Thank you for trusting ElitePersonalFinance as your go-to guide for finding the best debt consolidation loans in New York of May 2024.
Best Debt Consolidation Loans in New York of May 2024: Key Findings
Borrowers with bad credit can still get a debt consolidation loan by applying with a co-signer or putting up collateral for a secured loan. Despite, this bad credit borrowers can still get an unsecured loan.
Debt consolidation loans convert many high APR debts, such as credit cards, into one lower APR loan and may increase your credit score.
New Yorkers have an average of $6.973 in credit card debt and an average 38.6% credit card utilization rate. (Lending Tree)
NY’ers can take out debt consolidation loans up to $100,000 with APRs as low as 3.09%
NY debt consolidation loan borrowers can enjoy repayment terms from 24 to 120 months.
NextDayPersonalLoan
NextDay is a preferred option for bad credit New Yorkers looking to compare rates and terms across hundreds of legitimate debt consolidation lenders, taking advantage of paying off two or more high-interest-rate debts with one lower interest rate loan.
We appreciate Nextday’s versatility. It offers debt consolidation loan APRs from 5.99% to 35.99% (a little higher in some cases). For perspective, good credit NY borrowers can expect a sub-8% APR. Also, many debt consolidation lenders on the platform offer no origination or prepayment penalties. Finally, since NextDay is an online marketplace, APRs, repayment terms, and loan amounts are determined by every individual lender.
To qualify for a Nextday debt consolidation loan, you must be at least 18 years old with a regular job and submit all your information through Neztday’s easy-to-use online portal. Then, it only takes a few minutes to find legitimate debt consolidation lenders vying for your business.
Pros:
- Easy qualification criteria
- APRs from 5.99% to 35.99%
- Approvals in as little as one business day
- Loan amounts from $100 to $40,000
Cons:
- Not a direct lender
- Approval times up to 7 business days
- APRs, rates, and terms vary by lender
- Some lenders require recurring employment income/government benefits
The impact of COVID-19:
Since NextDay is not a direct lender, it does not offer forbearance or hardship programs. However, it does have a support line at 866-829 4551 if you need guidance. Please refer to your lender for more information.
LifeLoans
We highly recommend LifeLoans for bad credit New Yorkers looking for legitimate debt consolidation loans to manage multiple high-interest debts into one easy monthly payment.
All participating lenders under the LifeLoans marketplace offer anywhere from $100 to $40,000. Since there are hundreds of lenders in the network, APRs, terms, and fee structures vary. However, many cap APRs at 35.99%, an excellent rate compared to other bad credit personal loans.
If you are interested in a LifeLoans debt consolidation loan, you must be at least 18 years of age with a monthly income of $1,000 or more. On top of that, you must be employed for a minimum of four weeks and have a valid checking account. You must also complete an application through LifeLoan’s online portal.
Pros:
- Soft inquiry
- Easy, online application
- Loans from $100 to $15,000
- Extensive network of participating lenders
Cons:
- Not all lenders are fully transparent
- Must be employed (minimum four weeks)
- Required minimum income of $1,000
- Does not disclose average LifeLoan borrower profile
The Impact of Covid-19:
If you are interested in learning more about loan relief, call LifeLoans at 833-321-7764 or visit the website and complete a contact form to get in touch with a representative.
Upstart
Terms: Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($2,100), MA ($7,000).
Although educational information is collected as part of Upstart’s rate check process, neither Upstart nor its bank partners have a minimum educational attainment requirement in order to be eligible for a loan.
The full range of available rates varies by state. A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 18.44% and a 8.64% origination fee of $864, for an APR of 22.88%. In this example, the borrower will receive $9136 and will make 60 monthly payments of $257. APR is calculated based on 5-year rates offered in March 2023. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
If you accept your loan by 5pm EST (not including weekends or holidays), you will receive your funds the next business day. Loans used to fund education related expenses are subject to a 3 business day wait period between loan acceptance and funding in accordance with federal law.
While most loans through Upstart are unsecured, certain lenders may place a lien on other accounts you hold with the same institution. It is important to review your promissory note for these details before accepting your loan.
When you check your rate, we check your credit report. This initial (soft) inquiry will not affect your credit score. If you accept your rate and proceed with your application, we do another (hard) credit inquiry that will impact your credit score. If you take out a loan, repayment information may be reported to the credit bureaus.
