When you have unplanned expenses and are on a tight budget, a payday loan could be helpful. Payday loans, a type of short-term loan, give you quick access to money when you need it. Read on to find out about the laws in New Mexico and everything else you should know about how payday advances work.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
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.
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 t o 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.
Frequently asked questions
More guides on Finder
Best business lenders with same-day funding of 2023
Same-day business loans can get you funds the same business day as you apply, rather than making you wait 24 hours or more.
How to buy cryptocurrency – a beginner’s guide
Learn how to buy and store crypto with a few checklists to keep in mind.
Novo Funding merchant cash advance review: Merchant cash advances up to $75K for Novo checking account customers.
Get up to $75,000 with a Novo merchant cash advance.
4 times applying for a loan online makes sense
Online loans mean fast access to cash, especially if you don’t qualify with a traditional lender.
Stacking cash — How much should you save and where?
Tips on building an emergency fund from how much should be in it, where you should keep it and ways to fund your account.
Loans like Elastic
Save money with these 6 alternatives to Elastic.
Revolut personal loans review: A quick-turnaround personal loan for Revolut customers.
Quick turnaround loans up to $30,000 — but they’re not available in the US just yet.
Best debit cards that build credit
Credit-building debit cards offer an alternative way to build a better credit history.
Best small business cash flow loans of 2023
Compare the best business cash flow loans in 2023.
5 types of cryptocurrency explained
Learn more about the various types of crypto assets and their functions.
Ask an Expert