State guide

Washington bad credit loans, loan laws and local help

Loan options, state rules and local help for Washington residents with bad credit: which loan types Washington law allows, what a typical loan can cost, and who to call when money is tight. Checked against state sources on September 23, 2026.

BadCreditMD is not a lender or broker. We explain your options; a lending network partner shares requests with lenders, who set their own rates and decide whether to lend. See disclosures.

Washington at a glance

Loan options in Washington

Every loan type we cover is listed, including the ones Washington law does not allow, so you can see why and what else can work.

Other ways to borrow

What a loan can cost in Washington

Worked examples at an illustrative rate, never above Washington's rate cap for that loan amount where the law sets one. They are examples, not quotes.

Representative example

Amount borrowed
$500
Annual percentage rate (APR)
25%
Repayment
12 monthly payments
Payment
$47.52
Finance charge
$70.24
Total of payments
$570.24

Example: a $500 installment loan at 25% APR repaid in 12 monthly payments of $47.52 costs $570.24 in total, including a finance charge of $70.24. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.

Representative example

Amount borrowed
$1,000
Annual percentage rate (APR)
25%
Repayment
12 monthly payments
Payment
$95.04
Finance charge
$140.48
Total of payments
$1,140.48

Example: a $1,000 installment loan at 25% APR repaid in 12 monthly payments of $95.04 costs $1,140.48 in total, including a finance charge of $140.48. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.

Representative example

Amount borrowed
$3,000
Annual percentage rate (APR)
25%
Repayment
12 monthly payments
Payment
$285.13
Finance charge
$421.56
Total of payments
$3,421.56

Example: a $3,000 installment loan at 25% APR repaid in 12 monthly payments of $285.13 costs $3,421.56 in total, including a finance charge of $421.56. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.

Resources in Washington

Free and low-cost places to turn in Washington, each linked to its official source and dated when we last checked it.

  • Lending regulator and complaints

    Washington State Department of Financial Institutions licenses lenders in Washington. Check a lender's license here, and file a complaint if something goes wrong.

    dfi.wa.gov Checked September 23, 2026

  • Attorney general consumer protection

    The attorney general's consumer protection office takes complaints about scams, unfair debt collection and other business practices.

    atg.wa.gov Checked September 23, 2026 Available in Spanish

  • 211

    Call 211 or visit your local 211 site to reach help with rent, utilities, food and other urgent bills.

    wa211.org Checked September 23, 2026

  • Legal aid

    Free civil legal help for people with low incomes, including debt collection, repossession and eviction problems. Income limits vary.

    nwjustice.org Checked September 23, 2026

  • Nonprofit credit counseling

    Nonprofit counselors can help you build a budget or set up a debt management plan. Look for an NFCC or FCAA member agency.

    nfcc.org Checked September 23, 2026

  • Benefits portal

    The official site for checking whether you qualify for food, cash or other benefits in Washington, and for signing up.

    dshs.wa.gov Checked September 23, 2026 Available in Spanish

  • Federal complaints

    Submit a complaint about any lender to the Consumer Financial Protection Bureau.

    consumerfinance.gov Checked September 23, 2026 Available in Spanish

Cheaper options to try first

Worth checking whatever your credit: these can cost less than a high-rate loan.

  • Credit union payday alternative loans (PALs). Federal credit unions may offer small loans of up to $2,000 with terms of up to 12 months and an APR no higher than 28%, under NCUA rules (12 CFR 701.21). You usually need to be a member.
  • Nonprofit credit counseling. A counselor accredited by the National Foundation for Credit Counseling can help you build a budget or a debt management plan.
  • Ask your creditor for a payment plan. Utilities, hospitals and many lenders offer hardship or extended payment plans if you ask before you miss a payment.
  • Local assistance. Call 211, or visit 211.org, for emergency help with rent, utilities and food in Washington.

The rules lenders follow in Washington

These rules protect you as a borrower and explain the labels above. Each one links to the source we took it from. How we research state rules.

Allowed in Washington: installment and personal loans and payday loans. Not allowed: title loans.

Lending law in Washington
ProductStatusAPR capAmountTermLicenseLaw
Installment and personal loans[1][2][3][4] Allowed 25% APR Not set by statute Not set by statute Consumer loan company license under RCW chapter 31.04, issued by the Washington State... RCW 31.04, esp. RCW 31.04.105
Title loans[5][6][4] Not allowed Not allowed Not set by statute Not set by statute None. Washington has no title-lender license RCW 31.04, esp. RCW 31.04.105
Payday loans[7][8][9] Allowed Fee cap Up to $700 Up to 45 days Small loan RCW 31.45.073
Verified against the statute and regulator on September 23, 2026. Laws change; confirm with the regulator before you borrow.

Bars place each APR cap on a 0 to 400% scale; the pin marks the cap. A striped bar means the statute sets no numeric cap.

Rate, fee and license rules in Washington

Installment and personal loans

Rate cap
Under the Consumer Loan Act, RCW 31.04.105, a licensee may lend money at a rate not to exceed 25 percent per annum calculated by the simple interest method (a statutory exception to Washington's general usury law).
Fees
RCW 31.04.105: nonrefundable prepaid origination fee not to exceed 4 percent of the first 20,000 dollars and 2 percent thereafter; delinquency charge up to 10 percent of the overdue installment; plus actual third-party fees, dishonored check fees approved by the director, up to 45 days of prepaid interest, and certain credit insurance premiums.
License
Consumer loan company license under RCW chapter 31.04, issued by the Washington State Department of Financial Institutions (DFI).

