If you are a New York resident needing quick cash, you might have heard of payday loans and related horror stories. With 400% APRs and outrageous fees, short-term payday loans are illegal in New York. At best, NY allows a 25% APR cap on short-term loans, an acceptable number that lowers fees and chances of entering a debt cycle.
Fortunately, there are many options available to New Yorkers with bad credit. Our recommended payday loan alternatives offer APRs as low as 5.99%, loan amounts up to $100,000, and generous loan repayment terms between 12 to 60 months. In addition, many of them require no minimum credit scores, DTIs, and other barriers to entry — just like payday loans minus the fuss.
Keep reading to learn more about the best payday loan alternatives in New York, our top recommendations, pros, cons, eligibility criteria, and the borrower profiles they are best for.
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?
ElitePersonalFinance offers expertly written resource guides by industry experts, helping you make key decisions like choosing a legitimate alternative payday loan alternative in New York. In addition, we pride ourselves on our extensive research process, which assesses each lender based on APRs, repayment terms, fees, and other information consumers appreciate.
Only the most reputable companies make our bad credit lenders list. We are also continually updating our pages with the latest information in an ever-changing world of APRs, especially with rising inflation and other economic factors.
Please let us know if you would like to recommend a bad credit loan company outside our list. You may email ElitePersonalFinance at info @ elitepersonalfinance.com and we’ll get back to you as soon as possible.
Best Payday Loan Alternatives and Laws in New York of April 2024: Key Findings
Bad credit New York borrowers can borrow as little as $100 per day with 0% interest using loan apps like Earnin.
To enjoy lower interest rates, bad credit borrowers have the option of taking out secured loans or enlisting the help of a co-signer on unsecured loans.
Buy Now, Pay Later (BNPL) services like Klarna offer a “Pay in 4” option and an interest-free “Pay in 30” option to pay for goods at participating online retailers, a nice alternative to borrowing cash.
Personal loans for bad credit from credit unions can reach up to $100,000 with APR capped at 18%.
Many payday loan alternative lenders charge origination fees from 0 to 8.99% of the loan amount.
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 New Yorkers looking to avoid outrageously high 400% APR offered by traditional payday lenders in favor of alternative loans up to $100,000, capped at 35.99% APR.
Since NextDay is an online marketplace and not a direct lender, it’s an excellent tool for New Yorkers to compare and contrast dozens of payday loan alternative lenders in one sitting. Loan amounts go from $100 to $40,000, a welcome refuge from 400% APR payday loans with much better rates. APRs, fees, and repayment terms vary by participating lender.
Pros:
Same day funding
Excellent online reputation
Loans from $100 to $40,000
Hundreds of legitimate lenders
Some lenders offer no origination of prepayment penalties
Cons:
Not a direct lender
Fees and terms vary by lender
Must have recurring income
Not all lenders are fully transparent
Some loan approvals take up to 7 business days
The impact of COVID-19:
Remember, NextDay is not a direct lender, so each participating lender manages all forbearance and hardship programs. Please refer to their websites for more information.
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.
ZippyLoan is a legit alternative payday loan NY option for borrowers with bad credit looking to be exposed to a vast network of lenders to explore all available options fully.
As an intermediary, not a direct lender, ZippyLoans extends many lending opportunities to borrowers highly interested in PALs. NY borrowers can expect loan amounts of $100 to $15,000 with generous repayment terms from 6 months to 5 years. APRs don’t lag too far behind either, ranging from 12.00% – 35.99%. As with all loans, your offered APRs largely depend on income and credit score.
Qualifying for ZippyLoans is relatively straightforward. All you need to be is a US citizen/permanent resident age 18 or older with a regular income source, a minimum 300 credit score, and a DTI equal to or less than 50%.
We highly recommend ZippyLoans and its reasonable APRs for those with less-than-perfect credit looking for bad credit loans.
Pros:
Easy to qualify
Access to an extensive lender network
Loan amounts from $100 to $15,000
Funds to your account in as little as one business day
Decent 7.04% to 35.89% APR range
Cons:
$15 insufficient funds fee
Origination fees of up to 10%
Late fees and prepayment fees apply
No guarantee of a loan match
Doesn’t use other variables to determine creditworthiness as Upstart does
The Impact of Covid-19:
ZippyLoan is an intermediary, not a direct lender, so all forbearance and hardship programs terms fall under each lender. Please refer to your lender for more information on hardship management.
Earnin App
Loan Amount:
Up to $100 per day and $500 per pay period.
APR:
0%
Terms:
Repay manually via money order or with your next paycheck.
Fees:
Up to $3.99 per $100 for same-day cash advances (first is free).
Credit Check:
No
How to Qualify:
Have a checking account with frequent direct deposits.
With more than 1 million members, Earnin is a legit alternative payday loan New York choice for bad credit New Yorkers looking to fund small emergency expenses or who need to bridge a gap between paychecks. Think of it as a paycheck advance option.
