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Can I Have More Than One Payday Loan At Once?


It is not illegal to have multiple payday loans at the same time; however, it is not advisable, as it can contribute to an increased burden of debt. When you need to borrow money instantly, whether you borrow money online or in a payday store, you should only ever borrow the money you absolutely need there and then. 

It may be the case for example that you need to borrow $600 but you are also able to get a $1000 loan. Just because your credit score and circumstances may allow you to get a particular loan amount, doesn’t always mean you should. Payday and other short term loans should only be used to help you in times of pressing financial emergencies.

Payday loans are designed to cover short-term, emergency expenses. If an individual is trying to take out multiple payday loans, it implies that there is a deeper-rooted financial problem and this may show in their credit report over time, as lenders carry out their checks.

Is It Possible To Have More Than One Payday Loan At a Time?

Yes. In the US, there is nothing legally prohibiting an individual from taking out multiple payday loans at once, either from multiple lenders or from the same lender. First and foremost, always check whether or not payday loans are legal in your state before you borrow any money.

Depending on the lender that you are working with, there may be certain restrictions as to how many active payday loans you can have at any given time. You should also check the laws in your state as the specific laws and regulations around having more than one payday loan at any given time will be determined at state level.

Therefore, if you have a payday loan in Texas but you want to have multiple online loans in Texas, you may be able to do so and it may be permitted at state level. On the other hand, with the payday lending caps and other laws and regulations governing money lending in various US states, this may not always be possible.

Lenders will invariably look at how many other payday loans you have when applying for a loan with them; if you already have a high level of debt and are sitting on a few payday loans or other short term loans, they may be less inclined to approve your loan as they may doubt that you will be able to manage an additional payment obligation. 

Even if you are legally allowed to have multiple loans out at the same time, it is not necessarily advisable as it can be difficult to manage multiple payments and you can soon struggle with mounting debt.

Should You Avoid Having Multiple Payday Loans At Once?

There are many reasons why experts and financial advisors often advise against having multiple payday loans at the same time. This same logic applies to other forms of short term loans and finance, ranging from $500 loans to all other types of loans like loans for bad credit and installment loans.

Although it may be possible to have multiple payday loans at once, doing so can add to your burden of debt and become incredibly stressful

Hard to Juggle Loan Repayments

Each time you take out a payday loan, you are taking on a new financial obligation. 

Payday loans require the loan to be paid back on a given date, plus interest. If you have multiple payday loans out at the same time, you are also having to manage multiple repayment dates and multiple repayment amounts which can be difficult to keep on top of. 

When you have multiple sources of credit, it becomes more likely that you will miss a payment and incur penalties and additional interest, which will also damage your credit rating and chances of borrowing money in the future.

Although there are ways to manage this better further down the line, for example taking out a debt consolidation loan, it is better to avoid it altogether if possible.

A Payday Loan is Only a Short-Term Fix

The purpose of a payday loan in the USA is to act as a short-term fix between paydays and to cover any unexpected emergency expenses which may arise. 

If you are looking for longer-term finance solutions, payday loans are probably not what you need and you should consider other options like long term loans or speaking to friends and family to see if they can help you borrow the money you need.

Before taking out a payday loan, make sure that it is fulfilling your needs and that it is affordable. You need to be sure that you are getting sufficient financing and that you are able to meet your financial obligations and repay the borrowed amount on the specified date. 

If the payday loan is not going to supply the amount of money that you need, or you need financing over a longer period of time, you should not take out a payday loan and should explore alternative financing options.

Do Multiple Payday Loans Have A Negative Impact On Your Credit Score?

Misusing payday loans can have a negative effect on your credit score. In fact, every time you apply for a payday loan, it could appear on your credit report and could impact your score, if the lenders you apply with carry out hard credit searches rather than soft searches. 

If you are applying for multiple loans within a short amount of time, it is likely to knock multiple points off your credit score as it signifies to lenders that you may be in a difficult financial situation and have an unstable borrowing profile. All of this will reduce your chances of being successfully approved for loans or credit in the future. 

If you have taken on multiple payday loans and are struggling to meet your repayments, that will also have the potential to negatively impact your credit score. 

The more repayment dates you are managing, the more likely it is that you make a late payment or miss a repayment altogether. If this happens, it will have a negative impact on your credit score and show on your credit report that you have failed to make your repayments on time.