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Payday loans are created to bridge the gap between paychecks at work when a financial issue arises that needs solving and you don’t have enough savings to do so. When you need money desperately and have no other options on the horizon, this type of loan can be a great solution.

However, sometimes your emergency may not end with one paycheck advance loan, and you may find yourself in a worse situation where you need more cash to cover your urgent costs. So, the question is: can I get a same-day loan more than once at a time? Let’s dive deeper into it.

Is There a Limit on the Number of Payday Loans at a Time?

Yes, there is a limit on the number of times you may be allowed to get a same-day loan. It mostly depends on the state laws and the lender’s position. As you may know, there are 18 states where payday lending is forbidden at all. In the other 32 states, however, it is possible to take out one or more payday loans at a time.

States With No Limitations 

In Texas, Colorado, and Nevada, there is no legal cap on the number of same-day loans you may get at one time. Also, these states don’t set a limit to the amount a provider can give you. So, if you already have an existing debt and want to apply for an additional one, you are allowed to do that either with the same operator or any other lender.

States With Loan Limitations

Such states as Alabama, California, Florida, Iowa, and Ohio have certain limits on the number of same-day loans you are allowed to get at one time. But even in these states, you are able to get an additional payday loan. It just has to be from another lending operator.

Most lenders may offer to roll over your same-day loan if you can’t repay at the due date. Additional charges and penalties are typically associated with rollover. But they allow you to increase your principal and cover any urgent costs.

In Maryland and Illinois, you can’t legally take another short-term loan if you have an outstanding one. However, not all online lenders play by the rules, some may break the laws.

How to Get a Second Payday Loan

If you have an existing same-day loan, you can still get another in certain cases. The process of applying for a new loan is the same as you had earlier:

  1. Pick up a payday lending provider.
  2. Fill out your personal details.
  3. Provide source of income and payment history.
  4. Give the lender your bank account details.
  5. Wait for the approval and funds to come.

That said, bear in mind that when you apply for a second payday loan at a time, lending operators may run your credit report to see whether you are capable of repaying, depending on your job and income. Based on this, they will decide whether or not they will lend you funds.

Is Taking Multiple Same-Day Loans a Good Idea?

Even though it might be possible for you to borrow more than one same-day loan at a time, before doing so, you should assess if and why you need more than one loan. We also recommend you consider the potential risk and negative effects before taking out a second, third or fourth paycheck loan.

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Harder to Manage

As it can’t be otherwise: multiple payday loans lead to multiple monthly obligations. You should assume that every additional loan will come with new interest rates and fees to be repaid on the due date. This will add on your existing repayment plan, and you could suddenly find yourself in a very challenging situation with lots of monthly payments to handle.

More Difficult to Borrow in the Future

Taking on another loan can be positive for your credit only if the previous one was managed properly, with on-time repayments being met and the principal paid off in full. However, when you are looking for a second payday loan but have outstanding debts, it doesn’t look good to lenders. Thus, any debt you already have might make providers doubt your ability-to-repay this time.

Worse Loan Terms to Have

Since every application for a new loan (when you have outstanding debts) is accompanied by your credit check, lending providers will know the types of debts, the terms, and other nuances of the loan offer. In addition, they will know your FICO score and financial history.

Based on this information, lenders may see you as a riskier borrower who needs money desperately. Being in a position of power, they will probably charge you higher APRs and less appealing terms than your previous loan. Therefore, if you are planning to take out a second loan because you think that the first one is bad, don’t expect too much of it.

Higher Chance to Trap into Debt Cycle

Payday loans are typically designed to resolve your one-time financial emergencies until you receive your next paycheck. However, when you start taking this type of loan regularly to cover urgent costs and personal events, it could be a red flag that you get trapped in a cycle of debt.

Moreover, chances are that applying for more payday loans will only dig you deeper into the financial hole. It’s called the payday loan trap for a reason, and it can be extremely challenging to break free from. Therefore, before requesting another loan, consider other types of financial support as well.

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