Unlike Klarna, which offers short-term payday advance alternative loan installment plans, Earnin is a paycheck advance service that is paid back automatically from your bank as soon as your next paycheck hits. That said, loan amounts range between $100 and $500, with borrowers able to withdraw up to $100 daily. Also, unlike Klarna and other online services, it does not charge an interest rate. Instead, an optional feature is to leave a tip of up to $14. People with bad credit or good credit can use this service.
Like Klarna, Earnin does not report your payment history to credit bureaus. However, qualifying is somewhat easy. Show proof of employment (50% of your paycheck must be directly deposited) or use Earnin’s online timekeeping system to enable GPS tracking to your place of work.
We like Earnin for people who prefer to have their next paycheck debited with the amount owed without worries about interest rates or fees from other payday advance alternative loans.
Pros:
Can “tip” the app $0
No fees, no credit checks, or interest charges
Loans between $100 and $500
No minimum credit score required
Large tips on small loans could “indirectly” be a very high APR
Does not share your data with third parties
Cons:
Short repayment terms
Need to have direct deposit income
$3.99 charge for shorter funding times
Up to 2 business day turnaround to receive funds
Must track and submit work hours
The Impact of Covid-19:
Earnin has an online help center with 24/7 live chat support and Facebook /Twitter DM customer service.
LifeLoans
Loan Amount:
$1,000 – $50,000
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 an excellent alternative payday loan NY choice with bad credit looking for loans as little as $100 for quick, unexpected expenses.
Like Upstart, LifeLoans operates as an intermediary, connecting borrowers with a network of lenders, each with its own APRs, terms, and fee structure.
APRs with LifeLoans range from 5.99% – 35.99%. However, NYers with subprime to good credit scores should expect APRs in the 15%+ range. For perspective, a $5,000 loan at 15% APR on a 2-year repayment term would result in a total interest of $818.40 — not a bad deal compared to payday loans with outrageous 400% APRs.
One of our favorite things about LifeLoans is its quick deposits for installment loans in NY, with funds directly deposited in as little as one business day. Another benefit is no minimum credit score. However, you must be 18 years of age with an active checking account and a minimum income of $1,000 monthly to qualify.
To get started, visit LifeLoans and begin the application process, which will ask for your desired loan amount, monthly income, and other personal details before being rerouted to a page with all of your eligible bad credit loan offers.
Pros:
Instant approval
Large network of lenders
No minimum credit score
APRs of 5.99% – 35.99%
Generous repayment terms (3 to 60 months)
Good loan amount range ($100 – $40,000)
Cons:
Lengthy application process
Must have a minimum monthly income of $1,000
Not as upfront with terms, costs, and fees as other platforms
The Impact of Covid-19:
As a platform that connects borrowers to lending partners, LifeLoans offers no forbearance or hardship programs. All forbearance policies lie with every individual lender. Please refer to leaders for these details.
Brigit App
Loan Amount:
Up to $250
APR:
0%
Terms:
Repay manually or with your next paycheck.
Fees:
$9.99 monthly membership fee.
Credit Check:
No
How to Qualify:
Have at least 60 days of checking account activity and maintain a balance above $0.
Have a cash surplus every two weeks after receiving your paycheck.
Like Earnin, Brigit is a legit zero-interest, short-term alternative payday loan NY. It is an excellent choice for bad credit New Yorkers who want added value services to complement their lending, such as credit monitoring and budget tracking, for a small monthly fee.
We like Brigit’s terms for emergency expenses, offering paycheck advances or cash advances between $50 and $250 without charging any interest or prepayment penalties. No interest or prepayment penalties is a lot better than that many bad credit loan companies offer.
Unlike Earnin, who only collects tips, Brigit charges $9.99 for additional financial health services like credit monitoring and budget tracking.
To qualify, Brigit borrowers must have a checking account a minimum of 60 days old with a $0+ account balance and at least three recurring deposits from the same job. Once you present this proof, Brigit will assign a score to your account, with a minimum score of ’40 ‘ needed to qualify. The higher your score, the higher the alternative paycheck loan amount you are offered.
Pros:
Zero interest
No credit checks
No late fees or penalties
Super low minimum loan amount ($50)
Added features for a monthly $9.99 fee
Cons:
Strict checking account requirements
Lower max loan limit than Earnin ($250)
Shares your data with third-party apps
Checking account must be a minimum of 60 days old
The Impact of Covid-19:
Brigit NY borrowers do have the ability to extend payments for installment loans in NY if they are not able to repay on the due date. Go inside the app and request an extension credit, or contact Brigit’s live support line at www.hellobrigit.com/faq.
Klarna is a legit alternative payday loan NY choice for bad credit NY’ers who would prefer to pay for unexpected purchases with a pay-in-four installment plan over taking out short-term cash with a PAL or personal loan through a traditional online platform or credit union.
