Borrow From Only One Payday Loan Company To Avoid Legal And Other Issues

Finance & Money Articles

Payday loans can be extremely helpful if you're ever facing a financial emergency, as they provide easy-to-get short-term loans. If you ever need a payday loan, however, make sure to only work with one reputable cash advance company. Applying for payday loans from multiple companies can cause a host of issues.

Getting Multiple Payday Loans May Be Illegal

Depending on where you live, it may be illegal to get multiple payday loans -- even from the same company.

In Florida, for instance, residents can only have one payday loan at a time, and the loan must meet certain requirements (e.g. not be for more than $500). Florida isn't the only state with such laws. In Washington, residents may not get another payday loan if they're on an installment plan for an overdue loan, and they're required to work with only one payday lender at a time. Many other states of similar laws.

Even if you tried to get loans from multiple payday loan companies in your state, you might find that you're unable to. States that have laws limiting how many payday loans residents may get often maintain databases of people who have borrowed via a payday loan. Florida and Washington both maintain such databases, which help them ensure their respective laws are followed.

Having Multiple Loans on a Single Paycheck is Unwise

Even if your state doesn't have any regulations that limit you to a single payday loan or borrowing from a single lender, it's unwise to take out multiple payday loans against the same paycheck.

When signing a payday loan, you agree that your paycheck serves as the collateral for the loan. It's unwise, and potentially unethical, to use the same paycheck as collateral for multiple loans because the paycheck may only be big enough to cover one, and not all, of the loans.

Keeping Track of Multiple Loans Can Be Confusing

If your state permits multiple payday loans, and you have multiple paychecks coming in, you might be able to secure two or more cash advances without any legal or ethical issues. Even so, managing several loans can be confusing.

Borrowing from just one company will help keep things as simple as possible when taking out multiple payday loans. If you ever have a question about your loans or need to make adjustments to your repayment terms, you'll only have to talk with a representative from one company. If you have loans with different companies, you'll have to contact each one -- possibly multiple times.

Working with One Payday Loan Company Makes Understanding Terms Easier

All loans, regardless of whether they're short-term payday loans or long-term mortgages, come with complexities that are detailed in the fine print. You should, of course, read through all of the details and ask about anything that's unclear. This takes time, though, and can be tiring.

Borrowing from only one payday loan company will make reading through and understanding the terms of the agreement easier, because lenders often use the same agreements for most of their payday loans. If you ever take out another payday loan, you'll already be familiar with the contractual details of the agreement.

Finding a Good Payday Loan Company

Because you should only borrow from a single payday loan company, it's worth taking some time to find a good company that will treat you well. You should look for a payday loan company that

  • has lots of positive reviews
  • has been in business for a long time
  • is registered with and has a good rating with the Better Business Bureau

A payday loan company that meets all these criteria should be a good company to borrow from anytime you need a cash advance. For more information on payday loans, check out a website like


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