When it comes to predatory lending types, car title loans are at the top of the list. Outrageously high 300% APRs and putting up collateral may place New York’s bad credit borrowers (its target audience) in a precarious position. However, with the average debt cycle time of 200 days and 20% of auto title loan New York borrowers losing their vehicles, it’s a chance no one should take.
Luckily, there are many auto title loan New York alternatives.. These include personal loans with sub 35.99% APRs offering loans up to $100,000.
Keep reading to learn more about car title loan alternatives in New York, including what title loans are, how the auto title loan New York business works and our top picks for other options.
ElitePersonalFinance allows you to compare quotes from multiple lenders. Make a well-informed decision with insights from our top finance experts from ElitePersonalFinance.
Why Trust ElitePersonalFinance Guides?
To compile our Car Title Loan Alternatives and Laws in New York of April 2024 guide, we exhaustively researched more than 30 lenders, spanning online lending platforms, banks, and credit unions to present the best options.
Our recommendations led with APRs, rates, terms, and consumer-friendly products like debt protection and credit counseling. We also continually ensure that all reviews are up-to-date with the latest information in an ever-changing world.
Lastly, we are fans of checking third-party reviewing platforms like Trustpilot to validate each lender’s commitment to customer service and transparency.
Thanks for confiding in ElitePersonalFinance and its expert team of finance writers to help you find the best car title loan alternatives in New York.
Best Car Title Loan Alternatives and Laws in New York of April 2024: Key Findings
The best car title loan alternatives offer loans as little as $100 with APRs as low as 7%
Secured loans allow bad credit NY borrowers to take advantage of lower interest rates in exchange for putting up collateral.
Bad credit NY borrowers can take out alternative auto title loans capped at 35.99%, a nice alternative to traditional title loan APRs reaching as high as 300% APRs.
Loan origination fees on alternative auto title loans can go up to 8.99%, although many lenders offer $0 fees.
Annual percentage rates on unsecured personal loans start at roughly 25.3% for bad credit New Yorkers with FICO scores below 630.
NextDayPersonalLoan
Loan Amount:
$100 – $40,000
APR:
Not Listed
Min. Credit Score:
Not Listed
Approval:
1 – 7 Days
Terms:
Not Listed
Fees:
Loan origination fees vary by lender
Late payment fees vary by lender
Most lenders don’t charge prepayment fees
Qualification Criteria:
Be at least 18 years of age
Have recurring employment income or government benefits
Fill out your information through NextDayPersonalLoan’s online portal
Average Borrower Profile:
NextDayPersonalLoan’s connects borrowers with personalized financial product offers from banks and other lenders
If you have bad, fair, good, or excellent credit, financing options are available
NextDay is an excellent choice for bad credit NY’ers looking to receive quick cash with loans not exceeding 35.99% APRs, an excellent alternative to predatory auto title loans.
With NextDay, bad credit New Yorkers can compare rates and terms from an extensive network of participating lenders offering from $100 to $40,000. Repayment terms go from 2 to 7 years with approval and as little as one business day, depending on the lender.
We also appreciate NextDay’s easy application process. Visit the website, and provide your contact and financial information to be paired with a list of qualifying lenders. Ready to qualify? All you need to be is at least 18 years of age with a regular job and complete NextDay’s online application to be paired with a list of qualifying lenders.
Pros:
Soft inquiry
Loans as little as $100
Many lenders offer sub-35.99% APRs
No need to put a vehicle as collateral
Most lenders don’t charge prepayment penalties
Cons:
Not a direct lender
Does not manage hardship programs
Small percentage of loans over 35.99% APR
Origination and late payment fees varies by lender
The impact of COVID-19:
Although NextDay is not a direct lender offering hardship or forbearance programs, it may be able to assist. Give them a call at 866-829-4551. Be sure to call each respective lender directly to learn if forbearance or hardship programs exist.
LifeLoans
Loan Amount:
$1,000 – $40,000
APR:
7.46% – 35.97%
Min. Credit Score:
560
Approval:
1 Day
Terms:
2 – 7 Years
Fees:
Loan origination fees of 1.85% – 8.99%.
Late payment fee of $10, after a 15-day grace period.
Insufficient funds fee of $10.
There are no prepayment fees.
Qualification Criteria:
Be at least 18 years of age.
Have a credit score of at least 560.
Have a DTI ratio that doesn’t exceed 75%.
Have recurring employment income or government benefits.
Fill out your information through Upgrade’s online portal.
LifeLoans is a practical choice for bad credit New Yorkers looking to compare multiple auto title alternative NY lenders in one easy-to-use interface.
Participating LifeLoans lenders offer between $100 to $40,000 at up to 35.99% APRs. Not bad versus the outrageously high 300% APRs auto title lenders charge. Funds can be deposited to your bank account in as little as one business day after your application is approved. All terms, such as origination, prepayment, and late penalties, vary depending on the lender.