Title loans

Rate cap
Not applicable; motor vehicle title-secured consumer loans are not an authorized product.
Fees
Not applicable.
License
None. Washington has no title-lender license; any consumer loan would require a consumer loan company license under RCW 31.04 and be capped at 25 percent per annum. (RCW 19.86.130 was checked and addresses prima facie effect of state CPA judgments, not title loans.).

Payday loans

Rate cap
Small loans (payday loans) under the Check Cashers and Sellers Act, RCW 31.45.073, are capped by combined interest-and-fee percentages rather than a flat APR: up to 15 percent of the first 500 dollars of principal and up to 10 percent of principal above 500 dollars, combined interest and fees.
Fees
15 percent of principal up to 500 dollars; 10 percent of principal above 500 dollars up to the loan cap; the director of DFI may by rule exclude certain fees from these limits.
License
Small loan (payday lender) / check casher-seller license under RCW chapter 31.45, issued by the Washington State Department of Financial Institutions.

Money snapshot for Washington

Washington household and credit data
MeasureValueYear
Fair market rent, 2 bedroom (monthly)[10]$2,072FY2026
Population[11]7,958,1802024
Unemployment rate[12]4.9%2026-08

Guides for Washington borrowers

Check your options in Washington

Check your optionsYour request goes to a lending network partner, who shares it with lenders. Lenders set their own rates and decide whether to lend. There is no fee to use our service.

Washington questions

Does Washington law allow payday loans?

Washington law allows payday loans. State law caps the fee rather than the APR. Source: RCW 31.45.073.

What is the most a lender can charge in Washington?

By loan type in Washington: Installment and personal loans: 25% APR. Title loans: Not allowed. Payday loans: Fee cap.

Where can I file a complaint about a lender in Washington?

You can file a complaint with Washington State Department of Financial Institutions, and you can also submit one to the Consumer Financial Protection Bureau. Both links are under Resources in Washington on this page.

How do I check a lender's license in Washington?

Washington State Department of Financial Institutions licenses lenders in Washington. Use the license link under Resources in Washington on this page to check a lender before you share your information.

Is there free help paying bills in Washington?

Yes. Resources in Washington on this page lists free help, including 211, legal aid, nonprofit credit counseling and benefits portal.

Can I get a loan in Washington with a 500 credit score?

Lenders look at more than your score, such as income and existing debts, and each sets its own rules. BadCreditMD cannot tell you whether a lender will approve you.

Nearby states

Sources

  1. app.leg.wa.gov. RCW 31.04, esp. RCW 31.04.105. Retrieved September 23, 2026.
  2. dfi.wa.gov/financial-education/information/usury-law. Retrieved September 23, 2026.
  3. dfi.wa.gov/financial-education/information/exceptions-usury-law. Retrieved September 23, 2026.
  4. dfi.wa.gov. Washington State Department of Financial Institutions (DFI). Retrieved September 23, 2026.
  5. Justia. law.justia.com/codes/washington/2005/title31/31.04.025.html. Retrieved September 23, 2026.
  6. app.leg.wa.gov. RCW 31.04, esp. RCW 31.04.105. Retrieved September 23, 2026.
  7. app.leg.wa.gov. RCW 31.45.073. Retrieved September 23, 2026.
  8. dfi.wa.gov. Washington State Department of Financial Institutions (DFI). Retrieved September 23, 2026.
  9. dfi.wa.gov/complaints/payday-loan. Retrieved September 23, 2026.
  10. National Low Income Housing Coalition. Out of Reach 2026: Washington. Retrieved September 23, 2026.
  11. U.S. Census Bureau, Population Division. Vintage 2024 National and State Population Estimates. Retrieved September 23, 2026.
  12. U.S. Bureau of Labor Statistics. Local Area Unemployment Statistics (LAUS), All States, Seasonally Adjusted. Retrieved September 23, 2026.

Important disclosures

Illustrative range for installment loans in Washington: APRs from 5.99% to 25%, where the state APR cap is 25%. This range is not a quote; each lender sets its own rates. Your APR depends on your credit, income, state and the lender.

  • BadCreditMD is not a lender or broker and does not make loans or credit decisions. When you submit a request, a lending network partner shares it with third-party lenders, and those lenders or the partner may pay us a fee for each referral. The lenders decide whether to offer you a loan.
  • There is no fee to use BadCreditMD. Lenders or our lending network partner may pay us.
  • Lenders set their own rates, fees and terms. Offers depend on your credit, income, state of residence and each lender's criteria.
  • Our service is not available in all states, and not every loan type is available in every state.
  • By submitting a request you consent to lenders checking your credit, which may affect your score, and to your information being shared with them.
  • Submitting a request does not mean you will be approved or funded, or that you will receive any particular amount or rate.
  • Short-term loans are costly and are not a long-term financial solution. Borrow only what you can repay on time.
  • BadCreditMD publishes general information about loans and state rules. It is not legal or financial advice.
  • BadCreditMD is operated by BadCreditMD, LLC, 30 N Gould St Ste N, Sheridan, WY 82801. Contact: pr@badcreditmd.com. Full details are on our disclosures page and disclaimer.
  • Questions about a lender licensed in Washington? Contact the Washington State Department of Financial Institutions (DFI) or file a state complaint.
  • You can submit a complaint about any lender to the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.