Research

NY State Residents Show Strongest Need For Loans

Inquiries For Various Loan Products Highest In US

Keith Griffin

August 20, 2020

loan agreement

The Empire State has an unfortunate distinction that could be an opportunity for community banks and credit unions. New Yorkers are in the greatest need of loans of any state across the nation.

WalletHub.com, which tracks financial issues, reports New York earned the top spot because its residents had the third-highest incidence of Google searches for home equity loans, seventh highest for payday loans, and eighth highest for loans in general. It had the 18th highest increase in the United States for inquiries about loans in general from January, before the pandemic struck in force, to July.

In order to determine where people are most in need of loans as a result of the coronavirus pandemic, WalletHub combined internal credit report data with data on Google search increases for three loan-related terms in the 50 states and the District of Columbia.

Jesus Salas, associate professor of finance, Perella Department of Finance, Lehigh University School of Business, said, “I assume that people could need a short-term loan. After all, they don't have other sources of income because they are unemployed. That means they don't know when the next paycheck is coming.

“Such loans could come with liens on the property. People should understand there is a probability that they will not be able to pay back that loan. People could easily be forced to declare bankruptcy and people should be very well aware of this possibility,” he added.

After New York, the remaining top 10 states for residents needing loans are: Oklahoma, Tennessee, Missouri, Maryland, Florida, Minnesota, Michigan, Texas and Ohio. The residents of these states have the least need for loans, according to the WalletHub report: Vermont, South Dakota, Alaska, Montana, New Mexico, North Dakota, Maine, Nebraska, Wyoming and Delaware.

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