Can You Have More Than One Payday Loan?
The average amount of a payday loan, according to the Consumer Federation of America, is between $100 and $1,000. If your financial emergency amounts to more than this, or if regulations in your state cap payday loan limits at an amount less than this, you may think getting more than one payday loan is the answer. Whether you can, however, depends on payday loan regulations in your state.
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Western United States
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States along the west coast vary widely in the number of payday loans you can have at one time. As of 2010, according to the CFA, the state of Arizona prohibits payday loans, while Utah and Oregon regulate neither the number of loans you may have nor their amounts. In between, Montana allows two, California and Hawaii allow only one at a time and the remaining state laws either allow more than one but limit the total you can borrow or simply do not address the issue. In Colorado, the combined total of all outstanding payday loans cannot be more than $500, and while you can take out an unlimited number, each must be a minimum of 30 days apart. In New Mexico, the combined total of payday loans cannot be more than 25 percent of your gross income. Idaho limits the total of all payday loans to $1,000 and Washington to $700. Wyoming, Nevada and Alaska do not address the topic of multiple payday loans in their state laws.
Midwestern States
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Payday loan requirements in Midwestern states tend to be more specific. As of 2010, the CFA reports that Indiana, Illinois, Iowa, Nebraska, Kansas and Oklahoma all permit you to have two outstanding payday loans at a time, although in Indiana you can only have one per lender. In the state of Ohio, you can only have one at a time and a maximum of four per year. Michigan and Arkansas allow unlimited paydays loans, but only one per lender. Wisconsin allows an unlimited number, and Missouri, Minnesota and North Dakota do not specifically address the topic of multiple payday loans in their state laws. North Dakota does limit loans to a total of $600.
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Eastern United States
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If your state is in the east, getting even one payday is most likely not an option. As of 2010, according to the CFA, with the exception of New Hampshire and Rhode Island, state laws in eastern states prohibit payday loans. These include Maine, Vermont, Massachusetts, New York, Connecticut, New Jersey, Pennsylvania, Delaware, Maryland and the District of Columbia. New Hampshire allows you to have only one payday loan at a time and although Rhode Island allows you to have three, their combined total can be no more than $500.
Southern United States
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As of 2010, according to the CFA, most southern states allow you to have only one payday loan at a time. These include Virginia, South Carolina, Mississippi, Florida and Louisiana. Two states allow more than one but place a limit on the total amount you can borrow. In Alabama and Texas, you can take out an unlimited number of payday loans but the combined total of all cannot be more than $500. The state of Tennessee allows you to take out up to three payday loans at one time, but only two using the same lender. Kentucky is the most liberal, allowing you to have two loans, each no more than $500, at any one time. State laws in West Virginia, North Carolina and Georgia prohibit payday loans.
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References
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