An installment loan might be an option if you need extra money between paychecks.
If you find yourself in a tight spot financially, you may be considering a small-dollar loan. This guide will help you navigate the regulations around payday loans in New Mexico.
Are payday loans legal in New Mexico?
No, they’re not. While payday loans used to be legal in the state of New Mexico, as of January 1, 2018, they no longer are. The recent overhaul to the New Mexico House Bill 347 places strict regulations on small-dollar loans. These new laws have placed the following limits on loans under $5,000:
- Max APR: 175%
- Loan term: at least 120 days
- Repayment: minimum of four equal payments
However, if you’re still looking for a short-term loan, check out which lenders are offering installment loans in your state.
Check out these providers for short-term loans in New Mexico
Check the websites of any providers you’re interested in to confirm they operate in New Mexico.
How a New Mexico short-term loan might help you
Here’s why you might consider getting a short-term loan in New Mexico:
- Multiple options. You get several choices when looking for loans in New Mexico. Some people limit their search to online direct lenders, while others turn to direct lenders that operate out of physical locations. You can also seek help from loan matching services, getting them to do all the groundwork.
- Applying is easy. If you wish to get a short-term loan in New Mexico you can complete your application in a matter of minutes. Some online lenders work in verifying your credentials using the Internet, so you don’t have to worry about faxing documents
- Get money quickly. When you apply at a store-front you can get access to approved funds as soon as you’re approved and you accept the loan contract. With online applications, the processing time depends on the lender you choose, but most take one business day to disburse funds.
- Apply with poor credit history. Bad credit doesn’t have to stand in the way of your getting credit. As long as you have a steady job and can demonstrate an ability to repay, you could likely get a short-term loan.
What do I need to apply?
You can apply for a New Mexico installment loan by visiting a storefront or by submitting an online application. To qualify, you have to meet some basic eligibility criteria:
- Be at least 18 years old
- Be an American citizen or permanent resident
- Have a regular source of income
If you meet these qualifications, you’ll need to supply some extra information:
- Personal details, such as your name, date of birth, Social Security number and a valid form of ID
- Contact details, such as your address, email and phone number
- Employment details, such as your employer, how long you’ve worked and your monthly income
If you’re applying online, the lender may also require you give it access to an active checking account.
Consider these alternatives before taking out a short-term loan
If you’re struggling to pay your everyday bills, New Mexico has a number of programs in place to help. You could consider contacting some of these local programs to get financial assitance:
- Temporary Assistance for Needy Families (TANF)
- Supplemental Security Income (SSI)
- Low Income Home Energy Assistance Program (LIHEAP)
- Supplemental Nutrition Assistance Program (SNAP)
- New Mexico Energy $mart Program
If you’re a resident of New Mexico and need a little extra cash, an installment loan might be an option. Determine if you have the ability to repay before taking one out and be sure to read over the terms of your contract before you apply.