How to Get a Second Payday Loan: Things to Know
The most important thing to remember is that payday loans online are meant to be for emergencies and should be paid off on your next payday. It is never wise to ‘rollover’ a payday loan due to the additional fees you must pay. However, there are rare circumstances when the only solution you may have is to request a second payday loan, also known as a cash advance loan.
How to Get a Second Payday Loan If You Already Have Taken One
First, if you have missed payments on your original loan, it is likely you will be rejected for a second one. Lenders will feel the risk is too great to lend to you until the first loan is paid on time.
However, installment loans of $1,000 or more may still be an option to consider. They do require a little bit better credit (but not good credit), and there may be other requirements depending on the lender. If you qualify, then your payments are monthly over a period of time, like a car loan.
When Do You Need a Second Payday Loan?
Payday loans online are very convenient, unsecured, and can be a lifesaver in an emergency. Most people, even with bad credit, will qualify for a cash advance loan. However, when you request a second time, even if you are not past due on the original loan, you will be asked to give clear reasons about why you need a second loan. And, the amount will likely be less than your original loan if you are approved.
Getting a second loan to pay off the first loan is not considered a valid reason. Most borrowers are rejected for a second loan if they have not paid off the first loan. Note the installment option mentioned above as a possible method to consider.
When Do You Get a Second Payday Loan?
Well, the good thing is that payday loan lenders aren't really concerned with your credit history and may not be overly concerned with your previous loan if it is not way overdue. Having a steady job and your income each month will be key factors in determining the risk of giving you a second payday loan.
Your monthly income is a direct indicator of your ability to repay the first and second loan. You are mostly evaluated based on your income and your ability to repay the borrowed money. In any case, the lender will review your history and determine if they are willing to take the risk of a second loan. It is not impossible to do, but it is difficult.
If you do get in contact with a lender (including your current, first loan lender), make a point of your income and how you can pay back a second loan and when. Providing a date, you will pay off any loan is critical to getting approval. Be upfront about the status of your first loan and answer questions about it honestly. Consider the rollover option noted above by contacting your original lender.
If you do qualify for a second loan, be sure you can pay both loans off on the dates set by the lender and do not miss them. You could ruin your chance to ever be approved again if you mess up on your payments.
Do you need emergency funds or want to find out if you qualify for an online payday loan? Click here to get started.