Washington Payday Loan – 4 Questions To Ask Yourself
Washington State
Do you live in Washington and need cash now? If you’ve been looking online for information about short-term loans and cash advances you’re probably more confused now that when you started. State payday loan laws vary greatly from state to state. Some states have very strict limits on the amount you can borrow and the rate of interest you can be charged while other states have virtually no limit to how much you can borrow or be charged in interest and fees.
To help you consider whether or not a Washington payday loan is right for you, we’ve put together a list of the following 4 things you need to ask yourself.
How Big Of A Payday Loan Can I Get in Washington?
Or, more appropriately, how big of a payday loan should you get? In Washington the maximum cash advance limit is $700.00, but that doesn’t mean you should take that much if you only need $300.00. Remember, a payday loan is convenient, but you have to pay it back with interest so only borrow what you need.
What Are The Washington Payday Loan Terms and Limits?
There is a 45 day limit to the amount of time a payday lender can schedule. The interest on loans in Washington can be confusing because there can be two different rates applied to loans over $500.00. There is a 15% rate for all money borrowed up to $500 and 10% for all money above $500 up to the $700 limit.
For example, I need to borrow $600.00. The first $500.00 has an interest rate of 15%, so the re-payment fee for the first $500.00 is $75.00. The $100 I borrow on top of that has a 10% rate, so the re-payment fee is $10.00. The total re-payment fee is $85.00 on top of the $600.00 I borrowed.
Total borrowed amount: $600.00
$15.00 fee for each $100.00 up to $500.00. $15.00 x 5 = $75.00
$10.00 fee for each $100.00 over $500.00. $10.00 x 1 = $10.00.
Total fees= $75.00 + $10.00 = $85.00 fees
Total repayment: $600.00 + $85.00 fees = $685.00 total repayment.
How Many Payday Loans Can I Get?
You are allowed to take out several payday loans, but the total amount you borrow cannot be great than $700.00 from a single payday loan company. Again, just because you are allowed to get that much you should never borrow more than you can pay back by your next paycheck.
What Happens If I Can’t Pay It Back At All?
In many cases if you have trouble paying it back, you and the lender may enter in a voluntary payment program. If you’ve taken out four successive payday loans and you default on the last loan, you have a right to convert a small loan to a statutory payment plan.
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