One of the few legitimate Buy Now, Pay Later apps out there, Klarna is activated at the point of purchase, extending two major financing options for borrowers – a “Pay in 4” option and an interest-free “Pay in 30” option. Interest generally runs up to 24.99% APR with late fees of $7 or 25% of each installment payment, whichever is less.
To qualify for Klarna’s Pay in 4 loans, you need to be a US resident/permanent resident aged 18 years or older with a checking account. From there, you can download the Klarna app or its Chrome extension to keep track of your payment history.
Pros:
Soft inquiry
Same day guaranteed approval
No prepayment penalty
Lower APRs than some PALs
Accepted at many online retailers
“Pay in 4” and “Pay in 30” options
Option available to reschedule payment
Cons:
$7 late fee if ten days overdue
Does not report payments to credit bureaus
Minimum credit score not disclosed
The Impact of Covid-19:
Klarna has many options for NY borrowers experiencing financial hardship. Their customer service team can be reached in-app or at (844) 552-7621 to discuss alternative payment arrangements.
NetCredit
Loan Amount:
$1,000 – $10,000
APR:
As high as 150%
Min. Credit Score:
Undisclosed
Approval:
1 – 7 Days
Terms:
6 – 60 months
Fees:
Origination fees up to 5%.
Early termination fees vary by lender.
Qualification Criteria:
You’ll need to provide your Social Security number, contact information, and annual income.
Fill out your information through NetCredit.
Average Borrower Profile:
NetCredit doesn’t disclose average personal loan statistics.
NetCredit is a highly recommended, legitimate payday loan alternative best for bad credit New Yorkers looking for flexible terms and APRs on low amounts.
Payday loan alternatives from NetCredit run between $1,000 to $10,000 with 6 to 60-month repayment terms.
One of our favorite things about NetCredit is the number of positive reviews online. As of this writing, its Trustpilot score is 4.7 out of 10,000+ reviews. However, it’s subdued somewhat by outrageously high APRs (as high as 150% offered by some lenders). However, it is still well below the average payday loan APR of 400%.
As with all online lending networks, loan origination, late payment, prepayment, and other fees vary by bad credit loan company.
Our only knock on NetCredit is it assesses origination fees for installment loans in NY of up to 5% and minimum loan amounts of $1,000. Those accustomed to payday advance loans offering $100 or $500 should look to a similar provider like LifeLoans, which starts at $100. However, you have up to 60 months to repay your loan, which beats the typical 14-day repayment period of payday advance loans.
To apply for a NetCredit loan, New Yorkers only need 18+ with an active personal checking account, email address, and recurring source of income.
Pros:
Same day guaranteed approval
No prepayment fees
Wide repayment term range (6 to 60 months)
Soft inquiry to check eligibility
Paper checks and money orders accepted as payment
Cons:
Origination fees of up to 5%
Some bad credit loan companies listed have 150% APRs
Higher than the average minimum ($1,000)
The Impact of Covid-19:
NetCredit is open to working with borrowers who cannot meet their payment obligations for whatever reasons. Discuss payment relief options with NetCredit by emailing collections@netcredit.com or calling (877) 392-2016.
LendUp
Loan Amount:
Up to $500
APR:
229.43% to 1,000%
Min. Credit Score:
Undisclosed
Approval:
1 Day
Terms:
Undisclosed
Fees:
Origination fees apply.
No prepayment fees.
Late payment fees apply.
No early termination penalties.
Qualification Criteria:
Fill out your information through LendUp’s online portal.
Average Borrower Profile:
LendUp doesn’t disclose average personal loan statistics.
Founded in 2012, LendUp is a solid payday advance loan alternative for any New Yorker looking for rock-bottom, legitimate loan amounts (up to $500) and looking to build credit with on-time payments.
LendUp’s bad credit unsecured loans top out at $500, with APRs varying depending on the state and repayment timelines. Expect APRs anywhere from 229.43% to 1,000%. Although LendUp loan interest rates are higher than credit cards, the platform provides some of the least restrictive barriers to entry of all of our recommended lenders, including no soft or hard inquiry credit checks.
Pros:
Same day guaranteed approval
No credit check
No prepayment fees
No minimum credit score required
Funds in as little as one business day
Cons:
Late fees
Higher than average APRs
APRs with some bad credit loan companies as high as 1,000%
One-time returned check fee of $10 to $156
The Impact of Covid-19:
Some LendUp installment loans in NY offer repayment extensions on lump sum unsecured loans without any late charges. We encourage you to contact your bad credit loan company directly if you are experiencing any hardships.