Ready to take out a LifeLoan loan? All you need to do is be 18 years of age or older with $1,000 in minimum monthly income, a regular job (minimum four weeks), a valid checking account, and a quick visit to the LifeLoans website to complete an online application that takes no more than 10 minutes.
Pros:
Soft inquiry
Sub-35.99% APRs (some lenders)
Quick and easy online application
Cons:
Not a direct lender
$10 minimum monthly income
Origination and prepayment fees vary by lender
Does not manage hardship or forbearance programs
The Impact of Covid-19:
All hardship, forbearance, and consumer/debt education programs are dictated by each participating lender in the LifeLoans network. Please consult with them for the fine print or call LifeLoan representatives at 833-321-7764 to see how they can assist.
Upgrade
Loan Amount:
$1,000 – $50,000
APR:
8.49% – 35.99%
Min. Credit Score:
560
Approval:
1 Day
Terms:
2 – 7 Years
Fees:
Loan origination fee of 1.85% – 9.99%
Late payment fee of $10, after a 15-day grace period
Insufficient funds fee of $10
There are no prepayment fees
Qualification Criteria:
Be at least 18 years of age
Have a credit score of at least 560
Have a DTI ratio that doesn’t exceed 75%
Have recurring employment income or government benefits
Fill out your information through Upgrade’s online portal
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.
Upgrade is highly recommended for NY borrowers who want to take out alternative car title loans in New York that require putting up. collateral to help qualify for a better rate. Generally, they offer 1 to 10 percentage points less than unsecured loans.
We like Upgrade for its well-rounded terms. It offers a healthy loan amount range ($1,000 to $50,000) with APRs between 8.49% to 35.99% for all NY borrowers with a minimum credit score of 560. Funding also takes as little as one business day. Our only real knock on the service is that loan origination fees are 1.85% – 9.99%, higher than average, although parried with no prepayment fees.
Look to Upgrade if you prefer to use your vehicle as collateral to take advantage of better rates or would be okay with a co-borrower option.
Pros:
Instant approval
Co-signer loans available
Free credit monitoring services
No prepayment penalties
Flexible credit score requirement (minimum 560)
Lengthy repayment terms
Cons:
Higher-than-average APRs
Hard inquiry when submitting a formal application
Cannot choose a first payment date
The Impact of Covid-19:
If you are interested in learning more about Upgrade’s forbearance programs, email support@upgrade.com or call (844) 319-3909.
SoFi
Loan Amount:
$5,000 – $100,000
APR:
7.99% – 23.43%
Min. Credit Score:
680
Approval:
1 – 7 Days
Terms:
24- 72 months
Fees:
There are no loan origination fees.
There are no late payment fees.
There are no closing fees.
There are no prepayment fees.
Qualification Criteria:
Be at least 18 years of age.
Your credit score needs to be at least 680.
Have a stable source of income, including a job or a job opportunity with a commencement date within the next 60 days.
Complete the necessary details at SoFi’s online portal.
One of the most reputable lending companies out there, SoFi personal loans are an excellent choice for New Yorkers with a minimum credit score of 680 who want a vehicle title loan New York alternative between $5,000 and $100,000. We appreciate its APRs, with fixed rates as low as 5.74% and no origination or pre-paying fees.
With good credit, expect APRs in the 6.59% range. “Good” credit scores will drop you back to the 15.56% range.
With SoFi, NY’ers also enjoy quick funding times on alternative car title loans in New York, with loan funds disbursed to bank accounts as soon as the same day. Even rates could be viewed online in as little as 60 seconds without impacting your credit score.
Another key point is its Unemployment Protection program, which temporarily modifies your payments with job search assistance for those recently laid off. Enrolling in the program does not affect your interest rate or credit scores. Consider it an insurance policy and extra backup if you cannot pay your loans on time.
Look to SoFi if you have a minimum 680 credit score and are currently employed with proof of recurring income.
Pros:
Instant approval
Same day deposits
Fixed rates as low as 5.74%
Unemployment Protection Program
Generous loan amounts ($5,000 to $100,000)
Cons:
Requires minimum 680 credit score
15.56% range for borrowers with good credit
The Impact of Covid-19:
If you are having issues paying monthly balances on time, contact SoFi’s Special Handling team at (855) 456-7634.
Zippy Loan
Loan Amount:
$100 – $15,000
APR:
12% – 35.99%
Min. Credit Score:
0
Approval:
1 – 7 Days
Terms:
6 Month – 5 Years
Fees:
Loan origination fees vary by lender.
Late payment fees vary by lender.
Most lenders don’t charge prepayment fees.
Qualification Criteria:
Be at least 18 years of age.
Have recurring employment income or government benefits.
Fill out your information through ZippyLoan’s online portal.
Average Borrower Profile:
ZippyLoan connects borrowers with personalized financial product offers from banks and other lenders.
If you have bad, fair, good, or excellent credit, financing options are available.
