All of us try to be responsible with our money. But every now and then, we’re faced with a bit of a financial bind or maybe we have to make big purchases or investments. (Or we like the sound of having a little extra credit to spend.) And if you’ve ever used a credit card or taken out a loan, you’ve probably thought about the interest rate you’re being charged. A high interest rate can get you into more money trouble if you’re not careful about using credit responsibly and making payments on time.
The Silver State can also help: it has statutes limiting the amount of interest that a creditor can charge. Here is a quick introduction to interest rates laws in Nevada.
Interest Rates Laws
State interest rate laws can vary depending on the type of credit, loan, or legal judgment involved. These statutes are designed to help consumers avoid crippling debt and deter predatory lenders by restricting the amount of interest a creditor can charge. Consumers should be aware that Nevada allows parties to contract for any interest rate, ands sets the default at the prime rate of the state’s largest bank, plus 2%.
Interest Rates Laws in Nevada
Nevada's interest rate statutes are listed in the table below.
| Legal Maximum Rate of Interest | No limit for what parties may contract; otherwise prime rate of Nevada's largest bank plus 2% Nevada Statutes 99.040, et seq.: Interest Rates |
| Penalty for Usury (Unlawful Interest Rate) | - |
| Interest Rates on Judgments | Contract rate or prime rate at largest bank in Nevada plus 2% Nevada Statutes 17.130: Computation of Judgment Interest |
| Exceptions | Licensee may lend at any interest rate Nevada Statutes 677.730: Licensee Interest |
Of course, the simplest way to prevent the financial pitfalls of high interest rate credit cards is to avoid credit card debt in the first place. If you do use a credit card, one of the best strategies for staying out of debt is to use the card responsibly and pay off the entire balance quickly -- every month, if possible. If you have already found yourself in significant credit card debt, there may be consumer protections under federal law that can help.
Related Resources for Nevada Interest Rate Laws
It’s not always easy to even figure out the interest rate, much less if it complies with state law. You can consult with a Nevada consumer protection attorney in your area if you would like legal assistance regarding an interest rate matter. You can also visit FindLaw’s section on Usury Laws and Limits on Credit Card Interest Rates for additional articles and information on this topic.