The APR calculation compares the two models based on the average APR offered to borrowers up to the same approval rate. The hypothetical credit-score only model used in Upstart’s analysis was developed in connection with the CFPB No Action Letter access-to-credit testing program and was built from a traditional credit score only model trained on Upstart platform data. APR for the scorecard was averaged for each given traditional credit score grouping.
While automated recurring payments are easy to set up, payments by check or one time electronic payments can also be used to repay a loan. Borrowers have the flexibility to choose the repayment method that works best for them.
This information is based on actual borrowers as of 4/1/2023 who identified “credit card refinancing” as their primary use of funds and paid off at least 51% of their outstanding credit card debt within 3 months of taking out the loan. Out of these actual borrowers, some could have experienced an increase or decrease in their credit score. This information reflects the overall average change in credit score points experienced by this group of borrowers as identified above.
The majority of borrowers on the Upstart marketplace are able to receive an instant decision upon submitting a completed application, without providing additional supporting documents, however final approval is conditioned upon passing the hard credit inquiry. Loan processing may be subject to longer wait times if additional documentation is required for review.
With more than 2.5 million customers served to date, Upstart debt consolidation loans NY are an excellent choice for New Yorkers with bad to decent credit. Flexible loan amounts range from $1,000 to $50,000, with APRs between 4.6% – 35.99%. Repayment terms are three to five years.
With an Upstart debt consolidation loan, all types of debt can be consolidated, including but not limited to credit cards, payday loans, and gas cards.
Unlike traditional online lending platforms, Upstart uses AI to determine rates for borrowers based on hundreds of variables, not only your credit score. That said, New Yorkers should expect good credit approval at a 2x clip than traditional lenders that approve borrowers with 620 to 660 FICO scores for debt consolidation loans New York.
NY borrowers will especially appreciate how quick Upstart debt consolidation loans New York approval is. Its online platform allows you to check your rate, select your desired loan amount/preferred loan term, and become approved, with funds disbursed to your bank account in as little as one business day.
Look to Upstart if you have a low credit score and a high DTI ratio.
Pros:
- No prepayment fees
- No minimum education requirement
- Generous loan amount range ($1,000 and $50,000)
- Quick funds disbursement (as little as one business day)
Cons:
- Only choose from 3 or 5-year terms.
- Hard inquiry after the rate is accepted by the borrower
- Fixed interest rates on the high end (4.6% – 35.99%)
The Impact of Covid-19:
Upstart has a dedicated servicing line that assists borrowers with late or anticipated payments. You may also call them at (855) 451-6753.
SoFi
Available in 49 states, SoFi is an excellent choice for high-credit NY’ers looking to take out debt consolidation loans New York anywhere from $5,000 to $100,000 with loan interest rates ranging from 7.99% APR to 23.43% APR. Loan repayment terms are from 3 to 7 years. In addition, it offers minimal fees and an easy debt payment schedule through its Direct Pay program, which pays all lenders upfront in exchange for a 0.25% APR discount. With debt consolidation borrowers looking to save, an extra 0.25% works wonders.
With Sofi, New Yorkers also enjoy no origination fees, prepayment penalties, or application fees.
One of our favorite things about SoFi is its benefits over your run-of-the-mill balance transfer credit card. Transfer credit cards usually offer APRs in the 12 to 23% range, with balance transfer fees up to 3%, coughing up at most $25,000. In turn, SoFi beats them with longer repayment terms, wider loan ranges, and instant pre-qualification that lets you view your rate in as little as 60 seconds.
Another benefit New Yorkers will enjoy with SoFi debt consolidation loans is its Unemployment Protection program, which offers temporary payment modification. However, there is a bit more leg work to join with the required joining of SoFi’s Career Advisory Group and proof you are collecting federal unemployment benefits.
Look to SoFI if you have a higher-than-average credit score, high gross income, and excellent cash flow. For reference, the average SoFi borrower profile is a 753 FICO score, ~$151K gross income, and a cash flow of ~$5,600 monthly. If you meet this criterion, expect to save hundreds of dollars in interest over the length of any SoFI debt consolidation loans New York.