Unlike traditional lenders that issue loans directly, ZippyLoan is a lending company connecting people with an expansive network of lenders, including those specializing in alternative car title loans NY. Consider ZippyLoan if you have bad credit (<600) and are looking for quick cash in the $500 to $15,000 range.
Depending on the lender, APRs range from 12% to 35.99%. Competitive interest rates apply to all types of loans, including unsecured and secured personal loans. Repayment terms are also on point, ranging from six months to five years. As for fees, origination, late payment, prepayment, and similar fees are coordinated by the lender, not Zippy Loan. However, most lenders do not charge prepayment fees.
Remember, the lower your credit score, the lower the loan amounts ZIppyLoan’s lenders offer.
Another plus with ZippyLoan is that it offers unsecured alternative vehicle title loans in New York, which makes it a great auto title alternative, as all auto title loans require putting up collateral.
Applying for a Zippyloan is easy. Complete ZippyLoan “Get Started’ section and get matched to multiple lenders. Any application will require completing a separate loan application, each with its verification services and processing times.
In short, look to Zippy Loans if you have bad credit and prefer kinder 12% to 35.99% APRs over the outrageous 300% APRs car title loans are known for.
Pros:
Instant, same day approval
APRs as low as 12%
Repayment terms from six months to five years
6 to 60-month repayment terms
Cons:
Cannot guarantee interest rates
Some lenders charge late and prepayment fees
OK, not great, APR range (12% to 35.99%)
Smaller loan amount range ($100 to $15,000)
The Impact of Covid-19:
Since ZippyLoan is a third-party mark[place, it does not arrange loan extensions, alternative repayment options, and other ways to pay borrowers. All postponements are arranged directly with the lender. However, they do have a customer service team who may be able to steer you in the right direction. Call them at (844) 379-8621 or email support@zippyloan.com.
BadCreditLoans
Loan Amount:
$1,500 – $10,000
APR:
5.99% – 35.99%
Min. Credit Score:
0
Approval:
1 Day
Terms:
3 months – 6 Years
Fees:
Loan origination fees up to 8.99%.
Late payment, insufficient, and prepayment fees vary by lender.
Qualification Criteria:
Be at least 18 years of age.
Have a credit score of at least 0.
Fill out your information through BadCreditLoan’s online portal.
Average Borrower Profile:
BadCreditLoans doesn’t disclose average personal loan statistics.
BadCreditLoans is an excellent lending company for borrowers with sub-600 credit scores looking for a alternative car title loans NY offering quick cash with loan amounts from $500 to $10,000. Like ZippyLoans, it is also an online marketplace pairing borrowers with 100+ lenders, all of which offer 300% APRs known to title loans.
Each lender offers its own APR terms and fee structure. However, expect loans to fall in the 5.99% – 35.99% range. For perspective, New Yorkers borrowing $2,000 on a 1-year term with a 19.9% APR should expect to pay $2,203.56 at the end of the term — not a bad deal! Our only knock on bad credit loans is that loans are capped at $100 if you have a credit score of 500 or below.
Repayment terms are 90 days to 6 years. Although origination fees run upwards of 8%, there are no prepayment penalties, so you can pay off your loan in Month 8 into a five year term without paying any extra fees.
Qualification criteria for BadCreditLoans borrowers in NY and New York City are easy. You must be 18 years of age, a US citizen/permanent resident, and be currently employed with an active checking account. There are no minimum income requirements for DTI ratios advertised on its website.
If you are looking for quick, smaller loan amounts and a solid car title loan alternative, we highly recommend BadCreditLoans.
Pros:
Instant, same day approval
APRs as low as 5.99%
Expansive lender network
Fast funding (as little as one business day)
Lengthy up-to-6-year repayment terms
Cons:
Loan approval is not guaranteed
Origination fees of up to 8%
$100 loan caps with sub-500 credit scores
Company shares info with marketers who promote non-loan products
The Impact of Covid-19:
Although hardship and deferment programs are handled directly with lenders BadCreditLoans refers borrowers to, BadCreditLoans may be able to assist with basic questions. To reach BadCreditLoans customer support, email support@badcreditloans.com or call (800) 245-5626.
First New York Federal Credit Union – New York
Loan Amount:
$1500 – $25,000
APR:
6.74% – 11.75%
Min. Credit Score:
Unspecified
Approval:
Up to 7 days
Terms:
Up to 5 years
Fees:
$35 fee for ‘Skip-A-Pay”
Qualification Criteria:
Be at least 18 years of age.
Must be a New York Federal Credit Union customer.
Average Borrower Profile:
APR as low as 7.24% for personal loans with repayment terms up to 24 months.
Interest rates for a loan up to 60 months range from 6.74% – 11.75% for borrowers with good to excellent credit.
First Tech Federal Credit Union is an excellent choice for NY’ers with bad credit who would prefer to collateralize an alternative car title loan NY using a savings account or savings certificates or need a much longer than average timeframe to repay the entire loan (up to 7 years!)
