Best Personal Loans in New Mexico for 2024

Q: What are some personal loan red flags to look out for?

When considering personal loans , it's essential to be wary of red flags such as high APRs, strict repayment penalties, a lack of transparency about the lender's insurance status and poor consumer reviews.

With a MoneyGeek score of 98, First Tech offers the best personal loans in New Mexico. Known for exceptional customer service, top-notch interest rates and a transparent lending process.

By Zachary Romeo, CBCA

Reviewed by Alvin Yam, CFP

Edited by Benjamar Gabawa

Updated: November 27, 2024

Advertising & Editorial Disclosure

When rating personal loan lenders in New Mexico, MoneyGeek focused on lender reputation, transparency and interest rates. First Tech came out on top of our analysis, scoring 98 out of 100. A competitive annual percentage rate (APR) range and reputable customer service make this lender stand out. Following close behind is PenFed, with a MoneyGeek score of 96. It is known for consumer education and overall lender reputation.

If you are a New Mexico borrower with a credit score near 702, you'll likely have more favorable loan rate and term options. When applying for a personal loan, lenders also consider your income history and debt-to-income ratio.

Best PersonalLoan LendersNew Mexico

2024

Best Personal Loan Lenders in New Mexico

Best Overall - First Tech

Runner-Up - PenFed

Best for Bad Credit - Happy Money

Best for Debt Consolidation - Alliant Credit Union

MoneyGeek scores personal loan lenders with a point-based system designed to give a comprehensive overview of each lender’s performance in critical areas that matter to borrowers.

We completed our analysis of banks and lenders licensed to do business in New Mexico as of April 2024. We also considered financial companies that partner with federally insured institutions to offer competitive rates.

34Lenders Analyzed

Overall Best Personal Loan Lender in New Mexico

First Tech

98MoneyGeek Score
8.94% to 18.00%APR Range
UndisclosedMinimum Credit Score
$500 to $50,000Loan Amount Range
6 to 84 monthsRepayment Terms

First Tech is MoneyGeek's best choice for personal loans in New Mexico, with a 98 out of 100 score. With APRs ranging from 8.94% to 18.00%, First Tech's rates are competitive; for example, the average rate is significantly lower than PenFed's top-end APR of 17.99%. MoneyGeek's analysis highlights First Tech's top marks for fees and rates, signaling great value and praise for its customer service and educational resources — indicating a commitment to client support. Flexible repayment terms from six to 84 months offer additional borrower convenience.

Pros

Insured by the National Credit Union Administration (NCUA)
No early repayment penalty
Provides granular APR data for a variety of loan terms

Cons

Need to be a member to apply
Could provide more detail on the loan application process
Little published information about credit score requirements

Runner-Up for Best Personal Loan Lender in New Mexico

PenFed

96MoneyGeek Score
7.99% to 17.99%APR Range
UndisclosedMinimum Credit Score
Up to $50,000Loan Amount Range
Up to 60 monthsRepayment Terms

PenFed is MoneyGeek's runner-up for best lender for personal loans in New Mexico, scoring 96 out of 100. Its APR range from 7.99% to 17.99% is competitive, as its lower limit falls below the average rate range MoneyGeek reviewed. Notably, this financial institution stands out for its loan term flexibility — allowing borrowers up to 60 months to repay — and its reputation and transparency, which are evident in the thorough information provided to consumers.

Pros

Offers some of the lowest APRs available
No early repayment penalty
Insured by the National Credit Union Administration (NCUA)

Cons

No information provided about credit score requirements
$50 minimum monthly loan payment

UNDERSTAND YOUR DEBT-TO-INCOME RATIO

Your monthly debt payments relative to your monthly gross income are called your debt-to-income ratio or DTI.

Most lenders prefer a debt-to-income ratio of 35% to 40% or below for secured loans and 40% to 45% or below for unsecured personal loans. A debt-to-income ratio above 50% is considered high, so approval may be more difficult, or your loan may have higher interest rates.

— Alvin Yam, CFP®

Calculate Your Monthly Loan Payment

Explore your loan options with our personal loan calculator. This simple tool calculates monthly payments and total loan costs based on amount, interest rate and term length, helping you make informed decisions before committing.

Personal Loan Calculator

Estimate the monthly payment for your loan.

Updated: Dec 21, 2024

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Best Personal Loan Lender in New Mexico for Bad Credit

Happy Money

94MoneyGeek Score
11.72% to 17.99%APR Range
640Minimum Credit Score
No DataLoan Amount Range
24 to 60 monthsRepayment Terms

Happy Money is MoneyGeek's choice for the best personal loan provider in New Mexico for borrowers with low credit, boasting a MoneyGeek score of 94 out of 100. This company partners with various federally insured financial institutions to offer installment loans, ensuring borrowers can access competitive rates. The APR range is from 11.72% to 17.99%, which stands out compared to available averages, with a minimum credit score requirement of 640. Happy Money excels in its upfront disclosure, customer information and application process, making it easier for customers to understand terms and obtain funds swiftly.

Pros

Works with 10 federally insured lenders to originate all loans
Transparent eligibility requirements, including credit score minimum
No application fee

Cons

The lenders they work with charge an origination fee
Longer time to wait for loan approval compared to other lenders analyzed

How Does MoneyGeek Score Lenders for Bad Credit Loans?

We use our standard methodology and weights, but we limit our analysis to lenders that explicitly mention their minimum credit score requirements on their public websites. Only 12% of lenders that offer personal loans fit this criteria.

We filtered our analysis to include lenders with minimum credit score requirements between 580 and 640, which happens to meet Experian's definition of fair credit. Our research did not find any published minimums lower than 580.

