Yes. It’s entirely possible to apply for and secure more than one payday loan but it is important to keep in mind that the laws that usually regulate these loans tend to vary considerably from state to state. So, while some states are against it, there are also some states that are open to borrowers doing so.
However, just because the law doesn’t prevent you from securing multiple payday loans, does not necessarily mean that you should. Besides that, there is also no guarantee that you will be able to actually qualify for more than one. After all, while it is normally easy to apply for these types of loans because of their relaxed eligibility requirements, all payday lenders still expect a return on investment for their money.
As such, even the best options for payday loans without credit check on iPaydayLoans will usually involve lenders reviewing your past credit history. If they notice that you still have one or more outstanding payday loans, it is possible that they may not approve your loan request, so it is important that you keep that in mind.
What To Consider Before Applying For Multiple Payday Loans?
Before you apply for another payday loan on top of what you already have, it is important that you take the time to consider the loan terms. This is because while payday lenders often overlook your credit score, they will still review your credit report, mostly as a formality. When this happens, they will discover that you still have some outstanding loans, which makes you appear to be a financial risk.
So, even if they don’t decline your loan request, they will most likely end up charging you significantly higher interest rates than what you got on your first payday loan. In other words, the more payday loans you secure, the worse the interest rates and fees are likely to become. If you want to know more about these types of loans and how they work, make sure to check out the articles published by Charles Mathe at iPaydayLoans.
How To Manage Two or More Payday Loans?
As mentioned before, there are a number of states that do not allow borrowers to take out more than one payday loan. And even if you are legally allowed to do so in your respective state, it’s unlikely that your original lender will allow you to get a second payday loan.
In that situation, you will need to borrow the loan from another payday lender and should they actually be willing to provide you with the funds you need, there are a few things that you must first consider.
Verify the lender’s legitimacy – If the lender you are working with is willing to approve you for multiple payday loans soon after lending you one before, then this may be a red flag. This is because any legitimate lender will usually wait some time before granting you another loan, even if they offer rollovers.
Review your budget – Even borrowing one payday loan can potentially lead to you falling into a cycle of bad debt. So, if you intend on borrowing another one, you need to review your monthly budget and determine if you can actually afford to do so. This means assessing the reasons why you have been able to repay the first loan and seeing if that same issue will continue to affect your chances of repayment.
Reevaluate your strategy – While you may be in need of quick funding, there is a chance that a second payday loan may not even be sufficient enough to cover the balance of your first loan. This will only mean taking up more debt, so you should consider other lending options first before taking on an extra payday loan.
What To Do If You Can’t Repay A Payday Loan?
In most cases, borrowers often take on a second payday loan because they are aware they will struggle to repay the first one. And while the likelihood of being approved for a second payday loan is slim, even if you manage to secure one, you can end up falling into a cycle of high-interest debt that threatens to complicate your financial health.
On top of that, payday lenders can rack up overdraft fees on your account or in the worst case, sell your debt to a collection agency that may take you to court for defaulting on the loan. Fortunately, there are a few alternative ways to go about breaking free from a payday loan debt.
- Credit unions: You can consider applying for funding at a credit union, as they often offer a wide variety of loans with significantly more affordable rates. However, this can often require you to first join up as a member, so keep that in mind.
- Renegotiate your repayment terms: Instead of borrowing another payday loan, you can always try to reach out to your lender and request an extended payment plan. Even if the lender is not friendly, most of them are willing to come to an arrangement that gets them their money back.
- 0% Intro APR credit cards: These credit cards essentially allow you to access a line of credit without having to pay any interest for a limited period. In most cases, this period typically lasts for about 15 months, depending on the provider, so you can use it to eliminate your payday loan and slowly repay the balance without worrying about any extra APR.
- Bad Credit Loans: There are a number of online lenders that are willing to provide funding to borrowers with a history of bad credit. And while these loans come with high-interest rates, they are still cheaper than payday loans, so you can use them to repay your payday loan balance in full. In this respect, you can find a reliable lender that is willing to make you a loan offer by using a credit broker service like iPaydayLoans.
- Ask a friend or family member: Nobody enjoys the prospect of borrowing money from friends and family, but it can allow you to get out of a payday loan without having to worry about dealing with higher interest rates. It will also allow you to enter into a flexible repayment schedule that doesn’t complicate your budget. However, you will need to make sure that you abide by the agreement, otherwise, you risk putting the relationship in jeopardy.
In summary, you can secure more than one payday loan but the process is very complicated and even if you do manage to get approved, it is a situation that could put you in really bad debt if you are not careful. Also, if you want to obtain a second payday loan because the first one is bad, you should assume that the next one is going to have even less favorable terms.
Instead, you should explore other financial options or at least repay the first payday loan before you consider taking on another one. And if you can’t secure approval from traditional lenders like a bank or credit union because of having a bad credit score, you can always utilize an online loan broker site like iPaydayLoans.
The benefit of such services is that they often make it extremely easy for borrowers to instantly compare multiple loan options. This in turn makes it easy for you to find the ideal loan offer that best fits your current budget and requirements, thereby reducing the risk of falling further into debt.