Personal Loans in New York of February 2025

Personal loans can come in handy in a range of circumstances, such as consolidating debt, paying for unexpected expenses, or financing a major purchase. Interest rates, terms, and fees vary from lender to lender, and some loans aren't available in all states.

The best personal loans in New York have low interest rates and fees, fast funding, and high loan amounts — though your choices may be limited by your credit score and other factors. Our picks for the best personal loans in New York include LightStream, Upgrade, SoFi, and Universal Credit.

Best personal loans in New York

Methodology

To select the best personal loans in New York, we compared 31 lenders using almost 900 data points. After eliminating lenders that don't operate in the state, we focused on criteria including interest rates, loan amounts, availability of same-day and next-day funding, fees, and customer service.

We scored lenders based on the following:

• Rates and fees: 18%
• Loan terms: 18%
• Customer experience: 17%
• Eligibility: 14%
• Customer satisfaction: 10%
• Efficiency: 10%
• Options for poor credit and no credit: 9%
• Discounts: 4%

Each data point was verified by a senior editor to ensure accuracy and timeliness. Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.

Tips on choosing a personal loan lender

New York residents in need of a personal loan should weigh their options before choosing a lender. Here are some factors to consider when shopping:

• Look for low APR: Annual percentage rate (APR) represents the annualized cost of borrowing money, including interest and upfront fees. Searching for the lowest APR you qualify for can save you a significant amount of money over the life of your loan. APR on personal loans typically ranges from just under 7% to 36%.
• Check eligibility requirements: Certain lenders are more strict when deciding which applications to approve. For example, some may require that borrowers have good or excellent credit scores. Others, such as Upstart, may accept borrowers with bad credit or no credit history. Check lenders' eligibility requirements when you compare loans, knowing you'll likely have fewer options without good credit.
• Consider fees: Some personal loan lenders charge more — or higher — fees than others. Consider origination fees, application fees, late payment fees, and other charges, and factor these costs into your comparison. Abbey Henderson, certified financial planner and CEO & Wealth Advisor at Abaris Financial Group LLC, also suggests ensuring your lender doesn't charge a prepayment penalty for paying off your loan early. You can save money on interest by repaying your loan ahead of schedule.
• Ask about cosigners: If you can't qualify for a loan on your own — or you'd like to qualify for a lower interest rate — some lenders allow you to apply with a cosigner. A cosigner with good credit can make your application less risky for the lender. If you plan to get a personal loan with a cosigner, make sure the lender allows it.
• Check funding time: Consider how soon you need access to your loan funds when comparing lenders. Some lenders, like LightStream, can fund your loan within 24 hours, while others may take up to a week.
• Consider loan maximums: The maximum amount available to borrow varies by lender. Some lenders cap loans at $50,000, while others offer larger amounts, such as SoFi (as much as $100,000) and BHG (as much as $200,000). However, the amount you can borrow depends on your income, current debt, and credit score.
• Repayment terms: Personal loans typically have repayment terms lasting between two and seven years. The length of your repayment term can depend on factors including the lender, the loan amount, and your creditworthiness.
• Look for red flags: Colin Slabach, PhD, CFP, RICP, and professor at New York University School of Professional Studies, warns of several red flags to be aware of when comparing lenders. Red flags may include "whether the interest rate is variable, whether the loan term is excessively long, and whether balloon payments are required."
• Read customer reviews: Compare ratings of different lenders to get a sense of the customer experience. Use sites like Better Business Bureau and Trustpilot to find reviews from previous or current customers.

What is a personal loan?

A personal loan is a type of installment loan you can use to pay for a variety of expenses, such as medical bills, weddings, debt consolidation, and more. After receiving your loan in a lump sum, you pay it back in monthly installments.

Personal loans can be secured or unsecured. Secured personal loans require you to put up collateral, like a vehicle or other asset, before you can borrow. Unsecured personal loans don't require collateral, but in exchange, may have higher interest rates. Regardless, you have to meet a lender's eligibility requirements, which may include a minimum credit score and minimum annual income, to get approved for a personal loan.

Repayment terms, loan amounts, interest rates, and fees vary by lender. Commonly used personal loan providers include banks, online lenders, and credit unions.

Learn More: What Is a Personal Loan?

How do personal loans work?

When you apply for a personal loan, the lender considers your financial situation, including your credit score, income, and employment status, before approving or denying the loan. If you're approved, you'll receive the loan amount as a lump sum, often within a few days.

You'll often receive the loan proceeds as a direct deposit into your bank account. But if you're using the loan for debt consolidation, your lender may be able to make direct payments to your creditors instead.

After receiving your loan funds, you can spend the money as needed. You'll also have to start making regular monthly payments, based on your interest rate and term, to pay off your loan. Making on-time payments can help you build credit over time, while missing payments can hurt your credit.

Learn More: How Do Personal Loans Work?

Personal loan pros and cons

Personal loans have advantages and disadvantages to consider. Here are some of the pros and cons of taking out a personal loan:

Pros

• Fixed monthly payments: Most personal loans have fixed interest rates rather than variable rates, so your monthly payments stay the same.
• Lower rates compared to credit cards: The average credit card interest rate is 21.47%, more than nine percentage points higher than the 12.32% average interest rate on a two-year personal loan, according to the Federal Reserve.
• Lump sum payment: Personal loans are paid out in an upfront lump sum, allowing you to spend the funds how and when you want. Plus, many lenders can fund loans within a day of approval.
• No collateral for unsecured loans: If you take out an unsecured personal loan, you don't risk losing collateral if you default. This differs from a home equity loan or auto loan, where missed payments can lead to losing the asset you pledged as collateral.
• Versatility: Personal loans can be used for a number of purposes, including emergency expenses, medical bills, home renovations, and weddings.