Upstart
Loan Amount:
$1,000 – $50,000
APR:
4.6% – 35.99%
Min. Credit Score:
300
Approval:
1 – 7 Days
Terms:
3 – 5 Years
Fees:
Loan origination fee of 0% – 12%
Late payment fee of 5% of the amount due, or $15, whichever is greater, after a 15-day grace period
Insufficient funds fee of $15
Paper documents fee of $10
There are no prepayment fees
Qualification Criteria:
Minimum age: 18
Residing in the United States (don’t have to be a citizen or permanent resident) (exception for military)
Minimum credit score of 300 in most states
No bankruptcies or public records on your credit report
No accounts that are currently in collections or delinquent
Living in the 50 US states
Average Borrower Profile:
Borrows roughly $8,600.
Incurs an APR of 23.98% on a five-year term
Achieves approval nearly twice as often than traditional lenders with a FICO Score of 620 to 660
The CFPB found Upstart’s AI risk model approves 27% more borrowers and they incur APRs 16% lower than traditional lenders
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.
Upstart is an excellent choice for New Yorkers with low credit scores and high DTI ratios looking to be judged for creditworthiness based on factors other than income and credit scores.
APRs for Upstart payday loan alternatives are solid (4.6% to 35.99%), with a loan amount ranging from $1,000 to $50,000. Origination fees range from 0% to 12%, with fees automatically withheld from the loan before your first month’s balance is due. Although these borrowing rates are favorable, Upstart only allows two-term options, which are three or five-year terms. Other lenders we’ve reviewed in this guide like SoFi and First Tech Federal Credit Union offer greater flexibility.
All funds are dispersed to your checking account in as little as one business day, except education-related expenses, which can take up to three days for guaranteed approval. However, typical payday advance loan applications are looking to finance short-term projects and unexpected expenses, so Upstart is a fit.
Unlike LifeLoans, NetCredit, and LendUp, which require no credit scores or minimum credit scores, Upstart uses a proprietary AI algorithm to determine installment loans New York eligibility based on factors outside of income and credit score. These variables include work experience and education history. That said, even folks with 300 credit scores can qualify for some type of credit.
Pros:
Same day approval on many loans
Low APRs (4.6% to 35.99%)
Loan amounts from $1,000 to $50,000
It takes as little as one business day to receive funds
Variables other than income and credit score used to qualify borrowers
Cons:
Only two term lengths (3 or 5 years)
No co-signer option
No discounts for enrolling in autopay
Origination fees of up to 12%
The Impact of Covid-19:
Upstart does allow halted secured and unsecured loan payments if you are going through financial difficulties due to COVID, unemployment, and other covered events. You may call them at (855) 451-6753.
GHS Federal Credit Union – Binghamton, NY
Loan Amount:
$200 – $1,000
APR:
28%
Min. Credit Score:
Undisclosed
Approval:
Up to 7 Days
Terms:
1 – 6 months
Fees:
Origination fees apply.
Late payment fees apply.
$20 application fee.
No early termination penalties.
Qualification Criteria:
You must become a GHS Federal Credit Union member.
Fill out your information through GHS Federal Credit Union’s online portal.
Average Borrower Profile:
GHS Federal Credit Union doesn’t disclose average personal loan statistics.
GHS Federal Credit Union is an excellent choice for bad credit New Yorkers in the Binghamton and Norwich region looking to take out alternative payday installment loans New York between $200 and $1000.
We like GHS Federal Credit Union for its well-rounded offerings, starting with PALs with loan amounts ranging between $200 to $1000 with 28% APRs. Its repayment terms of 1 to 6 months are also more generous than traditional payday advance loans, known for 30-day periods.
To qualify for a GHS Federal Credit Union PAL, you must complete a loan application with two of your most recent pay stubs and a photo ID. Expect no credit checks and no lengthy processing times.
We like GHS Federal Credit Union as a PAL for upstate New Yorkers. They would appreciate a 28% APR over an outrageous 400% APR, saving potentially hundreds of dollars worth of interest over the life of your loan.
Pros:
No credit checks
Loans of $200 to $1000
Easy application process
Repayment terms from 1 to 6 months
Cons:
OK, not great, 28% APR
$30 insufficient funds fees
$20 application fee
PAL cannot be rolled over
Need to be a member of GHS for a minimum of 30 days
The Impact of Covid-19:
Although GHS Federal Credit Union does not explicitly mention hardship or forbearance programs on its website, they have a customer service line you can call to learn more about safe proofing your unsecured or secured loan. Call them at (800) 732-4447 or (607) 723-7962.
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 First 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 bad credit New York borrowers looking for payday loan alternatives that can defer the first payment up to 45 days.
PAL APRs with First Tech Federal Credit Union are solid (7.70% – 18%), with loan amounts ranging from $500 to $50,000. However, unlike most 14-day payday loan durations, this credit union offers repayment terms of 24 to 84 months, which may be too long for some people.
Another important thing to note about First Tech Federal Credit Union’s PALs is its qualification criteria. It’s stricter than payday lenders, requiring a minimum credit score of 660.
