Do you live paycheck to paycheck and sometimes experience problems paying unexpected expenses?
A lot of people live this way. One study suggests that 78% of adults live paycheck to paycheck. People living like this typically don’t have money saved up to use for unexpected bills, so they might experience trouble paying them when they arise.
An ideal solution to this problem is taking a payday loan. But, can you get a payday loan if you already have one? Many people wonder this when they need money but have already taken a payday loan.
If you’re wondering about this, here is a guide to help you learn the key things to know if you want to take another payday loan while you have one outstanding.
Lenders Can Tell By Using a System
Most payday loan lenders do not check an applicant’s credit when they apply, but they do check a system to determine if the person has any outstanding payday loans.
The system that payday loan lenders use is a universal system that tells them if a person has a payday loan with any company.
The lender can already tell if the person has an outstanding loan with them, but they use this system to see if the person has loans with other lenders.
When you have multiple payday loans already, you probably cannot get another one. What if you have just one, though? The rules vary by lender and location, and some lenders also factor in other things.
If you currently owe money on a payday loan, you should not lie about it. The lender will find out the truth when you apply, and you can risk your chances of getting another one if you are not honest.
One essential thing to know is why payday loan lenders have rules about offering more than one loan at a time. The lenders issuing payday loans have high risks when lending money to people.
As a result, the lenders must take precautions to minimize their risks with every loan they issue.
It Depends on the Lender
Lenders have some flexibility with creating their rules and structures with the loans they issue. Therefore, it’s vital to understand that each lender may have different guidelines.
Some lenders might agree to offer a second payday loan to a person that has one already, while others might be totally against it.
Lenders might also examine other factors when making this decision. In other words, they might make the decision on a person-to-person basis.
If they feel like there is too much risk with issuing another loan, they might deny the request. If they feel like the applicant will definitely repay the money, the lender might approve the request for a second loan.
If you are in a position where you need a second loan, it might help you to examine your budget carefully. Is there a way you could repay the first loan before getting a second one? If you have two loans, are you financially able to repay both?
It Depends on Your Location
The next factor that affects this decision is the location. Some locations do not allow payday lenders to issue more than one payday loan at one time.
For example, if you live in Canada, many regions prohibit people from getting two loans at the same time. If you live in the U.S., some states allow it, while others do not.
If you desperately need money, you could talk to a payday loan lender about the situation. You could ask about the rules, and you could even shop around. You might find many lenders that will not agree to a loan, but you might find one that will.
Many Lenders Require a Waiting Period to Get Another One
When you encounter a time when you need cash fast, where can you turn to get it? There are several options that people turn to, but payday loans are the most common.
If you have an existing payday loan, many lenders will not give you another until you pay off the first one. Additionally, it might help you to know that some lenders even have a waiting period rule you must follow.
The waiting period might state that you cannot apply for a payday loan for seven days after paying off your first one. If this is the case, make sure you wait long enough before applying for another one.
You Might Get Approved If You Can Prove You Can Repay the Loan
You can apply for online payday loans instant approval if you have an existing payday loan to see how a lender responds. Honestly, it wouldn’t hurt to try this if you need more money.
Another good option is to contact a payday loan lender to speak to them. Many lenders will consider other factors with applications.
If you can prove you can repay this loan and your other ones, they might waive the rules and approve your loan.
For example, do you have proof that you will receive a large tax refund soon? Do you have proof that you are receiving an inheritance or some other type of windfall of cash? With this type of proof, the lender might allow it.
While some lenders might issue more than one payday loan, most won’t. For some, this seems unfortunate, but it’s reality. You can try to get a second one, though, but you shouldn’t be too disappointed if you can’t.
Can You Get a Payday Loan If You Already Have One?
After reading this guide, you might understand the answer to this question, “can you get a payday loan if you already have one?”
If you need some money and have no other options, contact a payday loan lender to find out if they will approve another loan. They can help you learn the answer to this question.
You can also view our blog for more helpful articles about short-term loans. Visit the Finance section of our site right now to learn more about loan options.