Technically there is no limit to the amount of payday loans you can take out, however after taking out your first loan it can become extremely difficult to qualify for more loans. There are some situations that will allow you to take out multiple loans from different banks.
Remember, the key indicator that you are worthy of a loan is your credit score and credit history. Once you have taken out a loan, both of these will be impacted, making it more difficult to obtain another loan.
However, if you have your sights set on obtaining multiple payday loans then it certainly is possible. You can find payday loan lenders only and not just loan brokers.
Ability to Repay Loan
Banks may approve you for a loan even with the knowledge that you have another loan out from a different bank depending on your situation. The most important thing to a bank is that you will be able to repay your loan.
If you are able to show a bank that despite having another loan out, you are capable of fully repaying another loan then your chances are much improved for being approved for another personal loan.
To make sure that you are able to repay a personal loan, a bank will extensively review your situation and ensure that you have enough income to make the payments on your loan.
Tip: Learn more about how Payday loans can affect your credit repair efforts.
Good Payment History
Your chances of getting approved for multiple personal loans are much improved if you have a good payment history. To determine this, banks will need to see your credit report. If you have been diligent in repaying all of your previous debts and have a long credit history then your approval rate will increase.
Approval Under Special Conditions
If a bank determines that you are not eligible for multiple personal loans, then they may still approve you as long as you follow certain conditions.
For example, a bank may agree to approve you for another personal loan if you agree to consolidate all of your loans into one. This may actually be in your favor, as consolidation could lower your monthly payments and actually make your loans more affordable.
You Are Stable
To get approved for multiple personal loans a bank will want you to have been employed with the same employer for a certain amount of time. The longer you have kept your employment the better it will look, but you should have at least been with your employer for two years.
Make Sure You do not Over Extend Yourself
Even if you are able to take out multiple payday loans, it doesn’t necessarily mean that you should. Taking on multiple loans at once can be overwhelming and you may find it too difficult to keep track of all the bills. Make sure that taking out multiple personal loans is the best option for your situation.