How many outstanding Payday Loans can I have at once?

Payday loans are short-term loans intended to provide borrowers with funds for emergencies or other unexpected expenses. These loans are typically due within two weeks, and generally carry a high interest rate. Generally, payday loan lenders require proof of income, a checking account, and a valid government-issued ID.

State Regulations

State laws regulate the amount, fees, and interest rates that payday lenders can charge. These regulations vary by state, but typically, lenders cannot charge more than a certain amount for a loan, usually $500 or less. Interest rates and fees vary by state as well, but generally, the fees and interest rates for payday loans are very high. The repayment terms also vary, but generally, the loan must be repaid in full within two weeks.

How Many Loans Can You Have?

The maximum number of payday loans that a borrower can have at any one time is generally limited to one or two. This varies by state, but the maximum number of payday loans that a borrower can take out is typically three.

If a borrower has taken out more than the maximum number of payday loans allowed by their state, they may be in violation of state law. In this case, the lender may be able to take legal action against the borrower. This could include repossessing the borrower’s assets or filing a lawsuit.

Avoiding Over-Indebtedness

It is important for borrowers to be aware of the potential risks associated with taking out multiple payday loans. Taking out too many payday loans can lead to over-indebtedness. Over-indebtedness can lead to a variety of problems, including a decrease in credit scores and even bankruptcy.

Borrowers should look for warning signs that they are becoming over-indebted, such as having difficulty making payments or taking out more loans to pay off existing loans. Borrowers should also consider alternatives to payday loans, such as personal loans, credit cards, or borrowing from family or friends.

Questions to Ask Before Taking Out a Payday Loan

Before taking out a payday loan, borrowers should make sure they are eligible for the loan. They should also consider how much they need to borrow and what the repayment terms will be. It is important to ask about the interest rates and fees associated with the loan, as well as any penalties for non-payment. Finally, borrowers should consider any alternatives to payday loans that may be available.

Payday Loan Repayment Strategies

When dealing with multiple payday loans, borrowers should prioritize repayment. They should also focus on paying off high-interest loans first, if possible. Consolidating payday loan debts may also be an option, and borrowers should consider negotiating with creditors in order to reduce or eliminate interest.

Impact of Multiple Payday Loans

Taking out multiple payday loans can have a negative impact on credit scores. In addition, borrowers may be at risk of bankruptcy if they are unable to make payments on their loans.


Borrowers who need assistance with payday loans should contact their state’s regulatory agency. Non-profit credit counseling agencies may also be able to provide help. Finally, there are a variety of free online financial education resources available.


Payday loans can be a useful tool for dealing with unexpected expenses or emergencies. However, borrowers should be aware of the potential risks associated with taking out multiple payday loans. It is important to understand state regulations and to ask questions before taking out a loan. In addition, borrowers should consider repayment strategies and be aware of the potential impact on their credit scores.


State Regulatory Agencies. (2020). Retrieved from

Non-Profit Credit Counseling Agencies. (n.d.). Retrieved from

Free Online Financial Education. (n.d.). Retrieved from

Commonly Asked Questions

Do payday loans have high fees?

Yes. Payday loans are particularly predatory because they are known to have triple-digit APRs which make them difficult to pay back.

Can you go to jail for not paying a payday loan?

No, you won’t go to jail if you do not pay a payday loan. However, payday lenders can pursue collection through the civil courts and you risk jeopardizing any assets you own, such as your car, house, etc.

Can you have 3 payday loans at once?

3) Limits on number of loans: If a borrower takes out three payday loans in “quick succession,” lenders must cut them off for 30 days. Also, unless they can prove an ability to pay it all back, borrowers cannot take out more than one payday loan at a time.

How many payday loans can you take out at once?

one payday loan

Can you take out more than one payday loan at a time?

Even if the payday lender doesn’t pull your credit report, the lender can still discover an active payday loan through your bank statements and deny you. In fact, any borrower who takes out three payday loans in quick succession must be cut off by the lender, according to the new CFPB guidelines.

How many loans can you have at once?

Technically, there is no limit to how many personal loans you can have at once. Lenders may approve a second or third loan if the borrower has paid off part of the first loan and has a history of on-time repayment. In fact, it’s fairly common for one loan to fall short of covering all of a borrower’s needs.

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