Key takeaways
- Payday loans in Delaware are a quick way to access funds but often come with high fees and short repayment periods.
- Delaware installment loans provide more flexibility with longer repayment terms, making them easier to manage.
- Always weigh your options and have a repayment plan in place before you sign an agreement.
Payday loans in Delaware offer a quick solution when you need a little extra to carry you through till your next pay date. Whether you have medical bills or unexpected expenses, a payday loan can help you out of a tight spot. They provide fast access to emergency cash and are easy to qualify for but can be costly.
If you’re considering borrowing money, it’s essential to explore all your financing options so that you can find the best one for you. Let’s go over different types of Delaware loans, their costs, and benefits so you can make an informed decision.
Jump to:
- Payday & installment loans in Delaware
- Are installment loans the same as payday loans?
- How many loans can you have at a time?
- Can installment loans be paid off early?
- Where can I apply for a loan in Delaware?
- Do installment loans in Delaware impact my credit score?
- Alternative borrowing options
- Bottom line
Payday & installment loans in Delaware
Delaware personal loans for bad credit are typically either a payday loan or an installment loan. Both can come with fast funding and lenient requirements – ideal when you need cash fast. The main differences are the repayment schedule and amounts.
Payday loans Delaware details
Delaware payday loans, also known as payday advances or cash advances, offer borrowers flexibility and fast access to cash. Lenders do not require a credit check and instead rely on the consumer’s next paycheck for funding.
You can write a personal check for future deposit or allow electronic access to your bank account. If you decide to write a check, it will be for the borrowed amount along with the finance charge. The lender will hold onto the check until your next pay date when the funds are due.
For repayment, you can either visit in-person with cash or allow the lender to deposit your check. If you cannot pay as agreed, you can rollover a cash advance in Delaware up to four times. Rolling over an advance extends the due date but adds on fees and interest, increasing the total cost of borrowing.
Delaware law allows loans of up to $1,000, with loan terms that must not exceed 60 days. Borrowers can repay the advance in one lump sum with their next paycheck or over two monthly installments. While this flexibility can be helpful, it’s important to note that Delaware places no limits on finance charges, annual percentage rate (APR), or fees, which means that advances can be expensive. Pew Charitable Trusts calculated that lenders charge APRs over 300% for payday installment products.
To protect consumers, Delaware requires lenders to be licensed under the Small Loan Act or Licensing Law. State law also gives borrowers the right to negotiate a repayment plan, known as a workout agreement. The agreement should permit the borrower to make equal monthly or weekly payments for a minimum of 90 days. The lender cannot charge additional fees or interest once the loan has been converted into this plan.
Interested in borrowing but concerned about costs?
Delaware installment loan details
An installment loan works a bit differently. They are usually for larger amounts and do not rely on your paycheck. Instead, the lender will do a credit check and consider your income, employment history, debt-to-income ratio, and other factors to decide if you’re approved and with what terms.
If your application is approved, the funds will be deposited in your account. It takes one to three business days for the transaction to complete. You will make payments over a few months to a few years. You pay a set amount, including interest and fees, either monthly, weekly, or biweekly in accordance with the payment schedule.
If you have less-than-perfect credit, you will still be able to find lenders. Most will charge you a higher APR and additional fees. For example, you can secure $1,500 online with a poor score, but the APR is almost 300% – equivalent to what payday lenders charge.
Online installment loans could be the right choice if you need a larger amount and want a longer repayment term.
Looking for a little bit more?
Are installment loans the same as payday loans?
No, they are distinct forms of borrowing. Installment loans are for larger amounts with longer repayment terms. You make regular monthly payments over a few months to a few years. They are generally a less expensive form of borrowing.
Payday loans are short-term and usually require repayment in full by your next paycheck. They are very easy to qualify for. You can usually borrow money with a paystub, active bank account, and your thumbprint.
In Delaware, you can get a payday installment loan online. These payday advances are repaid over two months rather than two weeks. The longer repayment period makes it easier to repay on time. Like other payday loans in Delaware, there’s no credit check. The lender relies on your upcoming paycheck for approval.
New
How many loans can you have at a time?
There is no set number of personal loans you can have at one time. You can have a mortgage, auto loan, student loan, and installment loan all at once. Some lenders may allow you to take out multiple loans if you meet their eligibility requirements, such as having sufficient income and a good repayment history. Other lenders may limit you to one personal loan at a time to reduce the risk of default.
Delaware state law limits the number of payday advances you can have at a given time to five. Additionally, you can take out a maximum of five advances during a 12-month period.
It’s essential to consider your ability to manage multiple loans before taking on more debt. Balancing several payments can become overwhelming, especially if you’re already dealing with high-interest credit products. Always review your financial situation, terms and conditions to avoid falling into a debt cycle.