Pros:
- 0.25% APR discount
- Unemployment Protection
- Excellent max loan amount of $100,000
- No origination, prepayment, or application fees
- Funds to your account in as little as one business day
Cons:
- High credit score required
- Minimum $5,000 loan amount
- No joint co-borrowing option
The Impact of Covid-19:
SoFi has a dedicated Special Handling team for fielding all hardship and forbearance requests. For more information, call them at (855) 456-7634.
Upgrade
Personal loans made through Upgrade feature Annual Percentage Rates (APRs) of 8.49% – 35.99%. All personal loans have a 1.85% to 9.99% origination fee, which is deducted from the loan proceeds. The lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36 – month term and a 17.59% APR (which includes a 13.94% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $341.48. Over the life of the loan, your payments would total $12,293.46. The APR on your loan may be higher or lower, and your loan offers may not have multiple term lengths available. The actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed-rate loan. There is no fee or penalty for repaying a loan early.
We highly recommend Upgrade for NY borrowers with low credit scores looking for someone to cosign on their debt consolidation loan.
We like Upgrade for its versatility. Loan amounts range from $1,000 to $50,000, with APRs ranging from 8.49% to 35.99%, depending on your credit. However, Upgrade’s biggest benefit is its joint application process. Joint loans allow co-borrowers to share responsibility for paying back the loan. Have a sub-600 credit score? Adding a second person to the application with a higher income and credit score may qualify you for better rates!
With the average NY’er having a FICO score of 722 (Experian, 2021), qualifying for a sub-15 % APR shouldn’t be an issue as long as all other requirements are met.
Our only knock on Upgrade is its high origination fees, up to 9.99%. It’s a much higher origination fee than what Alliant Credit Union, Sofi, and other banks, credit unions, and online lenders offer.
Qualifying for an Upgrade debt consolidation loans NY is easy. You must be 18 years of age, a US citizen/permanent resident, have a minimum credit score of 560, have recurring employment income, and have a DTI ratio not exceeding 75%. Many lenders require DTI ratios not exceeding 55%, so Upgrade’s 75% max is good news.
Pros:
- Loan amounts of $1,000 to $50,000
- Only need a minimum 560 credit score
- Generous DTI ratio requirement (<75%)
- Repayment terms of up to 84 months
- No prepayment penalty
Cons:
- Origination fees up to 9.99%
- Lowest rates require autopay enrollment
- Not the best APRs (8.49% to 35.99%)
The Impact of Covid-19:
If you are affected by financial hardship with a debt consolidation loans New York, Upgrade may be able to provide relief. They can be reached at support@upgrade.com or via phone (844) 319-3909.
Connexus Credit Union – New York City, NY
Connexus Credit Union is a solid choice for NYers who tend to make late payments from time to time due to high but unstable incomes, given Connexus’ 10-day grace periods for $10 late fees.
We like Connexus Credit Union for its well-rounded debt consolidation loans New York terms, starting with APRs ranging from 8.24% to 18.49% and up to 84-month repayment terms on loans up to $50,000.
As with our debt consolidation lenders, there are no prepayment penalties for paying off your balance early, an excellent way to save on interest. Suppose you are a big fan of the Better Business Bureau. In that case, you’ll also be pleased to know that Connexus Credit Union carries an A+ rating for trustworthiness, which is difficult for debt consolidation lenders to achieve.
Our only real knock on Connexus Credit Union is that minimum and maximum loan amounts are higher than other recommended New York credit unions like PenFed and Navy Federal Credit Union. However, membership requirements are more relaxed. Anyone can join and does not have to belong to the military.
NY borrowers on the unemployment fence will also be pleased to know Connexus’ 10-day grace period on late fees and involuntary unemployment coverage, which cancels your loan balance due to disability, death, or a covered job loss. In addition, its debt protection plan is more generous than most lenders offer.
To apply for a Connexus Credit Union debt consolidation loan NY, you must have an active Member Share savings account with a minimum of $5.
Pros:
- No origination or prepayment fees
- 1% discount for enrolling in autopay
- Only $5 is needed to fund a savings account
- Excellent A+ rating from the Better Business Bureau (BBB)
Cons:
- Must be a Connexus Credit Union member
- Higher minimum amounts like PenFed and Navy Federal Credit Union
The Impact of Covid-19:
Although Connexus Credit Union does not explicitly mention a hardship program, they do have an active Member Contact Center. They can be reached at (800) 845-5025 or via online form to schedule a consultation.
