Loan Rates and Fees in Washington
Page last reviewed: March 27, 2026 · Reviewed for accuracy by LendUp
Payday Loan Costs in Washington
A licensed lender can charge up to 15% on the first $500 borrowed and 10% on any amount above $500, labeled "finance charge" on your agreement, on loans up to $700 (or 30% of gross monthly income, whichever is less), with terms of up to 45 days; your total outstanding payday balance across all lenders is tracked through a statewide database.
On a $300 loan due in 14 days, the maximum fee is $45, making your total repayment $345; your agreement will show roughly 391% APR - that's the 14-day fee scaled to a full year, as required by federal disclosure rules.
- Rollovers are prohibited - a lender can't extend or renew your loan for an additional fee.
- The returned payment fee - labeled "NSF fee" on your agreement - is capped at $25 per failed attempt.
- A database verification fee of up to $5 may appear as a separate line item.
If an offer exceeds these limits, verify with the Washington Department of Financial Institutions (DFI).
Installment Loan Costs in Washington
Licensed installment lenders operate under the Consumer Loan Act using a tiered declining-balance (simple interest) model - you pay interest only on what you still owe.
| Portion of Loan Balance | Maximum Monthly Rate | Annual Equivalent |
|---|---|---|
| First $500 | 2.5% | 30% |
| $500.01–$2,000 | 1.5% | 18% |
| Above $2,000 | 1.0% | 12% |
A separate origination fee on top of these rate caps is not permitted.
On a $1,000 loan repaid over 12 months, you'd repay approximately $1,150 total - roughly $150 in interest (blended across the two tiers) plus $1,000 in principal.
- Refinancing restarts interest on the new amount - compare your remaining balance to the new loan's total of payments before you agree.
- The same $25 returned payment fee cap applies - see payday loan costs above.
- Late fee cap and grace period: no specific state cap is set by statute - confirm the exact amount with the Washington DFI before you sign.
- You can prepay at any time with no penalty - interest stops accruing on the date you pay off the balance; see the installment loans page for repayment details.
If an offer exceeds these limits, verify with the Washington DFI.
What to Check on Your Offer
- Finance charge: can't exceed 15% on the first $500 and 10% above $500 (max $95 on a $700 loan).
- APR: on a 14-day $300 loan, roughly 391% - the short-term fee scaled to a year, not a separate charge.
- Database verification fee: can't exceed $5 as a separate line item.
- Interest rate: must stay within 30% annual on the first $500, 18% on $500.01–$2,000, and 12% above $2,000.
- Origination fee: should not appear as a separate charge - it's included in the rate cap.
- Late fee: no state statutory cap - ask the lender for the exact amount before you sign.
- Returned payment fee: shouldn't exceed $25 per failed attempt on either product.
- Total of payments: add up every scheduled payment to confirm it matches the "total of payments" line on your agreement.
- Military/MLA: if you're an active-duty service member or dependent, federal law caps your cost at 36% APR - confirm the lender has verified your status.
Official Sources
- Washington DFI - Payday Lending Consumer Information
- RCW 31.45 - Check Cashers and Sellers Act (Payday Lending Statute)
- RCW 31.04 - Consumer Loan Act (Installment Lending Statute)
- Washington DFI - License Search
Rules can change - confirm with the Washington Department of Financial Institutions if an offer doesn't match what's shown here.