Payday Loans seem rather expensive and risky because of short terms and high-interest rates. Besides, they are targeted at the most vulnerable Americans that live on a tight budget and need emergency cash from time to time for everyday expenses. That’s why short-term Payday Loans are regulated by federal and state laws. It’s better to check the rules of your state of residence to find out the number of loans allowed to take out at once.

Table of Contents:

Multiple Payday Loans – what are they?

How to find out how many Payday Loans I have?

Where can I get a Payday Loan if I already have one?

Is the multiple Payday Loan option a good idea?

Find Alternatives to Avoid Second Payday Loan

Multiple Payday Loans – what are they?

Payday loans differ from other types of cash advance by their short repayment term, high APR, and small amounts up to $1,000. It’s called a “payday loan” as you are supposed to pay the money back as soon as you get the next paycheck, within 14 – 30 days on average.

As Payday Loans offer small loan amounts, one loan may be not enough for a dental bill, or car repair, for example. Then a borrower may need to take out another payday loan while the first one is not paid off yet. What does the law say about multiple payday loans?

Consumer Financial Protection Bureau (CFPB) considers short-term loans rather risky and dangerous and tries to protect consumers by limiting the number of outstanding loans. In most states, you are legally allowed to get only one Payday Loan from the lender. However, there’re always alternative ways to find emergency cash.

How to find out how many Payday Loans I have?

If you’re not sure about the number of outstanding loans you have, you can always check this information online. So can lenders when they need to find out if an applicant already has another Payday Loan. Before approving a loan, a certain check must be done to ensure a potential borrower’s creditworthiness. Payday Loans, as well as other loan types, appear on your credit report. And you can always apply for a free credit history check if you need it. Most lenders also do a credit inquiry, at least a soft one.

Lenders can also find out if you have another Payday Loan by checking your bank statements. If you do have an active loan, you are unlikely to get approved for another one. Besides, there’s a cooling-off period between successive loans set by the state’s law. Sometimes you only need to wait 24 hours before you apply for another Payday Loan. Sometimes it may take up to a few months.

Where can I get a Payday Loan if I already have one?

Two Payday Loans at once can be definitely hard to get from a bank or credit union. But you can always find online Payday lenders offering more than one loan. Or some states let borrowing 2 Payday Loans at once from different lenders. Just check this information before applying. It would save much time and effort if you applied with a connection service like COMPACOM as you get access to multiple Payday Loan lenders at once. Get an instant decision from a lending company ready to offer you cash.

Is the multiple Payday Loan option a good idea?

Any loan implies some degree of risk as after you borrow the money you must pay it back together with interest and fees. Besides, you have usual everyday expenses and bills that require payments. High-interest Payday Loans tend to be even more expensive and risky due to three-digit APR and short terms. If you plan to get 2 Payday Loans at once, you need to think twice and make sure you’ll be able to repay them with no consequent debt.

Find Alternatives to Avoid Second Payday Loan

Apply for another Payday Loan only as a last resort when you need emergency financing. Make sure to consider all the better and cheaper alternatives at first. Experts recommend checking the following instant loan solutions for quick cash:

Most of them are available for poor credit with no credit check and at lower interest rates! Compare the offers first to make the only right decision.