Loan Advice

Can You Have Two Payday Loans at Once?

by Jim Hughes   January 23, 2019

It’s a tricky question as laws vary by state, but here’s some information about getting multiple short-term loans.

Sometimes the need for cash can extend beyond just one payday loan. When that happens, you will likely be better served by a financial product with a longer loan term, as paying off two payday loans on your next pay date may be too much of a strain for your budget.

These type of loans are a huge help to many people. However, it’s possible to have too much of a good thing. State legislation aside, it is unwise to take out more than one short-term loan at a time. (It’s ill-advised to take these types of loans out one after another as well.) Then there is the very real possibility that your state prevents you from borrowing too much through short-term financing.

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Whether or not one can get two payday loans at once depends on the jurisdictions laid down in each individual state. It is good to find out what your state says about payday loans.

What Is A Payday Loan?

To clearly understand whether you can get more than one payday loan at once, it’s good to know the definition of the product. A payday loan also has other names such as salary loan or cash advance. It is a short-term unsecured loan that is paid back on your next pay date. Payday loans help out a lot when you find yourself stranded for cash before your payday is due.

Different lenders have various criteria they use in lending out money. Some lenders will request a current record of employment or previous payroll. Other lenders only require that you have a steady income.

Different regulations govern payday in each state. While some states allow the lenders to provide more than one payday loan, others do away with it entirely. Those states that allow for the provision of multiple payday loans may restrict the amount a lender can give out as payday.

There are requirements that lenders will ask of you when applying for the loan. Of course, you have to be 18 years or older and an American citizen. Some of the other requirements you may need to include:

  • Social security number
  • Valid identification card
  • Details of income or form of employment
  • Your phone number, home address, and birth names

How Many Payday Loans Can You Have Out At Once?

Can you have two payday loans at once? The chances of you getting a second payday loan are relatively low. However, there is a chance that you can get one. The probability depends on the state that you reside in and the lender that you choose.

That said, no lender should give you two loans at once. It reduces the chances that you will be able to pay back the loan, and that is bad for the lender, who does not want you to default. If they are wise, they will deny you in the interest of protecting their business. Some lenders may deny you in the interest of protecting you from taking loans you are unable to pay.

It is possible in some states for you to take out multiple payday loans at once. However, you will have to meet the set criteria to become eligible for the second one. It is critical to note that the requirements for the second payday loan will greatly vary from the first one. The difference is due to the additional risk a lender takes in giving you another payday loan. The second payday loan will largely depend on your ability to pay back the two loans on time. No lender wants to give you money when they know you can’t pay it back. The lenders will have to determine your ability to pay back the loan.

While it is unwise to take out more than one short-term loan at a time, some individuals are sure they can pay back both multiple loans. If it is possible for lenders to provide them with two credits at once, in some cases it may happen. Again, there may be better solutions.

This loans are appropriate for cash boosts for small expenditures and unexpected occurrences. Some people can end up getting into insurmountable debt because they get a second payday loan. In the case that you have a substantial need or a significant financial burden, you may need to seek alternative financing options. You may need to speak to a debt counselor.

If You Owe a Payday Loan, Can You Get Another One?

Two payday loans at the same time.

It is almost impossible for you to receive another payday loan after taking the first one – be it from the same lending agency or another agency. Lenders often know if a borrower is currently using a short-term loan and will automatically deny this applicant until enough time has passed.

In some states, you are only eligible to take out a second payday loan 24 hours after you repay the first one. Before taking out another loan, it is essential to ask yourself a few questions:
1. How many payday loans do I have?
2. Why do I need a second payday loan?
3. Am I in a position to comfortably pay back the payday loans?

If you can answer the above questions well, only then should you take another payday loan. Otherwise, you risk taking on more debt than you can pay off.

Some couples share the same bank account. In such cases, the couple may not be able to borrow more than one loan at a time. One way to avoid this is to use separate accounts. Just make sure you communicate with each other and plan out your budget together. If you are both borrowing, then you can risk running into too much debt.

What if you need a third loan? You should avoid compounding the interest and instead move your previous debt into a new loan with a lower interest rate. Debt consolidation services can help you accomplish this goal.

Jim Hughes   OpenCashAdvance Marketing Manager
Personal Finance
Jim Hughes remembers checking his first email on the original BlackBerry 850 nearly 20 years ago. It was spam, and he fell for it. Even so, he’s been on the beat every day since, following the ebbs and flows of financial technology. Look to Jim for insider exclusives on shorter-duration loans, installment loans, and other popular products in fintech today.