We like that First Tech Federal Credit Union’s PALs do not have origination, prepayment, or late fees. Plus, first payments can be made up to 45 days, an excellent condition for borrowers with an unstable income. Almost all payday loan lenders and alternative lenders do not offer late fee waivers or payment deferrals, making First Tech Federal Credit Union an intriguing choice.
As for signing up for First Tech Federal Credit Union, it’s easy. You must be 18 years or older, a US citizen/permanent resident with a regular income, and have a valid social security number.
Look to First Tech Federal Credit Union if you are looking for a 45-day initial payment deferment and excellent all-around APRs, even for those with poor credit.
Pros:
Same day approval
Excellent APRs (7.70% – 18%)
No application, origination, or prepayment fees
Can defer first payment up to 45 days
DebtSafe optional payment protection
Cons:
Must have regular income
Minimum 660 credit score required
Not all applicants receive a decision within one business day
Minimum 24-month repayment term (longer than most lenders)
The Impact of Covid-19:
For the latest information on First Tech Federal Credit Union’s forbearance program, visit their resource page or call (855) 855-8805.
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
With more than 12 million members, Navy Federal Credit Union is a highly recommended option for NY’s service members and affiliates looking for a payday loan alternative, offering rock bottom loan amounts, generous APRs, and flexible terms.
For starters, Navy Federal Credit Union’s payday alternative loans offer APRs ranging from 7.49% to 18%, depending on your credit score. In addition, Loan amounts for Navy Federal Credit Union range from $250 to $50,000, a sweet spot compared to most online lending platforms and banks, which require a $1,000 minimum. Repayment terms are also six to 60 months.
As for qualifications, Navy Federal Credit Union’s payday alternative loans/installment loans New York do not require a minimum credit score. In that sense, they qualify similarly to payday lenders. However, the Navy League or Armed Forces Retirement Home program restricts membership to former or current military members and their immediate relatives.
We recommend Navy Federal Credit Union for Navy League or Armed Forces Retirement Home program members looking for excellent APRs and terms on payday alternative loans.
Pros:
Excellent APRs (7.49% to 18%)
No origination or early termination fees
No minimum credit score required
Loan amounts of $250 to $50,000
Same day guaranteed approval
Cons:
$29 late payment fee
Membership is limited to former or current military members
The Impact of Covid-19:
Navy Federal Credit Union does have an extensive COVID-19 page listing all resources available to members. To discuss forbearance and hardship options, call them at (888) 842-6328.
Mid-Hudson Valley Federal Credit Union – Kingston, NY
Loan Amount:
$500 – $25,000
APR:
As low as 8.49%
Min. Credit Score:
None
Approval:
Not disclosed
Terms:
.25% rate reduction with autopay
Fees:
No prepayment fees
No origination fees
No application fees
Qualification Criteria:
Fill out your information through Mid-Hudson Valley Federal Credit Union’s online portal.
Average Borrower Profile:
Mid-Hudson Valley Federal Credit Union doesn’t disclose average personal loan statistics
With more than 80,000 members, Mid-Hudson Valley Federal Credit Union is an excellent choice for New Yorkers who want fast guaranteed approvals (in as little as five minutes) with one of the speediest online sign ups for payday loan alternatives we’ve seen.
Mid-Hudson Valley Federal Credit Union is strong practically everywhere, with debt consolidation loan APRs as low as 8.49% on loans from $500 to $25,000.
For perspective, a New Yorker paying an 8.49% APR on a $10,000 debt consolidation loan will pay roughly $1,362 in interest over a 36-month term. In contrast, a 16.65% APR credit card with the same balance on a 44-month repayment term and up to 5% in transfer fees will see total interest accrued of $3,428.30 — almost triple!
Its website is arguably Mid-Hudson Valley Federal Credit Union’s biggest draw over fellow Navy Federal Credit Union and First Tech Federal Credit Union. Its website is head over heels easier to use than these two, with easy-to-find monthly payment calculators and a simplified application interface that makes it easy to explore your installment loans New York options. Older people who want a straightforward application process would be pleased to see it.
Pros:
Easy-to-use website
Same day guaranteed approval
Same-day funding for most loans
.25% rate reduction with autopay
COVID and non-COVID financial hardship counseling available
Cons:
Little offline presence (only nine branches in New York)
The Impact of Covid-19:
Mid-Hudson Valley Federal Credit Union offers financial hardship services via an online request form that connects you with a branch representative to discuss your options.
What Are All Of The Payday Loan Alternatives in New York?
Fortunately, NY borrowers have access to multiple lending sources which offer better rates, terms, and fee structures than payday loans New York.
