Payday Loans are recently gaining popularity due to the less stringent rules and fast cash approval. In situations where there’s an urgent need to sort bills and a paycheck isn’t forthcoming, one can quickly get funds in advance. Depending on your state’s loan limits, a single loan might be unsatisfactory, making you wonder how much more you could get. Here’s all you need to know.
What Are Payday Loans?
Payday loans are cash advances offered by lenders for a short period and with high interest. They usually provide fast approval, but you are expected to refund your lenders on your next paycheck. Depending on your location, your loan limit may be above or below $500. Some states ruled payday loans illegal, making it impossible for you to get one. They are, however, one of the various ways to earn money fast.
Can I Get Multiple Payday Loans?
While there are a few rules guiding multiple payday loans by borrowers, it is possible to receive two payday advance loans at a go. According to research, most people get more than two payday loans. It is, however, not advisable since it makes you a prey to payday lenders who see you as desperate and increase your interest. A loan request is usually between 500 to 1,000 dollars but peaks well above $1,000 when the interest is included.
Multiple Payday Loans in a State Without a Loan Limit
If you stay in Texas, you can legally request a payday loan above $500. You can go as high as $50,000 if you find an online payday loan company willing to give up that much. That’s, however, almost impossible. Either way, staying in a state without a loan limit means you can easily get more than a single payday loan—from the previous lender or another.
Multiple Payday Loans in a State With Loan Limits
Your location being a place with loan limits doesn’t stop you from getting more than one payday advance. The loan limit is about $500 in most states, but the rule is only binding for a loan request from a single lender. If you’re unable to make repayment on your next paycheck, you can rollover. You should, however, expect additional charges.
When the need for another payday loan arises, you can get that from a different lender.
Are Lenders Aware of My Existing Payday Loans?
Most lenders thoroughly assess their borrowers before a payday loan request is granted. Payday loan companies are not strict with the rules when compared to Local lenders. However, steps must be taken to ensure a borrower has the means for loan repayment.
A pay stub has to be available, but with some lenders, you can get loans despite bad credit. Those who don’t will have details of your existing payday loans and might not grant approval for a new one. Hence, the number of payday loan advances on your report determines your chances of getting another.
Bank statements also give away your outstanding payday loans. And even after repaying your active payday loan, you might have to wait for a whole day before requesting another loan. This depends on the payday loan company you patronize.
Consequences of Taking More Than a Single Loan
Payday advance loans usually come with unfavorable terms, which worsens if you take more than one. With a credit check, payday loan companies will know all the details of your active loans and the terms you agreed to. If you are deemed desperate, you become prey, making you vulnerable to their demands. The interest rate and fees offered will be above regular, which will worsen on subsequent loan requests. Therefore, sourcing another payday loan because the first wasn’t favorable is a bad idea.
Alternatives to Multiple Payday Loans
Taking more than a single payday loan is not the only way to get extra cash. Instead of diving into an endless cycle of high-interest rates, you can explore the following legit ways to sort your bills.
- Extra work
There are different gigs to take on, most of which promise good earnings. You can ask for longer working hours from your employer or engage in a side hustle during your free time. You can also put a few items of yours for sale.
- Credit Unions
They are nonprofit financial cooperatives that give out loans with favorable terms. You can get different types of loans with rates much better than those offered by payday lenders. Their policies, however, vary depending on the institution.
- Go For Credit Counseling
Credit counseling will help you with professional advice regarding your financial status. The counselors will help you get out of a payday loan trap. They can also meet your payday company for negotiation on the interest rates and payment terms. In the long run, you’ll be able to manage your finances better and give your credit report a positive outlook.
- Ask Friends or Family
Instead of relying on payday loans, you can consider borrowing from your family or close friends. This will help avoid unnecessarily high-interest rates.
If getting a loan is your only option, you should at least apply with a trusted and reliable payday loan company. Approved online loan sites like Capital Pacific Bank will connect you with licensed lenders who offer reasonable rates.