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 instances you may have more than one loan at a time however, you should consider if you are able to handle the additional debt.
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You can have multiple personal loan with a few lenders or you can have multiple personal loans across various lenders.
You’re generally more likely to be blocked from getting more than one loans by the lender rather than the law. The lender may limit the amount of loans — or the total amount they’ll give you.
They rarely deny applicants solely because of an existing loan However, they could decline your application if you already have .
The best personal loan will help you achieve your financial goal without hurting your credit or creating unmanageable debt at high rates of interest.
Keeping that in mind, think about other options to get the cash you need prior to turning to another loan.
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Multiple loans with the same bank
Certain lenders have a maximum amount of loans they can offer and a maximum amount you are able to borrow or both.
The table below shows the amount of personal loans certain lenders are known to provide to a single 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 get personal rates from various lenders.
Some lenders require that borrowers make a certain number of payments prior to applying for a second loan. LendingClub is one example. SoFi, for instance will require that borrowers pay up to 12 months prior to applying for a second loan. SoFi requires three consecutive installments towards an existing loan before applying again.
Upstart will require borrowers to complete six timely payments prior to applying. Upstart borrowers have to wait 60 days prior to reapplying when they have paid off the loan in under six months or if they have just paid off a loan and any of the six previous payments were not on time.
A personal loan from a different lender isn’t an automatic disqualification, lenders advise. If you’ve nearly paid off one loan and don’t have a lot of other debts to pay, you may be approved for a second loan.
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Eligible for another personal loan
There are no federal regulations 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 obstacle to getting another personal loan may be qualifying for it.
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» If your debt is high compared to your income the biggest obstacle in obtaining a personal loan could be proving you are eligible for it. «
When reviewing an loan application, the majority of lenders look at your debt-to-income ratio or DTI, which accounts for all of your debt as a proportion of your earnings.
When you make a loan, you raise your DTI. Lenders usually look for the number to be 40% or less.
The lender can deny your applicationor accept it but at a high due to your current credit.
It’s also worth thinking about the damage your credit score may take in the event you are able to get another loan. The application for a loan can result in a temporary drop your score by some points.
If you make multiple loans in quick succession, the effect on your credit score can be a lot more and you could notice an enormous drop in your score. (The hard inquiry is whether your application is granted or not.)
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See if you pre-qualify for a personal loan and not impacting your credit score
Answer a few simple questions to get an estimate of your personal rate from a variety of lenders.
Other alternatives to personal loans
Personal loans are an ongoing financial commitment that work best for large, planned expenses.
For instance, a consolidation loan or an loan for home renovation could both be financially beneficial, but taking them out at the same time may put you further in debt.
If you’re looking to stay clear of getting another personal loan Here are some alternatives:
Savings: If the cost can be put off — especially in the case of a discretionary expense Consider saving for it prior to making the purchase. If you’re not able to save, try looking for other to pay down your original loan.
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A credit card with 0% interest: In the event that you’ve got a good credit score (typically 690 or greater) and you are eligible for a card that will allow you to finance a large purchase interest-free for a introductory period of a year or longer.
Be sure to find out the APR after the introductory period ends should you decide to make payments beyond the timeframe.
Payment plan: Many doctors, dentists, and veterinarians allow patients to negotiate an arrangement for payment. Some medical providers also make available to help patients with costly procedures.
A secured or co-signed loan: If you’ve determined a personal loan will be your best option and you’re in a good position, you might have a better chance of getting one if you offer collateral to or ask a family or friend member co-sign a loan on your behalf. (This is a big ask; a co-signer is on the hook for the loan and co-signing may limit the amount that the co-signer is able to borrow on their own.)
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Before you move forward with a personal loan, be sure to and consider how they’ll work within your budget.
About the writer: Annie Millerbernd is a personal loans writer. Her work has appeared on The Associated Press and USA Today.
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