If you are thinking about getting a cash advance, then you should know about the laws in your state. Some states have very strict laws, whereas other states are much more lenient. To help you give you an idea of what your rights are and what you should expect, here are some of the critical cash advance loan laws in Washington.
Size of the Loan
Your first concern is often going to be the size of the loan. You want to make sure that you can get the money that you need, while simultaneously making sure that you do not take too much.
In Washington, the size of the loan will be subject to two limitations: a flat amount ($700) and a percentage of your monthly income (30%). The lower of the two values will be used, which means that you will not be able to take out more than 30% of your monthly income, unless you make over $2333 per month, at which point the cap will rest at $700.
Duration of the Loan
The length of the loan is also extremely important, and Washington has pretty clear restrictions in place for this category as well.
Firstly, there is a minimum length on the loan. The repayment date must be your next payday, unless that payday is less than 7 days away. In that case, the repayment date must be the payday after.
Secondly, the maximum length of such a loan is 45 days from the date that the loan was taken out. This can be extended, but only if both you and the lender formally agree to an extension.
Fees on the Loan
There are also two key numbers that you need to know when it comes to fees: 15% and 10%.
For the first $500 of your loan, you can be charged up to 15% in fees. If you take out a loan for $400, then the lender has the right to charge you up to $60 for the loan.
For any money over $500, you can only be charged up to 10%. If you were to take out a loan for $600, then you will be charged $85 (15% of the first $500 is $75 and 10% of the remaining $100 is $10).
This may be a compelling reason to get a loan over $500, but you should also remember that the maximum size of a loan is only $700 in the best case scenario. If you make less than $1667 per month, then you can't even take out more than $500 in a single loan, so you would not be able to benefit from the reduced fees on loans larger than $500.
To learn more about loans, click the link or do an online search.