Multiple Payday Loans at Once

Although payday loans can be somewhat of a burden, they’re not reported to the three major national reporting bodies in Australia: Equifax, Experian, and Illion. This makes them among the best scenarios for someone who’s behind on payments and can’t keep up with their instalments or payment arrangement. What is the loan meaning? Borrow money and repay it again later once you have earned enough to repay.

Additionally, there’s a good chance to make it through without ruining your credit profile or getting involved with debt collection agencies if you find the right payment plan. That said, getting multiple payday loans at once is a bit complicated, because at this point, things are getting out of hand, and there must be a million things going through your mind.

Lucky for you, you stumbled upon us so that you can get some answers to help you figure out which way to go.

Can I Get Multiple Payday Loans at Once?

multiple payday loan at once

Yes, one can take out multiple payday loans at once if they need to. Yet, it’s not that easy because the requirements for the second loan are a bit restricted so as to identify the eligible group.

There are a couple of things to bear in mind here; first, payday loans make a short-term solution for a financial crisis, so you should be paying them as soon as you get your next paycheck. They shouldn’t, by any means, be your plan to sort out long-term financial issues. The difference between secured and unsecured loan is that a secured loan requires collateral whereas an unsecured does not. The loan repayment formula will cost more if you get an unsecured loan.

Secondly, applying for a second payday loan is a red flag that you’re struggling with your finances, so it’s only fair that the ASIC (Australian Securities and Investments Commission) put some additional requirements for your request to be accepted. If you need a loan been refused everywhere, apply today for a loan with Perfect Payday.

Technically, it’s the only way to protect lenders and ensure that you’ll be able to keep up with extra repayments that come on top of the ones you already have. This is, of course, with your best interest in mind, as you shouldn’t be left under substantial hardship to pay off your debts. You can learn how to pay off loans fast here.

Lastly, ensuring you meet the requirement for a second payday loan is a relatively long process, so you probably won’t take the money on short notice. In such a case, it’s better to think of an alternative. What is a payday loan? It is a loan you get when you are low on funds and cannot wait until your next paycheck. Apply for a payday loan and repay it once you have received your pay.

Do I Meet the Requirements for a Second Payday loan?

As far as we’re concerned, most people struggling with their finances are not eligible for getting a second payday loan. However, you’re in luck if you meet the ASIC requirements.

For starters, you must know that these requirements apply not only if you’ve had more than one payday loan during the last 90 days, but also if you’re currently repaying any other payday loans, you’re in default under another payday loan, or you’re applying for this payday loan to repay a previous one.

As mentioned earlier, the goal is to accept those who can repay the loan without any substantial hardship; otherwise, it makes more sense to try getting a low or even no-interest loan. Wow do loans work? Learn more about how loans work at the previous link.

Lenders have to review your current financial situation, so they’ll go through your credit profile to check your financial history, and they’ll also consider your income, investments, and whether you’re receiving a Centrelink payment or not.

Can Another Lender Know if I Already Have a Payday Loan?

Yes, even though most payday lenders don’t report to credit reference bodies, if you fail to repay any of these lenders, it’ll show on your credit profile. Your bank statement is another indicator of how you handle your finances and whether or not you’re currently struggling with repaying other loans.

Do Multiple Payday Loans Negatively Affect My Credit Profile?

multiple payday loan

Not if you’re compliant. Surprisingly, payday loans can improve your credit score if you managed to keep up with your payments and pay them off on time. In fact, this is what lenders are looking for, someone who needs some money and is capable of handling their finances properly without getting themselves into more debt. What happens when you default on a loan? It is bad for your credit history. Avoid this if at all possible. Ultimately if you are wondering can I get a loan with a paid default, the answer is most likely yes, but will depend on your circumstances.

However, if we’re talking about how bad it looks on your application, no one would say it looks good because it leaves the impression that you’re not handling your finances so well. Regardless, lenders know that things might not be going as planned, so they’ll do the math anyways, and you can still get a decent fund.

What Are the Risks of Applying for Multiple Payday Loans at Once?

To make an informed decision, you should know the consequences that come with late payments and the risks you’ll take by applying for multiple payday loans.

Debt Default

If you couldn’t repay the lender, you’ll get yourself into more debt because there’ll be a late payment fee. Because payday loans tend to be a bit expensive, you should have a solid plan before applying for a second loan.

Unaccredited Lenders

If you’re getting a second loan from a different lender, make sure they’re accredited by ASIC or AFS (Australian Financial Services) by checking their credit licence. Otherwise, you might be handling your credit history and bank statements to a scammer. You can search ASIC registers here.

Affecting Your Credit Profile

multiple payday loans

If you apply for multiple payday loans at once, it won’t look good on your credit profile. Although you might be able to repay all your loans on time, until you do, other lenders will probably refuse to lend you more money, let alone if you weren’t able to repay any of these loans.

How to Decide If I should Get a Second Loan from a Payday Lender?

Payday loans aren’t all the same. There are some rules that every lender set up according to the regulations of the ASIC. To compare loans, you should consider these factors:

Loan Cost

Payday loans come with established fees that you pay in addition to the actual debt. These fees should be within what the ASIC allows, so prospective borrowers must check these fees to ensure they’re not being charged more than they should. What if you are only 17? Can you get a loan at 17? Learn more about getting a loan when you are 17 here.

Late Fees

second payday loan

Although you’ll be paying upfront and an established fee with each instalment, you should check how much you’ll be paying if you fail to comply with the agreed payment terms. If the late payment fees are extensive, you can find yourself drowning in debt in no time. How long will it take to pay off my loan? It depends on the length of time you have borrowed for.

Approval SLA

Knowing the time frame during which your application will get approved or denied can have a significant influence on deciding which payday lender to opt for. If you need funds on a short term, you must make sure your payday party can offer you the money on such short notice. If you need to know how to calculate interest rate on a loan, learn more about it here.

Bottom Line

Multiple Payday loans are double-edged. If you’re eligible for getting a second loan, and you’re confident you can repay them on time without substantial hardship, they’ll be an excellent way to increase your credit score, and fix some of the collateral damage caused by having a temporary financial issue that led to an outstanding balance. Learn how to apply for a loan at this link.

On the other hand, if you couldn’t keep up with the repayment plan, the consequences would be catastrophic, and you’d be getting yourself into more trouble. So, unless you know where you’re going with these loans, it’s best to steer away. If you need to borrow money quickly, get started on the loan application process with us today.

About the Author

Lucy has over a decade of experience in finance. She is currently the content curator here at Perfect Payday.

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