The number of payday loans you can get in one day depends on the laws and regulations of your state. Some states have a cap on the number of payday loans a borrower can have at one time. In addition, financial institutions have the right to decide how much money to disperse to a borrower.
If your state allows payday loans, you will have to meet the qualification requirements set by the lender to obtain the maximum loan amount. The qualification requirements vary per lender, but typically you need to be eighteen years of age or older, have an active checking account, and have proof of income.
Payday loans are short-term loans that typically provide small sums of money. For this reason, many people take out more than one payday loan. But if you apply for a second or third payday loan, the lender will run a credit check each time. The number of inquiries you make within a year counts for 10% of your credit score calculation. Multiple credit checks can decrease your credit score significantly and make you look financially risky to lenders.
It’s easy to think multiple small loans are easier to repay than one large loan, but this may not be accurate. Payday loans have notoriously high-interest rates. It may end up being extremely challenging to repay multiple payday loans within the span of two weeks when fees are high. If you fail to repay by the due date, your payday loans can rollover. A rollover will extend the repayment length for an additional two weeks but at the cost of a rollover fee. Rollover fees can be a flat fee or a percentage of the total payday loan amount.
Consider other loan options if you need more money than a single payday loan can provide you. Taking out a larger loan does not necessarily mean you will pay more money in interest fees. The amount you pay to borrow money depends on the interest rate. You may be able to get a more affordable interest rate on a large personal loan compared to a payday loan. If you need financial relief, inquire with numerous lenders and compare loan offers. Pay close attention to the interest rates.
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