Where Can I Get a Payday Loan if I Already Have One?

When you need urgent cash in your bank on the same day or next business day, and you also have a bad credit score, one of the easiest ways to get a cash advance is by applying for a payday loan. In several states in the US, taking a payday loan before the salary date is legal.

Some direct lenders provide quick online payday loan with no need for faxing documents, Teletrack, or credit checks. This type of short-term loan is for two weeks to 30 days, repayable on the next paycheck date.

However, sometimes your financial needs may not end with one payday loan, and you may find yourself in a situation where you need more cash advance. So, the question is – where can I get a payday loan if I already have one. Let’s probe deeper into it.

Upon research, we found that you can take out multiple payday loans at a time from various direct lenders if needed. You may even take more than one payday loan from the same lender if they allow. However, let’s not forget that if the lender approves you to take several cash loans at once, this is not a favorable idea because the interest rates are high.

Instead of taking multiple cash loans that you will need to repay quickly with high-interest rates, consider opting for other alternatives such as borrowing money from members in the family, an auto title loan, part-time job, credit from the employer, and so on.

How Many Payday Loans Are Allowed at One Time

The number of payday loans allowed at one time directly depends on the state laws and the lender’s discretion. The lender set many restrictions on the amount of money he provides as a loan at a time. The lender has the right reserved to decide how much credit to give to an individual.

In some cases, if you choose a short-term loan. The direct lender may allow as many as four different loans at a time. Those who are existing customers of credit giving companies and have a stable job can find it easier to apply for a second payday loan.

However, you must bear in mind that when you apply for a second payday loan, the lender may run your credit check to see how much you are capable of repaying, depending on your job. Based on this, they will decide whether or not they will give you a loan.

You should also not forget that payday loans are quick, and short-term loans to get emergency cash. It is not a long-term loan; hence the rate of interest is very high. Thus, you must consider a second payday loan when you already have one only if you have already exhausted the other ways.

Taking payday loans one after another may harm your credit score. Furthermore, it gets costly when you have to pay back the total loan amount from your salary. It may end up becoming a long-term financial disaster for you.

What Are Other Alternatives to Taking Second Payday Loan

When you already have a payday loan, taking a second loan from the same or another direct lender can put you in a tough situation. While it is possible to get more than one loan, the inability to repay on time can put you in a lot of trouble.

You would not want to get numerous calls from debt collectors or live under the stress of how to manage your finances. So, no matter how tempting it feels to take out a second payday loan, resist the temptation, and look for other ways to fulfill your credit requirement. We have suggested some ways.

Use Savings or Borrow Some Money

If you have any savings in the form of fixed deposits or bonds, consider breaking them and use the savings instead of taking an easy loan. You will save yourself from a lot of mental stress and harassment. If you don’t have any savings to fall back on, then maybe you can ask for money from friends and relatives. These loans will be interest-free and save you from a lot of trouble.

Sell Some Unwanted Items

There’s no better time to declutter your house and get off the things that you no longer need. Set up a garage sale and let your friends and neighbors know. Items that are not much use to you may be valuable or useful for others.

Items may range from old toys and books to DVDs or even an old bike. You will be surprised at how much money you can earn by merely selling the things you no longer need.

Cut Back on Expenses

Make a list of things you spend on in a month and try to cut back on the budget. We are all guilty of overspending on parties, treats, and entertainment. We suggest that you cut back on eating out too many times, ordering food from outside, Netflix, and so on. Cutting back on unnecessary expenses can also help you save a lot of money.

Seek out Free Debt Advice

When you find it hard to manage your finances, and things seem out of control, don’t get tempted to get another loan. Instead, we suggest that you seek free advice from online advisers to help you through a tight financial situation. They will be able to show you ways and solutions that exist, but you are not aware of them.

Check Local Resources

Try to check if you can find any financial help from local organizations such as government credit agencies, local charities, and nonprofits agencies. They may often provide free aid for paying rent, utilities, and food for those in need.

Seek Payment Extensions

If you have outstanding electricity or phone bills that are making you think about another loan, we suggest that you consider seeking a payment extension from the service providers. Talk to the companies to determine if they can give you an extension on your due date or a more extended payment plan.

Take up Some Side Jobs

You can opt for a part-time job; however, this will not give you immediate cash but save yourself from having to take multiple cash loans. In the digital marketplace, there are several types of goods and services that you can sell. Sign up for a rideshare service, food delivery, or write articles for someone to get side income.

What Things You Must Consider Before Taking Another Loan

If the above alternatives do not work for you and taking a second loan is the only option you have in front of you, the lender will want to ensure that you are capable of repaying the loan. You will need to review your financial situation and consider the various factors such as credit checks, employment, an alternative source of income, and so on.

In case you already have a lot of debt in the form of a home loan, car loan, and so on, the lender may not consider you eligible for the new credit. If you have lost your current job and do not have any other alternative source of income, you may also have a tough time qualifying for the loan. So, here are a few things that you may need to consider:

Re-Evaluate Your Eligibility Criteria

You may be eligible for the loan earlier, but your current scenario may say a different story altogether. Some payday loan direct lenders may tell you that you cannot use a second payday loan to repay the first one.

Consider Your Monthly Commitments

You must check your budget to see if you can afford to repay the loans that you are applying for now. Make a list of your monthly commitments and whether or not you can fit in the repayments within the budget. If you find yourself struggling to make multiple loan payments, consider other financial assistance programs.

Don’t forget Rollover Fees

If you are refinancing a short-term loan with a second loan with the same lender, keep in mind that you will still need to pay the original amount with the interest rates and fees, plus the extra charges of the new loan.

Frequently Asked Questions