Life seems to be more and more complicated. Nowadays, even hardworking people struggle to meet their monthly bills even when they have budgeted in the best possible way.
Having to deal with emergency expense seems like an impossible mission for most people. In such situations, most people seek financial assistance and if friends and family members are not an option, they often turn to the loan lending industry.
In the last 10 years, the loan lending industry has seen significant growth which naturally led to more loan options for borrowers. Due to higher requirements and slower application process, standard loans from traditional loan lending institutions are not very popular among most borrowers, especially among those with a bad credit score.
Apart from standard loans from traditional lending institutions, there are still many options, even for borrowers who do not have good credit ratings. One of the most popular types of loans these days is an online payday loan.
Payday loans attract the attention of many borrowers due to their fast and easy application process, almost immediate approval and fewer loan eligibility requirements. However, since life has gotten so expensive, there are many borrowers who want to find out if they can have more than one payday loan at the same time. Below, we are going to explain what a payday loan is, how it works, who are the direct lenders its advantages and whether you can have two payday loans at the same time.
What is a payday loan
Payday loans are short-term, small-sum type of loans (also known as cash advances) where the borrower gets an amount of money in the form of an advance payment, often on the same day as the application on a post-dated check that he must provide to the lender.
After the money is being transferred, the borrower must repay the amount in full by his next payday. Usually, the standard amount of a payday loan does not exceed $500.
The most common length of a payday loan is two weeks but it can go up to a month. It is important to know that every state in the United States has its own law regulations governing payday loan lending. That means that each payday loan will most likely have different loan terms depending on the place you live and your financial situation. The biggest downside to payday loans is their interest rate and fees.
Payday loans have higher fees and interest rate compared to most loan types out there. This is due to a number of factors. Payday loans are unsecured, short-term loans where the lending company takes a certain amount of risk by giving borrowers loans without that many requirements. Payday loans are meant mostly for emergency situations, so they should be used as a last resort option.
If you are thinking of taking out a payday loan, you must be completely sure in your ability to repay the loan on time. Otherwise, you risk finding yourself in a situation much worse than the one you were in prior to taking out the loan.
Can you have two payday loans at the same time?
The answer is no. If you have already applied for and received one payday loan, you cannot apply for another one with the same loan lending company or any other payday loan lender.
Payday loans are tracked by a central database. Once you have repaid your payday loan, you will need to wait 24 hours before you are able to take out another one. If you already have more than one loan and need to borrow another one to repay them, then you need payday loan consolidation.
Is it possible to take out a same day loan if your partner has taken one?
The answer is yes, if you meet the required payday loan eligibility criteria. However, if what you intend to do is to get a payday loan to pay for a previous loan, you should know that this practice is not allowed in every state, and also that it holds a certain amount of risk. That is because by taking out a payday loan to repay a previous one, the interest gets higher and higher and you may very well find yourself trapped in a debt cycle.
Can two applicants with the same joint bank account be granted two payday loans at the same time?
The answer no. If you and another person share a joint account (for instance you and your partner), if one payday loan has been given already to one of you via a joint bank account, the other party will not be able to get a payday loan with this bank account. If you have another bank account, you will be able to apply for and get a payday loan from that bank account. That is, of course, if you meet all the necessary payday loan eligibility requirements.
Payday loans eligibility requirements
Even though same day payday loans are rather easy to get, you would still need to provide certain documentation and meet some basic eligibility requirements.
To be eligible for a payday loan, you need to be at least 18 years old or older, be an American citizen or a permanent resident of the United States and have a steady source of income that ensures your ability to repay the loan on time. You should also prepare the following information:
- Your social security number
- Employment details and income
- Your birth name, phone number, and home address
- A valid form of identification