Can You Have Two Payday Loans at Once? | Finder Canada (2023)

Payday loans can be a convenient option when you’re short on cash before your next payday. These types of loans are usually paid back within a short time frame of between 1 week and 2 months and come with high interest rates and fees. If you already have a payday loan and are wondering if you can you have two payday loans at once, keep reading to learn about what options may be available to you.

Can you have two payday loans at once?

Generally no, you can’t have two payday loans at once, although it very much depends on the regulations in the province where you live. Most provinces don’t allow lenders to issue a second payday loan – or even extend the due date or roll over a payday loan into another one – until you have fully paid off the first payday loan. The provinces listed below do not allow payday loan lenders to extend or rollover loans:

  • Alberta
  • British Columbia
  • New Brunswick
  • Nova Scotia
  • Ontario
  • Saskatchewan

However, it can sometimes be possible to get a second payday loan from a different lender, especially if it doesn’t check whether or not you currently have any outstanding payday loans with other lenders.

Because payday loan regulations vary so much from province to province – and even from lender to lender – the best thing you can do is be upfront about your situation and ask the payday loan provider directly about any applicable regulations before you apply. That way you won’t risk getting caught with multiple payday loans where it may be illegal to do so.

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If you are allowed multiple payday loans where you live, you’ll likely need to meet more stringent criteria than when you applied for your first loan. This is because a second payday loan makes you a riskier borrower since the financial burden is much greater.

Our full guide to provincial payday loan regulations

Where can I get a payday loan if I already have one?

Since most provinces don’t allow you to take out a second payday loan, your best bet when considering where to get a payday loan if you already have one is to get a payday loan alternative. Here are some popular payday loan alternatives that also have the added benefit of being generally less expensive than payday loans:

  • Paycheque advance apps. A pay advance app (also known as a cash advance app or paycheque advance app) can often advance you up to 50% of your paycheque. You’re generally charged only a small monthly membership fee to use the app. With a pay advance app you can usually get your money in less than 3 business days.
  • Your employer. Some employers also offer advanced pay. It often doesn’t hurt to ask if your employer is willing to give you a portion of your pay early.
  • Installment loans. You can get an installment loan – a type of personal loan – from some online lenders. These types of loans are often accessible to the same demographic as those looking for payday loans. Installment loans often come with more flexible loan terms and better interest rates that can range from 8% to 47%.
  • Bank account overdraft. Overdraft fees are typically around $5, making it an inexpensive alternative to getting a payday loan. But you may also have to pay an additional $5 per day, week, month or item charged until you repay the deficit.
  • Credit card cash advance. If you already have a credit card, getting a cash advance from an ATM is another viable payday loan alternative. You’ll have to pay a fee of around $20 to $30 and an interest rate of anywhere from 19% to 24% starting from the day you take out the cash advance

You can learn about more payday loan alternatives in our full guide here. However, if having two payday loans at once is legal where you live, you can apply with online lenders or at physical payday store locations.

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

Instead of looking at your credit score, lenders will want to see that you’ll be able to repay the money you borrow when you have two payday loans at once.

To do this, the lender will review your current financial situation and look at multiple factors, which normally include your income, your employment and the payments you make on your current loan.

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

If getting a payday loan after you already have one is legal where you live, there’s no way to guarantee that you’ll be approved for a second one. However, if you want to take out a second payday loan, keep the following factors in mind:

  • Re-examine the eligibility criteria. You may or may not be eligible for loans you once qualified for if you wish to take out a second loan. Most lenders will specify that you can’t currently be repaying a payday loan and that you can’t use a second loan to pay for the first.
  • Check your budget. Can you afford the repayments of the loan you’re applying for? If you think you’ll struggle to make multiple loan payments, then you should consider alternative financing options. Read our guide on how to get out of payday loans to learn more.
  • Be wary of rollover fees. Keep in mind that most provinces do not allow you to rollover one payday loan into another. However, if you do have the option to refinance your first payday loan by rolling it into a second one with the same lender, you’ll still owe the original amount you borrowed as well as the fixed fee and the fees for the subsequent loan.
⚠️ Warning: Be cautious with payday loans

Payday loans are expensive. If you're experiencing financial hardship call Credit Counselling Canada for free financial counselling (Monday-Friday 8:00am-5:00pm at +1 866-398-5999). Consider payday loan alternatives:

  • Visit 211.ca. A free and confidential service that connects you to organizations that can help with finances, food, housing and more.
  • Debt relief companies. There are services to help you reduce your debt payments.
  • Payment extensions. Talk with bill providers about longer payment plans or due-date extensions.
  • Side jobs. Sell unwanted items online, sign up for food delivery and more.

Compare payday loan options

Check the websites of any lenders you’re interested in to confirm they operate in your province or territory of residence.

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Maximum borrowing costs per province

Always refer to your contract for exact repayment amounts and costs as they may vary from our results.

ProvinceMaximum allowable cost of borrowing
Alberta, British Columbia, New Brunswick, Ontario & Prince Edward Island$15 per $100 borrowed
Manitoba, Saskatchewan & Nova Scotia$17 per $100 borrowed
Newfoundland and Labrador$21 per $100 borrowed
Northwest Territories, Nunavut & the YukonUp to $60 per $100 borrowed
QuebecLimit of 35% annual interest rate (AIR)

The bottom line

Most provinces regulate how many payday loans you can have, and limit it to one loan at a time. If you can you have two payday loans at once where you live, then you’ll want to compare different lenders and read the eligibility criteria carefully in order to determine if you’re eligible for the loan before applying. There’s a range of different payday loans available on the marketplace today, so you have more options than ever before for finding the right loan for you.

Frequently asked questions

  • You can find out more information about provincial and territorial payday loan regulations in our guide here. You can also contact your provincial or territorial consumer protection office.

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  • Yes. If you find yourself unable to make payments on multiple loans, you can consolidate your payday debts into one single loan and hopefully get a better, lower interest rate. This will help to make your payments more manageable.

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