We appreciate First Tech Federal Credit Union for being strong in almost all areas. This credit union offers no-fee personal loans up to $50,000 on APRs as low as 6.70%, repayable to a longer than average 84 months. Your first payment will also not be due for up to 45 days, which is excellent for people with unstable or irregular incomes.
On top of concrete terms, First Tech Federal Credit Union has a pretty strong reputation with an average 4.5-star rating on Trustpilot (360+ reviews) as of this writing.
We like First Tech Federal Credit Union as a car title loan alternative for people who want extra time to repay their loan with a form of collateral (savings account/certificate) not available with our other recommended providers.
Pros:
APRs as low as 6.70%
No-fee loans up to $50,000
Up to 7-year loan repayment term
Savings accounts/ certificates can be used as collateral
Strong Trustpilot ratings
Cons:
No debt protection
High overdraft fees
Need to be a First Tech Federal Credit Union Membership Savings account member
The Impact of Covid-19:
First Tech Federal Credit Union has a resource page with more information on how to request hardship assistance. Give them a call at (855) 855-8805.
Bethpage Federal Credit Union
Loan Amount:
Up to $35,000
APR:
8.89% – 12.89%
Min. Credit Score:
Undisclosed
Approval:
1 – 3 Days
Terms:
Up to 120 months
Fees:
Late payment fees apply.
Insufficient funds fees apply.
There are no loan origination fees.
There are no prepayment fees.
Qualification Criteria:
Be at least 18 years of age
Apply online on Bethpage Federal Credit Union’s website.
Average Borrower Profile:
Bethpage Credit Union doesn’t disclose average personal loan statistics.
In business for over 80 years, Bethpage Federal Credit Union is a solid car title loan alternative for any NY borrower with bad credit looking for multiple debt protection options in case of financial hardship.
Like our other picks, Bethpage Federal Credit Union is exceptionally well-rounded. It offers fixed rates as low as 8.89% APRs up to 12.89%, offering borrowers up to $35,000 with flexible terms of up to 84 months. There are no application, origination, or prepayment fees. Upon loan approval, borrowers receive funds in as little as one business day.
Bethpage Federal Credit Union’s biggest benefit for New Yorkers is its multi-tiered debt protection plans. For only a marginal cost of $1.17 per month (Bronze) to $2.95 (Platinum) packages, borrowers can enjoy several tiers of protection, enjoying canceled loan balances without penalty or added interest in case one or more of the following things happen: death, disability, or involuntary unemployment. Opting for all three scenarios qualifies under the Platinum plan versus one or two of these scenarios for Gold, Silver, and Bronze.
Our only knock on Bethpage Federal Credit Union is that it has a much lower maximum loan amount than other credit unions and is well below SoFi’s maximum loan amount of $100,000.
Look to Bethpage Federal Credit Union if you need the extra peace of mind offered by its strong Debt Protection program.
Pros:
Funds in as little as one business day
Super generous 8.89%-12.89% APR range
No origination, prepayment, or application fees
Debt protection programs available
Excellent customer service
Cons:
Maximum loan amount of $35,000
Need to be a Bethpage Federal Credit Union member
The Impact of Covid-19:
Bethpage Federal Credit Union offers a Debt Protection program that protects borrowers in case of death, disability, or involuntary unemployment. To learn more about the program, call a Bethpage Federal Credit Union representative at (800) 628-7070.
Navy Federal Credit Union – New York City, NY
Loan Amount:
$250 – $50,000
APR:
7.49% – 18%
Min. Credit Score:
Undisclosed
Approval:
1 – 7 Days
Terms:
6 – 60 months
Fees:
There is a $29 late payment fee.
No loan origination fees.
No penalties are assessed for early termination.
For loans up to $250,000, closing expenses are between $300 and $2,000.
Qualification Criteria:
You’ll need to provide your Social Security number, contact information, and annual income.
Any current or former military member, Defense Department employee, or pensioner can apply. All immediate relatives are welcome to apply.
Navy Federal doesn’t have a minimum credit score requirement, but they will pull your credit report when you apply.
You must become a member of the credit union to apply, which requires joining the Navy League or Armed Forces Retirement Home.
Fill out your information through Navy Federal Credit Union’s online portal.
Average Borrower Profile:
Navy Federal Credit Union doesn’t disclose average personal loan statistics.
Navy Federal Credit Union is an excellent car title loan alternative for any bad credit New Yorker looking for solid APRs and ultra-low loan amounts of as little as $250.
Loan amounts for Navy Federal Credit Union car title loan alternatives go from $250 to $50,000 on APRs from 7.49% to 18%. It is like payday loans in that it offers a much lower minimum loan amount ($250), which is good in a world where other lenders require a minimum of $1,000+. It also provides six to 60-month repayment terms.
To qualify for a Navy Federal Credit Union loan, you must be a former or current military member under the Navy League or Armed Forces Retirement Home program. Immediate relatives can also join and enjoy the same rates and terms.