Here are our top picks for payday loan alternatives in NY:
Personal Installment Loans for Bad Credit. NY borrowers with bad credit are still eligible for legitimate personal loans that offer up to $250,000 with APRs ranging from 15% to 35.99%. They largely come from credit unions and online lending platforms like Upstart that offer excellent all-around terms. With payday loans New York hitting in excess of 400% APR and auto title loans following closely behind at 300%+ APRs, personal installment loans for bad credit can be a reality for millions of bad credit New Yorkers like you may be.
Payday Alternative Loans (PALs). Offered by alternative payday lenders, payday alternative loans are small loans with lower interest rates and longer repayment terms than traditional payday loans New York. It’s an excellent alternative for bad credit NY borrowers looking for flexible terms who want to borrow up to $10,000, with APRs between 35.99% to 400%. Consider PALs as a nice gap between personal and payday loans.
Like payday loans New York, borrowers are qualified based on proof of income, not credit score.
One example of a PAL is NetCredit (reviewed above), which offers loan amounts up to $10,000 with 6 to 60-month repayment terms.
Loan Apps. Over the past decade, many NY borrowers have not opted for alternative payday loans in New York turned to bad credit personal loan apps to help pay unexpected bills, consolidate debt, and fund projects. Almost all loan apps offer unsecured installment loans with fixed monthly payments, no credit checks, and lower APRs than payday loans New York.
As of this writing, Earnin, Dave, Brigit, Empower, and Chime are the most popular loan apps.
One catch with loan apps is their often-times excessive fees and effect on behavior. For example, payday advance apps like Dave increase the chances of overdrafts and promote chronic borrowing. Loan app fees also operate differently than traditional lenders, charging for everything from instant receipt of funds to paying $1 monthly membership fees (Dave) in exchange for unlimited free payday advances up to $500 each.
Continue reading our guide to learn our best NY loan app recommendations.
Buy Now Pay Later. Like loan apps, Buy Now Pay Later services allow users to apply for small installment loans at the point of purchase with or without a down payment on the total purchase amount. According to PYMNTS Holiday Shopping Outlook (2021) report, a payment data organization, 61% of buyers used this payment method for holiday shopping between 2020 and 2021.
Some of the more popular Buy Now Pay Later companies include Affirm and Klarna.
Unlike payday loans New York, Buy Now Pay Later charges no to little interest. However, like loan apps, they may force NY borrowers into chronic overuse and missed payments, impacting their credit scores. On top of that, Buy Now Pay Later services do not offer cash-back rewards, a perk long known as traditional credit cards.
Continue reading our guide to learn our best recommendations for Buy Now Pay Later services in NY.
Credit Unions. Easily our preferred lender for payday loan alternatives, our recommended credit unions accept good and bad credit NY borrowers, offering better rates and lower fees than many banks. In addition, many credit unions back NCUA-insured accounts up to $250,000 and provide excellent financing counseling and resources.
As for terms, credit unions generally offer personal loans for bad credit borrowers up to $100,000 with APRs capped at 18%. They can also offer smaller payday alternative loans up to $1,000 at APRs up to 28%. Both types of loans enjoy lower fees and longer repayment terms than payday loans New York. APRs are usually capped at 18%, but it is common for them to be higher. Eligibility is also laxer, with credit unions requiring no more than a member ID, proof of employment/income, and proof of residency. Consider it an excellent way to get out of the payday loan cycle with a more attractive alternative.
Our preferred NY credit unions for bad credit NY borrowers are First Tech Federal Credit Union, Navy Federal Credit Union, and Mid-Hudson Valley Federal Credit Union.
Continue reading our guide to learn our best NY credit union recommendations.
Payday Loans,Auto Title Loans, and Pawnshop Loans. With APRs exceeding 400%+ and the risk of entering a cavernous debt cycle, these loan types are highly not recommended. Not to mention, they are illegal in New York. Unfortunately, despite payday loans being illegal in NY, NY’ers may be offered illegal payday loans New York from time to time. Luckily, there are ways to report these unscrupulous lenders.
To learn how to report these lenders, refer to ‘Why Aren’t Payday Loans Legal in New York?’ below.
Best Loan Apps in New York of April 2024
The best loan apps in New York work as cash advance apps. Like alternative payday loans in New York, loan apps address small emergency expenses and gaps between paychecks.
Here are our picks for the best loan apps in NY.
Dave
Chime
Earnin
Brigit
To see a complete list of our recommended loan apps, please visit our Marketplace.
Best Alternative Payday Loans in New York of April 2024
The best alternative payday loans New York are a “bridge” between traditional personal loans and payday loans, topping out at 35.99% with loan amounts up to $50,000. Expect your APR to come close to the 35.99% mark if you have really bad credit.
Here are our picks for the best alternative payday loan providers in NY.
LendUp
Lending Tree
CashUSA
To see a complete list of our recommended alternative payday loans, please visit our Marketplace.
