How Many Payday Loans Can You Have?

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A payday loan may help you get out of a tight spot if you need cash fast to pay for utility bills, groceries or gas to get to work. But taking out more than one can be risky — and depending on your state, it may not even be allowed.

Each state has its own regulations on the number of payday loans you can take out at once, and this is typically one or two. Additionally, most states place limits on loan amounts or have requirements to ensure that you can afford to pay back the loan.

These requirements may restrict how often you can use payday loans without capping the number of loans you actually have.

Can You Have More Than One Payday Loan at a Time? 

In many states, such as Florida and South Carolina, you can’t have more than one payday loan at a time.

States that limit payday loans may check a central database to see if you’ve borrowed money through a payday loan service recently or have any payday loans outstanding.

Payday loans, however, don’t require a traditional credit check.

Did You Know?

As of 2025, 32 states place limits on the amount you can borrow, ranging from $300 to $1,000. Nevada has legislation that prevents a borrower from taking out payday loans that exceed 25% of their monthly income.

What Happens if You Try to Get Another Payday Loan While Still Owing One? 

If you try to get a payday loan while you still owe money on another one, here’s what you should know:

Many Lenders Will Still Deny the Application

Payday lenders might still deny an application if you have an outstanding loan.

There are also state laws that limit how much you can borrow or take out all at once.

Some States Allow Loan Rollovers

Some states do allow you to roll over the loan into a new loan. Be aware, though, that this adds more interest charges and fees to the overall amount you’ll have to pay, making it hard to stay on top of the debt. It could eventually lead to a cycle where you’re borrowing continuously just to make ends meet.

Potential Hit to Your Credit

Payday loans don’t require a credit check and aren’t typically reported to the three credit bureaus. If the account is taken to collections, though, the debt collection company can report it, which can affect your credit score.

You could even be sued for nonpayment, which could result in a court order that allows the collector to recover the debt.

State Laws on Multiple Payday Loans 

State rules vary widely on payday loans. Twelve states and the District of Columbia have prohibited payday loans:  

• Arizona
• Arkansas
• Colorado
• Georgia
• Massachusetts
• Maryland
• New Jersey
• New York
• North Carolina
• Pennsylvania
• West Virginia
• Vermont

Some cap the total loan amount or limit the number of loans. Others have a cooling-off period, preventing you from taking out a second loan immediately after paying off the first, or don’t allow rollovers at all.

Examples of State Payday Loan Limits 

Are There Any Risks to Taking Out Multiple Payday Loans?

There are some real risks to having multiple payday loans — high fees and the potential to hurt your credit in the long term. Here are a few things to watch out for:

• Endless debt cycle: Rolling over loans tacks on more interest and fees, with the potential to lead to a debt cycle.
• Budget concerns: If you always use your next paycheck to pay off your payday loan, you won’t have the money you need for essentials and will continue to run short.
• Credit score damage: If your payday loan gets sold to a private debt collection company, they may report it to the three national credit bureaus, hurting your credit score.
• Harder to qualify in the future: Having a bad credit score can make it harder to secure a traditional loan or open a credit card.  

4 Alternatives to Taking Out Another Payday Loan 

Fortunately, there are better options than stacking payday loans. Consider the following:

1. Ask Your Lender for a Payment Plan

Rather than rolling over the loan, ask if you can enter a payment plan. You can start with a smaller amount each week until the loan is paid off. You might consider a side gig or even selling items on Facebook Marketplace to get fast cash to pay off the loan.

2. Use a Trusted Paycheck Advance Apps

While paycheck advance apps come with their own downsides, they can be a good resource to find emergency cash.

Apps like MoneyLion offer up to $250 in cash advances without fees. However, you should always do your research and make sure you’re working with a reputable company. ConsumerReports.org has reported that some cash advance apps may come with risks similar to payday loans, so you should choose wisely and carefully.

3. Apply for a Credit Union Loan

If your credit score is still in the fair-to-good range, you may qualify for a personal loan or a loan from your credit union.

Since credit unions pride themselves on local, personalized service, they might be more willing to extend credit if you have an account there. The differences between a payday loan vs. installment loan are huge, including fewer fees, lower interest and more regulations that protect customers when they take out a personal loan.  

4. Get Help from a Nonprofit Financial Counselor

If you can’t get ahead no matter how hard you try, especially due to existing, high-interest debt, consider getting help from a nonprofit financial counselor. The National Foundation for Credit Counseling can connect you with a reputable counselor in your area.

How To Break the Payday Loan Cycle 

Breaking the payday loan cycle isn’t easy. It starts with making a decision to get control of your finances. Here are some things you can start doing now:

1. Track your spending and create a budget. If you monthly expenses consistently exceed your income but you can’t reduce costs any further, you may have to consider a second job or side gig.
2. Set up a repayment plan with your lenders. Once you’re making enough money to live without payday loans, pay the loans off as quickly as possible. If you’re also grappling with other high-interest debt, consider debt relief programs.
3. Start an emergency fund. Even as you start to pay down your debt, make a plan to build an emergency fund in a high-yield savings account.

Remember, even an extra $5 a week toward savings can start to build over time. “You have to have that emergency account,” finance expert Suze Orman previously said in interview with GOBankingRates.

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