Payday Loans are Legal in New Hampshire

Beware of predatory lending

Payday Lenders in New Hampshire

Payday loans are often seen as a quick solution for those who need money urgently and cannot wait until their next paycheck in New Hampshire. In the state, the laws surrounding payday loans have evolved over time to provide more protection to consumers.

For instance, recent legislation restricts lenders from charging interest and fees higher than 36% and sets the maximum loan amount at $500. However, despite these measures, the state still faces challenges with predatory lenders, mainly with those operating online and targeting vulnerable individuals.

When considering a payday loan in New Hampshire, it is crucial for borrowers to exercise caution and fully understand the terms and fees associated with the loan. It is important to verify that the lender is licensed to operate in the state, and borrowers should be cautious of upfront fees or promises of guaranteed approval, as these may be signs of possible scams. In fact, there are no licensed lenders in the state at this time, both storefront and online. By conducting thorough research on lenders, being informed about their rights, and making careful decisions, borrowers can protect themselves from falling into the trap of predatory lenders and make responsible choices for their financial well-being.

Payday Loan Laws

New Hampshire has implemented strict regulations to govern payday loans and protect consumers from predatory lending practices. Under New Hampshire law, payday loans are subject to a maximum interest rate cap, limiting the amount lenders can charge borrowers. Additionally, there are restrictions on loan terms and fees to ensure fair and transparent lending practices.

The State of New Hampshire has several piece of legislation that governs payday loans:

Loan Terms and Conditions

Maximum loan amount: $500

Maximum Interest Rate: 36%

Minimum loan term: 7 days

Maximum loan term: 30 days

Number of rollovers allowed: none

Finance Charge: 1.38%

Legal action: 3 Years

Certified Payday Lenders in New Hampshire

Company Name	Company score	License Status
MNE Services, Inc	8	Valid
LDF Holdings, LLC	7.8	Valid
CASHCALL, INC.	7.1	Valid
Crow Creek Sioux Tribe	6.8	Valid
Delbert Services	6.5	Valid
Check City Partnership, LLC	6	Valid

History of New Hampshire Payday Loans

Since the early 2000s, the payday loan industry in New Hampshire has undergone significant changes. In 2003, the New Hampshire Banking Department took on the responsibility of overseeing payday lenders, marking a notable shift in the state’s approach to the industry. However, it was on January 1, 2009, that a crucial turning point occurred with the implementation of new legislation. This law introduced stringent measures, prohibiting payday lenders from charging an APR exceeding 36%. While it didn’t outright ban payday lending, the strict regulations and financial constraints made it increasingly challenging for lenders to operate profitably in New Hampshire, leading to the closure of numerous lending centers. Today, payday loans remain officially legal in the state, although the market is relatively limited, with a scarcity of available options for borrowers.

State Resources

How to file a complaint

Borrowers can submit a complaint through the State of New Hampshire Banking department by downloading the form that can be found on their website and either emailing it or faxing it.

New Hampshire Payday Loans Debt Relief

How to Get out of Payday Loan Debt?

Escaping the cycle of payday loan debt in New Hampshire requires careful planning and strategic steps. The first crucial move is to assess your financial situation and develop a realistic budget to regain control over your expenses. Contacting your payday lender to discuss potential options is essential, as some may be willing to negotiate new repayment terms or offer alternative arrangements. Exploring debt consolidation programs or seeking assistance from reputable credit counseling agencies can provide valuable guidance on managing your debt effectively. Additionally, it is vital to resist the temptation of taking out additional payday loans to cover existing debt, as this can lead to further financial burden. By actively seeking support, creating a solid repayment plan, and staying committed to financial discipline, individuals in New Hampshire can break free from the grip of payday loan debt and move towards a more stable financial future.

Support Resources

Types of Quick Loans in New Hampshire

Title Loans Title loans are a popular option for those seeking quick cash in New Hampshire can be taken out for up $10,000 under the Pawnbroker/Lender Act. These loans are secured by the borrower's vehicle, and the lender holds the title until the loan is repaid. While title loans can be a convenient way to access funds, they come with high interest rates and fees costing up to 300% plus the lien fee, and failure to repay the loan can result in the loss of the borrower's vehicle. New Hampshire has regulations in place to protect borrowers, but borrowers should carefully consider their ability to repay the loan before taking out a title loan and explore other options if possible.