XCEL Federal Credit Union – New York City, NY
With 13,000+ members to date, Bloomfield, NJ-based XCEL Federal Credit Union is an excellent choice for NY borrowers looking for debt consolidation loans New York with competitive rates with extra lengthy repayment terms of up to 84 months.
Arguably XCEL Federal Credit Union’s biggest draw is its loan amount range ($500 to $40,000) and APRs. APRs on debt consolidation loans depend on repayment terms. Loans up to 36 months enjoy 10.99% – 17.99% versus 11.49% – 17.99% for 37 to 60-month loans and 11.99% – 12.74% for 61 to 84-month loans. For perspective, borrowing $5,000 on a 60-month loan term will see monthly payments from $109.94 to $126.94.
All in all, look to XCEL Federal Credit Union if you are an XCEL Federal Credit Union interested in excellent APRs and longer-than-average repayment terms on debt consolidation loans NY.
Pros:
- Loan amounts to $500 to $40,000
- Locations in New York and New Jersey
- Competitive APRs ( 10.99% – 17.99% )
- Repayment terms up to 84 months
Cons:
- Not BBB accredited
- Higher APRs with shorter loan terms
- For XCEL Federal Credit Union members only
The Impact of Covid-19:
Although XCEL Federal Credit Union does not advertise hardship or forbearance options on its website, they have a call center. Call (973) ASK-XCEL Monday – Friday, 9:00 am to 5:00 pm ET, to explore your options.
Alliant Credit Union
An online-only lender, we highly recommend Alliant Credit Union for borrowers who would like rock-bottom APRs with a preference for debt protection plans to safeguard in the event of death, disability, or unemployment.
With Alliant Credit Union, New Yorkers can take out loans from $1,000 to $50,000 to 6.24% – 27.24% APRs. Repayment terms run from 12 to 60 months with same-day deposits to your banking account upon approval. There are no origination or prepayment penalties. So pay early and save on interest.
One of our favorite things about Alliant Credit Union is its debt protection plan for New Yorkers. Its debt protection plan cancels loan balances without penalties due to death, disability, or involuntary unemployment. All you need to do is pay a small nominal fee per $1,000 of outstanding loan balance. For example, debt consolidation loans up to 120 months under the Debt Protection Program incur a $1.99 monthly cost versus $0.75 for involuntary unemployment.
Alliant Credit Union’s Debt Protection program can be a godsend for New Yorkers who are not in the best shape.
To qualify for an Alliant Credit Union loan, you must be a US citizen or permanent resident 18 years or older with a minimum 640 credit score.
Look to Alliant Credit Union if you prefer an online-only bank with favorable APRs and a substantial debt protection program for debt consolidation loans in New York.
Pros:
- Debt protection plan
- Loan amounts $1,000 to $50,000
- Repayment terms are 12 to 60 months
- no origination or prepayment penalties
- Deposits to your bank account in as little as one business day
Cons:
- Minimum 640 credit score
- $50,000 max may be too little for some borrowers
- Only for Alliant Federal Credit Union members
The Impact of Covid-19:
Alliant Credit Union’s website has no forbearance or hardship programs for people with bad credit or good credit. For more information on hardship policies, please call Alliant Credit Union at (800) 328-1935.
U.S. Bank
Located in New York, NY, US Bank is highly recommended for New Yorkers who are existing US Bank customers and would prefer to take advantage of a 0.5% APR autopay discount on debt consolidation loans.
Consider US Bank one of the most well-rounded debt consolidation loans New York lenders we’ve come across. Loan amounts range from $1,000 to $50,000 with 8.24% – 20.74% APRs and one to seven-year repayment terms. Our only knock is that approval can take up to 7 business days.
Non-US Bank customers can seek debt consolidation loans, but repayment terms max out at five years.
To qualify for a US Bank NY debt consolidation loan, you must be a US citizen/permanent resident, 18 years of age, and have a FICO score of 660 or higher with a maximum DTI of 60%. You must also have recurring income and submit your application through US Bank’s online portal.
