Best Loans for Bad Credit in New Mexico for 2024

Happy Money provides the best loans for bad credit in New Mexico, with a MoneyGeek score of 94 out of 100. It excels in customer service, reputation and transparency.

Updated: November 27, 2024

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Happy Money is the best personal loan lender for bad credit in New Mexico, with a MoneyGeek score of 94 out of 100. It stands out for its transparent loan terms, quality customer service and credible and clear loan process. As the runner-up, Avant secures its position with a MoneyGeek score of 92 out of 100. It is noted for its impressive application and approval process, broad payment options and strong customer service.

To find the best personal loans for bad credit, MoneyGeek reviewed four personal loan lenders in New Mexico that set and disclosed their minimum credit score requirements between 580 and 640. While the highlighted lenders are the top picks, other lenders offering localized services, such as First Financial Credit Union, Nusenda Credit Union and Del Norte Credit Union, also provide valuable loan options that merit consideration.

Best Bad CreditLendersNew Mexico

2024

Best Bad Credit Loans in New Mexico

Best Overall - Happy Money

Runner-Up - Avant

MoneyGeek scored personal loan lenders in New Mexico that explicitly disclose their minimum credit score requirements on their websites to find the best personal loans for bad credit. Only 12% of lenders disclose this information.We filtered our analysis to include lenders with minimum credit score requirements between 580 and 640, which meets Experian's definition of fair credit. Our research did not find any published minimums lower than 580.

Our analysis was completed in April 2024 and considers banks and lenders who are licensed to do business in New Mexico. We also consider financial companies that partner with federally insured institutions to offer competitive rates.

34Lenders Analyzed

Overall Best Bad Credit Loan Lender in New Mexico

Happy Money

94MoneyGeek Score
11.72% to 17.99%APR Range
640Minimum Credit Score
$5,000 to $40,000Loan Amount Range
24 to 60 monthsRepayment Terms

Happy Money is MoneyGeek’s pick for the best personal loan lender for bad credit in New Mexico, with a MoneyGeek score of 94 out of 100. It is not a traditional lender but a fintech company pairing borrowers with lending partners insured by the NCUA. This partnership offers personal loans to individuals with a minimum credit score of 640. Its loan amounts range from $5,000 to $40,000, with fund availability as soon as the next day. One advantage of Happy Money is that it doesn't charge various fees, such as for late payments or failed ACH transfers. Additionally, it offers flexible repayment terms, a key feature for borrowers. However, applicants should consider its origination fee and the fact that it only services loans for debt consolidation.

Pros

Doesn't charge late, early repayment, bounced check, failed ACH or other fees
Flexible repayment terms from 24 to 60 months
Offers to pay creditors directly

Cons

Only offers loans for debt consolidation
Charges an origination fee
No co-signers or co-borrowers

Runner-Up for Best Bad Credit Loan Lender in New Mexico

Avant

92MoneyGeek Score
9.95% to 35.99%APR Range
580Minimum Credit Score
$2,000 to $35,000Loan Amount Range
12 to 60 monthsRepayment Terms

Avant is the runner-up for the best bad credit loan lender in New Mexico, with a MoneyGeek score of 92 out of 100. It collaborates with WebBank, a state-chartered FDIC member bank, to originate personal loans. Avant extends loan amounts from $2,000 to $35,000 to borrowers with a minimum credit score of 580 and offers next-day funding. It does not impose a prepayment penalty and provides flexible repayment periods from 12 to 60 months. However, applicants should note it charges an administration fee of up to 9.99% and has penalties for late and dishonored payments.

Pros

Doesn't charge a prepayment penalty
Offers next-day funding
Has a mobile app

Cons

Charges an administration fee of up to 9.99%
Doesn't allow co-signers or joint applications
Low borrowing limits at $35,000

Calculate Your Monthly Loan Payment in New Mexico

In New Mexico, the average new account balance for personal loans is $5,795, according to TransUnion's Credit Industry Snapshot report. Once you've taken out a personal loan, typically an unsecured loan, you start making fixed monthly payments over a set period until you've paid off the loan in full, along with any interest and fees.

Calculating monthly loan payments is especially beneficial for individuals with bad credit, as it helps manage the budget and ensures timely payments; this could potentially improve credit scores over time. For accurate estimates of your loan payments, use MoneyGeek's personal loan calculator.

Personal Loan Calculator

Estimate the monthly payment for your loan.

Updated: Dec 22, 2024

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Best Bad Credit Loans by Credit Score in New Mexico

The average credit score in New Mexico is 702, which is below the national average of 715, based on Experian data.

Lenders in New Mexico may consider applicants with bad credit, though these loans often include higher interest rates and less favorable conditions. Refer to the following table to explore personal loan lenders in New Mexico that align with your credit score range.


