There are a lot of rules when it comes to payday loan.
If you’re asking “how many payday loans can I get?” you need to make sure you understand how things work.
When you’re in need of quick cash, payday loans may seem like the only option for you. Continue reading this article to learn more about payday loans and other important information for getting the cash you need quickly.
The Answer to “How Many Payday Loans Can I Get?”
While you can get more than one payday loan at a time, the chances of approval are slim. Lenders know it is difficult enough to pay down one payday loan when your next check comes but paying off two can make it even more difficult.
If you need more cash then from one payday to the next, there are other options that can help you achieve this goal. Cash loans may be a good option for you but you might not be sure if you’ll qualify or not.
Qualifying for a Payday Loan
Payday loans are short-term loans that you pay back on the day you get paid. One thing you should know is that you can often get extensions on the payday loans so you don’t have to pay everything back on the next payday.
Before you take out a loan, make sure to ask about the terms and find out what the requirements are for paying back the money you’ve borrowed.
To qualify for a payday loan, you often only need to have your paycheck stub or statement of payment from your employer. The lender will likely ask you how long you’ve been working at your place of employment to see how secure your position is.
Some lenders also require you bring in your tax returns. Tax returns are more difficult to fake so lenders turn to them to get the best information about how much money you really make.
These are the main things you’ll need for qualifying for a payday loan. A payday loan isn’t a secured loan and you’ll pay a pretty penny in interest and fees due to the high risk the lender takes on for loaning the money to you.
Qualifying for a Personal Loan
If you decide you need more money than a payday loan can provide, you can look into personal loans. Even if you have bad credit, you may be able to get a personal loan.
While personal loans are more favorable to people with good credit, different lenders have different standards. You may want to find companies that will do a soft pull on your credit before you apply with multiple different lenders.
If you want to qualify for a personal loan, you will need a steady job and proof of income. As with a payday loan, you’ll need to show proof that you’re still with your job and how much you’ll make.
Almost all personal loans require you to show two years of previous tax returns. The need to show past tax returns is especially true if you’re self-employed. Income can fluctuate from year to year so the lender wants to see what is going on with your situation before they decide to lend the money to you.
Another part of qualifying for a personal loan is your credit score. If your credit score is very low, most times you won’t be able to qualify for a personal loan.
There are things you can do to increase your credit score before you apply for a personal loan. Let’s get into that now.
What You Can Do to Increase Your Chances of Qualifying
If you don’t like the thought of paying high payday loan fees and you can hold off on getting a loan, there are things you can do to increase your chances of qualifying for a personal loan with a lower interest rate.
The better your credit score, the lower the risk you are to the lender. Since you’re a lower risk to the lender, the interest rate you’ll pay on your loan will decrease.
To increase your chances of qualifying here are some things you can do.
1. Maintain Various Type of Credit Accounts
The more accounts you manage successfully, the better it looks to lenders. If you are up to date on your mortgage, car payments and credit cards, they are likely to look at your application favorably.
Even if you’ve had problems with credit in the past — focus on getting things right now and you’ll find your credit improving.
2. Never Accidentally Miss a Payment
Even if you accidentally miss a payment because you forgot when the due date was, that doesn’t look good on your credit. Set up auto-pay so your money goes to the bill automatically.
Auto-pay will save you money in the long run because you won’t be paying out big fees for being forgetful.
3. Reduce Credit Card Utilization
When your credit card usage is at over 30%, that isn’t a good sign for lenders. Lenders will think you’re a risk because you’re feeling stressed for cash.
4. Become an Authorized User
If you want to get a quick credit boost, find a friend or family member that will make you an authorized user on an older account. The longer your positive credit history is, the better your chances of getting approved for the loan are.
Learn More Great Money Tips
Now that you know the answer to “How many payday loans can I get?”, why not keep learning? We have more great articles on money related topics.
Navigate through our site, find your favorite section, drop a bookmark and come back later for more great reads.