Pros:
- 8.24% – 20.74% APRs
- 0.5% APR autopay discount
- $1,000 to $50,000 loan amount range
- Easy to use online portal
Cons:
- $10 late payment fee
- Max $25,00 loan for new customers
- Approvals take up to 7 business days
- Max 5-year repayment term for non-US Bank customers
The Impact of Covid-19:
US Bank has a dedicated helpline that helps borrowers with forbearance. Email US bank at mobile@usbank.com or call (888) 287-7817 for support.
Best Debt Consolidation Loans for Good Credit in New York of May 2024
The best debt consolidation loans for good credit in New York offer low APRs, lengthy repayment terms, and the absence of pesky fees like prepayment and origination fees.
Here are our picks for the best debt consolidation loans for good credit in New York of May 2024:
- SoFi
- US Bank
- Wells Fargo
- Alliant Credit Union
- Connexus Credit Union
- XCEL Federal Credit Union
To see a complete list of our recommended good credit debt consolidation loans New York lenders, please visit our Marketplace.
Best Debt Consolidation Loans for Bad Credit in New York of May 2024
The best debt consolidation loans New York for bad credit in New York offer APRs not exceeding 35.99% with delayed first payments, no origination, and no prepayment fees.
Here are our picks for the best NY debt consolidation loan for bad credit of May 2024:
- SuperMoney
- LendingTree
- PersonalLoans
- VivaLoan
- NextDayPersonalLoan
- Upstart
- Upgrade
To see a complete list of our recommended bad credit debt consolidation lenders, please visit our Marketplace.
About Debt Consolidation Loans New York
With ever-increasing household debt due to rising inflation, high unemployment rate, cost of living, and other economic factors, New Yorkers have several options to fund life’s challenges. One way is through debt consolidation loans, which allow NY’ers to roll multiple high-interest personal loan and credit card debts into a single, low-interest payment.
According to Lending Tree, the average APR for credit cards in the United States is 22.21%. Eighteen years ago (2022), the average credit card APR in New York was 12.71%. Although not precisely apples-to-apples, that’s a 10% increase or hundreds of dollars in additional interest payments on a short-term, $10,000 loan.
Fortunately, there are many ways New Yorkers with bad credit or good credit can save on debt consolidation interest rates. Easily 60+ and counting, there is no shortage of banks, credit unions, and online lending platforms offering debt consolidation loans with sub-10 % APRs, lengthy repayment terms, and no origination/prepayment fees.
Keep reading to learn more about debt consolidation in NY, including our top recommendation for best consolidation loans after an exhaustive review of more than 70 institutions.
Should I Consolidate My Loans or Not?
Please assess the following pros and cons to determine if loan consolidation is right for you.
Pros
Single Monthly Payment. With debt consolidation loans New York, two or more debt payments can be “consolidated” into a single monthly payment, with direct payment from lenders to creditors.
Lower APRs. Debt consolidation loans usually have lower APRs than high-interest credit cards. For example, SoFi borrowers in NY pay APRs from 5.74% – 20.28%. a far cry from credit cards which easily top out around 35%. Remember,the lower your APR, the less interest you pay over the life of the loan. Remember that APRs offered to bad credit or good credit borrowers depend on one’s credit score, debt-to-income ratio, and other factors.
Fixed Interest Rates. Fixed interest rates offer predictable payment amounts over traditional credit cards, many of which offer variable APRs. With interest rates remaining the same over the life of your loan, you’ll know exactly how much is owed each month.
Cons
Fees. Predatory debt consolidation lenders (not listed here) charge outrageous loan origination, balance transfer, and closing fees. For example, some lenders charge upwards of 8% in origination fees. For perspective, that’s a $400 surcharge on a small $5,000 debt consolidation loan. At best, expect insufficient or late fees equal to 5% (or less) of the unpaid amount or $15, whichever is greater.
Shopping Around. Not all debt consolidation loans New York companies are considered equal. One lender could charge a 19% APR, while another could charge 9% APR to the same borrower with the same loan balance and repayment term. Luckily, ElitePersonalFinance makes it easy for NY to compare reputable lenders and make the best borrowing decision.
What Fees Do Debt Consolidation Loans Charge?
