How many personal loans can You Have at Once?
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How many personal loans can You Take at One Time?
In many cases, you can be able to have more than one loan at a time but consider whether you can take care of the additional debt.
Updated on July 6 2021.
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You can have multiple personal loan with some lenders or hold multiple personal loans with different lenders.
You’re generally more likely to be denied more than one loans through the lender rather than the law. They may restrict the number of loans — or the total amount of money — they’ll offer you.
They typically don’t deny applicants solely because of an existing loan however, they might decline your application if you have .
The most suitable personal loan can help you reach your financial goals without damaging your credit score or creating insurmountable debts with high interest rates.
With that in mind, consider other ways to get the cash you need prior to taking out a new loan.
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Receiving multiple loans from the same lender
Certain lenders have a maximum amount of loans you can have or a limit on the amount you can borrow , or both.
The table below shows the amount of personal loans that some of the most well-known lenders offer to one borrower:
Lender
Maximum amount of loans
Maximum loan amount
2
$100,000
2
For 1 loan, $40,000 loan
$50,000 total for 2 loans
1
$45,000
2
$50,000
No limit
$100,000
No limit
$75,000
No limit
$35,000
on NerdWallet and receive personalized rates from multiple lenders.
Certain lenders require that borrowers pay a specific amount of installments prior to applying for a second loan. LendingClub is one example. SoFi, for instance will require that borrowers pay for three to 12 months prior to applying for another loan. SoFi requires three consecutive payments towards an existing loan prior to submitting a new application.
Upstart will require borrowers to complete six timely payments prior to applying. Upstart borrowers have to wait 60 days prior to reapplying if they pay off the loan in less than 6 months or if they recently paid off a loan and one of their last six payments were not made on time.
A personal loan from a different lender doesn’t mean an automatic disqualification, lenders say. If you’ve almost finished paying off one loan and don’t have any other existing debts it is possible to be accepted for a second loan.
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Qualifying for another personal loan
There is no federal law prohibiting someone from having multiple personal loans according to Carolyn Carter, deputy director of the National Consumer Law Center. A few states limit the number of a person can have at a time, she adds.
The main issue with obtaining a personal loan may be qualifying for it.
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» If your debt is excessive compared to your earnings one of the obstacles in obtaining a personal loan could be proving you are eligible for it. «
When reviewing an loan application, the majority of lenders consider your debt-to-income ratio, or DTI, which accounts for all of your debt as a percentage of your income.
Every time you take out an loan increases your DTI. The majority of lenders want this number to be around 40% or lower.
The lender may deny your applicationor accept it , but at a higher rate because of your existing debt.
It’s also worth considering the hit your credit score might receive in the event you are able to get another loan. Loan applications often trigger a that can temporarily reduce your score by some points.
If you are able to apply for multiple loans in quick succession the impact on your credit score can be a lot more and you may see an enormous drop in your credit score. (The hard inquiry happens whether the application is accepted and if it is not.)
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See if you pre-qualify for an individual loan and not impacting your credit score
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Solutions to Personal loans
Personal loans are an ongoing financial commitment that work best for large, budgeted expenses.
For instance, a debt consolidation loan as well as the loan for home improvement can both be financially beneficial However, having them both taken out at the same time can result in you being further in debt.
If you’d like to avoid taking another personal loan, here are some alternatives:
Savings: If the expense could be put off — especially when it’s a discretionary expenditure you should consider saving for it first. If you’re not able to save, try looking for other options to repay your initial loan.
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A credit card with 0% interest In the event that you’ve got a high credit rating (typically 690 or higher), you may qualify for a card that will allow you to finance a large cost interest-free during a trial period of one year or longer.
Make sure you know the APR when the initial period is over in the event that you end up making payments past that period.
Payment plans: A lot of doctors, dentists and veterinarians let patients create an arrangement for payment. Some medical practitioners also make available to help patients pay for costly procedures.
A secured or co-signed loan If you’ve concluded that a personal loan would be the most suitable option, you may have a greater chance of getting one if you offer collateral to or ask a family or friend member co-sign a loan for you. (This is a major ask as a co-signer will be on the hook for the loan and co-signing could reduce the amount the co-signer is able to borrow independently.)
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Before you move forward with a personal loan, be sure to take a look at how they’ll work into your budget.
About the author: Annie Millerbernd is a personal loans writer. Her work has appeared in The Associated Press and USA Today.
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