Can you take out a second payday loan?

Elizabeth Barry 7 December 2015

apply for a second payday loan

What you need to know about applying for a second, or even third, payday loan...

Short term loans, commonly referred to as payday loans, can be a convenient option when you're strapped for cash before your next pay. If you already have a payday loan and you need another one, there are a few things you need to know before you can apply.

Is it possible to take out multiple payday loans?

The short answer is yes, but the longer answer is that you'll need to meet more stringent criteria than when you applied for your first one. This is not because lenders apply different criteria to second loans; this is an ASIC requirement of a responsible lender. As you're already repaying a Small Amount Credit Contract (SACC), the lender will need to take further steps to ensure you will be able to manage the additional repayments.

What are the ASIC requirements for multiple payday loans?

ASIC has many requirements in the payday lending space to protect you, the borrower. Payday lenders have to take further steps to ensure you won't be under substantial hardship when making repayments if any of the following situations apply:

  • You are currently repaying another payday loan
  • You are in default of payments under any payday loan
  • You've had two or more payday loans in the 90 days prior to applying
  • You plan to use this payday loan to repay another payday loan

What will lenders look at when I apply for a second payday loan?

To comply with ASIC regulations, lenders need to ensure you will be able to repay the loan without substantial hardship. To do this, they will review your current financial situation and look at multiple factors, including your credit history, what payments you make on your current payday loan and any other loans, whether you receive Centrelink payments, how you are employed and your income. This may mean that you are no longer eligible for a loan you were previously eligible for.

How can I make sure I'm approved for a second payday loan?

There's no way to make sure you are approved, and being approved for a second loan will probably be harder than it was when you were approved for the first loan. It's important to keep the following in mind:

  • Before applying, re-examine the eligibility criteria of the lender. You may or may not be eligible for loans you were once eligible for. Some lenders may specify that you cannot currently be repaying a payday loan or using the loan to repay a payday loan, so check this to avoid a rejected application.
  • Check your own budget before applying. Can you afford the repayments of the loan you are applying for? If you think you will struggle to make multiple loan repayments, then you may want to consider alternative financing options, such as community financial assistance programs, or reconsider if you need the loan at all. Payday loans are not a long-term financial solution and are only meant to serve an immediate need for funds.

Compare your options before applying and always examine the eligibility criteria carefully. There's a range of payday loans available, so you have a better chance than ever before of finding the right loan for you.

Ask a Question

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the privacy policy, receive follow up emails related to and to create a user account where further replies to your questions will be sent.

2 Responses to Can you take out a second payday loan?

  1. Default Gravatar
    Sean | October 8, 2016

    Can I get a payday same day loan and I already have two loans out

    • Staff
      Anndy | October 10, 2016

      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.


Ask a question