All debt consolidation loans in NY assess fees. Primary fees belong to interest rates, extending from 5.99 to 36% APR, exact APRs depending on your credit score, debt-to-income ratio, loan term, and the lender’s underwriting.
Other fees installment and debt consolidation loan NY lenders may enforce include prepayment, late payment fees, and origination fees up to 9% of your loan. Most of our recommendations do not assess origination fees.
When evaluating a debt consolidation loan or personal loan lender, be sure to compare the total cost of the loan, including fee totals. Some low APR loans mask their actual cost with high fees, so shopping around and comparing rates and terms is essential.
How Will Debt Consolidation Affect My Credit Score?
If managed properly, debt consolidation should do wonders for your credit score over the long term. Continually missing payments on high-interest credit card balances and merging multiple creditors into one single, low-monthly payment will improve your chances of being on time.
Remember, high-interest credit cards charge upwards of 20% APRs, whereas debt consolidation loans can combine all of those balances into a 5.99% APR, simplifying your payments.
Over the short term, debt consolidation affects credit scores, but not in the way you expect. For example, new credit application applications within a short period may have lenders perform hard inquiries, cutting down your credit score by 10-20 points. Opening a new credit account will also lower your average credit age, creating another temporary blip.
Despite this, making payments on time, lowering your credit utilization ratio, and keeping a healthy credit mix will bounce your credit score back up.
Debt Consolidation Tips For Bad Credit
Here are our top debt consolidation tips for bad credit borrowers.
Look to Alternative Lending Partners. Not all lender partners assess creditworthiness based on your income and credit score for installment loans in New York. Sites like Upstart use hundreds of other variables to determine if a person will likely repay an installment or debt consolidation loan in full and on time, such as job and education history. We like Upstart for its 5.40% to 35.99% APRs, $1,000 to $50,000 loan amounts, and generous three or 5-year repayment terms.
Other lending partners include credit unions, which generally are more flexible with eligibility requirements than traditional lenders like banks.
Boost Your Credit. We highly recommend boosting your credit before applying for any installment or debt consolidation loan. Paying off a balance, lowering your credit utilization ratio, and making payments on time contribute to higher scores. Remember, the higher your credit score, the lower the interest rates.
Debt Consolidation Tips For Good Credit
Here are our top debt consolidation tips for good credit borrowers.
Shop for APRs and Favorable Terms. Good credit borrowers enjoy APRs on installment loans in New York as low as 5.99%. Additionally, lenders differ concerning fees, such as origination fees that go up to 8.99% of the loan amount like Upgrade does. As a good credit borrower, we encourage you to look for lenders with no origination and prepayment fees. There is no shortage of debt consolidation lenders to choose from.
Look for Value-Added Perks. Look for debt consolidation lenders that go the extra mile, such as offering direct payment to creditors. Making direct payments to creditors increases accountability. In addition, we like free credit score monitoring and debt protection programs, which defer or offset payments if you die, become disabled, or become unemployed.
Who Offers Debt Consolidation in New York?
Various financial institutions offer installment and debt consolidation loans in New York, including online lending platforms and traditional lenders like banks and credit unions.
We are big fans of credit unions that offer installment loans in New York, which typically charge consolidation loan APRs anywhere from 5.99% to 16%. Credit unions tend to have lower borrowing rates, lower fees, enhanced educational resources, and a wider variety of products than banks, including but not limited to mortgages, student loans, money market deposit accounts, and share certificates. Consider credit unions a nice “one-stop-shop” option if you require products/services beyond debt consolidation loans.
How Do I Choose The Best Debt Consolidation Loan in New York?
Here are our top recommendations for bad credit and good credit borrowers to choose the best debt consolidation loan in NY.
Interest Rates. Pre-qualify or rate-check debt consolidation companies offering fixed-rate over variable rates. The best debt consolidation loan programs offer APRs as low as 5.99%. Remember, excellent credit New Yorkers (think 720) qualify for the lowest rates. If you have a 690 or lower credit score, we highly recommend building your credit before applying for a debt consolidation loan.
Fees. Most recommended debt consolidation companies do not assess origination or prepayment fees. At best, they charge late fees, which can equal as low as $15 or a percentage of the total monthly loan amount, whichever is greater.
