Skip to main content

So, how many payday loans can you have at once? Well, first let’s first talk about what a payday loan is…

A payday loan is a short-term, high-interest loan to keep you afloat when you are struggling to make ends meet. Given that you should only seek these loans in urgent situations, you should avoid having any, let alone multiple, at any one time. This is because they are expensive, and failing to pay them back properly will damage your credit score and, by extension, your future financial health. 

To prevent borrowers from becoming snowed under with debt, many US states have restrictions on how many loans an individual can have open at once. For example, Ohio and California authorize borrowers to have one loan out at any one time. States including Nevada and Texas are more lenient but are still limiting, with two loans being the maximum amount simultaneously available to borrowers. 

Key Points:  

  • An outstanding payday loan simply means that you’ve not paid it back yet. 
  • Dependent on your state, you may be able to get more than one loan at a time. States including Ohio and Nevada have limits on how many loans borrowers can have open at once. 
  • You should avoid taking out multiple loans at a time. With APR rates of around 400%, payday loans are expensive and should be used only when necessary. 
  • If you need a loan but can’t access another payday loan, you could consider a guarantor loan or ask a loved one for some cash.  
  • 70% of borrowers use loans to cover recurring costs, such as utility bills or rent payments. 


So, How Many Payday Loans Can You Have At Once?

Some lenders will grant you a maximum of one loan, as they don’t want to put significant funds in your hands. This is because many borrowers struggle to pay back their debt, with 25% of loan repayment being rolled over.

As such, the more money one individual has, the bigger the problem for a lender. It is not illegal – in many states – for lenders to offer multiple loans to one individual at any one time, but they will usually try to avoid it. It is good to avoid having multiple loans open at once because this can decrease your chances of repaying the loans quickly.

Having overwhelming debt will make repaying it more challenging. If you fail to repay your debts, you could be hit with late fees, threatened legal action, and your credit history will be hurt. This will make it more difficult to secure a loan, credit card, mortgage, or even a phone contract in the future. That is why it is best to minimize your debts and avoid having multiple loans at once. 


Does Where I Live Impact Whether I Can Have Multiple Loans At Once? 

Yes. Different states have different regulations over loans. Some states limit how many loans you can have at once. These measures are in place to protect consumers and prevent them from accumulating unmanageable debts. You can research individual states’ regulations, or contact a financial advisor to provide you with personalized information. 

Do you know which states have legalized payday loans? If you are in Ohio, Florida, Illinois, California, or Texas, you are limited in how many loans you can have out at once. This applies whether you are going through a broker, a direct lender, or a high street store. 


Can I Have Multiple Payday Loans With The Same Lender?

Hypothetically, yes. Many lenders allow this, but some will be unwilling to offer their consumers more than one at a time each.  Some lenders have no limits and allow individuals to take out a few loans at a time, regardless of when they last took out a loan and how much they already owe them. The fact that borrowers find themselves frequently in need of cash is logical, given that 70% of loans are taken out by those who use them for frequent and recurring expenses such as rent payments or utility bills. Some loan companies will allow applicants to secure extra loans once they have repaid a certain sum back on their original loan. This is because it makes it more likely that the borrower will be able to make the needed repayments on time.  


What If I Need More Money After Taking Out One Loan? 

If you still need to borrow more cash even after you have taken out one loan, there are various options available to you. You should carefully consider which option is best, but remember the long-term implications of all forms of financing. For instance, if you are thinking about taking out another payday loan, you should think about the high rates of interest – which are 400% on average – and ensure that you will be able to pay it back. 


Alternatively, you could: 


  • Ask Family Or Friends For Financial Support 

Borrowing money from a loved one usually entails no-to-low interest rates and flexible repayments, given that your family or friend lender is lending to you to help you out. You should be sure that the person you are borrowing from can afford to help you, and won’t encounter hardship themselves due to lending to you.

You should also consider how you intend to repay them. As convenient as this form of loan may be, failure to meet repayments could damage your relationship. This is why an honest conversation is crucial, prior to taking their money.  

  • Pay Your Current Loan Off And Secure A Bigger One

If you need to borrow more money, you could consider paying off existing loans early and then seek a larger loan. This could be through a credit union that offers much lower rates, a secured loan, or a guarantor loan, through which you may be able to attain a larger and more helpful sum of money. From old books and CDs to appliances and clothes, selling pre-loved goods via an app or at a garage sale could generate significant money which you could put to use instead of taking out a loan.

  • Budget Carefully!

Budgeting allows you to control spending and enhance your savings. Using a budgeting app, such as Mint, can allow you to better understand your spending habits, and allow you to limit your own overspending. If you don’t fancy an app, you could make a spreadsheet detailing your incomings and outgoings, and alter your spending based on what you can spot there.

You should make use of BOGOF (buy one, get one free) offers, cashback schemes, and loyalty programs. You should also make sure that you cancel any unused subscriptions or streaming services. 

Leave a Reply