Can installment loans be paid off early?
They can generally be paid off early. Paying your lender back early can reduce the total cost of borrowing and can be a smart financial move.
That said, it’s a good idea to first check your loan agreement. Your lender may charge a prepayment penalty for paying the money back early. This penalty lets the lender recoup the interest they would have earned.
Need cash fast?
Where can I apply for a loan in Delaware?
There are plenty of lenders operating in Delaware. You can visit a traditional bank, credit union, or online lender. Credit unions tend to offer installment loans to members with more lenient requirements. If you’re not a member of a credit union, an online loan marketplace can be a good option. It usually only takes a few minutes to complete the application process. The marketplace then connects you with multiple lenders willing to work with you. You choose the direct lender who offers the best deal. It’s a good way to prequalify and view potential offers without submitting multiple applications.
Before you choose a lender, make sure that they are licensed to work in the state. Visit their website and make sure they are secure before you submit a request online. You should also check their ratings and reviews on sites like the Better Business Bureau and Consumer Affairs. This lets you see what previous customers have to say and how they’ve handled complaints in the past.
How to apply for a loan
To be eligible for a personal loan, you will need the following:
- Be at least 18 years old
- Be a US citizen or permanent resident
- Reside in Delaware
- Have a verifiable source of income (paystub from current employer or direct deposit slip)
- Recent bank statement
- Government-issued identification
- Active checking account or debit card
- A phone number and a valid email
Not all lenders require everything listed, and some have more lenient criteria than others. For instance, some lenders will accept other sources of income, such as child support, alimony, or government benefits.
Most lenders will send the funds within one business day. It can take up to three days for banks to process the transaction.
Do installment loans in Delaware impact my credit score?
If a loan impacts your credit score depends on whether your lender conducts a hard inquiry and reports payments. Most payday lenders do not do a hard check, so taking out a payday installment loan won’t impact your score. On the other hand, submitting an application with a credit union, bank, or other installment loan lender will temporarily lower your score. This is because they will conduct a hard inquiry. Each hard inquiry lowers your credit score by a few points.
The next factor is whether your lender reports payments to the three credit bureaus—Equifax, Experian, and TransUnion. Once again, most payday lenders will not, while banks and credit unions will. If your lender reports payments, it’s not necessarily bad for your score. When you make payments on time, your score goes up—on-time payments are the biggest credit scoring factor. Miss a payment or make one late, and your score will go down.
Finally, there’s the issue of what legal steps your creditor can take if you fail to pay. Like banks and credit unions, payday lenders can report your account as delinquent and sell it to collection agencies. Having a delinquent account will negatively impact your score.
Overall, a payday advance will not affect your score – as long as you pay your account. An installment loan, though, will likely affect your score. Repay it responsibly and your score will go up.
Alternative borrowing options
You have plenty of ways to secure funds when you’re facing financial difficulties. Below are a few options to think about:
- Credit card cash advance: You withdraw cash up to your credit limit from an ATM or bank teller. There is no application process and no waiting. Be aware that the bank charges a fee, the APR is higher than for regular credit card purchases, and interest accrues immediately.
- Cash advance app: You connect your checking account with the app, and they determine how much to lend you, from $20 up to $500. There is no credit check, no interest, no application form, and few fees. You typically receive the funds within one business day, but it can take up to three days for the cash to hit your account.
- Buy now, pay later app: These apps are a little bit different. They let you make purchases and pay for the item over four installments. There are usually no hard inquiries, no interest charges, and no fees if you pay as agreed.
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Frequently asked questions
1. How can I borrow money instantly online?
You can apply for a payday advance or cash advance via an app. Most cash advance apps send you money as soon as you request it for a small fee.
2. Are payday loans legal in Delaware?
Payday advances are legal in Delaware. They are regulated by state law, but the regulations are slim. The maximum amount you can get is $1,000, and the maximum repayment term is 60 days. There are no limits on interest rates or financing charges. Borrowers can have up to five advances at a time and may rollover a payday loan four times at most.
3. Where is the easiest place to get a short-term loan online?
The easiest is an online loan marketplace. You submit one form, and they connect you with multiple lenders. You then can compare offers and choose the one that’s best for you.
Bottom line
When considering borrowing in Delaware, it’s essential to weigh your options. Short-term payday loans offer fast access to cash, but they often come with high fees that can lead to financial strain. Online installment loans are usually more manageable but can still be costly.
Take the time to explore alternatives like cash advance apps or borrowing from credit unions, which can offer lower interest rates and more flexible terms. Always review the loan term carefully and consider how much you can realistically repay on time to avoid falling into a cycle of debt.
By taking the time to carefully review your options, you can find a way to borrow no matter your personal finances. The right loan can help you meet your immediate financial needs without hurting your long-term financial health.
