Payday loans are a great way to get quick cash when you need it, but it's important to understand the rules and regulations that come with them. In general, borrowers cannot apply for more than one payday loan at a time, unless they can demonstrate their ability to pay it all back. This is because recent regulations from the Consumer Financial Protection Bureau (CFPB) have made it illegal for payday lenders to give out 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.
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. It may be possible to obtain two payday loans at once in some cases, but recent rules from the Office of Consumer Financial Protection (CFPB) have been established to protect borrowers and limit the ways people can access payday loans.
Even payday lenders know that if you have one or more outstanding payday loans, the risk of you not repaying them is extremely high. If you live in a U. S. state where cash advances are illegal, but you are a permanent resident of another U.
state where they are allowed, you can apply for payday loans. However, some direct payday loan lenders may tell you that you can't use a second payday loan to pay off your first one. Even if the payday lender doesn't extract your credit report, they can discover an active payday loan through your bank statements and deny it. In Washington State, the Washington State Department of Financial Institutions (DFI) licenses and regulates payday lenders and the day loan industry.
While a payday lender can sue you if you don't pay your payday loan, it's important to know that you won't go to jail for non-payment. Payday loans are meant to be for short-term use only, simply to help you until your next payday from work. As soon as you need to take out more loans, a payday loan is not the right choice - you'll end up trapped in a debt cycle and your financial situation could take months or even years to recover. Instead, first explore some of the other options available.
