Most lenders don’t set a limit on how many personal loans you can have at once. Instead, they’ll typically set a maximum amount you’d be able to borrow.
That said, it’s usually not a good idea to borrow money left and right. While there are plenty of lenders who’ll issue you more than one personal loan, you should have a realistic plan for how you’ll pay back the debt anytime you decide to take out a new loan.
- Can you have multiple personal loans at once?
- How many loans can you have from the same lender?
- What restrictions on personal loans should you check before applying?
- What should you watch out for when applying for multiple personal loans?
- Can multiple personal loans make sense?
- How can you boost your chances of getting approved for a second loan?
- What are some alternatives to personal loans?
Can you have multiple personal loans at once?
Yes. Many lenders allow multiple outstanding personal loans. You can take out a personal loan from multiple banks or online lenders, as long as you qualify. If you already have a lot of outstanding debt, however, a lender might not approve you for an additional loan.
How many loans can you have from the same lender?
Each lender has its own policies regarding personal loans. Some have limits on the quantity or the total amount borrowed, while others do not. Keep in mind that even for lenders that allow multiple personal loans, you may not be approved if outstanding debt is negatively impacting your credit score.
Here are some policies from leading personal loan lenders:
| Lender | How many loans you can borrow | How much you can borrow |
| American Express | 2 | $40,000 |
| Avant | 1 | $35,000 |
| Best Egg | 2 | $50,000 |
| Discover | No limit | $35,000 |
| LendingClub | No limit | $40,000 |
| LightStream | No limit | $100,000 |
| Marcus by Goldman Sachs® | No limit | $40,000 |
| Prosper | 2 | $50,000 |
| Rocket Loans | 1 | $45,000 |
| SoFi | 2 | $100,000 |
| Upstart | 2 | $50,000 |
| Wells Fargo Bank | No limit | $100,000 |
Some lenders set certain requirements before you can take out an additional loan. Best Egg, for instance, will only lend an additional loan if your first loan is in good standing. Prosper recommends making at least six months of on-time payments on your first loan before applying for another one. Meanwhile, American Express says you’ll need to wait 60 days from borrowing the first loan before you’re eligible to take out another.
If you owe a personal loan to a different lender, that won’t necessarily disqualify you from borrowing from a new one. Most lenders look at your debts, repayment history, credit score and other factors to determine if you qualify for a loan.
What restrictions on personal loans should you check before applying?
If you’re researching lenders and want the option of picking up a second personal loan in the future, you’ll want to contact the lender directly or seek out information on how many personal loans you can have at once on their website. Different lenders will have different restrictions.
Wells Fargo Bank, for example, doesn’t have any limits on the number of personal loans you can have at one time. Others, including Avant and Rocket Loans, only allow you to have one outstanding loan. And you may find that some lenders don’t provide details about their loan policies online — that’s where contacting the lender’s customer service directly can come in handy.
What should you watch out for when applying for multiple personal loans?
- Your credit will be affected. Applying for a new loan will result in a hard inquiry, which causes a dip in your credit score. While inquiries only make up 10% of your FICO Score, they can have a significant impact if you’ve only recently established credit. The more inquiries, the greater the risk of a low credit score — so carefully consider your credit score before taking out a second personal loan.
- Your debt-to-income ratio will increase. Not only will the amount you owe have an impact on your credit score, but it may also make you ineligible for a new loan. To calculate your debt-to-income ratio, divide your total monthly debt payments by your gross monthly income and multiply the answer by 100 to get the percentage. If you think you’ll need to borrow again in the future, be careful not to drive up your debt-to-income ratio too high.
- You might get a higher interest rate on your second loan. If your credit score is worse than it was when you applied for your first personal loan (which it’ll likely be — you’ve taken on more debt, and that’s after incurring a hard inquiry), the lender will see you as a greater risk than when you applied for your first loan. That means you could get stuck with a high APR that may make the loan difficult to repay.
- You might fall into a debt trap. Juggling multiple debts can cause financial stress and strain on your income. The more of your money you put towards debt repayment, the less you’ll have to cover your monthly expenses. If you start falling behind on your bills and borrow more just to keep up with costs, you could end up stuck in an insurmountable cycle of debt.
- A second loan could leave you financially fragile. You may have enough income to cover multiple monthly payments now, but what if you experience a drop in income, job loss or another setback? Having outstanding debt leaves you vulnerable to these unexpected events.
Can multiple personal loans make sense?
There are certain situations where it makes sense to take out multiple personal loans. For example, if you already took out a personal loan to consolidate credit card debt, but you’re now facing unexpected expenses like auto repairs, it might make sense to apply for a second loan.
Or, if you took out a personal loan for a large expense like a wedding, and you now need to cover the cost of home remodeling so you can sell your home at a higher value, it might make sense to take out another loan for that purpose. However, you should never borrow more than you can afford to pay back.
How can you boost your chances of getting approved for a second loan?
- Check your credit report. Before you apply, assess your chances of getting approved by looking at recent changes to your credit score.
- Stay on top of your payments. Some lenders require a number of consecutive, on-time payments before you can be approved for a second loan. Even for those who don’t, a history of on-time payments will help your odds of approval.