If you are looking for solid APRs and low minimum amounts, Navy Federal Credit Union comes highly recommended.
Pros:
Minimum loan amount of $250
Up to 60-month repayment term
Generous APR range (7.49% to 18%)
Cons:
$29 late payment fee
Not the best customer service
Membership restricted to former or current military members and immediate relatives
The Impact of Covid-19:
Navy Federal Credit Union has a dedicated helpline at (888) 842-6328. for people affected by COVID-19 who are facing sudden hardship in making payments.
Mariner Finance – New York, NY
Loan Amount:
$1,000 – $25,000
APR:
18% – 35.99%
Min. Credit Score:
Undisclosed
Approval:
Up to 7 Days
Terms:
12 – 60 months
Fees:
Origination fees apply.
Late payment fees apply.
No early termination penalties.
Qualification Criteria:
Vehicle used as collateral must be less than 10 years old.
You must become a Mariner Finance member.
Fill out your information through Mariner Finance’s online portal.
Average Borrower Profile:
Mariner Finance doesn’t disclose average personal loan statistics.
Mariner Finance is an excellent alternative car title loans NY with no damaged credit and a vehicle less than ten years old to use as collateral to qualify for lower rates.
We like Mariner Finance for its generous loan amounts ($1,000 to $25,000) with APRs ranging between 18% – 35.99% on one to five-year terms. Loan approval times are also pretty quick, taking no more than seven business days. With no minimum credit score required, it’s arguably the easiest lender to get a secured loan from our list – with APRs not reaching anywhere close to 300%, a win in our book.
Qualifying for a Mariner Finance is also easy. You must be at least 18 years old with a vehicle to use as collateral less than ten years old. It should also be fully insured with no existing lien on it.
Look to Mariner Finance if you have badly damaged credit and are comfortable using a vehicle as collateral on a secured loan.
Pros:
OK APRs of 18% – 35.99%
Loans between $1,000 to $25,000
One to five-year repayment terms
No minimum credit score required
Cons:
Vehicle used as collateral must be less than ten years old
A $25 processing fee may apply
Origination and late payment fees apply
Any loan less than $1,500 and greater than $15,00 requires an in-branch visit
The Impact of Covid-19:
For more information on Mariner Finance’s hardship programs, call (800) 373-4004.
Credit Union 1
Loan Amount:
Not Disclosed for Share Secured Loans, Share Certificate Secured Loans, and Credit Saver Loans.
Up to $2 million for Home Equity Line of Credit.
APR:
For Share Secured Loans, Share Certificate Secured Loans, and Credit Saver Loans:
3% – 6% above the share dividend rates and certificate dividend rates.
For Home Equity Line of Credit:
Prime rate + 0.50% for the entire loan term. The floor rate is 3.74%. The APR is capped at 18%.
Min. Credit Score:
None
Approval:
Not disclosed
Terms:
For CD, Share Secured, and Credit Saver loans:
Up to 60 months.
For HELOC:
Up to 20 years
Fees:
An account opening fee of $10.
An origination fee of 0.5% – 3.5%.
A processing fee of $49.
For HELOC:
No application fee.
No appraisal fee.
There are no closing costs, except for IL, IN, and NV customers.
Credit Union 1 is a solid car title loan alternative for first-time NY borrowers who prefer to use a Savings Account or Share Certificate (CD) as collateral for a secured auto title loan alternative.
Loan rates for Credit Union 1 depend on the program. It offers three programs – Share Secured Loan, Share Certificate Secured Loan, and Credit Saver Loan, with share dividend rates plus 3%; 6% – 8% on APRs not exceeding 18% with repayment terms up to 60 months.
Another benefit is no first payment for 60 days, which is excellent for people with unstable incomes like some freelancers.
All in all, look to Credit Union 1 if you would prefer not to use your vehicle as collateral on a secured loan.
Pros:
APRs do not exceed 18%
No prepayment penalties
No minimum credit score required
No first payment for 60 days offers flexibility
Three programs – Share Secured Loan, Share Certificate Secured Loan
Cons:
An account opening fee of $10
Max repayment term only 60 months
Origination fees between 0.5% to 3.5%
The Impact of Covid-19:
Credit Union 1 has a Member Solutions team that can assist if you encounter hardships. Feel free to contact them at (800) 252-6950.
Auto Title Loan Laws In New York
As of this writing, auto title loans are illegal in New York.
For perspective, only nine states allow online title loans with no lending limits. These include Delaware, Idaho, Illinois, Missouri, Nevada, New Mexico, South Dakota, Utah, and Wisconsin. In addition, loophole states like South Carolina also allow auto title loans but with strict restrictions on APRs for all loans equal to or below a specific value.
With APRs reaching upwards of 300% and predatory repayment terms and fees, ElitePersonalFinance is happy to report alternative auto title lending options for New Yorkers with bad credit.
What Is An Auto Title Loan And How Do Auto Title Loans Work?
