New Mexico is a southwestern state that was being explored and searched for gold as early as 1542. It also happens to be one of the most recent states to become a part of the US, as it was added in 1912. If you’ve been to New Mexico to visit, you may have explored Carlsbad Caverns National Park, Inscription Rock at El Morro National Monument, the ruins at Fort Union, or any number of New Mexico’s beautiful parks and attractions.
New Mexico is known for leading the country in a couple of areas: energy research and development, and output of natural mineral resources such as uranium and potassium salts. These minerals and more contribute heavily to the overall state economy.
Unfortunately, New Mexico may also be known for the amount of its residents living in poverty. The current poverty rate in New Mexico, as of 2019, is a staggering 19.5%. The only other state with a higher poverty rate is Mississippi. Here are some additional New Mexico poverty statistics:
- Children living in poverty: 25.8%
- Working-age men in poverty: 16.5%
- Working-age women in poverty: 20.7%
- Unemployment rate: 4.9%
- Food insecurity rate: 16.8%
It’s not easy to live in New Mexico and enjoy the beautiful natural landscapes when you’re struggling to make ends meet on a daily basis. There are many people in New Mexico who aren’t even sure where their next meal will come from, or how they’ll pay rent. For these people, it may seem like there aren’t any solutions to their financial problems. But there are options out there that are designed to help the people of New Mexico.
Many people turn to personal loans in times of financial distress. They’re marketed as quick and easy financial solutions for folks who need a little boost. But it’s important to be careful and selective when considering a personal loan, as some lenders only seek to take advantage of borrowers in need.
Types of Personal Loans in New Mexico
The first step in your financial journey is to understand what exactly a personal is, and what it isn’t. A personal loan is any loan that an individual takes out to use for personal expenses. These expenses might include rent and bills, car repairs, unexpected expenses, and medical bills.
Personal loans usually range from a few hundred dollars up to a few thousand, and the amount you get approved for will depend on several things, including: your credit history, your credit score, and your current income, among other things. Personal loans also typically come with shorter repayment periods compared to other types of loans. You may see repayment periods as short as a couple of weeks, up to a couple of years depending on the type of loan.
Because there are so many different types of personal loans out there, it’s important to do your homework and learn everything you can about the loan you’re considering. Here are some key things to consider when searching for your personal loan:
- The APR, or Annual Percentage Rate
- Other fees and charges
- The total repayment period
- Your monthly payment amount
- The total repayment amount
- Reviews of the lender in question
If you get all of this information and it still seems like a good fit, then you may have found your loan and lender. But if you aren’t sure about any of these aspects of the product, keep asking questions until you are. Unfortunately, there are many predatory lenders out there who are intentionally taking advantage of borrowers who need quick cash. If the terms and conditions seem unreasonable, then they probably are and you should look elsewhere for a better offer.
Now that you know what a personal loan is, the next step is to decide which type of personal loan is right for your situation. There are several options available, each with their own terms, conditions, and interest rates.
Payday Loans in New Mexico
A payday loan is a short-term loan repaid on the next payday. These loans can be found online or at a storefront lender, and getting one is usually a quick and simple process. But be careful if you’re considering a payday loan, as some lenders use deceptive practices to trick borrowers into paying more for their loans.
A payday loan is usually for smaller amounts, but can range from a couple hundred dollars up to several hundred. They’re designed to help borrowers who run out of money before their next payday, so they typically only last for a couple of weeks. But the short terms of payday loans can make them difficult to repay for some customers.
If you’re considering a payday loan, make sure to do your research and find out the APR. This is the single most important aspect of taking out a short-term loan. The APR includes all of the costs of borrowing the loan including fees, interest, and additional charges. Since most payday customers have less-than-perfect credit, many payday loans come with high interest rates.
If you have a decent credit score and your income is stable, it may be wise to consider an option other than payday loans. But if a payday loan is your only reasonable option, just make sure you’ll be able to repay it at the end of the term before you sign for it.
Title Loans in New Mexico
A title loan is another short-term, high-cost loan that some borrowers turn to if they don’t have any other options. This would be an example of a “secured” loan, because in order to take one out, you need to offer the lender collateral. In this case, the collateral would be your vehicle, and not repaying the loan on time might mean losing your only mode of transportation.