- Pay off other debts. The more you can reduce your debt-to-income ratio, the better. Try paying off all your credit cards before applying for a second personal loan.
- Increase your income or keep it steady. At the very least, you should maintain a steady income. If you’re struggling to keep up with your expenses and pay off your debts, it might be a good idea to get a second job or side hustle to help you get back on track financially.
- Don’t over-borrow. Calculate exactly how much money you need and how much you can afford to pay back, and don’t ask for too much.
- Consider a cosigner. If your credit score has dropped since you applied for your first loan, consider asking someone with excellent credit to cosign on a loan for you. You’ll get approved for a loan with a lower interest rate, which means you’ll be able to pay it back faster.
- Find the best lender for you. Some lenders focus on loans for specific purposes, some are geared toward people within a certain credit range and some others have specific requirements. Finding a lender that’s the best fit for you will help you improve your approval odds.
What are some alternatives to personal loans?
While personal loans can help you cover a big or unexpected expense, it might not make sense to borrow multiple personal loans at once. Here are some alternatives to consider before you take out another loan:
Savings
0% APR credit card
Payment plan
Secured or cosigned loan
Credit card cash advance
Home equity loan or line of credit
Savings
If you don’t absolutely need to cover the expense right away, consider saving up for it. That way, you won’t have to take on debt or pay interest charges that will make your expense cost even more in the long run.
0% APR credit card
Another option is to apply for a credit card with a promotional period of 0% APR. Some cards let you pay off your purchases interest-free for a year or more. Just make sure you’ve paid off the balance before the promotional period ends and interest charges kick in. You’ll likely need a strong credit score to qualify for these offers.
Payment plan
Depending on your purchase, you might be able to work out a payment plan with the store or service provider. For example, many doctors and dentists offer payment plans so you can pay off your bill over time without having to borrow a loan for it.
A secured or cosigned loan
While borrowers with strong credit might qualify for competitive rates on an unsecured personal loan, those with lower credit scores might consider a secured or cosigned loan. By backing your loan with collateral or adding a cosigner to your application, you might be able to get better rates.
Make sure to calculate your monthly payments before borrowing, however, as you wouldn’t want to risk your collateral or damage your cosigner’s finances by falling behind.
Credit card cash advance
Another option to consider is a credit card cash advance. You can typically borrow as much as 30% of your credit limit. While this approach can be an easy way to get fast cash, credit card advances can be costly. The credit card issuer might charge a high APR on the amount, as well as a fee for the transaction.
Home equity loan or line of credit
Finally, homeowners could consider borrowing against the equity in their home with a home equity loan or home equity line of credit (HELOC). To qualify, you’ll typically need at least 15% to 20% equity built up in your home.
A home equity loan gives you a lump sum of money upfront, whereas a line of credit allows you to withdraw a certain amount. After repaying that amount, you can draw on your HELOC again.
Interest rates on home equity loans and HELOCs are often lower than ones you’ll find on personal loans, but be careful of the risk. Because you’re using your home as collateral, a bank could repossess it if you default on payments.
This guide explains more on the difference between home equity loans and personal loans, so you can decide which, if either, is right for you.
FAQs
How many loans can you get out at once? ›
You can have 1-3 personal loans from the same lender at the same time, in most cases, depending on the lender. But there is no limit to how many personal loans you can have at once in total across multiple lenders.
Can I get 2 personal loans at the same time? ›Yes. Many lenders allow multiple outstanding personal loans. You can take out a personal loan from multiple banks or online lenders, as long as you qualify. If you already have a lot of outstanding debt, however, a lender might not approve you for an additional loan.
Can you have 4 loans at once? ›You can have more than one personal loan with some lenders or you can have multiple personal loans across different lenders. You're generally more likely to be blocked from getting multiple loans by the lender than the law. Lenders may limit the number of loans — or total amount of money — they'll give you.
Can you have three personal loans at once? ›The simple answer is yes – it is possible to have multiple loans at the same time. However, there are certain problems that may arise if you wish to do this. One of the first things you'll need to work out is whether your lender will actually let you.
How long should you wait between loans? ›Wait for a 30 day cycle before applying for a loan.
Each time you apply for new credit, that credit application shows up as an inquiry on your credit report, which can lower your credit score. Don't apply for a loan and get rejected.
While multiple loan applications can be treated as a single inquiry in your credit score, even that single inquiry can cause your credit score to drop. However, the impact on your credit score should be the same as if you'd applied for just one loan.
How much loan can I get if my salary is 25000? ›How much personal loan can I get on a ₹25000 salary? According to the Multiplier method, on a salary of ₹25000, you can get a loan of ₹6.75 lakhs for 5 years. Going by the Fixed Obligation Income Ratio method, if you have monthly EMIs of ₹3000, you will be eligible for an amount of ₹5.89 lakhs.
Can banks find out about other loans? ›Every time you make an application for credit, it is more than likely recorded on your credit file ready for the next lender to see, so there is no hiding it. Additionally, banks may look at your bank statements and ask questions about anything they are unsure about.
