What are Payday Loans?
Payday loans are short-term, small amount loans where the borrower gets the desired money in the form of an advance payment, often on that very day, against a post-dated cheque that he should provide to the lender.
Payday loans can be a source of cash for anyone who has a constant supply of money in the form of income. There are some basic advantages of availing payday loans.
- Most of the payday loan lenders will instantly grant the money, after getting the necessary information from the borrower’s side. Thus, speed is the most important factor, attracting the borrowers, as in most of the conventional methods of applying for loans, it almost takes several weeks.
- Most of the procedures and interactions, when applying for payday loans, are conducted online. Everything can be approved online, and there is no need to visit a loan officer, with loads of documents to get a loan sanctioned.
- For availing a payday loan, the basic requirements are very few. Only that amount can be borrowed, which is within the capability range of the lender and the salary range of the borrower.
- If you have successfully repaid your first payday loan, the lender can give you access to a greater amount, the next time you go for it.
- The short repayment period for the payday loans is actually an advantage as it helps in improving the credit scores of the borrower.
- A payday loan is a convenient and quick method of handling financial crunches, with bad credit and no collateral.
Now the question is, can you have two payday loans at the same time?
The answer to this question is no. If you have already applied and received a payday loan, you cannot apply for another one with the same company or other lenders. The payday loans are under the surveillance of a central database and allow to be taken, only if the previous one is cleared. Once the first payday loan is cleared, you will have to wait for 24 hours before applying for the next one. If by chance, two or more loans are required, then you have to go for payday loan consolidation.
Now, keeping this question in mind, there are some other related questions, which we will try to answer in this article.
Can two applicants with the same joint account get two payday loans at the same time?
The answer to this question is no as well. If you and your partner or parents or friends are sharing a joint account and one of them has already applied for a payday loan via that joint account, the other person stands nullified to get a loan with the same account. If there is another bank account, then a payday loan from that account can be applied for, but only after all loan eligibility requirements are met.
Related: A Guide to Secure Payday Loans in Canada
Is it possible to take the same day loan if the partner has already taken one?
In this case, the answer is yes again only if all the criteria are met. But, if you plan to repay a payday loan with another, this might not be allowed by all the states. This practice also has a certain amount of risk as in this case, the interest gets higher and higher and you might get trapped in a vicious cycle of debts.
What happens when one has managed to get two payday loans at the same time?
According to the rule, two payday loans cannot be applied for. For more than one loan, you should consider other kinds of credit. Now, there might be instances where people have managed to get two loans from two different providers at the same time. Though usually, the lenders have ways of checking the current credit conditions, there have been instances where the lender has been deceived. In this case, it will be advisable not to follow this practice, because of the following reasons:
- Multiple loans become unmanageable. As the financial condition is vulnerable at this point in time, it becomes very difficult to meet the demands of all the loans at the same time.
- A payday loan is never meant for a long time financial crunch. So, it is not a financial solution actually.
- If the amount required is large, it is quite obvious that a payday loan will not be able to meet the requirement.
So, you should always avail payday loans which you can manage.