When you find yourself in a sticky financial situation, payday lenders can usually get you the cash you need fast. However, if you have never taken out one of these loans, you may have a few curiosities about some of the rules associated with these unique loans. Take a look at a few common questions and the answers you should know as a prospective customer.
Is it possible to get payday loans from two different places at once?
In most states, you are not allowed to get multiple payday loans at one time. However, you can get a payday loan at one place, pay that one off, and then go elsewhere. Most states only allow lenders to loan you a certain amount based on income and state guidelines. Therefore, whatever one lender offers you may be the only payday loan you will be able to get. If the state where you live allows multiple payday loans and you do not borrow the maximum, you may be able to take out two small payday loans around the same time at different lenders. But most lenders do not like offering payday loans if you are already responsible for paying a loan somewhere else.
How does a lender know if you have taken out a payday loan somewhere else?
In most cases, the lender will check for other payday loans by using the account number you used or your personal identification. In states where only one payday loan is allowed per person per pay-period, your information will be stored in a database that is accessible by the lender that shows how many loans you currently have. Even if your information is not checked by the lender, it is best to follow the guidelines and be forthcoming about having other payday loans. Otherwise, you could get into a bind and not have the funds to repay your loan on time with your next paycheck.
How is the maximum loan figured when you ask for a payday loan?
The lender will typically use the total amount of your usual paycheck to determine how much you qualify to borrow. Of course, different states also have laws regarding how much a payday loan can be. For instance, in the state of Kentucky, your loan maximum will always be $500 no matter how much your usual paycheck is because state laws state that this is the most a payday loan provider can offer.
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