Installment Loans Installment loans are a common type of loan in New Hampshire, with many lenders offering them for those with good credit or bad credit. These loans involve borrowing a set amount of money and repaying it in equal installments over a set period of time. While installment loans can be a convenient option, they often come with high interest rates and fees, particularly for those with bad credit. New Hampshire has regulations in place to protect borrowers, including a cap on interest rates and fees.

Credit Card Cash Advances Credit card cash advances are another option for those in need of quick cash in New Hampshire. This type of loan allows borrowers to withdraw cash from their credit card, with the amount typically limited to a percentage of the card's credit limit. While credit card cash advances can be convenient, they come with high interest rates and fees, often making them a more expensive option than other loan options.

Alternatives to Payday Loans in New Hampshire

Personal Loans

Personal loans provide financial flexibility for a range of needs, whether it's consolidating debts, funding home improvements, or covering medical expenses. In New Hampshire, these loans come with fixed interest rates and customizable repayment terms, allowing borrowers to find a plan that suits their situation. Residents can explore personal loan options from traditional banks, credit unions, and online lenders, taking into account factors like credit scores and individual circumstances, which can impact rates and fees.

Land Loans

Land loans serve as secured financing for purchasing or refinancing various types of land in New Hampshire , such as residential lots or agricultural properties. Lenders consider these loans to carry higher risks, resulting in shorter repayment terms and slightly higher interest rates. Prospective borrowers should be prepared to provide a substantial down payment, demonstrate excellent creditworthiness, and present a well-thought-out land utilization plan. Banks, credit unions, and private lenders offer land loans, requiring borrowers to furnish additional documentation, such as property surveys, to facilitate the application process.

Home Equity Loans

Leveraging the equity in one's home, home equity loans provide an attractive financing option in New Hampshire. With collateral in place, these loans offer lower interest rates compared to other types of loans. Homeowners in the state can potentially borrow up to 80% of their home equity, depending on their creditworthiness and the lending institution's criteria. Home equity loans can be utilized for home renovations, education expenses, medical bills, and more. However, borrowers should carefully assess the risks associated with using their home as collateral before proceeding with the loan application.

Bad Credit Loans in New Hampshire

For individuals in New Hampshire with lower credit scores or limited credit history, there are specialized bad credit loans available. These loans come with higher interest rates and fees due to the increased risk for lenders. Borrowers may also face lower borrowing limits. Both secured and unsecured bad credit loans are offered, with secured loans requiring collateral such as a vehicle or a savings account. Prior to borrowing, residents are advised to conduct thorough research, compare fees and terms from multiple lenders, and diligently evaluate loan conditions. Timely payments and responsible credit use can aid in rebuilding credit scores.

New Hampshire Small Business Loans

There are several types of small business loans available in New Hampshire, including:

SBA loans: Loans that are partially guaranteed by the U.S. Small Business Administration and are designed to help small businesses access capital and obtain favorable loan terms.
Business lines of credit: A flexible borrowing option that gives businesses access to funds as they are needed. Interest is only paid on the amount borrowed.
New Hampshire Community Loan Fund: The New Hampshire Community Loan Fund offers various loan programs tailored to meet the financing needs of small businesses in the state. They provide loans for startup businesses, working capital, equipment purchases, and commercial real estate.
Invoice financing: A financing option that allows businesses to receive an advance on their unpaid invoices, with repayment once the invoice is paid.
Community Development Financial Institutions (CDFIs): CDFIs are specialized lenders that focus on providing affordable financing to underserved communities and businesses. They offer flexible loan options and often have a mission to support local economic development.

VA loans in New Hampshire

VA loans offer significant advantages to veterans, servicemen, and their spouses in New Hampshire seeking to purchase primary residences. These government-backed mortgages enable borrowers to finance up to 100% of a home's value without the need for a down payment. VA loans in New Hampshire also eliminate the requirement for mortgage insurance, resulting in potential long-term savings. Eligibility for VA loans is subject to specific criteria, including military service, income, and credit scores. Veterans and servicemen are encouraged to explore the benefits and requirements of VA loans to make informed decisions about their home financing options.

