How Many Personal Loans Can I Have at Once? Are you asking yourself if you can apply for another loan after the previous one? If yes, then this article is for you. You can take out multiple personal loans if you already have one, as there are no authorized restrictions on the number of loans you can have. However, individual lenders tend to have definite policies that limit the number of loans and amount of money you can borrow.
It is important to note that there are disadvantages to gaining multiple personal loans, in addition to the extra monthly payment. Depending on your situation, there may be better, more cost-effective alternatives to borrowing the money you need.
How many personal loans can I have?
According to Carolyn Carter, the deputy director of the nonprofit National Consumer Law Center, there is no federal regulation that forbids individuals from having multiple personal loans. This means that you can have more than one personal loan with some lenders or even have multiple personal loans across different lenders.
But some lenders limit the number of loans you can have, the amount you can borrow, or both. Generally, lenders do not decline applicants solely because of an existing loan; however, they may discard your application if you have too much existing debt.
How to manage multiple personal loans?
If you have multiple unsecured personal loans, it is important to create a repayment plan to avoid late payments and other complications. Be an accountable borrower and grow a systematic repayment plan. One of the most active ways to avoid late payments is to set up automatic bill pay, which can usually be done through your bank’s bill payment program.
With multiple loans and variable repayment dates, it is easy to become confused and possibly miss a due date. Automatic payments are ideal for those who fight to remember to pay their bills on time or have gotten late payment notices. A lot of lenders allow for automatic payments to be set up.
Some people prefer to set aside a specific day each week or month for paying bills, while others prefer to set reminders for payment due dates on their calendars. The key is to grow a strategy that works best for your personal finance situation.
Getting Multiple Personal Loans from the Same Lender
If you are planning to apply for a new loan with the same lender, it is important to check their requirements first. Some lenders may have a limit on the number of loans they offer to a single borrower or a cap on the total amount that can be borrowed. Before you apply for a new loan, ensure that your existing loan is in excellent standing.
If you have missed payments or your loan is not up-to-date, the lender may be uncertain whether to lend you more money. In addition, if your second loan is approved, you might be charged a higher interest rate. It is also worth considering whether the lender bargains a refinancing option. Instead of applying for two separate loans from the same lender, your existing loan can be rolled into the new one.
This would result in a higher total balance, but you would only have one payment to make. However, before choosing refinancing, it is important to weigh the advantages and disadvantages. You may end up with a longer loan term or a higher interest rate. Ensure you read the terms of any refinancing agreements carefully to fully understand what you are getting into.
The table below shows the number of personal loans some popular lenders will offer to a single borrower:
| Lender | Maximum number of loans | Maximum loan amount |
| LendingClub | No limit. | $50,000 for all loans. |
| Upstart | 2. | $50,000. |
| Discover | 2. | $40,000. |
| SoFi | 2. | $100,000. |
| LightStream | No limit. | $100,000. |
| Rocket Loans | 1. | $45,000. |
Getting Approved for a Personal Loan From Another Lender
If you have borrowed money from a lender previously, you might consider taking a loan from the same lender again. Doing so would make the process easier and faster, as the application would be shorter and the requirements might be more relaxed.
However, if you decide to apply for a personal loan from a different lender, you will have to go through the application process, and the lender will most likely perform a hard credit check. Furthermore, even if you are not subject to a cap on the total amount borrowed with one lender, the other lender will still check your debt-to-income ratio (DTI). Therefore, you should review your DTI to ensure it falls within the parameters set by the lender and carefully read through the terms and conditions before applying for the loan.
Impact of Multiple Loans on Your Credit Score
It is important to know that taking out a new loan can have an impact on the credit score, specifically the new credit portion of it. This is because multiple hard inquiries resulting from personal loan applications can add up and negatively affect the score.
Moreover, payment history plays a vital role in determining the credit score. Making timely and full payments can increase the score, while missing payments can lower it. Therefore, it is advisable to create a system to ensure timely payments and avoid missed payments.
Final Thought
When taking on new debt, it is important to consider your overall financial situation and goals. While you can technically borrow as much as a lender is willing to offer you. It is mostly wise to dodge taking on too much debt. Ensure you are comfortable with the monthly payments before taking on any new loans.
