Best Loans for Bad Credit in New Mexico for 2024

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Reviewed byAlvin Yam, CFP
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Reviewed byAlvin Yam, CFP
Edited byDenise Cristobal
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Updated: April 24, 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.


    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.


    • 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


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

    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.


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


    • 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, 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.


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.

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.

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.

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.

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.
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.

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.

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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?
Which lender in New Mexico has the lowest APR rates for personal loans?
Which lender in New Mexico has the lowest minimum credit score requirement for personal loans?
How long does it take to get a bad credit loan in New Mexico?
Can I pay off my personal loan early in New Mexico?
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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.