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Short term loans, commonly referred to as payday loans, are usually used for financial emergencies, because of the high fees associated with them. You should think very carefully before taking out a second payday loan as multiple loans can lead to unmanageable repayments and serious financial stress. However, if you are considering taking out another payday loan you should consider the following information prior to submitting an application.
If you're struggling financially and would like to speak to someone for free financial advice, information and assistance you can call the Financial Counsellors hotline on 1800 007 007 (open from 9:30am to 4pm, Monday to Friday). If you are suffering financial problems related to the coronavirus pandemic you may be eligible for additional support. Find out more here: https://www.finder.com.au/coronavirus-financial-help
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It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.
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* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.
The short answer is yes, but the longer answer is that applicants will need to meet more stringent criteria than when they applied for their first one. Payday loans are intended for financial emergencies and not to be used as a long-term financial solution. Requiring more than one loan at a time is a sign that someone might be struggling financially. As a result, when a lender recieves a loan application from someone already paying off a payday loan, it is an ASIC requirement for the lender to take further steps to ensure that they will be able to manage the additional repayments. These extra checks are likely to slow down your application so bare this in mind if you need to access money quickly.
ASIC has many requirements in the payday lending space to protect the borrower. Payday lenders have to take further steps to ensure their borrowers won't be under substantial hardship when making repayments if any of the following situations apply:
To comply with ASIC regulations, lenders need to ensure that their customers will be able to repay the loan without substantial hardship. To do this, they will review an applicant's current financial situation and look at multiple factors, including their credit history, what payments they make towards their current payday loan and any other loans, whether they receive Centrelink payments, how they are employed and their income. This may mean that customers are no longer eligible for a loan that they were previously eligible for.
There's no way to secure approval on a second payday loan, and being approved for a second loan will probably be harder for people that it was for them being approved for the first loan. It's important for prospective applicants to keep the following in mind, they should:
Compare options before applying and always examine the eligibility criteria carefully. There's a range of payday loans available, so there could be a solution that helps your situation in the short-term.
Applicants for payday loans should double-check between lenders to ensure that they meet their minimum eligibility criteria, prior to submitting an application.
Learn about the information that's listed on your credit report and understand how a payday loan can impact your credit score.
Payday loans are a convenient credit option if you need access to quick finance, but you are likely to have some questions before you apply. Here we answer all the common and not-so-common questions about payday loans.
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Hello, i have an installment and its almost paid for, only one payment left. Can you get a payday loan at another company??? Before 7 days clear. Thank you
Hi Crystal,
Thank you for your inquiry.
It would depend on the lender as there are those who require you to not be presently repaying a payday loan or not user the loan to repay a payday loan.
Overall, the lender will include in their assessment your current payday loan and any other loans along with other factors in order to check your financial situation and see if you’re able to make loan repayments without substantial hardship.
I hope this helps.
Best,
Maria
I currently owe ace cash exspess friday for a loan but two days ago i was approved by inbox loan. Is that going to affect me getting another one from ace?
Hello Lannette,
Thank you for your inquiry.
Your recently approved loan will be considered on your second loan application with Ace. :). Please be advised that this is only in compliance with ASIC regulations to ensure you have enough capacity to meet your existing obligations.
Please read the fine print of your services to make sure it benefits your financial goals in the long-term and don’t hesitate to contact your lender should you have additional questions.
Hope this helps.
Cheers,
Jonathan
Can I get a payday same day loan and I already have two loans out
Hi Sean,
Thanks for your question.
Generally, it is possible to have multiple payday loans under one lender. However, you’ll need to meet more stringent criteria for approval than when you applied for your first loan. You can directly get in touch with your lender and request a copy of the requirements.
Cheers,
Anndy