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How Many Personal Loans Can You Have at Once?

Moses Will Updated: August 23, 2023 • 7 min read
considering taking out multiple personal loans

Personal loans are imperative in covering living expenses, among other functions. Borrowers can get multiple loans with one lender or across several lenders. Currently, there is no federal regulation that limits the number of personal loans one can have. However, some lenders may pose limitations for the number of loan applications. This may be due to an existing loan, too much debt, or a poor credit score. 

How Many loans Can You Have at Once?

There is no official limit to the number of personal loans that an individual can have. However, certain lenders may have their own restrictions. It's important to note that having multiple loans may make it more difficult to get approved for additional loans in the future.

Why Have Multiple Loans?

Numerous instances may require one to take multiple personal loans. The most common reason for having multiple loans is loan consolidation. It may occur due to tight deadlines, yet one does not have the cash to make a payment. Additionally, some emergencies such as medical issues may require one to make prompt payments. This may require one to check how many personal loans can you take out. 

There is an immense risk that is accompanied by taking multiple loans. The major risk is the heavy burden of making several monthly payments, as discussed later on. Taking multiple loans can result in a higher interest added to the initial amount, which may be quite overwhelming and difficult to manage. 

Moreover, multiple loans are likely to tarnish one’s credit score due to late payments or even not completing some debts. It would be smart if one avoided taking multiple loans unnecessarily. This is because taking personal loans without a precise repayment plan can create financial pressure.

Is it Possible to Get Multiple Personal Loans From a Single Lender?

It's possible to get more than one personal loan from the same lender. Whether or not you'll be approved depends on your credit history, previous loan repayment history, and the lender's rules. It's best to pay back on time and check with the lender first.

How Multiple Loans Can Affect Your Credit Score

After understanding whether one can have multiple loans at once, let’s look at how it can harm your credit score. Every time you acquire a new loan, there are different ways of distorting your credit. One should note that there is a hard inquiry produced on their credit report by opening a loan. A hard inquiry remains on the report for two years.

Having many hard inquiries may tarnish one’s credit score. This is because credit score models will scrutinize how recently and the number of times one applies for credit. Thus, it is likely to affect interest rates when applying for another loan. 

Missing payments is another concern that may affect credit scores. Multiple loans result in accumulated monthly interest, which may be troublesome when making payments. There is a high chance of missing some payments, which may impose repercussions on one’s credit score. It may be a good idea to be cautious when taking multiple loans regarding their credit score aftermath.

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Qualifying for an Additional Personal Loan

When considering how many personal loans you can have at once, there are several factors that the lender analyzes. First, the lender will check the credit score and ensure that one is eligible for the loan. The existing debt-to-income ratio is also an imperative factor when applying for a second loan. This is because the lender will gauge whether the borrower has the potential to repay the loan. 

The lender may also check into the Annual Percentage Rate (APR). This accounts for the interest rates and additional charges that accompany the second loan application. 

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How to Manage Various Personal Loans

A lack of a precise strategy can land one in trouble when having multiple loans. It is mainly due to high monthly payments and interests that may be hectic when making payments. Following the steps below might be of assistance to one in maintaining track when paying multiple loans.

Setting Automatic Bill Payment

Automated payments are essential in ensuring that one makes timely payments. Funds are automatically transferred from one’s bank account or credit card to the lender’s system. It is a vital move that ensures you make payments, especially when you forget the date for making the payments. 

Setting a Day to Make All Payments

People with multiple loans are prone to forgetting the payment dates. As such, it is recommended that one sets a date when they will make payments for all the loans. In addition, one can set calendar reminders that will keep them notified of the payment date. 

Repay High-interest Loans First

Based on the lender one chooses, personal loans have different interests. Some borrowers find it helpful to make a list of debts according to their interest rates. This may help you reduce financial pressure and create room to repay other loans with ease. 