Best “Buy Now, Pay Later” Lenders in New York of April 2024
“Buy Now, Pay Later” lenders allow consumers to make short-term finance purchases in exchange for repaying balances in as little as two installments without interest. They are commonly used to pay for clothing, electronics, furniture, and other goods, often impulse buys with instant guaranteed approvals upon checkout.
Here are our picks for the best Buy Now, Pay Later services in New York:
Klarna
Affirm
Afterpay
Paypal Credit
To see a complete list of our recommended Buy Now, Pay Later services, please visit our Marketplace.
Best Credit Unions in New York of April 2024
Our recommended credit unions in New York offer personal loans for bad credit capped at 18%. They also offer payday loan alternatives capped at 28%, thanks to your income and debt-to-income ratio looking more heavily upon than your credit score.
Here are our picks for the best credit unions in NY:
GHS Federal Credit Union
First Tech Federal Credit Union
Navy Federal Credit Union
Mid-Hudson Valley Federal Credit Union
Alliant Credit Union
To see a complete list of our recommended credit unions in New York, please visit our Marketplace.
What Are New York’s Payday Loan Laws?
In short, bad credit payday loans are illegal in New York. However, New York State regulators have acknowledged their sky-high annual percentage rates, long-term cycle of debt traps, and the need to take out repeated loans to make ends meet.
In some cases, unethical payday loan lenders have worked with unsuspecting borrowers. However, if you receive or suspect you are receiving an illegal payday loan, New York has several city, state, and federal regulators ready to assist. They include the NYC Department of Consumer Affairs, the NYS Department of Financial Services, and the NYS Attorney’s General’s Office.
The best way to file a complaint with the state is by calling 311.
Why Aren’t Payday Loans Legal in New York?
Payday loans in New York are illegal thanks to their predatory practices, even with no credit checks. They have been known to trap bad credit borrowers in debt, assess excessive transaction fees, and charge annual percentage rates of 400% or higher. Additionally, per NY Penal Code 190.40, all short-term loans have a capped 25% interest, which puts payday lenders out of business.
If you suspect you are being offered a payday loan, feel free to file a complaint with the Department of Financial Services at (800) 342-3736, file a Consumer Financial Protection Bureau complaint, or file an FTC complaint at www.consumerfinance.gov and www.ftc.gov, respectively.
Fortunately, bad credit New Yorkers can get instant approval on quick funds in many ways, starting with the best payday loan alternatives outlined above. NY’ers can choose from traditional lenders (banks and credit unions) or online services like BadCreditLoans connecting borrowers to an extensive network of lenders.
What Else Should I Know About Payday Loans New York?
According to a study by Pew Charitable Trusts, roughly $9 billion are spent on payday loan fees, annually, making them a truly dangerous proposition. No wonder there is a strong demand for payday loan alternatives with lower fees and more flexible terms.
With more than 20,000 New Yorkers filing for bankruptcy (2021) and the average household debt at $50,054, the team at ElitePersonalFinance is keen on offering the best payday loan alternatives to better pay for unexpected expenses, such as medical bills.
How Do I Find The Best Payday Loan Alternative in New York?
We recommend the following option based on these scenarios to find the best payday loan alternatives in New York.
Quick Cash. Are you looking for small bad credit loans up to $500? We highly recommend loan apps like Dave, Chime, Earnin, and Brigit. These work as cash advance apps with funds disbursed and repaid in as little as one pay period. Kudos to their fixed fee structures, no credit checks, and lower APRs than payday loans New York.
On The Fly Purchases. Want to pay for that small to large purchase without taking out a cash advance with a good alternative payday loan in New York? If your online retailer partners with a BNPL provider like Klarna and Affirm, go for it. These services generally offer Pay in 1 or Pay in 4-style payment plans with no credit checks and no interest fees. Remember, Buy Now, Pay Later apps are used at the point of purchase and do not award funds directly to your account as loan apps do.
Larger Loan Amounts with OK to So-So Credit. Looking for a higher loan amount than what loan apps can offer, sometimes with no credit check? Personal installment loans for bad credit are available to NY borrowers with subprime credit scores, good for loan amounts up to $250,000 with 15% to 35.99% APRs.
Larger Loan Amounts with Bad Credit. Not approved by any of the personal installment loans for bad credit lenders in NY. We then recommend alternative payday loans New York from a credit union that offers slightly high APRs (think GHS Federal Credit Union’s 28%). However, it provides bad credit loans borrowers with much more flexibility than traditional payday loans, with fewer fees, lower APRs, and longer repayment terms.
How Do I Qualify For Payday Alternative Loans?
Qualification criteria for alternative payday loans NY depend on the type of loan you are looking at.
Loan Apps. Loan apps like Earnin and Brigit’s main qualification criteria is a recurring income, not a credit score. For example, Brigit users in NY can take out cash advances between $50 and $250 if they can prove they have three consecutive deposits from the same employer. In turn, Earnin users need to show proof of deposit income.