Consumer-Friendly Services. We are big fans of debt consolidation lenders that offer consumer-friendly services, such as debt hardship programs, payment deferment, and helplines with counselors on call to assist borrowers with their finances.
For example, all SoFi installment loans NY automatically include unemployment protection for borrowers with loans at least nine months in good standing. If you can, provided you involuntarily lost your job, you can give them a call at (844) 975-7634 to apply and discuss deferral options.
Shop Around. Online lending platforms, banks, and credit unions compete for your business. So it is not surprising to see one debt consolidation lender charge a 6% APR and a second lender charge a 14% APR to the same borrower.
How Do I Qualify For A Debt Consolidation Loan in New York?
Qualifying for a debt consolidation loan in New York means getting to basics.
Learn Your Credit Score. The first step is to retrieve your credit score from the three major credit reporting bureaus – TransUnion, Equifax, and Experian. You can do this by signing up at annualcreditreports.com.
New York borrowers with a minimum 670 credit score generally score the highest rates with debt consolidation companies. If your credit score is below 670, we recommend applying quick fixes, such as lowering your utilization rate, paying down balances and checking your credit report for errors. Even the slightest credit report error could cut 100 points or more off of your score.
Remember, the higher your credit score, the better your chances of qualifying for and enjoying low APRs on a loan.
Assess Your Debt Consolidation Options. Next, look to all of your creditors. Do they comprise mainly credit cards with 35%+ APRs? Are they a mix of store credit cards and other high-interest debts? If so, you will want a debt consolidation loan with a lower rate. Ideally, opt for the shortest loan term length possible. However, if monthly budgeting is a concern, choose a longer-term length for smaller monthly payments.
One of the best ways to plan is to use a debt consolidation loan calculator. Plug in the numbers by combining all of your debt into one loan figure and calculating monthly payments based on different repayment terms (e.g., one year versus 5 or 7 years).
Shop Around. Once you’ve calculated estimated monthly payments, it’s time to shop for debt consolidation loans. Compare at least seven lenders, a mix of online lending platforms, banks, and credit unions. Each of them has its benefits.
How Do We Pick these Lenders?
To pick the best debt consolidation companies and installment loans in New York, we evaluated more than 50 online lenders, banks, and credit unions, seeing how they compared with APRs, loan amounts, repayment terms, and fees such as origination, prepayment, and late fees.
From there, we read reviews from leading third-party review sources like BBB, Trustpilot, and others, looking for favorable reviews from borrowers that vouch for fee transparency, customer service, and similar factors. Only debt consolidation lenders with sterling reputations make our list.
Remember, the team at ElitePersonalFinance regularly re-reads and updates reviews accordingly, ensuring you only see the latest disclaimers, fees, terms, and other fine print that’s easy to miss.
If you have any feedback or suggestions, email our team at info@elitepersonalfinance.com. We’d love to hear what you have to say.
Frequently Asked Questions
Does consolidating your debt affect your credit score?
At first, expect your installment loan NY credit scores to drop slightly if multiple lenders perform hard inquiries over a short period. However, your credit score should stabilize in the long term, as long as you pay off balances on time and keep a 35% or lower utilization ratio. With debt consolidation loans rolling multiple debts into single monthly payments, it’ll be much easier to pay bills on time.
What do you need to qualify for debt consolidation?
To qualify for debt consolidation/installment loans in NY, each lender has its requirements. Expect to show one or more proofs of income, credit history, current employment, and equity for larger loans.
Do you lose your credit cards after debt consolidation?
No. Debt consolidation NY/installment NY loans do not require closing our credit cards. Many credit cards have balances squared away to $0, but it’ll need a call to the issuer to close the account permanently.
What kind of bills can you consolidate?
NY borrowers can consolidate all types of debt, including credit cards, personal loans, and student loans. Please refer to each lender to learn which debts can and cannot be consolidated into a single monthly payment.
Conclusion
All in all, we highly recommend debt consolidation loans for NY’ers looking to roll multiple high interest debts into a single, low interest payment. Fortunately, the state has plenty of reputable banks, credit unions, and online platforms to choose from. Let ElitePersonalFinance help you make the right, informed choice to put you on the path to financial freedom.
Best Loans is Alaska 
