Best Personal Loans in New Mexico for 2024
Updated: April 11, 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 97 out of 100. A competitive 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 options. When applying for a personal loan, lenders also consider your income history and debt-to-income ratio.
- First Tech
- 97MoneyGeek Score
- 9.29% to 14.09%APR Range
- UndisclosedMinimum Credit Score
- $500 to $50,000Loan Amount Range
- 24 to 84 monthsRepayment Terms
First Tech is MoneyGeek's best choice for personal loans in New Mexico, with a 97 out of 100 score. With APRs ranging from 9.29% to 14.09%, 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 24 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
Overall 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, PenFed 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
Runner-Up for Best Personal Loan Lender in New Mexico
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.
- Happy Money
- 93MoneyGeek 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 choice for the best personal loan provider in New Mexico for borrowers with low credit, boasting a MoneyGeek score of 93 out of 100. This company partners with various federally insured financial institutions to offer 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
Best Personal Loan Lender in New Mexico for Bad Credit
- Alliant Credit Union
- 95MoneyGeek Score
- 11.49% to 14.49%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 95 out of 100, Alliant stands out for its competitive APR range of 11.49% to 14.49%, 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
Best Personal Loan Lender in New Mexico for Debt Consolidation
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 score, 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.
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 secured loans.
For a comprehensive understanding, you should review the pros and cons of personal loans.
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.
According to MoneyGeek's analysis, First Tech is the best lender for personal loans in New Mexico with a MoneyGeek score of 97. The average APR is approximately 12%.
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.
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.
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.
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.
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, credit score, employment history, type of employment and credit history. Opening new credit lines during the application process might affect your chances of securing a loan.
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
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