Cons

• Increased debt burden: Taking out a personal loan increases your debt-to-income ratio (DTI), which could indirectly affect your credit score and make it harder to borrow in the future until the loan is repaid. Plus, taking on a monthly loan payment reduces the amount of money you have to save or spend elsewhere.
• Higher rates for less-qualified borrowers: Without good or excellent credit, you likely won't qualify for the lowest interest rates. Higher interest can increase the cost of a personal loan, especially over a longer term.
• Potential damage to credit for missed payments: Missing payments or defaulting on your loan can significantly damage your credit, as payment history makes up 35% of your credit score.

Related: Should I Get a Personal Loan?

What are current personal loan rates?

For the week ending Jan. 26, the average personal loan rate for three-year loans on the Credible marketplace was 14.57% APR. The average rate on five-year loans was 20.29% APR.

Keep in mind that personal loan rates vary by lender. Some of the best available rates for borrowers are in the single digits. For example, LightStream and Best Egg each have a minimum APR under 7%.

However, the rate you qualify for depends on your specific financial situation. The lowest rates are typically reserved for those with excellent or exceptional credit (FICO scores above 800).

How to apply for a personal loan in New York

Applying for a personal loan in New York is similar to applying for a personal loan in other states. Below is a summary of the steps you need to take.

1. Check your credit: Grab a free copy of your credit report at AnnualCreditReport.com and check it for errors. Your bank or credit card issuer may offer free credit monitoring services that let you track your credit score. Knowing your credit score can help you narrow your list of potential lenders based on their eligibility requirements.
2. Figure out how much you need to borrow: Don't borrow more than you need. The bigger your loan amount, the more you pay in interest. A bigger loan would also add more to the total amount of debt you owe, which accounts for 30% of your FICO score. Take the time to calculate the size of the loan you need before you begin comparing your options.
3. Compare lenders: Shop around, looking for the best rates, great customer service, and other features that meet your needs. If you plan to apply with a cosigner, confirm lenders allow this.
4. Prequalify: After narrowing your options, prequalify where possible. This process gives you a more accurate estimate of what you can expect to pay without requiring a hard credit pull. Just remember that when you apply, your final offer may differ from this estimate. Prequalification provides an estimate of rates and terms but isn't an offer of credit.
5. Submit an application: After choosing a lender, submit a formal application. You can typically do so online and will need to provide personal and financial documentation. This often includes ID and proof of income and address. Most lenders perform a hard credit pull when reviewing your application, which could lower your credit score up to five points for up to a year.

Learn More: How to Apply for a Personal Loan

Personal loan alternatives

In some situations, a personal loan may not be the best financing solution. Consider the following alternatives and weigh them against personal loans when deciding which is best for you.

Credit cards

Credit cards tend to have higher average interest rates than personal loans, which can make them a more expensive borrowing option. However, some cards have introductory 0% APR offers on balance transfers or purchases — typically ranging from 12 months to 21 months, depending on the issuer — during which you won't be charged interest. To avoid interest, you need to pay off your transferred balance or purchase before the introductory period expires and the card's regular APR takes effect.

Compare: Personal Loan vs. Credit Card: Which Is Better?

Home equity credit products

If you own a house and have built significant equity, you may be able to borrow against that equity for access to cash. Home equity loans and home equity lines of credit (HELOCs) are a secured form of borrowing and, as a result, tend to have lower interest rates than personal loans. However, if you default on a home equity loan or HELOC, you risk losing your home.

Cash advance apps

Cash advance apps, such as EarnIn, Brigit, and Chime, let you borrow against a future paycheck. Although most cash advance apps don't charge interest, the costs may include:

• Subscription fees
• Fees for expedited funding
• Tipping (optional or required)

While convenient, these apps can encourage a cycle of borrowing and typically limit loans to a few hundred dollars.

BNPL loans

Buy now, pay later (BNPL) loans are short-term installment loans you can use to make a purchase, either online or in-store. Often, these loans have no interest for short-term repayment, such as six weeks, but charge fees for late or missed payments.

Peer-to-peer lending

Peer-to-peer (P2P) lending allows individuals to borrow from and loan to one another without going through a traditional bank or lender. On one hand, P2P loans may be more accessible to those with lower credit scores, since eligibility criteria can be more lenient. However, P2P lending is not as heavily regulated as traditional personal loan lending and may present additional risk to both borrowers and lenders.

Borrowing from friends or family

Don't overlook loans from family or friends, which Henderson says could save you money on interest. But make sure to put any agreement in writing: "I always recommend that a loan from a family member or friend be correctly documented with a simple loan agreement as well as a table that outlines payments including both principal and interest. That way the expectations of each side are clearly communicated in writing," says Henderson.

A formal loan document could also help satisfy IRS requirements. Depending on the loan amount, a family loan may require the lender to charge interest and declare it as income.

Read More:

• What Credit Score Do You Need for a Personal Loan?
• The Best Ways to Borrow Money
• Best Personal Loans for Bad Credit
• Best Personal Loans for Fair Credit
• Best Personal Loans for Good Credit 
• Best Personal Loans for Excellent Credit