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Payday Loans in Washington

In the Evergreen State (Washington), payday lending is legal, but there are a number of caps in place to prevent borrowers from predatory lending. In addition, the payday lending industry is licensed and regulated by the Washington State Department of Financial Institutions (DFI); hence only licensed and reputable lenders can operate in this territory.  
When you need immediate cash to pay for unforeseen costs or just help make it until your next payday, a fast payday loan online may come into practice. However, before taking out one, consider the information on quick cash lending described below. 

What is a Payday Cash Loan? 

Payday loans are generally issued to people with bad/no credit or without any savings in their bank account. Typically, these are very short-term loans, only a couple of weeks, hence the name payday loans, because you need to settle your debt until you get your next payday. Usually, you are required to write a post-dated check to withdraw it from your account when your loan is due. 

How to Apply for a Payday Loan in Washington? 

If you reside in the state of Washington, you can shop for payday loans online, either in person at storefront offices or online. Usually, the online application processing takes no more than 15 minutes. Typically, payday borrowers are required to:

  1. be at least 18 years of age 
  2. be a US citizen or permanent resident 
  3. have proof of employment or stable income source 
  4. provide a valid ID and Social Security Number (SSN)
  5. Provide banking information such as checking savings account 
To consider the applicants' borrowing capacity, otherwise known as creditworthiness, payday loan lenders don't necessarily pull traditional credit checks or calculate debt-to-income ratios. This is why borrowers with bad or no credit might still qualify for short-term loans online. 

Maximum Loan Amount in Washington 

In Washington, the maximum payday loan amount is available for $700 or otherwise cannot exceed 30% of the borrower's monthly income, whichever is less. Borrowers are limited to eight loans per annum, with APRs reaching up to 391%. 

What are Payday Loan Alternatives? 

A payday loan may seem like your only option when you are in a pinch. But did you know that only 14% of payday loan borrowers can afford to pay them off without borrowing even more? The average payday loan borrower takes out eight loans before paying back the debt. Thus, before borrow, consider these alternatives:

Friends and Family: It can be uncomfortable to ask a friend or family member for money, but if they can help, it can be an affordable option. They might even give you an interest-free loan. 

Community Organizations: The groups you belong to might have funds to help members in need. For example, some congregations collect money to give small loans or gifts to one of their own. 

Personal Loans: Don't assume that poor credit means you cannot get a traditional loan. Shop around to see if you qualify. Bear in mind that about 40 percent of payday borrowers turn to options before getting the loan to get out of debt. 


As a result of changes CFPB has made, from July 2020 the lenders don't have to check if the borrower is able to repay the loan. Thus, we encourage you to be careful and make sure you can afford the loan before applying.

Regulations of Payday Loans in Washington
Status     Legal
Annual Percentage Rate (APR)     391%
Minimum Loan Amount     N/A
Maximum Loan Amount     $700
Minimum Loan Term     N/A
Maximum Loan Term     45 days
Number of Rollovers Allowed     N/A
Finance Charges     Allowed only 8 payday loans per 12-month period
Cooling-off Period     N/A

Useful Sources

Real interest rate map /PDF/ of payday loans in the United States calculated on a typical loan.

Payday loans regulation /PDF/ by state 2020.

The Washington State Department of Financial Institutions (DFI) is responsible for giving licenses and it also regulates the payday loan industry in the state.
The Consumer Financial Protection Bureau (CFPB) makes the financial marketplace work more effectively and educates consumers to help them take more control over their financial lives. Click here to learn more.
The loan term cannot be longer than forty-five days unless you enter into an installment plan or otherwise agree to a longer loan term.” (Payday Loan Brochure DFI)

[ Updated on 14-Oct-2021, 23:09 ]

We've been in the industry for more than six years.