Auto title loans in New York are installment loans (up to 30 days) where your vehicle is used as collateral. In exchange for giving a lender your vehicle’s title, they award up to 50% of your vehicle’s value as deposits to your bank account, usually within 1-2 business days. Lienholders are expected to pay back the entire loan, including interest and fees, which may exceed the amount borrowed.
If loans are not paid back by the end of the loan, auto title lenders reserve the right to possess your vehicle. According to the Consumer Finance Protection Bureau, 20% of auto title loans result in vehicle repossession.
Loan amounts for vehicle title loans in New York typically straddle between $100 to $5,500.
Thanks to outrageously high APRs that only rival payday loans, auto title loans are illegal in New York. However, borrowers living in states where vehicle title loans are allowed often gravitate to them thanks to no credit check requirement and fast application processes that can take as little as 10 minutes.
Fortunately, ElitePersonalFinance is ready to help steer you away from auto title loans with worthwhile alternative auto title loans in New York promising attractive APRs, terms, and fee structures.
What Are Auto Title Loan Alternatives in New York?
Here are our top suggestions for vehicle title loan alternatives available in New York:
Unsecured Personal Loans. Many New Yorkers with bad credit can qualify for unsecured personal loans. Unsecured or no-collateral installment loans do not require putting up any collateral. Annual percentage rates on unsecured personal loans start at roughly 25.3% for bad credit New Yorkers with FICO scores below 630.
Some lenders, like Upstart, extend favorable APR loans to bad credit borrowers who may qualify for lower rates based on other variables, such as their income and debt-to-income ratio.
To view a list of recommended unsecured personal lenders, visit our Marketplace.
Secured Personal Loans. Unlike unsecured personal loans, secured personal loans require borrowers to put up collateral. One key difference between secured personal loans and auto title loans is APRs. Secured personal loans are capped at 35.99%, whereas auto title loan APRs average 300%. It’s unheard of for bad credit borrowers to get highly competitive APRs as low as 10%, 30 times cheaper than vehicle title loans.
As with vehicle title loans, some secured personal lenders do accept vehicles as a form of collateral.
To view a list of recommended secured personal lenders, visit our Marketplace.
Buy Now Pay Later. The ubiquitous ‘Buy Now Pay Later ‘offers you see throughout the Web on random shopping carts are legit installment loan programs that split your purchases into a series of equal installments, with the first payment due at checkout. It has grown in popularity recently, largely thanks to the pandemic.
The most common type of Buy Now Pay Later is the “pay-in-four” model, which splits your purchase into four equal payments due in weekly, bi-weekly, or monthly installments.
Many legitimate pay-in-four plans do not charge interest, but longer-term installment loans can charge APRs upwards of 30% on top of late or scheduled payment fees capped at up to 25% of the purchase value, depending on the lender. Not a good deal!
Generally, we recommend New Yorkers use credit cards or personal loans over Buy Now, Play Later options. Buy Now Pay Later has higher interest and does not usually report on-time payments to credit bureaus, so good payment behavior will not affect your credit score.
The most popular Buy Now, Pay Later apps are Affirm, Afterpay, Klarna, and Paypal.
To view a list of recommended Buy Now Pay Later services, visit our Marketplace.
Loan Apps. Legitimate loan apps like Dave and Earnin are cheaper alternatives to auto title loans, extended no/low APR loans to borrowers with bad to excellent credit. It’s a convenient alternative for people who prefer to manage a loan through a personal loan app, not a brick-and-mortar location or online lender.
However, one significant difference between loan apps and vehicle title loan funds is the amount. Most loan apps offer no more than $500 per transaction, making it better suited to cover emergency expenses or gaps between paychecks. However, the ease of obtaining funds also increases the risk of debt cycle and defaults on payments, much like payday loans without the outrageously high APRs.
Auto Loans. Auto loans and vehicle title loans from direct lenders or marketplaces are worlds apart. Auto loans offer vehicle financing, paid in fixed installments, where your vehicle is used as collateral. In turn, auto title loans allow you to get quick cash by putting up your car as collateral. According to Experian‘s State of the Automotive Finance Market report, the average auto loan interest rate is 4.33% for new vehicles versus 8.62% for used cars.
Like standard personal loans, auto loans offer a loan amount, annual percentage rate, and repayment term.
As with most loans, auto loan APRs vary based on credit score and whether it’s a new or used vehicle. For example, New Yorkers with 661-780 credit scores can expect to pay a 4.03% APR on new cars and a 5.53% for used vehicles. New Yorkers with subprime credit (501-600) can expect to pay 9.75% APR for new cars and 16.85% APR for used vehicles.
If you are looking for auto loans, this guide is not for you. However, we do provide a list of top recommended auto loans through our Marketplace.
