How Many Personal Loans Can You Take Out at Once?

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Key takeaways

There’s no limit on how many personal loans you can take out at once. Approval depends on your credit score, income, and debt-to-income ratio.
Taking out multiple loans at once can strain your budget. You will increase your debt load and potentially lower your credit score.
Before applying for another loan, consider alternative financing options like credit cards, cash advance apps, or a home equity line of credit (HELOC).

You can take out as many personal loans as you’re approved for. The number of loans you have and the amount you can borrow depends on the lender. All lenders have their own individual policies. Not all will approve a second or third loan, but some might.

Taking out multiple loans at once has its benefits. Namely, you receive the extra cash you need. Be careful, though, when adding to your debt load. You may strain your budget. Look into financing alternatives before you turn to personal loans.

What are personal loans used for?

Personal loans can be used for almost anything you want. Potential uses include moving expenses, weddings, debt consolidation, home renovations, funeral costs, emergencies, car repairs, discretionary spending, medical bills, and more. The three expenses they generally cannot be used for are a down payment on a home, college tuition, or starting a business.

Many people use personal loans for debt consolidation to reduce their overall interest costs and simplify their finances. Investopedia conducted a survey and found that consolidation is the number one use of personal loans.

Personal loans can also come in handy when unexpected expenses pop up. There are plenty of emergency loans for bad credit; all you have to do is look.

How many loans can you have at once?

There’s no universal rule for how many loans you can take out, but your ability to repay them is key. The more loans you have, the harder it will be to repay and qualify for the next one.

One of the major factors lenders assess during the application process is your debt-to-income ratio (DTI). Your DTI is how much of your income goes to paying bills and loans each month. Ideally, it should be under 35%. You may get approved if your DTI does not exceed 43%. The more you borrow, the higher your DTI and the lower your chances of approval.

Lenders are the most likely to approve consumers with low DTIs and good credit. What is considered an excellent credit score? A score of 800 or higher on the FICO scale falls into the excellent range. Once you reach 760, you’ll likely qualify for the best offers on the market. Even with a low DTI and a very good or excellent score, the lender may limit the number of loans or the amount they’ll let you borrow.

If your credit score isn’t perfect, using a credit score builder tool or strategy can improve your chances of approval. Building credit through timely payments on your existing loan and keeping your debt levels manageable can make you a more attractive borrower.

Can you get two loans from the same bank?

Many banks and other financial institutions let you take out multiple loans. They may cap the number of loans you can take out, limit how much you can borrow at once, or impose a waiting period between applications.

Instead of managing two loans, you might consider if you can refinance a personal loan with the same bank. When you refinance, you often get better loan terms or reduce your monthly payment. You may be able to save money and avoid taking on additional debt. Many lenders make it easy to refinance, especially if you have a strong payment history.

Can I get another loan if I already have one?

The question, If I already have a personal loan, can I get another one, often comes up when unexpected costs arise. There’s no law limiting the number of loans you have. You can have a mortgage, auto loan, and multiple personal loans. You can choose to take out loans with the same lender or with multiple lenders. It is up to each financial institution to decide if they want to lend to you.

If you’re struggling to qualify for a traditional loan, personal loans for bad credit might provide the funds you need. Lenders have more lenient requirements and put more emphasis on other factors like employment and debt levels than your credit score.

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Personal loan limits

Lenders often evaluate how many personal loans you can have based on your finances and their specific policies and criteria. Many financial institutions limit the number of loans or the maximum amount you can borrow.

For instance, Best Egg, SoFi, and Upstart set their personal loan limit at two. LendingClub does not limit the number of loans. Rocket Loans puts their limit at one.

Besides potential limits on the number of loans, lenders will also cap the amount you can borrow. It’s common to see the maximum personal loan amount set at around $40,000, but some lenders go as high as $100,000. If you’re looking for higher borrowing limits, personal loans from direct lenders offer more flexibility than traditional banks.

Lenders may also require that you make a certain number of on-time payments before applying again or wait a few months to ensure your budget can handle it.

How long do you have to wait to apply for another loan?

There’s no fixed waiting period before applying for another loan, but timing matters. It’s a good idea to wait at least six months between applications. Some lenders even require this waiting period.

