If you’re considering getting a payday loan in Washington, D.C., don’t apply before going through this guide.
Payday loans are not legal in Washington, D.C. They are illegal because of the high interest rates they typically attract. Amended District of Columbia Code Section 28-3301 governs the functioning of small loan providers in D.C.
If you take a small loan in D.C., there is an AOR cap that will ensure that you don’t have to pay more than 24% as an annual rate. This is considerably lower than what payday lenders across the nation charge, which is why they choose not to operate in this part of the country.
Keep in mind that if you choose to apply for any kind of loan or line of credit, it’s very important read all the paperwork (including all the fine print) before signing anything. It’s also a good idea to have a solid plan to pay back your loan, so you don’t find yourself needing to borrow more money to repay debt. Go through this guide to find out about your alternatives.
Installment loans you could apply for
An installment loan requires that you repay the money you borrow in installments over a predetermined timeframe. Some lenders offer these loans to applicants with less-than-perfect credit, provided they can demonstrate an ability to repay. Similar to payday loans, the interest is very high and there are some risks you should consider when applying.
Personal loans you could apply for
To apply for an personal loan through a standalone lender or a bank you should ideally have fair to good creditworthiness, but you have some options even if you don’t. The interest such loans attract is typically lower than what you’d have to pay towards an installment loan or an auto title loan, and the payments may be more flexible.
What other options do you have for a loan in Washington D.C?
While high interest payday lending is illegal in D.C. you can think about getting credit in other ways, which include:
- Apply for a credit card. Whether you have good or bad creditworthiness, there is a huge selection of credit cards worth considering if you need extra money. Credit cards also have more reasonable payments and lower interest rates.
- Tribal loans. If you live in a state (or district) where payday loans are illegal, you still have the option of getting one if you go through a tribal lender like SWIFT or 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.
- Payday loans from other states. If you’re in Washington D.C. temporarily but are normally a resident of a state where payday loans are legal, you can consider applying for an online payday loan. To do this you’ll have to provide documented evidence of your residence in another state. Also make sure the lender is backed by the OLA or similar.
- Pick up side work. Looking for side jobs, selling things online, or signing up to drive with a company like Uber are some of the many ways people get extra cash when they’re in a bind. It’s a great alternative to getting a loan or credit card because there is nothing to repay.
What are the typical costs of a Washington D.C. loan?
When you get credit of any kind you have to repay the amount you borrow along with the interest it attracts as well as all applicable fees and charges. The APR is more accurate in representing the total cost of your loan. This is because the APR takes into account fees as well as interest. The APR can vary considerably depending on the kind of credit you get, the credit provider you choose and your creditworthiness.
There are instances when you may have to pay additional fees. For example, if a payment does not go through because of insufficient funds in your account you may have to pay NSF fees. If you make a payment after its due date, you may have to pay late fees. Some lenders may charge application fees and loan disbursement fees as well.
What states can I apply for a payday loan in?
Frequently asked questions
I’m in D.C. temporarily and my license shows me to be a resident of Florida. Can I apply for a Florida payday loan online?
Yes, you can. In this case, Florida payday lending laws would apply.
I’ve noticed that some online lenders from other states offer no credit check payday loans in Washington D.C. Are these loans legal?
No, they’re not. Out-of-state lenders cannot provide payday loans in Washington D.C. legally.
Who can I contact to file a complaint about cash advance providers in D.C?
You should direct all complaints surrounding cash advances in District of Columbia to the D. C. Department of Insurance, Securities and Banking.
Can I get an auto title loan in Washington DC?
No, you can not. Due to the high interest rates and the frequency of borrowers defaulting on their loans, title loans are illegal in the nation’s capital.