Payday loans help many employed people plug in their budget shortfalls and maintain their lifestyles each month. Their importance has increased in recent times as many people are experiencing the effects of an economy on a downward trajectory.
As a borrower, you may often wonder if applying for multiple payday loans is possible or even legal. This article is dedicated to answering this question and offering more information on payday loans and what they can do for you.
What Are Payday Loans and How They Work?
Payday loans are small loans advanced to employed people who can repay them when they receive their next wage. Typically, payday loans have a repayment period of two weeks to one month. You can select a manageable method to make them more manageable for your monthly budget.
There are some best options for payday loans without a hard credit check on iPaydayLoans, which can be helpful for preparing for emergencies such as medical bills, car repairs, and home repairs in case of bad weather.
Legal Restrictions on Multiple Payday Loans
Laws governing the application for and utilization of payday loans vary by state in the US. Start your search for a payday loan by skimming through the National Conference of State Legislatures to understand the payday loan regulations in your state in detail.
Although no strict rule stops a borrower from applying to multiple lenders and getting approved for several payday loans, lenders are not allowed to issue a payday loan twice to a single customer before they pay off the first one.
This regulation helps protect borrowers from defaulting on their loans which could lead to high interest and penalties that escalate their debt issue.
If you receive multiple payday loans from different lenders, they must cross-check this information and cap their limit to make repaying the loans manageable.
An option that some of the payday lenders in the US offer borrowers to help them repay their loans is to roll over the payment if they are unable to meet this obligation on the due date. With a roll over, you pay some money (usually the accumulated interest) to extend the loan repayment date until you are in a better financial position to clear it.
The laws on payday loan rollovers also vary by state. Still, many are discouraged because this does not reduce the principal owed, and the interest continues accumulating despite this payment.
“Payday loans are an ideal option if you have bad credit,” advises Charles Mathe at iPaydayLoans on his author page. He continues, “no credit check is necessary and your credit report remains in good standing provided you can repay the loan on time.”
Where Can I Legally Apply For Payday Loans?
Online Payday Lenders
Online payday lenders are the best option to get a payday loan legally. You can often connect directly with the lender or through a loan broking platform like iPaydayLoans. This platform complies with all payday loan lending regulations in the US and only connects you with verified lenders, improving your chance of getting approved.
Some of the benefits of getting a payday loan via iPaydayLoans include;
- One request is sent out to multiple lenders
- A verified lender network protects you from online payday loan scams
- Fast loan decisions and funding from direct lenders
- You can apply from any internet-enabled device
- Secure online platform with 128-bit encryption and SSL certificates
Storefront Payday Loans:
Storefront payday loans require you to visit a payday lender in person and request a loan. The requirement for most lenders is that you write them a post-dated check which they will cash in automatically from your checking account on your next payday.
While storefront payday loans are excellent for finding trustworthy lenders near you, they are not ideal because of the hectic application process. Compared to online payday loans, you need to visit the store in person, and it is not guaranteed that this will improve your chances of getting approved.
Credit Unions and Banks
A few banks and credit unions in the US offer payday loans to their customers, but this will be in limited amounts, at most $500. Unlike other payday loan lenders, banks and credit unions will consider your credit score, meaning you will be charged higher interest than standard personal loans. Low credit may significantly reduce your chances of getting approved for a payday loan.
How To Apply for Payday Loans Online?
The following are the requirements to qualify for a payday loan through the iPaydayLoans lender network and the steps to apply for one.
Eligibility Requirements
Payday loan application on iPaydayLoans only requires a little paperwork, and applicants must meet the following requirements to improve their chances of approval.
- Be a permanent US resident.
- Have a government-issued ID document.
- Provide a working checking account.
- Prove they have a source of income.
- Share a phone number and email address.
Loan Application Process
The loan application process is a three-step, easy-to-complete one that can be done in a few minutes.
a) Fill Out An Application Form
Click on “Get a Quote” to start the application process and provide the information requested, then submit.
b) Wait For A Loan Decision
You may need to wait only a few minutes as iPaydayLoans forwards your request to lenders who match your profile and are ready to lend.
c) Receive An Offer And Get Funding
iPaydayLoans will get back to you with multiple loan offers from different lenders for you to choose one. Read their terms and accept the one that meets your needs. You will receive the approved loan amount in your checking out within a business day.
Conclusion
Applying for multiple payday loans from different lenders is legal but may affect your ability to repay them all in good time. Determining how much you need and applying for one payday loan from reputable lenders on the iPaydayLoans network is advisable.
Leave a Reply