Credit Unions. Credit unions are an excellent source of funding via payday alternative loans (PALs). PALs from reputable credit unions and lending companies offer lower APRs (~ 28%) and longer repayment terms than traditional payday and auto title lenders. Lenders like First New York Federal Credit Union and New York Municipal Credit Union offer excellent PALs with APRs ranging from 6.74% to 14.95%.
Furthermore, many credit unions offer the choice of unsecured versus secured loans. Secured loans use collateral (e.g. auto, house, or savings account), typically extended to bad credit borrowers who need to lower their risk profile in the eyes of the lender.
To view a list of preferred credit unions, visit our Marketplace.
How Do I Find The Best Auto Title Loan Alternative in New York?
To do an effective loan comparison, we recommend the following option based on these scenarios to find the best alternative auto title loans in New York:
Quick Cash. For small loans or purchases up to $500, we recommend loan apps (e.g., Dave and Brigit) and Buy Now, Pay Later providers like Klarna and Affirm for on-the-fly purchases. These lenders offer cash advances with repayment terms as little as 14 days (one pay period) or designed as installment plans, such as Klarna’s “Pay in 4” plan with no interest fees.
Larger Loan Amounts with Bad to OK Credit. If you are looking for bigger loans (think $5,000) and instant approval, personal installment loans are available to NY borrowers with bad credit. These generally offer up to $250,000 with 15% to 35.99% APRs.
Larger Loan Amounts for Good Credit Borrowers. With good to excellent credit, banks and credit unions as auto title loan alternatives are generally your safest bet, offering the lowest APRs and longest repayment terms of all providers.
What Are Other Ways Bad Credit NY Borrowers Can Get A Loan?
Outside of our recommended alternative auto title loans in New York, borrowers can request assistance from social services, which comprise state welfare officers that provide emergency cash.
One of NY’s most popular programs is Federal Temporary Assistance for Needy Families (TANF), managed by the US Department of Health and Human Services. They offer temporary cash assistance to families meeting minimum qualifications, such as an unemployed head of household with a child 18 years or younger.
New Yorkers can also contact their local Department of Social Services or call New York’s Temporary Assistance hotline at (800) 342-3009.
Auto Title Loans vs. Secured Personal Loans
Auto title loans and secured personal loans in New York and New York City are worlds apart.
For starters, auto title loans are considered predatory loans. Like payday loans, APRs run as high as 300%, whereas secured personal loans straddle the 5.99% to 36% range. In addition, loan amounts on auto title loans typically start at $100 versus $500 to $100,000 for secured personal loans.
Outside of APRs and loan amounts, auto title and secured personal loans also differ in fees. For example, a secured personal loan may charge one or more of a combination of origination, prepayment, and late fees. In contrast, auto title loans dock processing fees, title charges, lien, and late fees.
Lastly, no credit checks are required for auto title loans. We do not recommend auto title loans for any borrower – good or bad credit. Instead, consider our alternatives below from lenders with favorable track records, loan amount ranges, APRs, terms, and minimal fees.
Auto Title Loan vs. Payday Loan
Auto title loans versus payday loans in New York and New York City typically come down to APR ranges, amount of borrowing power, and repayment terms.
Auto title loans use your vehicle as collateral, allowing borrowing up to 50% of your vehicle’s value for higher-value loans. Lenders are responsible for appraising your vehicle’s value and determining loan amount based on said percentage of value.
Payday loans charge up to 400% APRs with shorter repayment terms.
Both assess steep penalties for late or missed payments. In short, look to avoid auto title and payday loans altogether, as 300% and 400% APRs are the world’s higher than your average fair to good credit cards charging no more than 35% APR.
Auto Title Loans vs. Auto Loans
Auto title and auto loans in NY are worlds apart regarding purpose, loan length, interest rates, and risk to lender and borrower.
Auto title loans are shorter-term, high-interest rate loans that use your vehicle as collateral, with lenders awarding a loan amount equal to up to 50% of your vehicle’s value. APRs run as high as 300%, awarded to people with no or bad credit. In turn, auto loans are standard, unsecured loans are longer-term loans (up to 72 months). The national auto loan interest rate average is 4.21%
In turn, auto loans offer financing in exchange for purchasing a vehicle, where your own vehicle can be used as collateral. As mentioned, this guide does not advise on auto loans, but our Marketplace is a great place to start.
According to Experian, the average new vehicle loan in the United States is $37,746, so a 4.21% APR is a sweet deal.
How Do I Increase My Credit Score?
To qualify for the best APRs on alternative auto title loans in New York, we recommend first increasing your credit scores and applying after (assuming you have the time to wait).
Here are our top recommendations for improving your credit score:
Make On-Time Payments. Late or missed payments on will have a hard impact on your score. Even a single late payment can drop your score by 100 points or more. Not only that, but late payments can remain on your credit reports for up to 7 and a half years.
Manage Credit Utilization Rate. Credit utilization rate is the amount of revolving credit divided by total credit. Look to achieve a credit utilization rate below 35% to keep your score level. A 35% or less utilization rate signals to lenders you’re not maxing out credit, classifying you as a lower-risk borrower.