Buy Now, Pay Later. Arguably the easiest qualification criteria, all you need to do is commit to weekly, bi-weekly, or monthly installments with no interest fees and no credit checks. However, paying off your balance after the period ends will result in paying interest.
Personal Installment Loans. Personal installment loans generally require higher credit scores and recurring income.
Payday Alternative Loans. A popular offering of some credit unions like GHS Federal Credit Union, PALs generally qualify customers who are members of the credit union in good standing with a regular income, where proof of income is required. As a result, income takes precedence over credit scores, helping bad credit borrowers.
Does The Government or Other Organizations Helo With Financing Those Looking For Payday Loan Alternatives in New York?
Fortunately, New Yorkers have access to financial assistance programs designed to address short-term financial hardships commonly experienced by borrowers seeking payday loans New York.
One program that comes to mind is the US Department of Health and Human Services Federal Temporary Assistance for Needy Families (TANF) program, which offers temporary cash to families meeting minimum eligibility requirements. Conditions state that you must be a head of household with at least one child under age 18 who is unemployed.
Another organization New Yorkers can turn to is their local Department of Social Services or call New York’s Temporary Assistance hotline at (800) 342-3009.
Frequently Asked Questions
Can I get a payday loan with a 500 credit score?
In New York, payday loans are illegal, so you will not be able to get one, regardless of your credit score. However, you are eligible for payday alternative loans with a 500 credit score. One way is through secured loans, where collateral is used to secure a loan balance.
Remember, some loan apps and Buy Now, Pay Later services exist for low credit score borrowers. For example, Earning users must have recurring income to be eligible for its payday advance option, which has nothing to do with credit scores.
What do I do if I am the victim of an illegal payday loan?
Luckily, New York has resources to turn to if you fall into an illegal payday advance trap. If you suspect your loan is illegal, call (855) 411-2372 to file a complaint with the CFPB. You may also learn more at consumerfinance.gov.
You may also call the Department of Financial Services at (800) 342-3736 and file a complaint with the FTC by calling (877) 382-4357 or visiting www.ftc.gov.
What are annual percentage rates (APRs), and how do they work?
Annual percentage rates refer to yearly interest incurred by a loan that is charged to borrowers. Lenders tally interest rates minus applicable discounts and other fees to calculate APRs.
Here is the equation used to calculate APR:
((Interest + Fees / Principal or Loan amount) / Number of days in loan term)) x 365 x 100
Keep in mind APRs for installment loans New York differ from interest rates in that interest rates are simply what’s paid to lenders to borrow money, expressed as a percentage., Interest rates are primarily affected by market conditions, the cost to borrow by banks, and other economic factors.
How do I increase my credit score?
Before taking out a payday loan alternative or cash advance alternative loan, we highly recommend boosting your credit score. There are many short-term quick fixes to using your credit score by 50 points or more, such as paying off balances, maintaining a low credit utilization ratio of 30% or less, asking for higher credit limits, and checking each of your three credit reports (Equifax, Experian, and TransUnion) for any errors.
Remember, lenders use your credit score, income, debt-to-income ratio, and collateral value (for secured loans only) to determine your creditworthiness.
What are the average credit score and average personal loan debt in New York?
According to Experian’s 2020 Consumer Credit Review, 722 is the average FICO score, and $14,112 is the average personal loan balance in New York (2021).
The states with the highest credit scores are Vermont, Wisconsin, New Hampshire, Washington, North Dakota, South Dakota, Massachusetts, Nebraska, and Oregon. Conversely, the states with the lowest credit scores are Louisiana, Alabama, Oklahoma, Texas, Georgia, Arkansas, South Carolina, New Mexico, and West Virginia.
Are payday loans in New York with guaranteed approval?
No, not all payday loan alternatives in New York offer guaranteed approval. Although many offer approved payday loan requests with no credit check, you can still be denied based on having no credit scoring history and non-qualifying income and borrowing history.
How Do We Pick These Lenders?
Our top recommendations for best payday loan alternatives in New York are made after hours of research, putting a fine tooth comb to 50+ banks, credit unions, and online lending platforms. Each was carefully assessed to determine the strength of APRs, fee structure, loan amounts, and perks like unemployment protection and strong forbearance/debt relief assistance. All of them are significantly better than some predatory payday advance and cash advance loans.
The team at ElitePersonal Finance will always provide unbiased reviews on the lending products and services we love. We’d love to hear from you if you have any feedback or suggestions. Send us info@elitepersonalfinance.com with your feedback, and we’ll reply as soon as possible.
Conclusion
All in all, New York has no shortage of alternative payday loan lenders. Whether it’s an online lending platform connecting you to a network of lenders, banks, or credit unions, our recommended payday loan alternatives will surely put you on the fast track to getting the funding you need with attractive terms.
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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