When you have unplanned expenses and are on a tight budget, a payday loan could be helpful. Payday loans, a type of short-term loan, give you quick access to money when you need it. Read on to find out about the laws in Washington and everything else you should know about how payday advances work.
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Washington (WA) is one of roughly 26 states that still permits payday lending. Loans are regulated under Washington Revised Code Ann. 31.45.010 et seq., and lenders must hold both a check-casher license and a small-loan endorsement from the Washington State Department of Financial Institutions (DFI).
That said, the costs can be steep. A 14-day $500 payday loan at the maximum fee allowed by state law carries an APR of 391.07%. For context, New Jersey caps consumer loan APRs at 30% — and bans payday lending entirely. Washington has no such cap.
State law sets strict limits on what lenders can charge and how loans can be structured:
Lenders must also check a statewide database before issuing any loan to confirm you’re within these limits.
Fees are capped by state law, but the APR is still very high:
If you’re looking for something less expensive than a payday loan, or just want to understand your options, here’s what’s available.
The top cash advance apps on the market offer a way to access quick cash — as soon as one to three days, in most cases. Plus, you can borrow without having to pass a credit check.
Most let you access $100 to $750 of your upcoming paycheck, often within one to three days for free or instantly for a small fee.
Limits typically start lower for new users and grow over time as you establish a repayment history. Some apps require direct deposit; others (like Cleo) don’t.
Monthly subscription fees also vary. Some apps are free, while others charge $5.99 to $8.99+ monthly to access a cash advance. Before signing up, compare the total cost, including any subscription or instant-transfer fees.
Online lenders and even local lenders may offer bad credit personal loans that provide fast cash, as soon as the same day in some cases. And, unlike payday loans, rates are capped at around 35.99%.
However, you’ll likely need to pass a credit check to be approved for a personal loan.
Some federal credit unions offer PALs — small, unsecured loans from $200 to $1,000 with APRs capped at 28% and repayment terms of one to six months. There’s no credit check required at many credit unions. The main catch: You’ll typically need to be a member for at least one month before you can apply. If you’re already a credit union member, this is worth checking first.
It’s always worth asking your employer or HR department if a paycheck advance is available. Some companies offer them interest-free or at very low cost — far cheaper than any outside lender. You won’t know unless you ask.
Washington law gives you an out — at no extra cost. You can request a free installment repayment plan from your lender before your loan comes due:
Lenders cannot charge a fee for this plan. You also cannot take out a new payday loan while you’re on one.
A few key protections worth knowing before you borrow:
To verify a lender’s license or file a complaint: Contact the Washington State DFI at 1-877-RING-DFI (746-4334) or visit dfi.wa.gov.
If you’re struggling to cover basic expenses, Washington has a range of programs that may help before you turn to a loan:
Payday loans in Washington are legal and regulated, but they’re expensive — with APRs that can exceed 390%. If you’re in a pinch, cash advance apps, PALs from your credit union or an employer advance are all worth exploring first.
If a payday loan is your only option, make sure your lender is licensed with the DFI and that you have a clear plan to repay before the due date.
Illinois caps loan rates at 36% APR. Here’s where to find cheaper, legal short-term credit.
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I only have my s.s i as income and it gets deposited on my direct exspress card on the first of the month how do i make a loan and have it deposit on my card.
Hi David,
Thanks for leaving a question on Finder.
If you receive a form of pension, whether it’s an employer retirement benefit or Social Security, you may find your loan options somewhat limited. Some lenders have stricter criteria for those receiving a pension.
It’s important to know that there are loan options out there. It’s even more important to know how to compare these options so you can choose the right loan for you. Read on to see what’s available from our guide called loans for people on pension.
Cheers,
Joel
Do payday loans and installment loans fall under the same laws?
Hi Sunshine,
Thanks for getting in touch with finder.
The answer to your question depends on the state where you reside. However, generally speaking, Payday loans are more heavily regulated compared to installment loans. Moreover, installment loans even allow lenders to sidestep state and federal laws. Watch out for these: They can come with highly unfavorable terms.
I highly recommend that you read more about the difference between payday loans and installment loans. This should give you more ideas of what to expect from each type of loans.
I hope this helps. Should you have further questions, please don’t hesitate to reach out again.
Have a wonderful day!
Cheers,
Joshua
I need an emergency loan for about 15 days. I was injured at work and I’m waiting for my L&, I claim to kick in. Is there anything out there?
Hi Brian,
Thank you for getting in touch with Finder.
Depending on what you need, you can apply for a short term loan online or in-store. If you apply online, there’s often no need to fax any documents and you can receive your loan amount within a few hours straight into your bank account. If you plan to apply in-store, be sure to choose a lender that has a store network that’s convenient to where you live.
With a short-term lender that offers online loans, you have to provide details of a bank account that you’ve authorized to accept direct deposits. When you’re approved, the lender will transfer the funds directly into your bank account.
I hope this helps.
Have a great day!
Cheers,
Jeni
I don’t have a bank account can I still get a loan
Hi Rachelle,
Thanks for your question.
Yes, even if you don’t have a bank account, there are debit card loans that you may qualify for. Upon application, you will be given an option to request a prepaid card where they will credit the funds.
It would be good to review the eligibility criteria and the terms and conditions of the loan before submitting your application.
Cheers,
Anndy
I need a loan for medical purposes of about 5000 i have bad credit. If i was to get a payday loan will i have to pay each week my entire check?
Hi Angela,
Thank you for your inquiry.
When you have a poor credit history, you’re usually not eligible for a loan from a bank or traditional credit lender. However, there are loan options available. All you’ll need is to show that you can repay the loan by providing evidence of a regular income. You may want to compare your $5000 loan options.
In addition, the repayment period is a lot shorter than standard loans, which means your repayments can be quite high. Lenders usually offer calculators to show an indication of your repayments.
I hope this information has helped.
Cheers,
Harold