options, it's time to find a lender. Look for one that offers personal installment loans, considers your ability to repay the loan, performs a soft credit check, offers repayment plans and reports your payments to a credit bureau.

Poor credit loans are risky and more expensive than traditional financing. If your lender doesn't check your credit, that's a red flag that they aren't offering you a responsible loan.

In a nutshell, if they don't care about your credit, they don't care about you.

Fixing Your Credit

Is it possible to bounce back from having bad credit? Of course!

Pay your bills on time. Talk with a New York credit counselor if you're concerned about making ends meet.

The Bottom Line

A bad credit score is below 630. Don't take out any poor credit loans if you don't have to.

Compare the rates and terms of each loan to find the most affordable lender. Note that the max annual percentage rate of a federal credit union is around 18 percent. If you don't need a loan, wait and work on your credit.

Next: New Jersey Poor Credit Loans

For more information on poor credit and what options you have, visit our blog!