Insufficient Funds. Your last payday loan was not big enough to remedy all your cash needs, and now you need to borrow more.
Another Emergency. You need a new loan for a new cash emergency.
Debt Consolidation. You want to get a bigger payday loan to settle your smaller loans.
Extravagant Spending. You want to use your new payday loans to go on a shopping spree, vacation, or another unnecessary expense.
The Legality of Getting More Than One Payday Loan
Different states have different limits to the number of loans a borrower can have at once. Check your local and state laws to learn what you can and cannot do within your state.
There are also laws against getting a payday loan outside the state you live in. There may be exceptions for,
US citizens who live in another state semi-permanently for work purposes
US citizens with registered properties in another state
5 Factors Considered on an Additional Loan
#1. The Number of Loans You Currently Have
You can more likely get approval on a second loan application rather than a third. Having more standing loans decreases your chances of getting another loan. Lenders frown on the idea of juggling too many loans due to the heightened risk of default.
#2. The Percent of the Debts You Have Already Paid Off
Having many loans may not be as much of a hindrance to getting another loan if you are already close to paying them off. Good history of payment may even help increase your chances of getting new loan approval.
#3. The Interval Between Loan Applications
Lenders, in general, dislike consecutive borrowing. Borrowing too soon can send the message that you are not ahead of your finances and struggling to pay.
#4. The Purpose for the New Loan
Some lenders consider a borrower’s purpose for borrowing the loan. Proof that you need it for a dire emergency can help your chances of getting another loan. Saying you want the loan for a weekend vacation in another state may not help as much.
#5. The Debt-Income Ratio
f you can prove that you have the income to pay for another loan, you may get approval easier. Lenders have varying standards on the debt-income ratio, using credit checks. Learn how do credit checks work and increase your chances of getting a payday loan today!
Payday Loans at Cash Loans Nearby
For reliable loan options, choose Cash Loans Nearby. They have advanced financial systems that generate loan options in under 2 minutes. Apply and get a loan with one of their reputable lenders today!
Cash Loans Nearby’s founder, Nick Wilson, is an experience loans officer. He and his team of finance experts stand at the forefront of customer-centered loans. Join the thousands of customers they have assisted and helped free charge.
Amanda Girard is currently one of the leading writers and a senior editor for Cash Loans Nearby. A true millennial, Amanda understands more than most the importance of having a solid financial front. So, armed with a degree in Journalism from the esteemed Drew University, she has spent the better half of her 6+ years in the field of writing exploring the secrets of financial success. Amanda is a resident of Miami, Oklahoma, and enjoys playing outdoor games with friends and reading when she isn’t knee-deep analyzing current financial trends.