A guide to multiple payday loans

Find out information about applying for second or third payday loans


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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.

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⚠️ Warning about Borrowing

payday-warningDo you really need a loan today?*

It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.

Check your options before you borrow:

  • For information about other options for managing bills and debts, ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor
  • Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan
  • If you are on government benefits, ask if you can receive an advance from Centrelink: Phone: 13 17 94

The Government's MoneySmart website shows you how small amount loans work and suggests other options that may help you.

* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.

Is it possible to take out multiple payday loans?

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.

When do the additional ASIC requirements for multiple payday loans apply?

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:

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

What are the ASIC requirements for multiple payday loans?

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.

Before applying for a second payday loan

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:

  • Consider their alternatives. There is a range of low and no interest loan alternatives that loan customers can consider if they are in need of money quickly. Find out more about payday loan alternatives here.
  • Re-examine the eligibility criteria of the lender before applying. Applicants may or may not be eligible for loans they were once eligible for, so it's wise not to assume. Some lenders may specify that their borrowers cannot currently be repaying a payday loan or using the loan to repay a payday loan, so applicants should check this to avoid a rejected application.
  • Check their budget before applying. Someone should always check that they can meet the repayments of the loan that they are applying for. If someone thinks that they might struggle to make multiple loan repayments, then they may should consider alternative financing options, such as community financial assistance programs, or reconsider whether they 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 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.

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6 Responses

    Default Gravatar
    CrystalDecember 1, 2017

    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

      Default Gravatar
      MariaDecember 7, 2017

      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.


    Default Gravatar
    lannetteAugust 10, 2017

    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?

      Default Gravatar
      JonathanAugust 10, 2017

      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.


    Default Gravatar
    SeanOctober 8, 2016

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

      Avatarfinder Customer Care
      DeeOctober 10, 2016Staff

      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.


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