Need to learn about the intricacies involved in getting a Delaware short term loan? Find out what you need to know below.
There’s never a good time to run into financial trouble, but if you’re weeks away from your payday it can feel inescapable. If you’re low on funds and need to get to your next paycheck, take care of an emergency cost or even just surprise a loved one with something nice, a short term loan might be a viable option.
Many residents of Delaware turn to short term loans, also known as payday loans, when they need money in a hurry. If you’re thinking about getting one, learn what’s involved first.
Are payday loans legal in Delaware?
Yes, payday loans in Delaware are legal. Delaware Code Title 5 2227 et seq. (the small loans act) governs the functioning of all payday lenders in this state. The maximum you can borrow through a payday loan in Delaware is $1,000.
You cannot get a payday loan if you exceed the limit of five short-term loans in any 12-month period. This includes instances of refinancing and loan rollovers. As a borrower you have the right to rescind a payday loan before the end of the business day that follows when you receive funds.
A selection of loans you could apply for
Check the websites of any providers you’re interested in to confirm they operate in your state of residence.
How a Delaware short term loan might help you
Short term loans, payday advances, payday loans and cash advances refer to the same kind of credit. Getting a short term loan in Delaware can work in your favor, provided you know what you’re getting into ahead of time. Here’s why you might think about getting one:
- Bad credit is okay. Seeking conventional credit can be a challenge if you have poor or bad creditworthiness. Short term loan providers assess your immediate financial situation and ability to repay, rather than your credit rating.
- Multiple options. There are plenty of short term lenders in Delaware. While you can locate lenders that have stores, you’ll find many more options online. Remember that not all providers offer the same levels of service or charge the same fees.
- Get money quickly. If you apply at a storefront you can get your hands on the money you need minutes after the lender approves your application, which is a quick process. If you apply online, the funds can be transferred into your bank account on the same day or by the next business day, depending on when you apply.
What fees and charges do Delaware short term loans attract?
- APR. Under state laws, payday lenders in Delaware can charge interest at a daily, weekly, monthly, or annual percentage rate, as agreed upon in the loan agreement. There is no upper limit to the interest a lender can charge.
- Collection fees. A lender can charge reasonable fees for services rendered as well as for reimbursement of expenses. It can charge collection fees only once, and these are limited to 5% of the payment amount.
- Rollover fees. If your lender permits you to defer an installment payment, you may have to pay a deferral charge. Refinancing the loan could result in a refinancing charge. If you rollover your loan, additional fees may apply.
How can I apply for a Delaware short term loan?
You can apply for a Delaware cash advance online or by visiting a store-front. To apply, you’ll have to meet some eligibility criteria, which include:
- You should be at least 18 years of age
- You should be an American citizen or a permanent resident of the US
- You should have a regular source of income
To complete your application successfully, prepare to submit some basic information:
- Your name, date of birth, social security number and a valid form of ID such as your driver’s license or passport
- Your residential address, email address and phone number
- Details about your employment and income
- If you’re applying online, details of your existing checking account
Important information about payday loans
While payday loans can be beneficial for some, they aren’t always the best option for everyone. Follow the link for more information on payday loan alternatives.
Have any more questions about Delaware short term loans?
What is the maximum loan term of payday loans in Delaware?
The maximum loan term for these loans is 60 days.
Is there a limit to the number of times I can rollover a payday loan in Delaware?
Yes, you cannot rollover payday loans in Delaware more than four times.
If I have a complaint about a short term lender in Delaware, who should I contact?
You should get in touch with the Delaware Office of the State Bank Commissioner.