You never know what is around the next corner in life. One minute your finances are great, the next minute a bill arrives or your car breaks down. It’s at times like these that you need payday loans to help you get back on top of your finances.
Getting a payday loan is very straightforward and can solve many problems. But how do payday loans work?
In this article, we’ll answer the question “can you get a payday loan if you already have one?”
What Is a Payday Loan?
A payday loan is a form of short term credit. Typically, a payday loan will be between $500 and $1,000.
One of the advantages of payday loans is that they are fast. Applying and getting approved for your payday loan can take minutes and you’ll very often get the money within a day.
You can repay the loan in installments. These can be monthly, bi-weekly, or weekly.
Often, a payday loan requires no credit check meaning they are ideal for people who keep getting denied.
Why Might You Need a Payday Loan?
Payday loans are ideal for short term lending. The idea is that you borrow a small amount and repay it once you’ve been paid. They are not ideal for making major purchases, but they are a good solution for emergency spending.
The type of situations that you may require a payday loan might include:
- Paying for emergency repairs on your vehicle
- Paying an overdue utility bill to avoid a court summons
- Paying emergency medical bills
If you have bad credit, you may also want to take out a payday loan to repair your credit score.
Can You Have Multiple Payday Loans?
You may wonder whether you can take out multiple payday loans at any one time. You might be in the middle of paying back one loan and then need to take out another.
Getting a second payday loan will depend on the state that you’re in. Some states have laws in place that prevent you from taking second payday loans. In these states, you may be required to have a credit check before you are granted a loan.
In the states where it is possible to get a second payday loan, you should proceed with caution. Because there is no credit check, the lender won’t be taking into account any current loans you may have.
Make sure that you can afford to make the repayments on both loans.
Can You Get a Payday Loan If You Already Have One?
In answer to the question “can you get a payday loan if you already have one?”, the answer is that it depends on the state that you live in.
In states where you can have multiple payday loans, you should always ensure that you are able to meet the repayment schedule.
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