The state of Ohio has some of the strongest payday loan regulations in the country. The laws that concern payday loans Ohio are primarily structured to protect the consumer from exploitation by lenders. They also ensure that the borrower does not sink deep into debt through irresponsible borrowing. The Short-Term Tender Law (STLA), enacted in 2008, provides significant protections for Ohio borrowers. For instance, it prohibits payday loans Ohio companies from giving short-term loans over the internet or telephone. The law also puts a cap for all payday loans at $500, states that the loan duration should be no less than 31 days, interest should not exceed 28% APR, and most importantly restricts the number of loans a borrower can take within a specific period of time. These restrictions also apply to installment loans Ohio, but they’re some subtle differences and it’s best to read through the details to get a better handle on them. As with payday lenders, do as much research as possible when applying for Ohio installments loans.
You cannot, therefore, take multiple payday loans in Ohio. You cannot even take more than four payday loans within a year. You are only allowed two short-term loans in every 90 day period, unless you have gone through a financial literacy program. This is to ensure that you do not end up borrowing more than you actually need, and possibly end up in a debt trap. You cannot cheat the system. When it comes to online loans, Ohio lenders have unlimited access to every potential borrower’s credit report, and will already know if you have an outstanding debt. Your credit report contains all the statuses and dates of every debt taken on your name. These debts sometimes include Ohio payday loans and often include installment loans You may ask what will stop an installment loans Ohio lender from giving you multiple loans, but keep in mind that the lenders are registered with the state and must comply with STLA regulations. Their activities are overseen by the STLA to ensure that they do not expose unsuspecting consumers to excessive debts. You can read more about specific consumer credit limitations in Ohio here. This PDF has great information on how to manage credit and also avoid situations where short term financing seems like a solution.
Despite the widespread trend of multiple payday loans borrowing in other states, the practice is strongly discouraged in the state of Ohio. It doesn’t even make financial sense to take several short term loans within a short period of time. This is often the main reason for defaulting on repayments with payday loans or installment loans in Ohio. Taking multiple payday loans only leaves you in a debt trap that is very hard to escape from. Many customers often end up taking multiple online payday loans when they wrongly believe that rolling over their first loan helps to gain more time to repay the initial loan. Nothing can be further from the truth. Falling into the trend of borrowing more to pay list of online payday loans Ohio soon spirals out of control. You end up missing your payment dates, as lenders keep piling on you more late payment charges, and higher interest rates. Paying off a single cash advance by taking another is never the solution. Multiple payday loans are almost impossible to manage with the current economic hardships. They lead you into a borrowing cycle that is quite hard to come out of.
There is also the huge possibility of multiple borrowing hurting your credit. Other lenders such as banks in Ohio may have access to your loan history when you need an urgent loan. The erratic behavior you showed by borrowing multiple online loans may just show up from banks. You also must consider the facts of bank fees and terms and conditions. Although payday loan activity is not included in your credit report, there are some specialty credit reporting firms that collect all your financial activities, including the payday and installment loans you once took. Make sure you don’t take online multiple payday loans and fail to pay back. An online lender can sell your debt to a debt collector and that can create long term problems. You’ll have no control over what the debt collector will do with your unpaid loan, including reporting the debt to national credit bureaus. In any case, debt collection by itself hurts your credit score. Should you be sued for defaulting on multiple online payday loans Ohio or installment loans and end up losing the case. In this situation the loss will be reflected on your credit score. Your best option would be to avoid taking multiple payday loans in Ohio.