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Payday loan alternatives in Delaware
11 options to consider if you're trying to avoid the high cost of short-term loans.
Have less-than-perfect credit and need cash fast, but don’t want to take out a notoriously expensive payday loan? You have other options to consider — from low-cost credit union loans to financial assistance programs offered by the state and federal government.
3 Delaware credit unions that offer payday loan alternatives
Many federal credit unions offer payday alternative loans (PALs) to borrowers looking to avoid the excessive fees that come with traditional short-term loans. Regulated by the National Credit Union Administration (NCUA), they come with APRs capped at 28%. You can usually apply in person, though more high-tech credit unions might even let you apply online. PALs may have lower rates than most short-term loans, you typically need to be a member of the credit union for at least six months to qualify.
Here are a few credit unions in Delaware that offer some type of alternative to payday loans:
| Federal credit union | Locations in Delaware | Loan amounts | APRs | Loan terms | Eligibility requirements |
|---|---|---|---|---|---|
| Del-One Federal Credit Union |
Plus, over 5,000 shared credit union branches throughout the US | $250 to $1,000 | 28% — including a $20 application fee | Up to 6 months |
|
| Community Powered Federal Credit Union |
| Not stated | Starting at 7.5% | Up to 12 months |
|
| Tidemark Federal Credit Union |
Plus, over 5,000 shared credit union branches throughout the US | Up to $500 | 0% — but charges a $30 application fee | Up to 6 months |
|
Take a deeper dive into how PALs work
8 resources and programs for Delaware residents
If you’re consistently relying on short-term loans to cover day-to-day expenses, consider looking into financial assistance programs offered to Delaware residents. Find out if you qualify for any of these programs by filling out just one online application on the Delaware ASSIST website.
1. Long-term care through Medicaid
- What it provides: Financial assistance for long-term care
- Who’s eligible: Elderly individuals or those with a disability who meet specific financial and medical eligibility criteria
Through three Medicaid programs, Delaware residents who meet specific financial and medical criteria can get help covering the cost of long-term care. Qualifying residents might include elderly individuals and those living with a disability.
2. Medical assistance through Medicaid
- What it provides: Financial assistance for healthcare expenses
- Who’s eligible: Low-income families, elderly residents or those living with a disability
Low-income families, individuals living with a disability and elderly residents of Delaware might qualify for help covering healthcare expenses. Funded through Medicaid, this federal program offers financial assistance for everything from doctor visits and lab testing to prescription drugs and transportation costs to get to medical appointments.
3. Supplemental Nutrition Assistance Program
- What it provides: Financial assistance to buy groceries
- Who’s eligible: Low-income individuals and families
Funded by the federal government, the Supplemental Nutrition Assistance Program (SNAP) provides low-income individuals and families with a Delaware Food First card to buy groceries. Funds are automatically loaded onto your card each month, which you can then use to purchase food at your local grocery store. You can find out if you qualify based on your household size and income on the Delaware Social Services website
4. Temporary Assistance for Needy Families
- What it provides: Cash assistance for basic needs for up to three years
- Who’s eligible: Low-income parents, individuals taking care of children they’re related to, women in their ninth month of pregnancy and 18-year-old high school students who plan on graduating before turning 19
Another federal program, Temporary Assistance for Needy Families (TANF) provides cash assistance for up to three years to qualifying individuals actively looking for a job. To be eligible, you need to work or participate in work-related activities for at least 30 hours a week. How much funding you receive depends on your income and family size. However, you’re able to deduct things like work expenses and childcare from your income to increase your odds of qualifying. You can find out how much you might qualify for on the Delaware Social Services website.
5. Childcare assistance
- What it provides: Financial assistance to cover the cost of child care
- Who’s eligible: Low-income families with children under the age of 13
Low-income families struggling to cover the rising cost of child care might qualify for assistance through the Delaware Division of Social Services. Income limits are currently set at 185% of the Federal Poverty Level for your household size.
6. National School Lunch Program
- What it provides: Free or reduced lunch to children
- Who’s eligible: Children from low-income families, as well as foster, homeless, migrant or runaway children
This federal program offers free or reduced lunch to qualifying Delaware children attending a public school, nonprofit private school or residential childcare institution. Your child is automatically eligible if you receive SNAP benefits or if they qualify as a foster, runaway, homeless or migrant child.
7. Delaware Energy Assistance Program
- What it provides: Financial assistance to pay energy bills
- Who’s eligible: Low-income individuals and families
Funded by the federal government, the Delaware Energy Assistance Program (DEAP) offers financial assistance to low-income individuals and families struggling to pay to heat or cool their homes. Income limits are currently set at 200% of the Federal Poverty Level for your household size.
8. Food Bank of Delaware
- What it provides: Low- and no-cost food; job training to fill positions in the food, warehousing and agricultural industries
- Who’s eligible: Low-income individuals, elderly residents, single-parent families, children or adults with a disability, unemployed or underemployed individuals, adults who were previously incarcerated, adults in recovery
This nonprofit agency works in partnership with Feeding America to fight hunger across Delaware. Through its network of community-based agencies, it offers food and job training to a variety of residents struggling with hunger and poverty.
Consider an installment loan instead
If you’ve decided to get a short-term loan, consider these installment loan providers that offer loans with longer repayment terms than a typical payday loan.
Updated February 19th, 2020
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Bottom line
Payday loans can be appealing, especially if you have a poor credit score. But they can leave you trapped in a cycle of debt due to their ridiculously high fees. Instead, you might want to consider taking out a short-term loan from a credit union or applying for assistance through one of the many programs available to Delaware residents.
Explore even more ways to avoid the high costs of typical short-term loans with our guide to payday loan alternatives.
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