New Mexico Short-term Loan Terms and Rules in 2025

Common Capital is a Help Organization dedicated to providing the public with comprehensive, accurate, and accessible online information about payday loans in New Mexico.

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Short-term Loans Terms in New Mexico

Legal Status Illegal
Interest Rate (APR) 175% small loan cap

Top Personal Loan Lenders in New Mexico

Lender
User Ratings
Branches
Cities
Category
CMG Financial
User Raiting:
5.00
Branches: 2
Cities: 2
Category: Financial institution
Finance of America Mortgage
User Raiting:
5.00
Branches: 7
Cities: 1
Category: Financial institution
Bell Bank Mortgage
User Raiting:
5.00
Branches: 4
Cities: 3
Category: Financial institution
Wallace Finance
User Raiting:
4.98
Branches: 5
Cities: 5
Category: Loan agency
Montana Capital Bad Credit Loans
User Raiting:
4.95
Branches: 4
Cities: 3
Category: Loan agency
TitleMax
User Raiting:
4.93
Branches: 15
Cities: 9
Category: Loan agency
LoanStar
User Raiting:
4.92
Branches: 13
Cities: 10
Category: Loan agency
Sun Loan
User Raiting:
4.90
Branches: 25
Cities: 22
Category: Loan agency
World Finance
User Raiting:
4.90
Branches: 3
Cities: 3
Category: Loan agency
New Mexico Title Loans, Inc.
User Raiting:
4.89
Branches: 19
Cities: 15
Category: Loan agency
Cash Store
User Raiting:
4.82
Branches: 13
Cities: 9
Category: Loan agency
Gateway First Bank
User Raiting:
4.80
Branches: 5
Cities: 4
Category: Financial institution
Check `n Go
User Raiting:
4.79
Branches: 12
Cities: 9
Category: Loan agency
ACE Cash Express
User Raiting:
4.77
Branches: 3
Cities: 2
Category: Loan agency
Stewart
User Raiting:
4.60
Branches: 2
Cities: 2
Category: Financial institution
LendNation
User Raiting:
4.56
Branches: 5
Cities: 4
Category: Loan agency
Regional Finance
User Raiting:
4.52
Branches: 12
Cities: 9
Category: Loan agency
Cash Express
User Raiting:
4.40
Branches: 2
Cities: 2
Category: Loan agency
Fidelity National Title
User Raiting:
4.10
Branches: 2
Cities: 1
Category: Financial institution
TitleCash
User Raiting:
4.09
Branches: 13
Cities: 9
Category: Loan agency
WaFd Bank
User Raiting:
3.97
Branches: 13
Cities: 11
Category: Bank
OneMain Financial
User Raiting:
3.78
Branches: 5
Cities: 4
Category: Loan agency
First American Bank
User Raiting:
3.74
Branches: 16
Cities: 13
Category: Bank
First National Bank
User Raiting:
3.60
Branches: 2
Cities: 2
Category: Bank
Security Finance
User Raiting:
3.50
Branches: 7
Cities: 7
Category: Loan agency
Wells Fargo
User Raiting:
3.21
Branches: 19
Cities: 17
Category: Bank
Nusenda Credit Union
User Raiting:
3.20
Branches: 19
Cities: 6
Category: Credit union
U.S. Bank
User Raiting:
3.10
Branches: 18
Cities: 11
Category: Financial institution
Guild Mortgage
User Raiting:
3.03
Branches: 9
Cities: 3
Category: Financial institution
Bank of the West
User Raiting:
3.03
Branches: 7
Cities: 5
Category: Bank
Approved Cash
User Raiting:
3.00
Branches: 2
Cities: 1
Category: Loan agency
PNC
User Raiting:
2.95
Branches: 6
Cities: 5
Category: Bank
Pinnacle Bank
User Raiting:
2.50
Branches: 2
Cities: 1
Category: Bank
Bank of America
User Raiting:
2.38
Branches: 6
Cities: 3
Category: Financial institution

New Mexico Short-term Loan Regulations

In New Mexico, payday loans are regulated under the New Mexico Small Loan Act, which underwent significant changes in recent years to provide stronger consumer protections. As of 2017, the state implemented a 175% APR cap on small loans and required a minimum loan term of 120 days, effectively moving away from traditional payday lending with its short-term, high-interest loans. Additionally, loans under this act are required to be repayable in at least four substantially equal installments, reducing the risk of borrowers falling into a debt cycle.

Moreover, lenders in New Mexico must comply with federal regulations, including the Truth in Lending Act, which requires clear disclosure of the terms of the loan, including the finance charge and the annual percentage rate (APR). The Fair Debt Collection Practices Act also applies, governing the methods of debt collection and prohibiting abusive, deceptive, and unfair collection practices. These federal laws, along with New Mexico's state regulations, provide a framework to protect consumers in the payday lending market.

What Are the Alternatives for Short-term Loans in New Mexico?

