Understanding Nevada Payday Loans
For many people, budgets are very tight and it can be hard to make money stretch from paycheck to paycheck. Unfortunately, one bump in the road can make a hard situation impossible. If you have an expense that you need to take care of right away, like a doctor's visit or an essential home or car repair, you may find yourself needing to borrow money to get you through until you reach payday.
There are, unfortunately, limited options for those who find themselves in this situation. Bank loans are not intended for small short term financial needs and there is a longer application process. Those who already have credit cards might be able to take a cash advance, but this can take some time too - and plus, not everyone has a credit card available to them.
Because of these challenges, many people who do need quick cash may find themselves turning to a popular yet controversial financial product: the payday loan. Payday loans are exactly what their name sounds like: loans to tide you over until you receive your next paycheck. They are typically small loans that last for a period of around two weeks before they need to be paid back. They are also typically loans that you can qualify for very easily, even if you have bad credit, just as long as you have a job and a bank account. Finally, they are typically loans that you can get really fast so you can take care of any pressing financial needs that you have right now.
All of these features of payday loans sound great, and in fact they do fill an important niche market that no other financial product exists to fill. Unfortunately, payday loans are a disfavored financial product for good reason: they are extremely costly for borrowers. When you take on a payday loan, you pay a lot for the privilege of borrowing money.
To understand just how expensive payday loans are, it is helpful to look at their APR. APR stands for annual percentage rate. It is the amount of interest cost you would pay over a year for the privilege of borrowing money for a specific loan. While you don't take payday loans out for a year, APR is still used to compare the costs of these loans since APR is a standard measure used on lots of different consumer debts. For example, when you have a credit card and borrow money, your APR is usually less than 30 percent, which means if you kept a balance on the card for a whole year, you would pay 30 percent interest. A payday loan, by contrast, has an APR that can exceed 450 percent. This is because the loan is such a short one and has such high fees.
The expense of payday loans is a reason for many financial advisors to suggest never taking such a loan. However, if you really need fast cash, this may be the best or only solution.
Nevada Payday Loan Laws
Nevada allows payday lenders to operate in their state and to make loans, which not all states do. However, Nevada has also established some rules and regulations, which are found in Nev. Rev. Stat. 604A.010.
According to the laws, the maximum amount that someone can borrow for a fast cash Nevada loan is 25 percent of his or her gross income. The loan term is 35 days and lenders are not permitted to stretch repayment periods beyond 60 days.
Outside of these laws, however, there is no maximum fee or finance charges, so lenders can charge whatever they wish to in order to issue the loan.
Stay Educated About Payday Loans
Knowing the Nevada fast cash laws is very helpful if you are considering taking a payday loan since you can see how the laws protect you and so you can see where the laws do not protect you. You can then evaluate any potential loans in terms of the legal framework and make an informed choice about whether a payday loan is the best option for you.