The unemployment rate in Delaware stood at 5.1% in 2015. Today, more and more residents of the state are turning to payday loans when they need financial assistance. Delaware payday loans laws have gone though a few changes through the years.
Delaware was discovered in 1609 by Dutch sailor Henry Hudson. In 1664, England took over the region and in 1704, in the American Revolution, Delaware fought as an independent state. In 1787, it became the first state to ratify the Constitution. Even though it was a slave state, Delaware did not secede from the Union in the Civil War.
Delaware is known for its huge chemical industry. The state manufactures medical supplies, vulcanized fiber, paper, textiles, metal products, machine tools, machinery and automobiles. Delaware is also a pioneer in the US food-canning industry, producing soybeans, corn, potatoes and other important crops. The state also supplies the big Eastern markets with fish and dairy products.
Delaware is the second smallest state in the United States and it is the 6th least populous state in the country with a population of close to 945,934.
What is a payday loan?
A payday loan is a short-term loan and is also called a cash advance. The loan is given for a short period of time and must be repaid by the time the borrower receives his next paycheck.
Delaware payday loans laws regulations
As of today, payday loans in Delaware are legal according to Del. Code Ann. tit. 5 § 2227 et seq. Under the small loan act and licensing law, payday loan lenders are considered legal businesses in Delaware.
In Delaware, borrowers are required to provide a thumbprint along with their actual signature when signing a loan contract. The reason behind the introduction of this requirement was to protect its residents from dishonest payday loan lenders. That measure proved to be very effective as it reduced the number of fraud cases rates by 60%. The thumbprint is required from borrowers with any type of loan application – whether it is applied via the phone, in person or online. In Delaware, you are not allowed to get a loan if you have already exceeded the limit of 5 short-term loans in the last 12 months. In Delaware, there is a minimum repayment term of 60 days and lending companies cannot require the repayment to be made before that. Borrowers in Delaware are allowed up to 4 rollovers on each loan they have taken out. Another option is taking title loans in Delaware.
Payday loans in Delaware fees and charges
Delaware payday loans laws are pretty different from other states when it comes to APR, fees and charges. There are no exact limitation a lending company should follow. That way, they can decide how much to charge their clients and in what form.
Lending companies can require interest to be paid at a daily, weekly, monthly or annual percentage rate. There is no limit to how much a lending company can charge you. All terms and conditions must be agreed with the borrower, which makes every lending contract unique. The maximum loan amount a borrower can take out in Delaware is $500 and a borrower is not allowed to take out another loan before he repays his current one.
Why taking out a payday loan in Delaware may work in your favor?
Taking out a payday loan can have a positive effect on your financial stability as it comes with lots of benefits:
Bad credit is not an issue
While traditional banks will most likely crush your hopes of getting financial assistance if your credit score is bad, with payday loans, having bad credit can cannot stop you from getting the money you need. This makes the service a first choice for many borrowers who do not have a good credit rating.
Get your money fast
The service of payday loans is extremely fast as you get hold of your money within a few hours after your application. If you decide to apply for your loan online, it can take up to one business day for you to get your cash.
More than one option
If you want to apply for a payday loan and you are looking for a payday lender’s store near your home or your workplace but you can’t find one, you actually have the option to submit your application online. So whether you want to visit an on-ground store or submit your application online from the comfort of your home is entirely up to you.
Application requirements for a payday loan in Delaware
As mentioned above, payday loans are a fast and simple service. While payday loan lending companies do not require much documents to give you a loan, there are still some requirements you have to meet:
- You must be at least 18 years old to apply for a payday day
- You need to have an American citizenship or be a permanent resident of the United States
- You need to have a steady stream of monthly income
To complete your application successfully, you should provide more information such as:
- Your social security number, name, and date of birth
- Phone number, home and email address
- Details regarding your employment and income
Cities in Delaware where you can find payday loan lenders:
- New Castle
- Rehoboth Beach