Payday Loans in Mansfield, Washington
Payday loans are small dollar loans that are typically repaid on the borrower’s next payday. They are designed to help people get through unexpected financial emergencies, such as a car repair or medical expense, when they don’t have enough cash on hand. Payday loans are legal in Mansfield, Washington, but lenders must have a small loan license to operate in the state.
How Payday Loans Work
Payday loans are relatively easy to obtain. Typically, a borrower only needs to provide proof of income, an ID, and a checking account. The lender will then provide the borrower with cash upfront, and the borrower will agree to repay the loan plus interest and fees on their next payday.
Payday loans are usually due within two weeks of the initial loan, but they can be extended for a fee. In some cases, borrowers may take out another loan to cover the first one, resulting in a cycle of debt.
Interest Rates and Fees
In Mansfield, Washington, payday lenders are limited to charging no more than 15 percent for the first $500 borrowed, and then 10 percent for any amount above $500. For example, if a borrower takes out a $400 loan, the maximum finance charge they can be charged is $60.
In addition to interest, payday lenders may charge fees for check cashing, loan processing, and loan renewal. These fees can add up quickly and make the loan more expensive than anticipated.
Benefits of Payday Loans
- Quick access to cash
- No credit check required
- No collateral needed
- Easy to qualify for
Drawbacks of Payday Loans
- High interest rates and fees
- Short repayment period
- Potential for cycle of debt
- No benefit to credit score
Interesting Facts about Payday Loans in Mansfield, Washington
- As of 2016, there were more payday lenders in Washington than there were McDonald’s restaurants.
- The average payday loan borrower in Washington takes out eight loans per year.
- Payday lenders in Washington collected an estimated $158 million in fees in 2017.
Apply Now
If you’re in need of a payday loan in Mansfield, Washington, TheGuaranteedLoans can help. We are a connector service that can help connect you with potential lenders. Fill out our online application today to get started.
Please note that TheGuaranteedLoans is not a direct lender and does not make lending decisions. We simply facilitate the connection between borrowers and lenders.