A big reason for the wait period is the hard inquiry. Every time you apply for a loan, the lender will conduct a hard inquiry. A single hard inquiry can lower your score by five to ten points. One isn’t a big problem, but many hard inquiries within a short period can cause your score to drop further.

Wait a few months between applications. Pay your current loan on time. Your score will bounce back.

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How do multiple personal loans impact your credit score?

Each new loan affects your credit score in a few ways. First, there are the hard inquiries, which won’t be a problem if you wait a few months. If you submit multiple applications without giving your score time to recover, you will damage it.

Second is your payment history. Make your payments on time every month, and your score should increase. This is true whether you have one or three loans.

Miss a payment, and you will significantly damage your score. When you have multiple loans and your finances are stretched thin, it’s easier to miss payments. Be very careful and only borrow what you can afford to repay.

Lastly, loans affect your mix of accounts. Lenders like it when you have installment and credit accounts, as it shows you can handle different types of payments responsibly. You only need one loan to get this boost, and it’s only 10% of your score.

All in all, multiple personal loans will help your score if you pay on time and hurt your score if you do not.

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Personal loan alternatives

Personal loans are not the right fit for everyone. They are best for large, planned expenses like home renovations or debt consolidation. If you need a little extra cash but don’t want to take out another loan, consider these alternatives:

Alternative	What it is	Best for	Interest rate	Repayment terms
0% APR credit card	A credit card with zero interest for the first 18-21 months	Large purchases you can pay it off in 18-21 months	0% intro APR, then high	Monthly payments
Home equity line of credit (HELOC)	A line of credit based on your home’s equity	Flexible financing for large expenses	Variable but low	Long-term
Cash advance apps	Small, short-term advances on your paycheck	Bridge the gap between paychecks	No interest, small fees	Paid back with the next paycheck
Medical payment plan	Affordable payment plan from medical provider	High medical bills	Often 0% APR	Monthly installments
Buy now, pay later (BNPL)	Pay for purchases in installments	Items beyond your monthly budget	0% interest if paid on time	Installments (weekly/monthly)
401(k) loan	Borrow money from your retirement account	Borrowers with bad credit	Low, depends on the plan	Typically 5 years

Frequently asked questions

1. Can you refinance a personal loan with the same bank?

Many banks let you refinance a personal loan with them. Refinancing can allow you to adjust your terms, lower your interest rate, or reduce your monthly payments. The process can be more straightforward with the same bank since they already have your financial information.

2. Can you take out multiple loans?

You can take out multiple loans, but your approval depends on your financial situation. Lenders will consider your credit score, income, and debt-to-income ratio to assess whether you can handle additional debt. Some lenders restrict how many loans they’ll approve or for what amount.

3. How many payday loans can you have at once?

The number of payday loans you can have at once varies by state. Taking out multiple payday loans is never a good idea, as doing so often leads to high fees and a cycle of debt.

4. Can you have more than one personal loan?

You can have more than one personal loan. Certain lenders will limit the number of loans you can have at once or how much you can borrow. While it’s possible to get another personal loan, it’ll be harder to be approved if your DTI is too high.

5. Can I take a home loan after a personal loan?

Taking out a personal loan will not disqualify you from getting a home loan. Your lender will evaluate whether you can handle mortgage payments along with existing debts.

Bottom line

While taking out multiple personal loans at once is possible, it is usually best to stick to just one at a time. Juggling multiple loans can make it challenging to keep track of due dates. It’ll raise the risk of missed payments, late fees, and damage to your credit score.

If you need extra cash, there are other ways to get it. Look into credit cards, but be careful of high APRs. Consider a HELOC if you’re a homeowner. Check out cash advance apps if you only need a little extra to tide you over. The goal is to get the money you need in a reasonable amount you can afford to repay on time.

Whatever you choose, make your payments on time. Doing so will keep your debt load manageable and improve your credit score. The higher your score, the better loan terms you’ll get in the future.

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Rachel Alulis

Rachel Alulis has been the lead editor for Moneyfor’s credit cards team since 2015 and for the financial rewards team since 2023. Before joining Moneyfor, Rachel worked at USA Today and the Des Moines Register. She then established a successful freelance writing and editing business specializing in personal finance. Rachel holds a bachelor’s degree in journalism and an MBA.

How Many Loans Can You Have at Once?

Key takeaways

Jump to:

What are personal loans used for?

How many loans can you have at once?

Can you get two loans from the same bank?