When searching for alternatives to payday loans, residents have several options to consider. These include installment loans, which offer structured repayment plans, and personal loans, providing flexibility and potentially lower interest rates. Exploring these alternatives can help borrowers manage their finances more effectively and avoid the high costs associated with payday lending

Guaranteed Installment Loans

In New Mexico, guaranteed installment loans offer structured repayment plans, ideal for those needing predictable monthly payments. Unlike payday loans, these require a credit check and proof of income, offering longer terms and potentially lower interest rates. They are suitable for New Mexico residents looking to manage larger expenses or consolidate debts more effectively.

Fast Title Loans

Fast title loans in New Mexico provide immediate funding using a vehicle as collateral. Different from cash advances, they require ownership of a car but can offer larger loan amounts based on the vehicle's value. This option is a quick solution for urgent cash needs without the stringent credit checks of traditional loans.

Emergency Loan without a Bank Account

For New Mexico residents without traditional banking, an emergency loan without a bank account offers a crucial alternative. These loans differ from short-term loans as they don't always require a checking account for approval, ideal for those facing unexpected expenses but lacking standard banking services.

Debt Consolidation Loan

A debt consolidation loan in New Mexico is designed to combine multiple debts into a single loan. Unlike payday lending, it offers longer repayment terms and potentially lower interest rates, making it an excellent strategy for New Mexicans looking to streamline their finances and reduce overall debt costs.

Instant Personal Loans

Instant personal loans provide quick financial relief in New Mexico, often with same-day approval. Unlike payday loans, they may require a credit check but offer more flexibility in loan amounts and repayment terms, making them an ideal solution for immediate personal financial needs.

Cash Loans with No Credit

In New Mexico, cash loans with no credit cater to individuals without a strong credit history. Unlike payday loans, these loans don't always require a credit check, making them accessible to a broader range of people in need of immediate cash but with limited credit options.

Bad Credit Loans

Bad credit loans in New Mexico offer individuals with poor credit scores a chance to borrow, despite past financial challenges. Different from cash advances, these loans may have more favorable terms and focus on the borrower's ability to repay, providing a valuable opportunity for those aiming to rebuild their credit history.

Quick P2P Loans

Quick P2P (peer-to-peer) loans in New Mexico connect borrowers directly with individual lenders, bypassing traditional financial institutions. These loans differ from payday loans by offering potentially lower interest rates and more flexible terms, appealing to those in New Mexico seeking alternative lending options outside of conventional banking systems.

Basic Information about New Mexico State

Metrics
Value
State Capital
Santa Fe
Population
Approximately 2.1 million (as of 2021)
Location
New Mexico is located in the southwestern part of the United States, known for its diverse landscapes, including deserts, mountains, and cultural heritage.
Largest City by Population
Albuquerque
Biggest National Parks
Carlsbad Caverns National Park, White Sands National Park, Bandelier National Monument

Submit a Complaint Against a Lender in New Mexico

If you need to submit a complaint against a payday lender in New Mexico, the primary regulatory body is the New Mexico Regulation and Licensing Department's Financial Institutions Division. They ensure compliance with state laws governing payday loans. You can reach them at:

  • New Mexico Regulation and Licensing Department, Financial Institutions Division, P.O. Box 25101, Santa Fe, NM 87505
  • (505) 476-4885
Submit a Complaint

FAQ

Are Payday Loans Legal in New Mexico?

Yes, payday loans are legal in New Mexico, but they are subject to regulations to protect consumers. The New Mexico Financial Institutions Division oversees and enforces these regulations to ensure fair lending practices.

Can Payday Loan Debt Be Forgiven?

Payday loan debt can be challenging to manage, and complete forgiveness is not common. However, borrowers facing difficulties can explore options like debt consolidation or repayment plans to make the process more manageable. Communication with the lender is essential if you're struggling to repay the loan.

Can You Get a Payday Loan Without a Bank Account?

In most cases, obtaining a payday loan in New Mexico requires having a bank account. Lenders typically use bank accounts for loan disbursement and repayment. While some alternative financial services may offer payday-like loans without a bank account, they often come with higher fees and risks.

Are Payday Loans Fixed or Variable?

Payday loans in New Mexico typically involve fixed fees, meaning the cost of borrowing remains consistent throughout the loan term. However, the annual percentage rate (APR) can vary depending on the loan amount and term. It's crucial to review the loan terms and understand the total cost before borrowing.

Is a Payday Loan Secured or Unsecured?

Payday loans in New Mexico are unsecured loans, meaning they do not require collateral. Approval for a payday loan is primarily based on the borrower's income and employment status. Unlike secured loans, such as auto title loans, payday loans do not put assets at risk.

How Long Do Payday Loans Stay in the System?

Information about payday loans can remain in the financial system for several years. Late payments or defaults on payday loans may be reported to credit bureaus, impacting your credit score and making it more challenging to secure new loans in the future. Timely repayment is crucial to avoid long-term consequences.