In some states, it is possible to have two payday loans at once, but not from the same lending institution. Companies like CASH 1 are committed to responsible lending and go the extra mile to ensure that customers understand the basics of small loans and title loans. Recent CFPB regulations have made it legal for payday lenders to grant loans without considering a borrower's ability to repay them. In states where there are no limits on the amount of payday loans you can have, borrowers can accumulate quite a few if they are not careful.
Every time you apply for a loan or make an application, it will be marked on your credit history. When you get multiple payday loans, your credit score will be affected. This can make it difficult to get approved for future funding as it shows lenders that you rely on payday loans to get ahead. If you have more than one loan at a time, this will be an even bigger red flag for future lenders.
The possibility of obtaining another short-term loan depends on state regulations. Some states limit the amount of payday loans you can have to one, while others do not set any limits on the number of loans and extensions. However, having multiple payday loans can create more risks and a greater financial burden. The best way to find out how many payday loans you can have is to ask your lender. Check their rates and terms pages on their website, call the customer service department or visit one of their payday loan stores.
Any knowledgeable lender will be aware of restrictions in your state and can help provide you with the information you need. Yes, you can apply for several payday loans at once if needed. However, it is not that easy because the requirements for the second loan are a little restricted in identifying the eligible group. If you already have a payday loan and need more money, you can consider other solutions. If you've already had to apply for a payday loan that hasn't been paid yet, consider whether your expenses are a necessity or a benefit. Since the repercussions of having multiple payday loans are so damaging and the likelihood of them occurring when you apply for a loan is so high, it is always best to try all alternative means of financing before you even consider talking to a payday lender.
If you need to borrow more money, you might even consider closing your existing loan early and then look for a larger loan amount, either through a credit union that offers much lower rates, through a secured loan, or by selling all items in the house that you do not use. When you are in a difficult financial situation, you may be in a position where you want to apply for more than one payday loan. New laws surrounding payday loans should mean borrowers can't take multiple loans, but sometimes applications can go through the network and be approved anyway. If you are in a position where you need more than one payday loan at a time, this is not the best product for your needs. Unfortunately, payday loan borrowers often also have low credit scores and have no choice but to take out another one the next time they're short on cash (there's always a next time). Even if the lender does not extract your credit report, they can discover an active loan through your bank statements and deny it. This isn't just because having multiple debt payments inherently increases your costs, but because every payday loan you get will have worse terms than its predecessor.
By applying for too many loans at once, it could make it difficult to pay your paycheck each month. Payday loans are meant to be for short-term use only, simply to help until your next paycheck from work. While in general, a person cannot apply for payday loans outside their location, there may be exceptions. Therefore, you should consider taking out another loan when you already have one only if you have already exhausted all other options.