Do you need a quick loan? Fast and easy? A payday loan might be the answer you’re looking for. In many situations it is. The thing is, in some situations one such loan just won’t cut it. You sometimes need additional cash. Logically, you’ll be asking questions.
One of the most common ones is: how many of these loans can each individual have simultaneously? A few factors are being a part of the answer. Think about it in the shape of three circled dots: state laws, your lender’s stipulations, and your financial situation.
In theory, you can have two payday loans at the same time. What you should know is that the amount of these loans throughout the year greatly varies depending on the state where you live. As it’s usually the case laws and regulations differ from state wise.
Some places are strict, while others are looser in terms of multiple payday loans. Let’s see how you’ll fare with two payday loans, all depending on the state where you live, laws and regulations, and your financial condition.
What Are the Chances of Multiple Payday Loans?
You have a good chance of having two payday loans approved. But it’ll depend on the state where you reside. We mentioned that laws and regulations differ from state to state, and if you’re living in one of the stricter states the answer is no – you cannot have two of these loans. Let’s see how you fare in general when we talk of two payday loan applications.
Some states, the good ones, will let you get even a few smaller loans if you find them necessary. Others, at the same time, only allow one loan, or possibly two. Also, it comes down to the lender.
Choosing PaydayDepot as a lender will have one set of options; going forward with a different lender will bring different conditions to the table. Some lenders will say no to another loan. Others will allow a second one but with a limited amount of funds, you can receive. In essence, we’re talking about differences on a case-to-case basis.
In terms of your financial conditions, you must know that your income plays a great role in everything. Decisions on a first, second, or even third payday loan will be decided based on your solvency too.
If you have too many loans or debt in general you will be seen as a part of the riskier group of borrowers. If this is the case you will most likely be rejected for an attempt to have a second loan regardless of your state’s laws and regulations concerning payday loans.
Second Payday Loan Restrictions
As we said, there are three players in the payday loan game. You, your lender, and your state. As we said, states have their own set of rules and regulations that set their views on the amount of payday loans one can have. Lenders are the second most important player. Even if a state allows multiple payday loans, a lender can impose some restrictions. Below you’ll find primary reasons why they’ll do it:
* First of all, payday loans are not naive. They come with a high-interest rate, and if you’re not careful they can take you down financially. Usually, those that aim at these loans are already in debt and have a bad credit score.
When a situation arises that you can’t pay your loan in time it comes to rollover payments, that come with additional fees, and this is where the second loan comes in. When a borrower is already in one of the described situations a lender might be reluctant to provide them with an additional loan.
* When you already have an existing payday loan, the lender will see you as a risky borrower. At that point, it is obvious that you’re having issues giving back the existing loan which is not seen as a positive development. In a situation where a lender needs to collect his debt all of the involved expenses will double at least.
* Last but not least, we are getting back to state laws and regulations. As we said, some of them have firm laws in this department and you can’t have more than one loan at the same time. These laws are installed to protect both the lender and the borrower. A lender who respects the law will not provide a person with an additional payday loan when it’s stated by law that it’s not allowed.
Discover comprehensive information about borrowing practices and limits in 2024, including a guide on online borrowing.
How a Lender Knows About an Additional Loan
It is easy. The authorities have this data through your credit score. When you apply for a loan, a lender will seek documentation from The Consumer Financial Protection Bureau. By taking a look at the provided data they will know how solvent you are and how good your credit score is.
Also, the fact that you have an outstanding loan already will pop out. Companies that work with payday loans usually do not seek data from major credit bureaus, but they will ensure to learn if you’re a trustworthy borrower.
Determining your credit score and loan history doesn’t take a thorough search. This is data that will fall to lenders’ hands first. So, if you already have a loan and your state doesn’t allow a second payday loan you shouldn’t even attempt to get one, as you will not be permitted a second application.
State-by-State Situation
In the majority of the US states, you can only have one payday loan. Of course, there are exceptions and a small matter of rollovers. Colorado is an interesting example as the number of loans is unlimited but none can exceed the $500 mark.
Alaska and Delaware allow for one payday loan but with a chance of two and four rollovers respectively. Idaho allows one loan and three rollovers while Indiana allows two loans from separate lenders. Kansas follows Indiana’s suit but you can only have two loans from the same lender.
Kentucky and Mississippi are identical to Colorado while Louisiana doesn’t put any restrictions on payday loans. Michigan allows two while Missouri provides one with six rollovers.
North Dakota offers one with one rollover while Oklahoma allows two with the max amount total being $1500. Oregon is a different beat with a limit set at $50 thousand and no limitations. Rhode Island gives you 1 rollover but 3 payday loans a year with the limit of each being $500.
South Dakota provides unlimited loans, 4 rollovers, and a $500 loan limit. Tennessee has two, no larger than $500 while Washington State allows 8 a year with no more than $700 at one point.
Texas, Wyoming, and Utah are unlimited with no restrictions while Wisconsin stands in the same region as far as the number goes with one rollover and a $1500 limit. The rest of the states we haven’t listed allow only one loan with no rollovers.
Conclusion
In essence, all that you need to know is how solvent you are, how good is your credit score, state laws, and lender options available to you. Combine this knowledge and you’ll know if you are good to go for another payday loan even before you apply.