Keep Credit Reporting Errors in Check. Review reports from all three major credit bureaus (Experian, Equifax, and TransUnion) regularly to make sure mistakes are not driving down your score. Often, creditors will incorrectly report missed payments. In addition, any credit report dispute will take up to 30 days for credit bureaus to investigate and respond.
How Does Getting An Auto Title Loan Will Affect My Credit Score?
At the time of application, most auto title lenders outside of NY do not run credit checks, so you will not see any impact on your credit score. Most also don’t report late or missed payments to credit bureaus.
Despite this, installment loans in New York may indirectly affect your credit score because they could force you to default on other lower-interest and longer-term loans. In addition, with auto title loans known to have 300%+ APRs, it would not be surprising to see borrowers prioritize those payments over unsecured loans.
Note: auto title loans are illegal in NY, so this advice applies if you apply for an auto title loan in a state where they are legal.
If You Decide to Get an Auto Title Loan, What Are The Requirements?
Auto title loans in other states require a clear vehicle title, photos of the vehicle, proof of income, proof of state residence, and personal details such as a government-issued ID, bank account, and proof of valid vehicle insurance and registration.
Please refer to your auto title lender for exact requirements. Better yet, avoid auto title lenders and go with one of the many car title loan alternatives presented in this guide.
How Do I Apply for a Loan in New York?
To apply for installment loans in New York, the first step is to review your credit. Check your Equifax, Experian, and TransUnion credit reports for free on annualcreditreports.com. Is your credit up to par? Using SoFI as an excellent, New Yorkers with excellent credit scores can expect to pay 6.59% APRs, while those with ‘good’ credit scores pay an APR of around 15.56%
If not pressed for time, we highly recommend upping your credit score before applying for prequalification. To boost credit scores, check your credit report for errors, pay down balances, pay bills on time, and lower your credit utilization ratios to below 30%.
What are the requirements for obtaining a NY title loan?
In NY, title loans are illegal.
In states where title loans are legal, application requirements are pretty straightforward.
Outside of a clear vehicle title, banks, credit unions, and other lenders will require government-issued ID, proof of New York residence, proof of valid insurance/registration, an estimate of your vehicle’s value, photos of your vehicle, and proof of income. Depending on the lender, you may also be asked for bank account information.
How Do We Pick these Lenders?
ElitePersonalFinance hand picks all of its installment loans NY selections after conducting an exhaustive research process that compares hundreds of online lenders, banks, credit unions, and other sources side by side. Only the ones with the best combination of APR range, loan amounts, repayment periods, and perks make our list.
Our car title loan alternative recommendations are made with bad credit consumers in mind. They come with much lower APRs and longer repayment terms than restrictive 400% APR and 14-day-to-repay payday loans.
If you are interested in providing feedback on our lending product and service reviews, email us at info@elitepersonalfinance.com. We will get back to you as soon as we can.
Frequently Asked Questions
Can I get vehicletitle loans with a 400 credit score in NY?
Yes. Assuming you are seeking auto title loans in states where it is legal, some auto title loans are available with a 400 credit score, as long as you have an eligible vehicle with enough value to be borrowed against by the lender.
Can I get autotitle loans without income verification in NY?
In states where auto title loans are legal, one can be offered without income verification. Qualifying for many title loans is not based on income but on your vehicle’s value. Remember, the title must be clear in your name to qualify.
What do I do if I am the victim of an illegal auto title loan?
New Yorkers shouldn’t fret if they suspect they fell victim to an illegal auto title loan.
There are three major bureaus you can find a complaint to. You can call the Department of Financial Services at (800) 342-3736, file a complaint with the CFPB at (855) 411-2372, and file a complaint with the FTC by calling (877) 382-4357.
Can I get a title loan without a credit check?
Yes. Many title lenders do not require credit checks for installment loans NY. Those who perform credit checks are often OK with subprime scores if you put up a vehicle for collateral. Any late payments may result in the lender seizing control of your car.
How much of the value of my car can I obtain with an auto title loan?
Auto title loans New York typically award up to 50% of your vehicle’s value, deposited to your bank account in as little as one business day.
What do repayment terms look like with auto title loans?
Auto title loans NY can be paid in one lump sum within 30 days or paid back in installments with term lengths usually not exceeding six months.
Conclusion
In short, learn that auto title loans are illegal in New York State, quickly replaced with personal loans from reputable online lenders, banks, and credit unions. With APRs as low as 5.99%, and generous terms like minimal late or no origination fees, there are plenty of excellent auto title loan alternatives in New York to choose from.
Ray Prince is a finance writer for Elite Personal Finance. He specializes in writing long-form content and product descriptions for websites across multiple industries, including automotive and consumer technology. His work appears on sites such as Freeway Insurance, Auto Guide, Turn5, and Compare.com, with past and current roles as a digital operations manager at Pandora Media and iHeartMedia.
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