Cut Expenses

A seamless payment of multiple loans requires the utmost focus. Indulging in avoidable luxuries and expenses such as frequent weekend trips and making unnecessary purchases can disrupt one’s payment efficacy. Furthermore, one can get back to a luxurious life after leading a low-key life during debt repayment.


Alternatives to Personal Loans

Personal loans have demonstrated immense benefits for some, particularly to people with strategic utilization. Nonetheless, there are numerous alternatives to personal loans as articulated below:


Dwelling on savings to execute numerous operations in life is considered much better than getting a personal loan. This is because there is no interest and the burden of repaying the amount. Also, there is no possibility of distorting your credit score, which may result from a lack of loan payments. 

Though most people find spending from their pocket a hard endeavor, savings ensure that spending is stress-free. This is relevant, reflecting on the tension one succumbs to when paying a loan, especially for a long duration. 

Interest Credit Card

This is the interest that credit card companies charge for borrowing money. Credit card interest is expressed as an annual percentage rate (APR). It is considered an alternative to a personal loan as interest is charged in case one does not pay the bills in full each month. 

If one fails to repay in full, interest on the borrowed amount will be calculated from the day the funds were taken. There are different interest rates depending on the transaction type. 

Credit Card Cash Advance

It is a short-term cash loan that one takes against the credit line on their credit. A credit card cash advance allows one to get cash from a bank or ATM but has to be repaid. It is deemed as using a credit card to “buy” cash.

A credit card cash advance may be an alternative to a personal loan, especially for people who need paper money that is not available in their banks. A credit card that has a PIN can allow one to get cash advances directly from an ATM. 

401 (k) Loan

401 (k) loan is another alternative to personal loans that permits one to borrow cash from their retirement savings account. It does not require a lender or scrutiny of one’s credit score. They are considered appropriate for emergencies and when making prompt payments as they are fast and convenient. Additionally, they have a flexible repayment plan and low cost.

Paying back the loan on time will have an insignificant impact on one’s retirement saving progress. In some cases, borrowing may have a neutral or positive impact on retirement saving progress. 

Home Equity Loan or Line of Credit

This is a type of loan where a borrower uses their home as collateral. The loan is issued after analyzing the value of the property by the lending institution. Home equity loans can be used to get money for large expenses. Additionally, one can apply for the loan to consolidate other multiple loans and evade being caught up by deadlines. Most lenders issue a maximum of 85% of the home’s value. These loans have a fixed rate, while home equity lines of credit have variable rates.

Payment Plans

Medical emergencies are inevitable, and payments may create huge debts. Medical bill payment plans design payments in that patients will pay for the medical service over time rather than one huge amount. These plans may vary depending on the health care provider and service type. 

It is also available in a business where one pays the existing debt in a payment schedule. The borrower pays a certain amount of money monthly until the debt is cleared.

Make the Most of Personal Loans

When considering how many personal loans can you have at once, one has to be financially savvy when considering an additional personal loan. This is because there are numerous repercussions that one may incur due to huge debts and frequent payments. Hence, it would be best to learn how to avoid common personal loan mistakes so as to elevate skills in managing personal loans. There are also alternatives to personal loans that may be effective in easing financial pressure. 


How often can you apply for a loan?

In general, you can take out a loan whenever you need it, but applying frequently can negatively impact your credit score.

Can I increase my personal loan amount?

Lenders may offer you a "top-up" or refinance based on your repayment history. Always check with your lender.

Can you have 2 loans at once?

Absolutely. Many people have multiple loans (e.g., car loan, mortgage, personal loan) concurrently.

How many loans is too many?

Individuals have different ideal numbers. It's more about how well you can manage and repay them.

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Written by Moses Will

Moses Will is a pro in the world of finance and real estate. Having been in the field of writing for the last 12-years, he has all it takes to produce top-notch content. He is a guru in writing guides, articles, blog posts, product reviews, tech and SEO. Apart from writing, he is also a finance tutor.