Compare your loan options in New Mexico

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

Get info on financial assistance programs in your area

Bottom line

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

• Can I get an extension of my installment loan in New Mexico?

  Maybe, but lenders are not allowed to extend loans if the borrower has not repaid any previous loans taken out.

• Who can I contact to file a complaint about a small-dollar loan lender?

  You should get in touch with the New Mexico Financial Institutions Division.

• How long will an installment loan be on my credit report?

  This depends on whether you currently have an installment loan and if you’ve been making payments on time.

  • You had an installment loan and it’s been paid in full. It will remain on your file for up to 10 years from the date of last activity (DLA).
  • You had an installment loan that went to a collection agency. It will generally stay listed on your file for up to 7 years from the date the account file became past due.
  • You have an installment loan and have made late payments. Your late payment history will generally remain on your file for up to 7 years.
  • You have an overdue installment loan. Accounts considered “not paid” generally remain on your file for up to 7 years.