New Start Capital: Not a True Lender – Better Options Exist
New Start Capital isn't available on Finder right now.
- Minimum debt
- Around $10,000
- Fees
- Typically 15% to 25%
Our verdict
Another company sending out preapproved loan offers, but then pushing debt relief.
New Start Capital claims to be in the business of helping consumers get out of debt through debt consolidation, personal loans or debt relief. But it’s not a direct lender, and the vast majority of customer reviews seem to be commenting on its debt relief program.
In fact, very few reviews mention loans at all, except to suggest that loan offers are only a means to pitch the debt relief program. However, if you have a decent credit score, New Start Capital may be able to connect you to one of its lending partners. In general, the company is not transparent about exactly what it does and reveals very few details about its debt relief program.
Best for: Consumers with poor credit who struggle to make their minimum debt payments and are looking for an alternative to bankruptcy.
Pros
-
Potentially settle your debts for less than you owe
-
Fees aren’t typically charged until each debt is settled
-
May connect borrowers to lending partners
Cons
-
Not transparent about its debt relief options
-
Fees up to 25% or more
-
Not a direct lender
Is New Start Capital legit?
Probably. New Start Capital has enough customer reviews and third-party reviews to make it seem like a legitimate debt relief company. But it’s deceptive about the services it offers, and it’s not a direct lender despite what its marketing mailers suggest.
How New Start Capital compares to other debt relief providers
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Where New Start Capital falls short
New Start Capital isn’t up front about what it does. It talks a lot about debt consolidation, personal loans and “debt modification” — which appears to be another euphemism for debt settlement — but it doesn’t give any concrete details.
For example, to resolve your debts for less than you owe, debt settlement companies require you to stop making your minimum monthly payments. This is because there’s no incentive for a creditor to settle when you’re still paying your debts. Then the company attempts to settle your debts for less than you owe, which can take months or years to complete and will damage your credit rating.
New Start Capital doesn’t explain any of this on its website, which is fairly typical of some of these debt relief companies. It uses misleading marketing and promises of low-interest loans to reel in customers, and then tries to convince you that debt settlement is in your best interest. And hey, sometimes it might be, but consumers deserve to know all the facts before deciding.
What makes New Start Capital shine?
If you’re struggling to make your minimum debt payments, find yourself constantly late or missing payments and considering bankruptcy, New Start Capital may be able to settle your debts for less than you owe. Plus, if you already have poor credit, the additional damage from a debt settlement program may not be terribly significant.
However, if you’re still able to make your monthly payments and your credit score is in good shape, you might be much better off taking out a debt consolidation loan or a personal loan instead. This path can help you get a lower monthly payment at a better rate without tanking your credit score and taking on the other risks of debt settlement.
How much can I save?
New Start Capital states that it could save you as much as 80% of your current balance. However, it doesn’t say if that percentage is before or after fees — and it’s more than likely before.
The estimate also seems on the high side compared to similar companies, which typically approximate a savings of up to 50% before fees. That means your actual savings might more realistically be around 25%.
How much does it cost?
The company doesn’t disclose its rates, although 15% to 25% is pretty standard in this industry. And typically, that rate is based on your total enrolled debt, not what you ultimately settle on. New Start also doesn’t disclose if it charges additional fees, such as setup fees, maintenance fees or other charges.
Will New Start Capital hurt my credit?
Yes, it’s likely that enrolling in New Start Capital’s debt relief program will hurt your credit. Once you stop making your monthly debt payments, those missed payments will be reported to the major credit bureaus, and as a result, your credit score will drop.
You could also receive other negative credit reporting if you’re sued and the creditor receives a judgment against you. Judgments can stay on your credit report for up to seven years, making it difficult to qualify for loans and credit in the future.
New Start Capital details
| Free quote or consultation | Yes |
| Services | Debt settlement, debt consolidation, personal loans |
| Minimum Debt | Around $10,000 |
| Average turnaround | 24 to 48 months |
| Fees | Typically 15% to 25% |
| Types of debt | Unsecured debts, including credit cards, personal loans, medical bills, store cards and lines of credit |
| Accreditations | None |
| Direct or third-party negotiations | Unclear |
| State availability | May not be available in all states |
Before you sign up with a debt relief company
Debt relief companies typically charge a percentage of a customer’s debt or a monthly program fee for their services. And not all companies are transparent about these costs or drawbacks that can negatively affect your credit score. Depending on the company you work with, you might pay other fees for third-party settlement services or setting up new accounts, which can leave you in a worse situation than when you signed up.
Consider alternatives before signing up with a debt relief company:
- Payment extensions. Companies you owe may be willing to extend your payment due date or put you on a longer payment plan if you ask.
- Nonprofit credit counseling. Look for free debt-management help from nonprofit organizations like the National Foundation for Credit Counseling.
- Debt settlement. If you can manage to pay a portion of the bill, offer the collection agency a one-time payment as a settlement. Collection agencies are often willing to accept a lower payment on your debt to close the account.
New Start Capital contact info
| Phone number | 888-535-5560 |
| Customer service hours | Weekdays: 10 a.m. to 8 p.m. Saturday: 11 a.m. to 5 p.m. |
| info@newstartcap.com | |
| X, formerly Twitter | @NewStartCapital |
| New Start Capital |
How to qualify for New Start Capital
To qualify, New Start Capital says you only need a financial hardship that prevents you from repaying your debts and enough income to make a regular monthly payment toward your debt. But here are other common requirements that may also apply.
- Have around $10,000 in eligible debts (give or take)
- Have unsecured debts
- Live in a state the company services
How the debt settlement process works
The New Start Capital program appears to work like this:
- Call or fill out the online application to get started. A company representative will go over your debt relief options with you.
- Choose a plan and New Start or its partners attempt to come to a settlement agreement with your creditors.
- Pay a fee as New Start settles each debt — a percentage of the total debt — to New Start.
Keep in mind that not all creditors will settle, or they may only be willing to reduce the debt by a small amount. It’s possible your fee could be more than you save in some cases.
New Start Capital reviews and complaints
| BBB accredited | No |
|---|---|
| BBB rating | A+ |
| BBB customer reviews | 1.8 out of 5 stars, based on 5 customer reviews |
| Trustpilot Score | 4.8 out of 5 stars, based on 2.42 customer reviews. |
| Customer reviews verified as of | 18 July 2025 |
New Start Capital has only one positive review on the Better Business Bureau (BBB), and the customer said they decided to proceed with the program after a representative explained the debt relief process in detail. Others said communication was poor after they signed up, and some say the company appears to preapprove you for a loan, but then tries to push you toward debt settlement. One reviewer pointed out that the process will ruin your credit.
The company has more positive reviews on Trustpilot, with reviewers citing professional and respectful customer service representatives who helped walk them through the process. But many others complain about bait-and-switch tactics — appearing to offer a loan but instead pushing debt settlement. One person warned that you’ll probably have to pay income tax on the money that’s “forgiven.”
What do people on Reddit say?
Risks of debt settlement
Before you decide if debt settlement is the right move, consider these key risks.
- Damage to credit. Debt relief companies typically advise that you stop making your debt payments, which will significantly lower your credit score.
- Increased debt. Once you stop making payments, you’ll incur late fees and continue to accrue interest.
- High fees. You could be charged as much as 25% of your enrolled debt by the debt relief company.
- No guarantee how much you’ll save. Some or all of your creditors could refuse to settle for a lower amount.
- Potential lawsuits. Creditors could decide to sue you for nonpayment.
- Tax consequences. You may have to pay income taxes on the money you save from settling.
Your reviews
Lacey Finder
Writer
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