A payday loan can seem like a lifeline when you have less-than-perfect credit and you’re looking to borrow a small amount of money, but if you’re a resident of the capital, you won’t be able to borrow. Read our guide to learn about your alternative options.
Are payday loans legal in Washington, DC?
No. Payday loans aren’t legal in Washington, DC under the Amended District of Columbia Code Section 28-3301. The capital caps interest at 24%, which is far lower than the interest charged by payday lenders in other parts of the US. Although they aren’t specifically banned, payday lenders choose not to offer loans because of the cap on interest.
What other borrowing options do I have in Washington DC?
While high interest payday lending is illegal in DC you can think about getting credit in other ways. Three options include:
Tribal loans. You could still have the option of getting a loan if you go through a tribal lender like Blue Trust Loans. Since these lenders are based on tribal land, they are considered a sovereign entity and are able to abide by their own laws.
A loan connection service. Submitting your info through a connection service allows that provider to try and pair you with a suitable lender in its network. They may have small providers that can lend to you while still abiding to state laws.
What if I can’t get a personal loan or credit card?
You have other options to consider if borrowing money from a creditor doesn’t work out for you. These include:
Apply for an assistance program. Capital Area Food Bank Hunger Lifeline, The Utility Discount Programs and the Low Income Home Energy Program all help people when they’re in need. If you’re struggling to make ends meet, consider applying for one of these or the many other local area programs.
Find a credit counselor. While it won’t help you in the short term, a credit counselor can help you get your finances in order to make paying for future expenses easier. There are plenty of options to choose from, so don’t hesitate to do your research and find a good one.
Get a side gig. You could consider making extra money with a side hustle. Some ideas include driving for a ridesharing service like Uber or a food delivery service. If you have a skill that’s in high demand, you could consider freelancing for things like graphic design or writing.
Due to the high cost of payday loans, lawmakers in DC have decided to prevent lenders from offering them to residents of Washington, DC. Many consumer advocate groups consider payday loans to be predatory with interest rates designed to keep people in debt.
Because of this, you won’t be able to get a payday loan in the capital.
Cash advance locations in Washington, D.C.
Cash advance locations near you in Washington, D.C
If you’d like to visit a physical store for a cash advance here are some options:
Elizabeth Barry is Finder's global fintech editor. She has written about finance for over six years and has been featured in a range of publications and media including Seven News, the ABC, Mamamia, Dynamic Business and Financy. Elizabeth has a Bachelor of Communications and a Master of Creative Writing from the University of Technology Sydney. In 2017, she received the Highly Commended award for Best New Journalist at the IT Journalism Awards. Elizabeth's passion is writing about innovations in financial services (which has surprised her more than anyone else).
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