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Depending on which state you live in, you could take multiple payday loans out at any given time. Each state has independent regulations over payday loans, but many states, such as California and South Carolina limit borrowers to having more than one active loan at once. 


Key Points: 


  • Payday loans are authorized in 37 US states such as California and Texas, while they are prohibited in 13, including New York and New Jersey, 
  • Some US states, such as South Carolina, limit how many loans you can take out at any one time. 
  • Caps on loan amounts are in place to prevent borrowers accumulating piles of debt.
  • Payday loans bear an average APR of 400%, making them a pricey means of borrowing cash. 
  • If you are unable to secure another loan but desperately need cash, consider approaching a credit union, bank, or loved one for further support. 


Can I Take Out Multiple Loans At Once? 


There are many factors which determine whether you can take out another loan, including state regulations, lenders’ self-imposed rules, and your financial circumstances.


california allows one loan at a time

States such as California don’t allow borrowers to take out multiple loans at once.


State Regulations On Having Multiple Active Loans 


There is a huge disparity between states over payday loan regulation, and whether borrowers can take out more than one loan at once. 

Of course, 13 states prohibit the loans altogether. Such states include New York and New Jersey. 

Many states, such as South Carolina, California, Virginia, Hawaii and Florida rule that borrowers may only have one loan out at once. This is to protect borrowers encountering unpayable debts as a result of taking out excessive loans. 

Other states also limit how much borrowers can take out, but are more lenient. For instance, Delaware caps loans at five in the space of one year, while Ohio allows citizens to hold debts of up to $2,500. 

Meanwhile, some states are much more liberal with lending. Texas and Louisiana do not limit how many loans borrowers can take out at once. 



Lenders’ Rules On Issuing Multiple Loans 


Many lenders will set their own limits on how many loans they are willing to issue to borrowers. 

Given that only 14% of borrowers are able to fully and promptly pay back their loans, these policies prevent lenders from dealing with high unpaid debts from individual borrowers. If you are unable to pay back one loan, you will certainly struggle paying back multiple. By reducing how much you owe them, the lender is protecting their own back. 

If your state allows you to take out more than one loan at once, but your lender won’t offer you more than one, you may approach another lender. 


Can I Afford To Take Out Multiple Loans?


You should only consider multiple loans if you desperately need the funds.

If this is the case, you must consider whether you can truly afford to do so. Remember, you will not only owe back what you borrow, but you will also owe interest payments as well. 

Let’s say you borrow $1,000 for one year, and that is attached to 36% APR. You will owe $1,360 in repayments, assuming that there was no upfront fee. You should have a solid means of repayment in mind. If you think you will be unable to repay your debt, then you could consider a lower-cost means of borrowing, such as seeking a loan from a credit union or loved one. 


APR is high on payday loans

You should be confident that you can afford repayments before committing to a loan.


Could I Find The Cash Elsewhere?


If you have determined that a second loan isn’t on the cards, but you are still in need of funding, there may be changes you could make to your life that would help. 

Budgeting is a familiar favorite, with’s 2021 survey revealing that budgeting is a habit held by 80% of Americans. Budgeting is simple and there are many smartphone apps such as Mint and PocketGuard  designed to help you track your spending, and show you where you are splurging too much. If apps aren’t for you, you could create a manual budget. This simply consists of tracking your incomings and outgoings, and noticing where you could reduce spending, leaving you with more disposable income. 

Failing that, you could cancel unused subscriptions, such as for streaming services or magazines. 

If you really need a payday loan, don’t be afraid to apply for one. However, you should be confident that it’s right for you, and that you will be able to pay it back – especially if you have more than one on the go!