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How Many Payday Loans Can You Have Open At Once?

By the Pachyy Editorial Team

The Pachyy Editorial Team comprises a diverse and experienced team of writers, researchers and subject matter experts whose aim is to provide you with useful insights, guidance and commentary on all matters related to your personal finances.

It’s usually best to only have one or two payday loans open at a time. This can help you avoid relying too heavily on expensive financial products and getting trapped in a cycle of debt.

Each state has its own rules about the number of payday loans you can have open. Whether you’re in Ohio, Florida, Illinois, California, or Texas, the general rule is that you should only have one or two loans open at any given point, whether they’re from a physical store or from an online payday loan service.

State Number of Payday Loans You Can Have Open
Alabama 1
California 1
Colorado Unlimited
Florida 1
Iowa 2
Maryland 0
Illinois 0
Nevada Unlimited
Ohio 1
Tennessee 1
Texas Unlimited

Can You Have Multiple Loans at the Same Time?

It is recommended that you have only one or two payday loans open or outstanding simultaneously. Payday loans can be quite costly, and having too many of them can pose risks. This is why it is regulated by state laws. If you require additional funds, there are several alternatives you can explore. These include paying off existing debts, seeking assistance from a credit union, selling personal items you no longer need, or improving your budgeting skills.

Why is it Not Advisable to Have Multiple Payday Loans Open Simultaneously?

It’s important to understand why it’s not recommended to have more than one payday loan open at the same time. The Annual Percentage Rate (APR) of payday loans is typically very high, ranging from 400% to 600%. This is significantly higher compared to other financial products like title loans, mortgages, credit cards, credit unions, or personal loans.

The reason behind the higher rates is that payday loans are designed to be fast, convenient, and short-term. However, taking out too many of these loans concurrently can make it challenging to repay them from your monthly pay cheque. Late fees and additional interest can quickly accumulate, making the loan costs even more burdensome.

Moreover, missing repayments can have a negative impact on your credit score. This can make it more difficult to acquire similar loans in the future, as well as access other forms of credit like getting a cell phone, renting an apartment, or obtaining a mortgage.

It’s worth noting that the regulation regarding payday loans varies from state to state. In some states like Florida, Ohio, and California, you are typically allowed to have only one loan at a time. On the other hand, states like Texas and Nevada may allow unlimited loans.

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Limitations on Payday Loans in Florida, Ohio, and California

Hey there! Just wanted to let you know that in the wonderful states of Florida, Ohio, and California, you are currently permitted to have a maximum of one payday loan open at any given time. This means it’s important to be mindful of this restriction if you’re considering taking out a payday loan in these states. Feel free to reach out if you have any further questions!

Can You Get Unlimited Payday Loans in Certain States?

Yes, there are states such as Colorado, Texas, and Nevada that offer unlimited payday loans to customers. This means that theoretically, you could take out multiple payday loans if you wish.

However, it is important to note that this is not recommended. Similar practices in the UK have resulted in disturbing stories of individuals who took out numerous payday loans and ended up in overwhelming debt as a result. (Source)

While it is possible to obtain unlimited payday loans in Texas, it is strongly advised against.

Payday loans are designed to be used for short-term purposes only, serving as a temporary solution until your next payday. Ideally, these loans should be repaid within a few weeks or months and used to cover emergency expenses such as car repairs, medical bills, or household expenses. It is best to avoid using them repeatedly and try to minimize reliance on payday loans.

What Can I Do if I Need Multiple Payday Loans?

If you find yourself needing more than one payday loan, don’t worry too much! However, it’s important to avoid falling into a potentially expensive trap. Here are some friendly and helpful suggestions:

Consider reaching out to family and friends for financial assistance. Borrowing from loved ones is interest-free and usually comes with flexible payment terms. You can repay them once you catch up with your other expenses and regain financial stability.

If you require additional funds, you could consider closing your current payday loan early and seeking a larger loan amount. Explore options such as credit unions that offer lower interest rates, secured loans, or selling unused items around your home. You’d be surprised at how much money you can easily accumulate by selling old books, CDs, clothes, and more. This could provide a solution to your payday dilemmas.

Alternatively, you can always improve your budgeting skills to break the cycle of relying on payday loans each month. Could you optimize your grocery shopping? Is it possible for you and your partner to share a car for a few months? Perhaps you could ask relatives for hand-me-downs of toys or clothes for your children. These are simple ways to save money and avoid resorting to high-cost loans.

Sumbit an Application

Our application is user friendly, can be completed in under 5 minuets, will have zero effect on your credit score and is completely free!

Sit Back and Let Us Work Our Magic!

Once you have submitted your application, we will evaluate all options in real time and notifiy you within a few minuets of the lowest APR loans avaliable for you.

Receive your Cash

Subject to further checks and documentation, your lender of choice will wire cash to your checking account.


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