How Many Outstanding Payday Loans Can I Have At Once?

Author · Modified on 14 September, 2022

Some US states have restrictions on how many payday loans you can have open at once, with the likes of Ohio and California allowing only one and others who are more lenient, allowing 2 or more, such as Texas and Nevada.

However, you should typically only have one or two payday loans open at one point – this is to avoid being overdependent on high cost financial products and potentially falling into a spiral of debt.


Key Points:


  • An outstanding payday loan simply means that you’ve not paid back yet.
  • Dependent on your state, you may be able to get more than one loan at a time. States like Ohio prohibit you taking out more than one 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 funds but are after an alternative loan, consider a friends or family loan, or a guarantor loan.


how many loans at once
Some lenders will allow you to have multiple loans open at once with them.


Can You Have Two Payday Loans at Once?


Usually lenders will prohibit you from having multiple loans open with them to avoid excessive debt that you cannot repay on a monthly basis. It is not illegal but lenders will usually limit the number of loans they offer you individually to increase your chances of repaying the loans on time.

It is usually better not to have multiple loans open at once because this can decrease your chances of repaying the loans quickly.

You can have multiple loans open with one lender or with alternative lenders however some states do prohibit this by law.


It Will Depend On Which State You Live In


Different states have differing regulations over loans. Some states have enacted regulation which limits how many loans you can have at once. This is in place for your own financial safety and to avoid you encountering unmanageable debt and problems.

If you are in Ohio, Florida, Illinois, California or Texas, you will only be able to have one or two loans taken out at any point. This is the same rule whether it is from a store or payday loans online.


Can I Have Multiple Payday Loans With The Same Lender?


You could hypothetically have multiple loans open with the same lender, although it can be prohibited.

Depending on the lender, there may be a limit on the number of loans an individual can have open at any given time.

Alternatively, some lenders have no limits and will allow individuals to continue taking out loans with them regardless of the time it has been since the last loan was taken out and how many repayments have been made.

In addition to this, some loan companies have a policy whereby applicants can take out an extra loan with them after they have repaid a certain amount on their original loan to ensure that they will be able to continue making repayments within the agreed timeframes.


more than one loan
Depending on the lender, there may be a limit on the number of loans an individual can have open at any given time.


How to Find Out if You Have Outstanding Payday Loans


Finding out if you have any outstanding payday loan is very easy.

The first thing to do is to call or message your payday provider and ask. You will need to give your personal details but your lender will be able to tell you if any of your loan is still outstanding.


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


If you find that you need to borrow money even after you have secured a loan, there are many options available to you. You should carefully consider which option is best to you not just immediately, but you should consider longer-term implications of your next steps.

For instance, if you do intend to enquire about another payday loan, you should consider the interest that you will be required to pay at a later date.

Here are some options to contemplate:


Ask Family Or Friends For Financial Support


Borrowing money from family and friends can be a fantastic option given that this form of loan will typically apply no-to-low interest rates and be flexible, given that you are borrowing from a loved one who knows you on a personal level.

You should be certain that the individual you are borrowing from can afford to help you, and won’t encounter hardship themselves as a result.

You should also consider how you intend to repay them. As convenient as this form of loan may be, failure to repay your loved one could breed resentment and mistrust.

You should have an open and honest conversation prior to accepting their money.


Pay Your Current Loan Off And Secure A Bigger One


If you need to borrow more money, you could look at even closing down your existing payday loan by paying it off early, and then look for a larger loan amount. This could be through a credit union which offers much lower rates, using a secured loan or selling items around the house that you do not use.

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 More Carefully


Budgeting is your best friend when trying to get your finances in order. Budgeting allows you to control your saving and your spending, and enables you to have a better understanding of where you can change your behaviour to have a more comfortable financial situation.

Could you do your grocery shopping more effectively? Could you and your partner share a car for a couple of months? Is it worth asking for some relatives for some hand-me-downs for your kids in toys or clothes?

There are a number of simple ways to save money around the house and avoid using high cost loans instead.

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