Can I put all my loans together? ›What is a debt consolidation loan? A debt consolidation loan is a type of loan that's used to combine all your existing debts into one pot. All you'll need to do is apply for a loan for the amount you owe in existing debt and if approved, you can use the funds to pay off your other borrowing.
Does applying for multiple personal loans affect credit? ›Some inquiries are considered by credit scoring systems and can affect your credit score. However, multiple loan-related inquiries made within a short period of time are either entirely ignored or treated as a single search for credit, thus protecting your credit scores.
How many personal loans can you get at a bank? ›
The good news for would-be borrowers who want to take out more than one personal loan at the same time is that there is no rule that says you can't do this. Theoretically, you could even take out multiple loans from the same lender.
How many loan applications is too many? ›In general, six or more hard inquiries are often seen as too many. Based on the data, this number corresponds to being eight times more likely than average to declare bankruptcy. This heightened credit risk can damage a person's credit options and lower one's credit score.
Whats is a good credit score? ›Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
What happens when you apply for multiple loans at once? ›Applying for multiple personal loans in a short period of time can cause your scores to dip slightly, but any decrease is usually temporary. This happens when a lender checks your credit—called a hard inquiry or hard pull. That kind of credit check can shave a few points off your credit score.
How can I increase my personal loan amount? ›The Takeaway
In most cases, borrowers can't add to an existing personal loan. However, you may be able to apply for a second loan. Eligibility requirements vary by lender, but in some cases you need to have made several consecutive on-time payments before applying for a new loan.
If you're trying to improve your credit score, taking out a personal loan can make a lot of sense, particularly if you have high-interest debt. Personal loans can help you consolidate your debt, save money and get out of debt faster, all while boosting your credit score.
Do loans Boost Your credit? ›A personal loan may help with most of the five factors that influence your credit scores. Payment history: Getting a loan and making all of your monthly payments on time establishes a track record of responsibility. This is a primary factor in building a positive credit profile.
Does loans build your credit? ›Yes: If your payments are reported
Most personal loan companies report your balance and payment activity to all three credit bureaus every month. Negative reports to the bureaus (like when you miss a payment) drag your score down. Positive reports, like on-time payments, improve your credit score.
With a loan amount of $30,000, an interest rate of 8%, and a loan repayment period of 60-months, your monthly payment is around $700.
How much is the payment on a 200k loan? ›On a $200,000, 30-year mortgage with a 4% fixed interest rate, your monthly payment would come out to $954.83 — not including taxes or insurance. But these can vary greatly depending on your insurance policy, loan type, down payment size, and more.
How much loan can I get on 35000 salary? ›
| Net Monthly Income (₹) | Loan Amount (₹) |
|---|---|
| ₹ 30,000 | ₹ 17,09,806 |
| ₹ 35,000 | ₹ 20,46,586 |
| ₹ 40,000 | ₹ 23,83,366 |
| ₹ 50,000 | ₹ 30,56,926 |
The easiest loans to get approved for are payday loans, car title loans, pawnshop loans and personal loans with no credit check. These types of loans offer quick funding and have minimal requirements, so they're available to people with bad credit. They're also very expensive in most cases.
What do banks check personal loans? ›Most personal loan lenders review your credit score, credit history, income and DTI ratio to determine your eligibility. While the minimum requirements for each of these factors vary for each lender, our recommendations include: Minimum credit score of 670.
Can personal loan companies see your bank account? ›In a word: yes. If you've ever applied for a loan, you know that banks and credit unions collect a lot of personal financial information from you, such as your income and credit history.
Is it hard to get a loan if you already have one? ›Moneysmart explains that each application you make for a loan can appear on your credit record, and having multiple applications can lower your credit score. This can make it harder to be approved for another personal loan – or something as important as a home loan, with the lender of your choice.
Can you pay off a loan with the same loan? ›There is an option to get a loan to repay the same kind of loan. Like, if the personal loan from a particular bank is running high interest, you can get a personal loan from another lender and pay it off. You can use one loan type to pay off another loan type too.
Why do I get denied for every loan? ›The most common reasons for rejection include a low credit score or bad credit history, a high debt-to-income ratio, unstable employment history, too low of income for the desired loan amount, or missing important information or paperwork within your application.
Can I get a second personal loan if I already have one? ›Yes, an individual can avail of more than one personal loan. Similar to the first loan, an individual will have to meet the eligibility requirements of the second loan set by the lender. Loan providers consider several factors, such as your existing loans and current income before approving loan applications.
Can you get 2 separate loans from the same bank? ›There is no rule that says you can't apply for more than one personal loan at the same time. It's certainly possible, but you may want to consider whether or not it's worth it given the fact that your credit scores and financial situation could be negatively impacted.
Can I take a loan on top of a loan? ›So, yes, you can take out a loan if you already have one. You may even be able to take out additional loans if you have multiple already. It's not uncommon for people to have a personal loan, auto loan, mortgage, and even student loans at the same time.
What do I do if I have multiple loans? ›
- Pay off personal loan EMIs before your monthly credit card dues. ...
- Don't create additional credit card debt. ...
- Focus on pre-closing one loan at a time. ...
- Opt for a balance transfer or a debt consolidation loan.