According to the Consumer Federation of America, a borrower can get an average amount of payday installment loan between $100 and $1,000. So, if you need an amount more than this, or if your state loan regulations cap payday installment loan limits at an amount less than this, you might consider getting more than one loan at the same time. The big question, however, is whether you are allowed to.
A borrower can get more than one payday installment loan depending on what state he resides in and the state loan regulations. However, most state loan regulations and even lenders will not allow a borrower to have more than two payday installment loans at the same time. There are several reasons for this.
The most important reason why getting more than one payday installment loan at the same time is not allowed by most state loan regulations is because they want to protect both the payday lender and the borrower. Issues on default payments and increasing the amount of debt to be paid will arise and explained fully. Let’s consider this scenario. When a borrower takes out a payday installment loan, he is bound to set a schedule to repay the loan. If having more than one or two loans at the same time puts the borrower in stress or would make it more difficult for him to repay, the two loans will usually not be approved.
In addition, allowing a borrower to take out more than one payday installment loan may not be good for lender because it will produce a considerably higher risk for defaulting. This is why most lenders make use of a method to check how many payday installment loans a borrower has taken out. This is for the mutual protection between the lender and the borrower. On the brighter side, not allowing a borrower to get more than one payday installment loan will keep the borrower from getting sunk in more debt.
Different states have different state loan regulations. States found along the west coast of United States have various regulations on the number of payday installment loans a borrower can have at the same time.
- As of 2010, the state of Arizona prohibits payday installment loans, while Utah and Oregon have no state loan regulations on the number of loans and amount a borrower can have.
- The state of Montana allows two, while California and Hawaii allow only one.
- In Colorado, a borrower can’t get a combined total of more than $500 on outstanding payday installment loans, and each loan must be a minimum of 30 days apart.
- In New Mexico, the combined total of payday installment loans you can get should not be more than 25% of your gross income.
- The state of Idaho limits to $1,000 and Washington to $700 in the amount of the loan.
- Wyoming, Nevada and Alaska have no specific state loan regulations on multiple payday installment loans.
State loan regulations and requirements in Midwestern states are more specific.
- As of 2010, the states of Illinois, Iowa, Nebraska, Kansas and Oklahoma permit a borrower to have 2 outstanding payday installment loans at the same time. The state of Indiana allows multiple loans but only one loan per lender.
- In the state of Ohio, you can only have one payday installment loan at a time with a maximum of 4 per year.
- Michigan, Arkansas, and Wisconsin allow unlimited payday installment loans, but only one per lender.
- Missouri, Minnesota and North Dakota have no specific state loan regulations on multiple payday installment loans.
Most of the states in the Eastern United States prohibit payday installment loans except in New Hampshire and Rhode Island. New Hampshire allows only one payday installment loan at a time. Rhode Island allows you to have three but their combined total amount should not be more than $500.
Most southern states allow a borrower to have only one payday installment loan at the same time.
- In Alabama and Texas, a borrower can take out an unlimited number of payday installment loans but should not be more than $500 when the total amount is combined.
- Tennessee allows you to take out up to 3 payday installment loans at one time, but only two loans at the same lender.
- People in Kentucky are most favored because they are allowed to have two loans, each not more than $500 at the same time.
- However, payday installment loans are prohibited in West Virginia, North Carolina and Georgia.
It is important to know first your state loan regulations before applying for a payday installment loan so you will be aware of how many times can you get a cash advance payday loan and the laws behind each.