Non-bank loans are the easiest way to improve your financial position. Simple credit procedures and high granting are just some of the reasons why people in need are so eager to use this form of support. However, sometimes it may happen that one loan is not enough and you need to take out an additional payday loan. Is it possible?
How many payday loans can you take at the same time?
The assumption of payday loans is to provide short-term financial support to cover the most urgent expenses. In practice, however, it varies and it can happen that despite additional funds on the account, they are insufficient. Unfortunately, in most non-bank companies, taking two payday loans at one time is impossible.
To apply for another loan, you must first settle your outstanding debt. It may also be a problem to take a second loan at another institution because, during the verification of data in the debtors’ databases, the lender will learn about unpaid debts. However, the financial situation and positive credit history play a key role here, proving the reliability of repayment of existing loans.
Where can I choose a loan?
The market of non-banking services is governed by its own laws, which is why the offers are characterized by a great variety. Although most companies prevent you from taking out several loans at once, some lenders break out of these schemes. Customers who fulfill their obligations in a timely manner and have adequate creditworthiness can count on additional cash.
This means that before they repay the first loan, they can apply for another one or choose the amount to the missing loan limit.
So, if a non-banking company grants loans for a maximum amount of USD 5,000, and you took a payday loan for USD 2,000, you can choose the missing USD 3,000. Not all lenders offer this option, so it’s worth checking the rankings at Compare.com to find out about this option.
How to pay off a few payday loans?
The reason why non-bank companies do not want to grant several loans at the same time is because of the risk of accumulation of debts and the inability to pay them back. It is difficult to get out of the debt spiral, so if you are unable to pay all amounts due, you can take advantage of the consolidation of payday loans.
This service consists of combining liabilities from various sources into one and setting a new repayment schedule. In this way, you can avoid high fees for missing deadlines and enter in the register of debtors.
2 payday loans are not always a good idea
Taking two payday loans at the same time is a considerable burden due to the short term of the loan. If you need a larger amount, it is better to use non-bank installment loans and it is gradually paying back. Small, monthly payments are not such a burden for the budget as the need to return the entire payday pay once.