Avant	580	9.95% to 35.99%	$2,000 to $35,000	12 to 60 months	Next Day	92
Prosper	600	8.99% to 35.99%	$2,000 to $50,000	24 to 60 months	1 business day	90
Achieve	620	8.99% to 35.99%	$5,000 to $50,000	24 to 60 months	Same Day	92
Happy Money	640	11.72% to 17.99%	$5,000 to $40,000	24 to 60 months	3 to 6 Business Days	94

What to Do if Your Loan Application Is Denied in New Mexico

It's not uncommon to face a personal loan application denial in New Mexico, but this doesn't halt your borrowing journey. Understanding the next steps can help you navigate this setback. Here are some measures to enhance your chances of approval for future applications.

1
Find out the reason for the denial
If you face a loan application denial, review the reasons provided by the lender. Denials can happen due to a poor credit score, high debt-to-income ratio, low income level or errors in your application. Understanding these reasons will guide you on what areas to focus on to better your chances of approval on future loan applications.
2
Modify your loan terms
Consider reaching out to your lender to inquire whether altering the loan amount or repayment terms could lead to an approval. Adjustments may make the loan more agreeable to the lender's risk assessments.
3
Find another lender
Recognize that each lender's approval criteria can differ. It makes sense to compare options across the market. This includes considering the following factors:
- Eligibility requirements: Different credit score, income level, debt-to-income ratio and employment history requirements exist across lenders.
- Interest rates: Search for lenders offering competitive rates, particularly when you have a lower credit score.
- Additional fees: Some lenders impose fees such as origination, late and prepayment fees, while others do not.
- Loan terms: Personal loan repayment periods vary. It's key to understand the implications of short-term vs. long-term agreements.
- Customer service and reputation: Investigate the lender's service and overall reputation as you make your choice.
4
Look for alternatives
Alternative financial solutions might be better suited for those with bad credit. These alternatives include secured loans, credit union loans and co-signer arrangements. Engage in thorough research to identify which option aligns with your situation.
5
Improve your credit score
Improving your credit score over time enhances your qualifications for a personal loan. Strategies include making timely payments, reducing debt and checking your credit report for inaccuracies.

EXPERT TIP

Work on improving your credit score before applying for a personal loan to increase your chances of approval and getting better terms. Here are some long-term steps to consider:

Monitor your credit utilization ratio: Keep your credit utilization ratio low, as high credit utilization can negatively impact your credit score. Aim to use less than 30% of your available credit limit.
Don’t close old credit cards: The length of your credit history contributes to your credit score. Even if you no longer use a credit card, keep it open unless it has an annual fee.

— Alvin Yam, CFP

FAQ About Bad Credit Loans in New Mexico

When shopping for personal loans in New Mexico, it's common for borrowers, especially those with bad credit, to have questions or concerns. We compiled answers to frequently asked questions to assist in this process, offering clarity and guidance to help you make well-informed decisions.

Who is the best personal loan lender for bad credit in New Mexico?

The best personal loan lender for bad credit in New Mexico is Happy Money, with a MoneyGeek score of 94 out of 100.

Which lender in New Mexico has the lowest APR rates for personal loans?

Achieve and Prosper both offer personal loans with a starting APR of 8.99%. Typically, only borrowers with excellent credit can secure this rate.

Which lender in New Mexico has the lowest minimum credit score requirement for personal loans?

Avant has the lowest minimum credit score requirement for personal loans at 580.

How to apply for a personal loan for bad credit in New Mexico?

To secure a personal loan with bad credit in New Mexico, first check your credit report to understand your financial status. Research lenders specializing in bad credit loans, including online platforms, local credit unions and community banks. Compare loan offers by assessing interest rates, repayment terms and fees. Accurately complete the application, whether online or in person, and provide any additional required information.

How long does it take to get a bad credit loan in New Mexico?

The time to get a bad credit loan in New Mexico depends on the lender. Some lenders offer same-day funding, while others may take a few business days to a week.

Can I pay off my personal loan early in New Mexico?

You can pay off your loan early in New Mexico. It's recommended to check with your lender for any prepayment penalties.

Is there a difference between personal loans and installment loans in New Mexico for bad credit?

In New Mexico, personal loans and installment loans for bad credit are similar, both entailing borrowing a specific amount and repaying it in regular, predetermined installments.

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About Zachary Romeo, CBCA

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.

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sources

Experian. "What Is the Average Credit Score in the US?." Accessed April 11, 2024.
TransUnion. "Credit Industry Snapshot." Accessed April 11, 2024.

The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.

Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about our editorial policies and expert editorial team.