What a loan can cost in Washington
Examples at an illustrative rate, never above Washington's cap for the amount. They are 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 help in Washington, each with its official link and the date we checked it.
Lending regulator and complaints
Washington State Department of Financial Institutions licenses lenders in Washington.
Check a lender's license File a complaint
dfi.wa.gov Checked September 23, 2026
Attorney general consumer protection
Takes complaints about scams and unfair debt collection.
atg.wa.gov Checked September 23, 2026 Available in Spanish
211
Help with rent, utilities, food and other urgent bills.
wa211.org Checked September 23, 2026
Legal aid
Free civil legal help if your income is low; income limits vary.
nwjustice.org Checked September 23, 2026
Nonprofit credit counseling
Help with a budget or a debt management plan.
nfcc.org Checked September 23, 2026
Benefits portal
Check whether you qualify for food, cash or other benefits in Washington.
dshs.wa.gov Checked September 23, 2026 Available in Spanish
Federal complaints
Complaints about any lender, to the Consumer Financial Protection Bureau.
Submit a complaint to the CFPB
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.
- 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.
- Credit-builder loans: a small loan held in savings while you pay it off, which can help build a payment history.
- Secured credit cards: a card backed by a deposit you make, which can help build credit when you pay on time.
The rules lenders follow in Washington
Each rule links to its source. How we research state rules.
Allowed in Washington: installment and personal loans and payday loans. Not allowed: title loans.
| Product | Status | APR cap | Amount | Term | License | Law |
|---|---|---|---|---|---|---|
| Installment and personal loans[1][2][3][4] | Allowed | 25% APR | Not set by statute | Not set by statute | Consumer loan company license | 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] | AllowedHigh-cost loan | Fee cap | Up to $700 | Up to 45 days | Small loan / check casher-seller license | 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.
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.
Rent and jobs in Washington
Typical rent and the jobless rate, to weigh before a loan payment.
Guides for Washington borrowers
Check your options in Washington
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.
Nearby states
Sources
- app.leg.wa.gov. RCW 31.04, esp. RCW 31.04.105. Retrieved September 23, 2026.
- dfi.wa.gov/financial-education/information/usury-law. Retrieved September 23, 2026.
- dfi.wa.gov/financial-education/information/exceptions-usury-law. Retrieved September 23, 2026.
- dfi.wa.gov. Washington State Department of Financial Institutions (DFI). Retrieved September 23, 2026.
- Justia. law.justia.com/codes/washington/2005/title31/31.04.025.html. Retrieved September 23, 2026.
- app.leg.wa.gov. RCW 31.04, esp. RCW 31.04.105. Retrieved September 23, 2026.
- app.leg.wa.gov. RCW 31.45.073. Retrieved September 23, 2026.
- dfi.wa.gov. Washington State Department of Financial Institutions (DFI). Retrieved September 23, 2026.
- dfi.wa.gov/complaints/payday-loan. Retrieved September 23, 2026.
- National Low Income Housing Coalition. Out of Reach 2026: Washington. Retrieved September 23, 2026.
- U.S. Bureau of Labor Statistics. Local Area Unemployment Statistics (LAUS), All States, Seasonally Adjusted. Retrieved September 23, 2026.
Important disclosures
APRs vary by lender and state in Washington. Each lender sets its own rates and terms and must show you the APR before you sign.
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- 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.