How Many Payday Loans Can You Have?

Published: March 7, 2023
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.

To avoid becoming overly reliant on high-cost financial products and potentially falling into a cycle of debt, it’s generally recommended to limit the number of payday loans to one or two at a time. This rule is reflected in the law across various states such as Alabama, Florida, Illinois, Indiana, or Iowa.

It’s important to be aware of the regulations regarding the number of payday loans allowed in your specific state, as it can vary. However, regardless of the location, it’s prudent to exercise caution and avoid taking on multiple payday loans simultaneously to prevent financial strain and potential debt traps.

StateNumber of Payday Loans You Can Have Open at Once

How Many Loans Can You Have Open At Once?

As the table above shows, it depends on what state you are in. If you are in Ohio, you can only have one payday loan outstanding at any time. However, if you are in Louisiana, you can have an unlimited number of payday loans outstanding. 


Although you may be in a state that allows you to have an unlimited number of payday loans outstanding, it is advisable to limit the number of payday loans that you have open at once to 1 or 2.

Payday loans are expensive and getting too many could result in you becoming trapped in debt. If you need to borrow more money, consider alternatives such as paying off debt, using a credit union, selling your other personal items or budgeting more carefully.

Why Do Some States Limit the Number of Payday Loans that You Can Take Out?

Having multiple payday loans open can be risky. Payday Loans have extremely high APRs (Annual Percentage Rates), typically ranging from 400% to 600%. This makes payday loans significantly more expensive compared to other financial products like title loans, mortgages, credit cards, credit unions, or personal loans.

While payday loans are fast, convenient, their high interest rates can quickly accumulate if you have multiple loans at once. This can make it difficult to repay the loans, especially when late fees and additional charges are added to your loan.

In addition to the financial burden, missing repayments on payday loans can have negative consequences on your credit score. This can hinder your ability to access similar loans or other forms of credit in the future, as well as impact your ability to rent an apartment, obtain a mortgage, or even get a cell phone.

Therefore, some state legislators make it their responsibility to limit the number of payday loans that an individual can take out at any point in time to prevent their citizens from falling into debt. Although does help consumers sometimes multiple smaller payday loans are just aggregated into a single, larger loan.