Title loans work in a similar way to payday loans, in that they are usually short-term loans that tend to cost quite a bit in the long run. The main difference is that in order to secure a title loan you’ll need to sign over the title to your vehicle. This ensures that if you aren’t able to repay the loan, the lender doesn’t lose money because they can sell your vehicle to recoup their losses.
While a payday loan usually only lasts a couple of weeks, a title loan may last up to a month or two. Title loans tend to have high interest rates, but you may be able to find a title loan with a lower interest rate than payday loans, since title loans are secured using the vehicle as collateral.
The amount of money you get in a title loan will depend on your credit history, income, and the total value of the vehicle acting as collateral. The lender will likely only offer you a fraction of what the vehicle is worth. This way, they can make their money back if they have to sell the vehicle. Be cautious when considering a title loan, as losing your vehicle may lead to even more financial stress. Make sure you know all the terms and conditions, and that you’ll be able to pay off the loan on the due date.
Personal Installment Loans in New Mexico
When it comes to short-term financing, personal installment loans may be the most safe and affordable option available to residents of New Mexico. These personal loans have a few key differences from payday and title loans that may make them a better alternative if you need quick cash.
A personal installment loan is an unsecured loan that can range from several hundred dollars, up to several thousand dollars. It’s considered an unsecured loan because you won’t be required to offer up any collateral in order to get one. Usually, the only requirements for getting a personal installment loan are to have steady income, and a fair credit score.
One of the key differences between personal installment loans and other short-term options, is that installment loans typically give borrowers a longer amount of time to repay the loan and interest. This usually means lower and more manageable monthly payments, which can help borrowers repay the loan while also keeping up with all of their existing monthly bills. In addition, the APR for an installment loan will likely be lower than for payday and title loans. This means that many borrowers save money in the long run.
How to Take Out A Personal Loan in New Mexico
If you or someone you know is looking for a safe and affordable loan in New Mexico, rest assured that there are good options out there. It just might mean doing your research and taking the time to find the right loan for your specific situation.
In this day and age, many people opt for a completely online loan process. After all, it’s easier to apply for loans online than in person. There are many credible lenders who offer online applications, deposits, and payments. But if you prefer a more personal experience and you’d rather opt for a storefront lender, there are still a lot of good options for you. More heavily populated cities in New Mexico will likely have the most variety in terms of personal loans. Here are the top ten cities in New Mexico, based on the number of residents:
- Albuquerque
- Las Cruces
- Rio Rancho
- Santa Fe
- Roswell
- Farmington
- South Valley
- Clovis
- Hobbs
- Alamogordo
Whether you choose a storefront lender or an online lender, the process will involve the same basic steps. Here’s the basic process of getting a loan, from beginning to end:
- You’ll submit your application. Lenders will likely want to know about your current income, your past borrowing history, and potentially your credit score.
- The lender will make a decision on whether or not you’re approved for the loan. All lenders have different qualifications for giving out loans, and approval may depend on your credit, your income, or even the laws of the state you live in.
- If approved, you’ll receive the money. Many lenders will use direct deposit to send you the money, which means you’ll need to have an active checking account.
- Repayment begins. You’ll make monthly payments based on the agreement with the lender.
- The loan is paid off. Once you pay off the loan and interest, the process is over. Some borrowers aren’t able to repay the loan in the allotted time, and in this case the lender may allow them to extend the repayment period. This also usually means that the lender will add more fees and interest.
Why Choose CreditNinja?
CreditNinja strives to be the best choice for your personal loan needs in New Mexico. If you’re looking for a fast and easy application process, transparency, and manageable monthly payments, then CreditNinja is here to help.
Our application process is completely online, and available twenty-four hours a day, seven days a week. Avoid standing in line all day, and filling out lengthy paperwork. All you have to do is fill out the simple application, await your decision, and if approved the money will be deposited into your bank account by the very next business day.
CreditNinja is here to help, when it seems like you have no other options. Check out CreditNinja.com today and see how we can help you.