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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.

Updated

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 unionLocations in DelawareLoan amountsAPRsLoan termsEligibility requirements
Del-One Federal Credit Union
  • Dagsboro
  • Downtown Dover
  • Georgetown
  • Middleton
  • Milford
  • Newark
  • New Castle
  • Seaford
  • Smyrna
  • West Dover
  • Wilmington

Plus, over 5,000 shared credit union branches throughout the US

$250 to $1,00028% — including a $20 application feeUp to 6 months
  • Not stated
Community Powered Federal Credit Union
  • Bear
  • Newark
  • New Castle
  • Wilmington
Not statedStarting at 7.5%Up to 12 months
  • Not stated
Tidemark Federal Credit Union
  • Lewes
  • Long Neck
  • Milford
  • Millsboro
  • Seaford
  • Selbyville

Plus, over 5,000 shared credit union branches throughout the US

Up to $5000% — but charges a $30 application feeUp to 6 months
  • Not stated

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.

        Data indicated here is updated regularly
        Name Product Filter Values Max. Loan Amount Turnaround time Requirements
        Fast5kLoans Short-term Loans Connection Service
        $35,000
        As soon as the next business day
        Regular source of income, verifiable bank account, US citizen, ages 18+
        Get connected with multiple lenders you might qualify with — even if you have bad credit.
         Check Into Cash Installment Loans
        $3,000
        1 to 2 business days
        Bank account, email address, phone number, US citizen or permanent resident, ages 21+, $3,500 minimum income in California
        Borrow money with lower payments and more time to pay than a traditional payday loan.
        OppLoans Installment Loans
        $5,000
        1 business day
        Direct deposit, meet minimum income requirements, live in eligible state
        Comes with the option to change your due date so you won’t fall behind on repayments.
        LendYou Short-term Loans
        $15,000
        Same business day to 1 business days
        $1,000+ monthly income, direct deposit, US citizen or permanent resident, ages 18+
        Get offers from potential lenders in minutes by filling out just one online form.
        Possible Finance Mobile Installment Loans
        $500
        As fast as 1 business day
        Checking account with 3+ months of banking history, $750+ monthly income, live in eligible state, ages 18+
        Borrow up to $500 with just a few swipes — but only for residents of 5 states.
        loading

        Compare up to 4 providers

        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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