It's still possible to get a personal loan if you have lower credit than this, but you will not have access to the best interest rates and terms available. Some lenders allow prequalification, which involves a soft credit inquiry that won't affect your credit score, to help you understand what you might be eligible for.

Best Personal Loan Lender in New Mexico for Debt Consolidation

Alliant Credit Union

96MoneyGeek Score
10.99% to 13.99%APR Range
UndisclosedMinimum Credit Score
$1,000 to $100,000Loan Amount Range
12 to 60 monthsRepayment Terms

Alliant Credit Union is MoneyGeek's pick for the best personal loan provider for debt consolidation in New Mexico. Alliant is an online-only bank requiring membership for 90 days before eligibility for a personal loan. With a MoneyGeek score of 96 out of 100, Alliant stands out for its competitive APR range of 10.99% to 13.99%, which is notably attractive against other rates reviewed. This provider excels in providing clear information regarding its products and upfront costs alongside highly competitive interest rates.

Pros

Among the highest loan limits available in our analysis
Insured by the National Credit Union Administration (NCUA)
No prepayment penalties

Cons

An online-only credit union, no physical branches
Must become a member and wait 90 days before applying

How does MoneyGeek score lenders for debt consolidation?

We looked only at interest rates and fees (60% weight) and loan terms and flexibility (40% weight). If the winner in our analysis also won Best Overall or Runner-Up, we selected the next-best winner for diversity.

Some lenders have minimum interest rates that are higher for debt consolidation loans compared to their rates for general-use loans. When consolidating debts, finding the lowest interest rate possible will help you save the most money over the long term.

IS INTEREST ON PERSONAL LOANS TAX DEDUCTIBLE?

Interest on personal loans is generally not tax deductible, as personal loans are considered consumer debt. But there are some exceptions where the interest may qualify:

When consolidating high-interest qualifying debts like credit cards or student loans, if used to pay off those debts.
If used for home improvements that increase the home's value.
If the loan proceeds can be demonstrated as used exclusively for business expenses or starting a business.
In some cases, if the loan is used for investment purposes related to income-generating assets.

— Alvin Yam, CFP®

Impact of Credit Score on Loan Repayment in New Mexico

When considering a personal loan in New Mexico, you should review your credit report, income and debt-to-income ratio — key factors that lenders evaluate to determine your creditworthiness. If you are a New Mexican seeking a personal loan, improving your credit score before a loan application could help you secure more favorable loan terms.

Refer to the accompanying table to see how different credit scores can affect your monthly loan payments.

Data filtered by:Results filtered by:

Credit Band

Select

Credit Band:690 to 719

Loan Amount

Select

Loan Amount:$2,000


$348	6
$180	12
$97	24
$69	36
$55	48
$47	60
$42	72
$38	84

This table approximates monthly payments, calculated using median personal loan interest rates typical for various credit score ranges. Please remember that these numbers are median estimates provided for general guidance. They should not be taken as precise rates for everyone in each credit score category. Actual interest rates differ due to lender-specific policies, prevailing market conditions and unique borrower profiles.

Pros and Cons of Personal Loans in New Mexico

Personal loans in New Mexico offer advantages like lower interest rates, the flexibility to consolidate various debts into one manageable payment, and the versatility of a solution for numerous financial scenarios. Despite these merits, there are potential downsides, such as origination fees and the risk of collateral loss in a secured personal loan.

For a comprehensive understanding, you should review the pros and cons of personal loans.

THE PROS AND CONS OF PERSONAL LOANS

Interest rates on personal loans are often more favorable than those on credit cards for individuals with good credit
Enables consolidation of multiple high-interest debts into a single, more manageable monthly payment
Often features swift approval and disbursement, providing quick access to funds for emergencies
Allows for the inclusion of a co-signer, which can lead to better loan terms through improved creditworthiness

Additional costs due to origination fees
Prepayment penalties for settling the loan early
Risk of asset loss with secured personal loans
Encouragement of excessive debt through easy approval

FAQ About Personal Loans in New Mexico

If you have questions about personal loans, MoneyGeek has answers to help you make an informed decision before applying.

Who is the best lender in New Mexico for personal loans?

According to MoneyGeek's analysis, First Tech is the best lender for personal loans in New Mexico with a MoneyGeek score of 98. The average APR is approximately 13.5%.

Where is the best place to get a personal loan in New Mexico?

In New Mexico, personal loans can be obtained from online lenders, banks and credit unions. For those preferring in-person services, local credit unions like First Financial Credit Union, Nusenda Credit Union and Del Norte Credit Union offer personal loans.

Who has the best personal loan interest rates in New Mexico?

The lender offering the lowest APR in New Mexico is PenFed, with rates starting as low as 7.99% according to MoneyGeek's analysis. Remember that the best rates are typically available to those with excellent credit scores, and the best option depends on your specific needs and financial circumstances.

What can I use a personal loan for in New Mexico?

In New Mexico, you can use personal loans for a variety of purposes, such as for medical expenses, vacation or travel, and home or auto repair. Generally, personal loans cannot be used for college tuition or gambling.

What are some personal loan red flags to look out for?

When considering personal loans, it's essential to be wary of red flags such as high APRs, strict repayment penalties, a lack of transparency about the lender's insurance status and poor consumer reviews.

Do lenders consider income level when applying for a personal loan?

Yes, lenders evaluate your income level when you apply for a personal loan, but that's not all. They scrutinize your debt-to-income ratio, employment history, type of employment and credit profile. Opening new credit lines during the application process might affect your chances of securing a loan.

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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 5, 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.