Can You Have More Than One Personal Loan at Once?


Although there is usually no limit on the number of personal loans you can have, it is not recommended to borrow money recklessly. Lenders typically set the maximum amount you can borrow, and it’s essential to have a plan for repayment before taking out a new loan.

Some lenders allow multiple loans, while others may have restrictions, so it’s important to know the lender’s policy before proceeding.

In this article, we’ll discuss the possibility of taking out multiple personal loans and their impact on personal finances.

Is It Possible to Have Multiple Personal Loans at Once?

You can take out multiple personal loans from different lenders if you qualify, but having too much outstanding debt may affect your chances of approval.

Lenders have policies on the number and amount of personal loans allowed, and some may require certain conditions to be met before approving an additional loan.

For example, a lender may recommend making at least six months of on-time payments on your first loan, and another lender may require your first loan to be in good standing.

Thus, it depends on whether there’s enough income to cover financial obligations, repayments, and how you managed to pay your previous personal loan.

The following are key factors to consider before taking out another personal loan and tips for an online personal loan easy approval.

Key Factors to Consider before Taking out Another Personal Loan

Impact on Your Credit Score

Taking out multiple personal loans at once may cause a temporary dip in your credit score due to hard inquiries, especially if you have just established credit.

One way to prevent this is to set up autopay, but only if you have sufficient funds to cover the payments. Some lenders may prequalify you with a soft pull, which does not affect your credit score, to determine your eligibility for the loan.

Increased Monthly Obligations and Debt-to-income Ratio

Debt-to-income ratio (DTI) is a crucial factor you can calculate by dividing your total monthly debt payments by your gross monthly income and multiplying the answer by 100 to get the percentage.

A high DTI may affect your credit score and make you ineligible for a new loan. Even if you are approved for another loan, ensuring you can afford the repayments is important in case of unexpected expenses or job loss.

Risk of Getting Caught in a Debt Trap

When you have multiple loans to repay, you’ll have to allocate more of your money towards debt repayment, leaving you with less money to cover your monthly expenses.

If you fall behind on your bills or other financial obligations, you may be tempted to borrow more to keep up with costs. However, this can lead to a cycle of debt that becomes increasingly difficult to escape.

Second Personal Loans May Incur Higher Interest Rate

If your credit score has dropped since you first applied for a personal loan, it will likely result in a higher APR (Annual Percentage Rate), making the loan more challenging to repay.

It is because lenders perceive higher risk in those with more debt, and a hard inquiry can further impact your credit score.

Tips to Increase Approval Odds for Your Next Personal Loan

Check Your Credit Report

Check your credit report for errors, report discrepancies, and assess your chances of getting approved before applying.

Make Timely and Complete Payments

A history of on-time payments increases your chances of approval, as some lenders require a certain number of consecutive, on-time payments.

Clear off Existing Debts

Paying down your existing debt can boost your chances of approval for a second personal loan, as an improved credit score makes you more appealing to the lender.

Consider a Cosigner

Having someone with excellent credit cosign on loan can increase your chances of approval and lead to a lower interest rate, resulting in faster repayment.


While having multiple personal loans at once is possible, it’s important to consider your financial position, goals, and the loan’s affordability.

Before committing to a second or subsequent personal loan, you should assess risks and evaluate your options accordingly.

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