New Hampshire Student Loans

Many options are available to New Hampshire students to help finance their college education. These options include:

Federal Student Loans: These loans are offered by the federal government and include Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans.
New Hampshire Higher Education Loan Corporation: NHHELCO offers various student loan programs to help New Hampshire residents finance their education. They provide both fixed and variable rate loans, including undergraduate loans, graduate loans, and parent loans.
New Hampshire Charitable Foundation: Offers scholarship and loan programs to New Hampshire students. They provide low-interest loans for undergraduate and graduate education, as well as career training loans for vocational and technical programs.
Private Student Loans: Loans from private lenders, they commonly have higher interest rates and may require a co-signer.

New Hampshire Income Information

According to the 2021 U.S. Census, New Hampshire had a median household income of $83,449, significantly higher than the national median of $69,021. New Hampshire boasts a diverse and robust economy driven by various industries such as manufacturing, healthcare, tourism, and technology. With a strong focus on entrepreneurship and a low unemployment rate, the state has positioned itself as a favorable environment for business growth and innovation. The median household income and poverty levels vary by county in New Hampshire, with Rockingham County having the highest median income at $93,962, 20.6% above the state average, and Coos County has the lowest at $48,945, 37.2% below the state average. The poverty percentage in New Hampshire in 2021 was 7.2%.

United States Census Bureau. “Poverty in the United States: 2021.” Accessed on May 10, 2023.
United States Census Bureau. U.S. Census Bureau QuickFacts: New Hampshire. Accessed on May 10, 2023.

New Hampshire Payday Lender Complaints

Below are trends associated with some payday lenders in New Hampshire, as reported to the Consumer Financial Protection Bureau.

Company Name	Count
MNE Services, Inc	4
LDF Holdings, LLC	3
CASHCALL, INC.	2
Crow Creek Sioux Tribe	2
Delbert Services	2
Check City Partnership, LLC	1
Total Complaints	34

Consumer Financial Protection Bureau. Consumer Complaint Database. Accessed on May 10, 2023.

Most Common Issues

Complaint type	Count
Unexpected fees or interest	17
Can’t contact lender	7
Struggling to pay loan	4
Approved for loan but never received	3
Received a loan never applied for	2

What are the main reasons residents of New Hampshire apply for payday cash advance online or offline

Payday loans are typically used for nonnegotiable everyday expenses like your rent, utilities, and groceries. Per data reported by Pewtrust, the percentage of reasons described below

Reason	Share
Regular Expenses (Utilities, car payment)	53%
Unexpected emergency/expense	16%
Rent/Mortgage	10%
Something Special	8%
Other	5%
Did not answer	2%

Payday Lenders by City

Manchester
Nashua
Concord
Derry
Dover
Rochester
Salem
Merrimack
Londonderry
Hudson

Bedford
Keene
Portsmouth
Goffstown
Laconia
Hampton
Milford
Exeter
Windham
Durham

Hooksett
Lebanon
Pelham
Claremont
Somersworth
Amherst
Hanover
Raymond
Conway
Berlin

Frequently Asked Questions

Will applying for a payday loan impact my credit?

Payday loans are typically not reported to the three major credit reporting agencies, and most lenders do not conduct credit checks as part of their application process.

What do I need to apply for a payday loan?

To apply for a payday loan in New Hampshire, you typically need to provide proof of income, such as a pay stub or bank statement. You will also need to provide personal information, such as your name, address, and Social Security number, as well as information about your employment and banking history.

Can I cancel my payday loan?

In New Hampshire, borrowers have the right to cancel a payday loan within one business day after the loan is executed by returning the loan amount to the lender.

Can a payday loan lender garnish my wages?

A payday lender in New Hampshire can garnish your wages if they obtain a court judgment against you.

Can spouses have separate loans?

Yes, spouses can have separate payday loans in New Hampshire as long as they individually meet the lender’s eligibility requirements and can provide the necessary documentation and information to apply.

When will I receive my funds if I am approved for a payday loan?

Funds are typically received on the same day or the next business day after loan approval, and can be disbursed through various methods, such as direct deposit.

What happens if I can’t repay my payday loan on time?

If a borrower is unable to repay their payday loan on time in New Hampshire, the lender may charge additional fees, extend or roll over the loan, report the delinquent account to credit bureaus, or pursue legal action.

When could I apply for another payday loan?

Borrowers can apply for another payday loan 60 days after they have repaid their current loan in full.