At some point in life, nearly everyone considers taking out a personal loan to take care of unexpected expenses or to get a better handle on their finances. But a question that our branch teams often get at our personal loan offices is, “How many personal loans can you have at once?”
This is a valid question worth exploring because financial needs are constantly changing, and an additional loan could be exactly what you need right now.
Can Borrowers Have Multiple Personal Loans?
The short answer to this question is yes, you can have more than one personal loan at the same time. There is no upper limit to the number of loans you have at once. However, already having one loan may affect a lender’s willingness to offer you a second loan. If you’ve nearly paid off your first loan and don’t have extensive debts otherwise, you may have a better chance of securing a second loan.
Can You Have Multiple Loans from the Same Lender?
Some lenders do allow you to apply for multiple loans, so check your lender’s requirements and make sure your current loan is in good standing before applying for another one. If your payments are up-to-date, you’re more likely to be eligible for an additional loan. It may also be possible to utilize a lender’s refinancing option and roll a current loan into a new one instead of taking out two separate loans with the same lender. This strategy could streamline your payment process and shorten the application timeline.
Do Multiple Loans Affect Your Credit?
However, there are some implications to be aware of if you take out multiple loans at once. A new loan will likely impact the new credit portion of your credit score, and numerous hard credit check inquiries can affect your score, too. Always make your monthly payments on time because late and missed payments can lower your credit score significantly.
Should You Take Out Multiple Personal Loans?
Managing multiple loans can be a challenge and put a strain on your budget. Still, when handled efficiently and with a reputable lender on your side, this strategy could put you one step closer to financial freedom. When considering another personal loan, consider your debt-to-income ratio, the APR on a second loan, and the loan amount you really need.
We regularly help people with bad credit get the small loans they need, with a quick approval process and convenient direct deposit transfer of the money to your account. Stop by your local branch office or give us a call to discuss your interest in taking out multiple loans, and we'll see what you qualify for and how we can assist you through the lending process.