In the Silver State, fortunes can shift with the roll of a dice. As such, securing needed financial relief can often feel as hopeless as hitting the jackpot. Just like a seasoned gambler facing an unexpected losing streak, Nevadans with bad credit often find themselves without a solid safety net when life strikes.
If you're in a dire financial situation, title loans can offer a fast and legitimate lifeline. Title loans are a decent way to give yourself the necessary space to regroup and recover.
What is a title loan?
A title loan is a secured loan where borrowers can leverage their car or any other type of vehicle in exchange for extra cash. To get a title loan, you must own a car or similar vehicle with a clear title.
Here are some of the most popular vehicles used for title loans:
- RVs & mobile homes
In simple terms, a title loan lets you take advantage of your assets, and then use them to get some quick cash. Of course, it isn’t all sunshine and rainbows. You will need to pay high-interest rates and you risk losing your vehicle.
Nevada title loan requirements
Before applying for a title loan online, ensure you meet all the requirements. Here is what you need:
- A Nevada driver’s license or state-issued ID
- A lien-free vehicle title
- Proof of income
- Proof of residency in Nevada
- A running vehicle
You must also be 18 years old to apply for a title loan. To comply with the Military Lending Act, active members of the US military or their dependents will not be able to apply for a title loan.
The title loan process
Applying for title loan in Nevada is straightforward. Here are all the steps involved from start to finish.
First, start by ensuring that you have all the documents mentioned above. From there, head to the application page. You’ll be required to provide personal and vehicle information, as well as the amount you’d like to borrow.
To ensure that the information the customer provides is factual, lenders must verify certain pieces of information before they can approve your loan. This typically includes your ID, proof of income, residence, and vehicle title.
After the lender receives your information, they must inspect the vehicle to confirm its condition and assess its value. Typically, this is done by a local representative at a store location or at your home. Some lenders may also offer the option to complete the inspection electronically.
Once the verbal agreement is done, the written agreement follows. Typically, an online contract will need to be signed. If dealing with a local lender, they may mail the contract to you and have you send it back via Certified Mail.
Make sure to review the agreement terms for things like the interest rates, the payment terms, how much the loan amount is, and so on!
Once all loose ends are accounted for, the lender has the title, and you have signed the contract and hammered out payment terms and interest rates, it’s time to receive your money. Typically, funds will hit your account within a day or so.
Here are the standard ways people receive funds:
- Directly at the lender location
- At a partner retail store
- ACH direct deposit
Finally, now that you have received the cash in your account, you are ready to start paying back the loan. When making payments, follow the terms you agreed upon in the contract. If you repay the loan promptly, you will have a much easier time securing future loans and you'll save on the finance charges.
How title loans are regulated in Nevada
Title loans in Nevada are currently regulated under Nevada Revised Statutes § 604A.010 et seq.
The state of Nevada does not impose any limits on the interest rate title lenders can charge. However, Nevada lenders do need to meet requirements such as ensuring that you can repay the loan and following the Fair Debt Collection Practices Act.
Payment terms for a title loan are typically 30 days. According to the legal framework, though, the original terms can stretch up to 210 days. To legally stretch the contract this long, the lender must also provide a clear payment plan, and allow interest to be paid off equally for each payment.
In addition, there can't be any extra balloon payments, and it can't be a deferred deposit loan.
If the borrower defaults on repayment, the lender must offer a new deal to the borrower. This deal must be made available for 30 days.
If the borrower can't repay the loan, the lender is authorized by Nevada law only to collect the unpaid amount, interest, and any other unpaid fees previously agreed upon. In many cases, this can mean forfeiture of the vehicle.
Cost considerations and title loan alternatives
The cost of a title loan in Nevada is dependent on your loan amount and your APR. Here are a few examples to help illustrate the true cost of a title loan.
Example 1: You borrow $2,000 at an APR of 300% and pay it back in 30 days.
If you took out a $2,000 loan and paid it back in 30 days, you would pay a total of $2,500 back to your lender in 1 payment. In this example, you’re paying $500 in finance charges to borrow $2,000.
Example 2: You borrow $2,000 at an APR of 300% and pay it back in 6 months.
If you borrowed $2,000 and paid it back in 6 months, you would pay a total of $4,065.83 back to your lender in 6 payments of $677.64. In this example, you’re paying $2,065.83 in finance charges to borrow $2,000.
Personal installment loans: A better and more affordable way to borrow money with bad credit
When the thought of handing over your title to a lender creeps into reality, you might feel like you're over-committing yourself. If this sounds like your situation, you might instead prefer installment loans. They are a great alternative to title loans, offering fixed monthly payments and lower interest rates.
Best of all, you won’t have to sign over your car title to secure the extra cash you need. Just be aware that you can only borrow up to $3,000 and must submit to a credit check. However, even those with poor credit often get accepted for installment loans at Sound Financial.
Frequently asked questions
Here are some of the most commonly asked questions that we get regarding Nevada title loans.
Can I qualify for a title loan with bad credit?
Yes! Most title loan lenders do not require that you go through a credit check. Therefore, bad credit won’t be a problem.
Can I get a title loan completely online with no credit check and no inspection?
Yes! We offer title loans that don't require credit checks. However, lenders typically require an inspection to check the value of your car before approving your loan. This way, they can ensure that they do not loan you more than the vehicle’s worth.
Will I receive the funds from my title loan instantly?
Lenders are constantly seeking out new ways to ensure that the money hits your account as quickly as possible. If the borrower applies before 2 PM EST and completes all necessary inspections, they will receive their funds on the same day.
Do you offer car title loans near me?
Yes! We offer title loans nearby through direct title loan lenders in hundreds of cities in Nevada including:
- Boulder City
- Las Vegas
- North Las Vegas
- West Wendover