There are very few legal impediments when it comes to any form of borrowing. As long as you have provided lenders with the correct details, the onus is placed squarely on them to either approve or reject your application. As such it is entirely above board to have two active payday loans and a credit card; however, that isn’t to say that it is possible, or indeed advisable to do so.

Remember, whenever you take out a loan, credit card or any other form of finance, all of that information is stored in your own personal file. This will be visible to anybody who needs to carry out a credit check and will therefore be used as a part of the decision process. If you have a good history when it comes to repaying debts, then it should be easier for you to get further credit when required. However, if your outstanding debts are sizeable and you have perhaps encountered problems with lenders in the past, this will work against you.

One of the quirks of payday loans is that many lenders choose not to use any of this financial information and instead rely solely on your income as a form of guarantee. This is by no means universal throughout the industry, but it isn’t exactly rare either. It is this that allows some consumers to borrow money from more than one lender at any given time.

If you have ever applied for a personal loan, or indeed a credit card, you will know that you have to outline all of your existing debts. As previously mentioned, any anomalies will soon be detected in a credit check, so there’s no point in bending the truth. It can be extremely difficult for some people to get further credit if they have a sizeable amount already outstanding. The only real exceptions to this particular rule would be where your rating is pristine, you have a solid guarantor or indeed a massive salary to back up an application.

Therefore you can always effectively borrow as much as you can afford, or at least as much as the lenders are willing to provide at any particular time. It is for this reason that there aren’t a great of laws surrounding the amount that individuals can secure. No two people have the exact same credentials, so it would be counterintuitive for lawmakers to indiscriminately pass down rules that covered the entire market. This is why so much rests on the shoulders of industry regulators and the loan companies themselves.

Payday loans have thrown a bit of a curve ball into what was the status quo of borrowing and lending. Whilst short term loans have always been around, they have never been so widely available or used. Millions of pounds are now being borrowed every day through dozens of payday loan companies. One of the major upshots of this monumental growth in popularity is the growing calls for tighter regulations on the interest rates charged to protect vulnerable consumers.

The very fact that somebody can successfully get two payday loans at the same time, possibly borrowing hundreds of pounds in the process, does mean that there is a certain risk involved – particularly when the consequences aren’t fully considered. Remember, these loans need to be repaid in no more than 30 days in most instances, so many people are finding that they get money that they simply can’t afford to repay. Of course, the more additional debt you have, including credit cards, the greater this problem becomes.

So you certainly won’t be breaking any laws if you choose to get a couple of payday loans on top of an existing credit card, but you should never do so without first weighing up the pros and cons. Short term borrowing can be an extremely effective and safe solution to debt problems, but it should never be abused.

Vincent Rogers is a finance writer who writes for a number of finance businesses. For payday loans, he recommends Paydaypower.co.uk

Vincent Rogers is a finance writer who writes for a number of finance businesses. For payday loans, he recommends http://Paydaypower.co.uk

Author Bio: Vincent Rogers is a finance writer who writes for a number of finance businesses. For payday loans, he recommends Paydaypower.co.uk

Category: Finances
Keywords: payday loans, same day loans, loans, UK, finacne