Yes, you can get a payday loan in Delaware. According to 5 Del. C. §978, 5 Del. C. §2227 et seq. and 5 Del. C. §2744 of the Delaware Code, payday lending is permitted in the Delaware State. Delaware laws simply require borrowers to provide both their signature and thumbprint when signing the loan agreement.
So those looking to borrow money across Delaware, can get fast cash in locations such as Bethany Beach, Lewes and Wilmington to name a few. Customers can find funds at both payday lending stores and online platforms, with many financial products available including no credit check loans and same day loans too.
Nevertheless, there are payday lending rules and regulations in place that restrict the autonomy borrowers have when taking out a loan. This intends to protect customers from predatory lending and excessive charges, and will be discussed further in this guide.
What Are Payday Loans?
Payday loans are short term loans that help borrowers in need of urgent funds. They are intended to provide a quick influx of cash to help tide over customers until they receive they next paycheck on their upcoming payday, when they are then expected to repay back the loan.
Reasons people may need to take out a payday loan include include due to unexpected medical fees, pet bills, dental costs, house renovations or car repairs. Payday loans typically last 2 to 4 weeks, however there are options to borrow money for a longer period of time.
Customers must only take out a payday loan if they are certain they will be able to afford the monthly repayments. If they fail to pay back the loan on time, they could face extra fees or charges and a damage to their credit rating. Borrowers could also be subject to collection actions from the lender if they fail to meet the terms of their loan agreement so those thinking about applying for a payday loan must consider whether it is the right option for them.
What Are The Payday Lending Regulations In Delaware?
Rules and regulations exist in Delaware, including the highest loan amount that can be taken out and the maximum number of rollovers allowed. Delaware’s laws and legislations are summarized in the table below:
|Is Payday Lending Legal?||Yes|
|Maximum Loan Amount||$1000|
|Minimum Loan Amount||Not specified|
|Maximum Loan Term||60 days|
|Minimum Loan Term||Not specified|
|Interest Rate (APR)||521%|
|No. of Rollovers Allowed||4|
|Finance Charges||No restrictions|
|Statute of Limitations||3 years since the last payment|
|Database Loan Tracking||Yes|
What is The Maximum Loan Amount For Payday Loans In Delaware?
The maximum amount of loan that a customer can borrow in Delaware is $1000. No additional loans are allowed to be taken out until the previous one has been paid back. The maximum repayment term is 60 days which means payday lenders do not have the right to require repayment before this term. Whilst 4 rollovers are allowed for every borrower on each loan, no more than 5 loans are allowed over a 12 month period.
What Is The Borrowing Criteria For Payday Loans In Delaware?
To be eligible for a payday loan in Delaware, borrowers must be US citizens who are at least 18 years of age. Those who are employed, self-employed, pensioners and more can qualify for a payday loan providing that they earn or receive a regular income of approximately $500 to $800 per month.
Loan applicants must have a live checking account for the payday loan money to be sent to. Whilst most payday lenders will run a credit check to determine the borrower’s financial status, it is possible to borrow a no credit check loan, although this may have higher interest or stricter repayment terms to compensate for the larger level of risk involved.
Where Can You Get A Payday Loan In Delaware?
You can get a loan from anywhere in Delaware, both from payday loan stores or online. Locations include:
- Long Neck
- New Castle
- North Star
- Pike Creek Valley
In Which Other US States Can You Get A Payday Loan?
There are 37 US states where residents can borrow a payday loan today. This includes Alabama, Colorado, Illinois, Indiana, Florida, Kentucky, Oklahoma, Ohio, Oregon, Tennessee and Texas. You can also borrow a payday loan in California, Montana, Nebraska and Nevada, as well as Rhode Island, South Carolina and Utah.
Payday loan products, both online and in-store, are currently illegal in 13 states. Arizona, Arkansas, Connecticut, New Jersey, New York and West Virginia are examples of states where payday lending is prohibited.
Justine is a full-time writer with lots of expertise and a wealth of experience in the financial world. In particular, she specializes in household income and consumer finance across the United States. Follow her articles for useful advice and top tips, guides on how to save money and lots more.