Because of the risky nature of payday loans and their excessively high interest rates, many states and cities have decided to implement laws to help protect you from predatory lenders and becoming hopelessly lost under the weight of debt. The state of Nevada has in place a few laws to help protect you should you have no other choice but to get a payday loan in Las Vegas.
Total Loan Amount
Nevada state law has regulations concerning the maximum loan amount. By law, no lender can lend more than 25% of your total monthly income. This means that even if a lender advertises payday loans up to $1,000, you have to take home at least $4,000 a month to qualify for that loan amount. If you make $1,600 a month, your maximum legal loan amount is $400.
Tip: No matter the loan amount a lender offers you, you do not have to accept the full amount. Do not feel pressured to accept more than you need. The more you borrow, the more you have to pay back.
Nevada and Las Vegas do not have any regulation over APRs at this time. Your best option is to shop around to find the lowest APR possible, especially because of the regulations over the loan amount. If you make less than $4,000 a month, you will receive the same loan amount offers no matter the service with which you decide to complete your loan, so the APR is more important.
Tip: If you go with a direct lender, you receive a set APR. However, if you go with a service that connects you with a third-party lender, you may have more options. Read through all your loan offers and shop around to find the best APR.
By law, the maximum term of a payday loan in Las Vegas is 35 days. However, the term for a payday loan is generally when you receive your next paycheck, so somewhere between two and four weeks. Some services offer signature loans rather than payday loans, and those loans do not have the same regulations, so you may receive terms of a couple months up to over a year. Be sure you clearly understand the term of your loan.
Many services also offer extensions, rollovers or renewals. No matter the name, they extend your due date, but they also come with additional fees and interest is always building up. Nevada law stipulates that lenders may not extend your loan beyond 60 days from the original loan's term. This protects you from paying high interest for an extended period. However, that could still mean up to three months of interest, which adds up.
Tip: When the term ends, you must repay your loan. Make sure you know when your loan is up and when your payment is due. Also, ensure that the funds are available in your checking account if the service automatically debits your checking account.
Cities and states have the best interests of their citizens in mind when they set up laws regulating payday loans. Nevada and Las Vegas laws help to protect you from borrowing more than you can afford and paying high interest rates over a long period. Laws may change and become stricter over time, so you can check your local government webpages and local media for updates on Las Vegas payday loans regulations.