Can I Get More Than Two Payday Loans in Illinois?

Payday loans or auto-title loans are a quick fix if you need immediate money to pay your expenses and emergencies.  

However, what happens if one cash advance isn’t enough to pay all your expenses, can you take two payday loans in Illinois at once? More Info.  

With increasing expenses at home, it is easy to run out of money even before your next payday arrives. If you have piles of bills to pay, your car broke, or your kid needs to pay her tuition fee, you can resort to one option by applying for another payday loan. 

But before your application, there are things that you need to keep in mind. Although there are several payday lenders in Illinois, it has strict regulations on the amount of money you can borrow, interest, loan terms, and more.  

The maximum amount you can borrow is $1,000 or 25 percent of your monthly income or whichever is less. The loan terms are a minimum of 13 days to a maximum of 120 days.  

There is a maximum finance charge of $15.50 per $100 and a verification fee of $1. The maximum APR charge for a 14-day $100 loan is 403 percent. 

To answer whether you can borrow two cash or check advance loans at once, the answer is yes. However, the total balance should not exceed the maximum loan amount.  

 In case you applied for an installment plan and a payday loan, or two installment loans at once, the total amount of your loan must be less than the 22.5 percent of your monthly gross income. Illinois law also implements a cooling-off period to take another loan of 7 days after 45 consecutive loan days.  

If you’re planning to take more than one cash advance or check advance loan, you must remember that paying two loans at the same time can be harder for you. If you need more than two payday loans now, what could happen the following months? 

In some states like Illinois, they allow two payday loans at once. There are only some criteria to meet before they approve of the second one. The big factor for you to get approved for the second one depends greatly on your first loan. 

By providing you a second loan, the lender faces a greater risk. They must consider that you can pay two loans at the same time.  

Do you think you are able to pay for it? Before you apply for a short-term plan with high-interest rates like payday loans, you may consider other options first.  

No lender will give you a second loan if they know that you can’t repay them. If you’re applying for the second loan, you need to convince them that you have the ability to pay two loans at once.  

Keep in mind that this kind of loan comes with big fees and penalties if you are unable to settle it on time. If you are unable to pay your first loan, you may opt to take another loan which may place you in big debt. 

In most states, the chances of getting more than one loan at once are relatively low. You have little chance to get approved for another loan if you have an existing loan. However, it varies on the state and the lender. 

Some lending companies believe that they must not give more than one cash advance to the borrower. There is a big possibility that borrowers would not be able to pay that could lead them to default. 

This is the reason why lenders deny the second loan. They are afraid that you are unable to pay two loans. Some may do this to protect their business. 

Taking two loans at once isn’t a wise decision. However, if you are sure you have the capacity to return the money you borrowed, it can be an alternative for you. 

Again, some lenders approve giving you two credit programs. However, think again, if you have other options. 

Before applying for salary loans, you can consider payment extensions if you are unable to settle your bills on time. By requesting a longer payment plan, you can possibly settle your bills if you’re behind your payment schedules. 

Other options that you may consider are taking advance directly from your employer, peer-to-peer lending with no interest, taking a personal or credit union loan, and credit card. Loans may give you sleepless nights if you are unable to settle it. And taking two payday loans at once may put you in trouble. 

Payday loans are only suited for unexpected happenings, small expenses, or emergencies. It must not be an option just to splurge on something.  

In reality, many people face huge debt because they are unable to pay their loans. In case, you are trapped in debts, or you are facing financial troubles, you must seek a financial or debt counselor.