How Many Personal Loans Can You Have?

If you’ve ever taken out a loan — only to need more cash shortly after — you may have wondered how many personal loans you can have. The reality is there’s no limit to the number of personal loans you can have, though lenders may have their own policies.

While in theory you could get several personal loans from various lenders, doing so may not be a smart move. In fact, whether or not you can take out an additional loan often hinges on your financial situation.

Compare Personal Loan Rates

Is it possible to have more than one personal loan?

Yes, it’s possible to have more than one personal loan. There aren’t any universal rules about the number of personal loans you can have, but individual lenders may have limits. Generally, your ability to have more than one personal loan comes down to your ability to repay them.

To qualify for a personal loan — whether it’s your first or third — you have to demonstrate a history of responsible borrowing and the financial means to make your monthly payments. Lenders gauge these metrics by considering your credit score, debt-to-income ratio (DTI), and income. At some point, a lender might hesitate to approve you for an additional loan if your debt burden gets too big.

Even if you can qualify for more than one personal loan, it’s not always a good idea. Consider your budget and your ability to take on more debt before applying for an additional loan.

How many can you have from a single lender?

The number of personal loans you can have from a single lender varies. Different lenders have different policies, and some have additional eligibility requirements for second loans. Below are some examples of our various partner lenders’ policies around taking out multiple loans:

Compare personal loan rates

Influencing factors

While there’s no rule of thumb stating the maximum number of personal loans you can have, there are a few factors that might affect your ability to secure a second loan. These include lender policies, your credit score, and your DTI.

• Lender policies on multiple loans: Each lender has its own policies, and many allow you to apply for multiple loans. Some lenders put limits on the total amount you can borrow rather than the number of loans you can have. Keep in mind that some lenders require you to meet certain criteria before applying for a second loan. For example, Upstart requires you to have made on-time, consecutive payments for the previous six months before applying for a second loan.
• Credit score: Your credit score demonstrates your borrowing history. In general, a high credit score shows responsible borrowing. Lenders are more likely to approve your loan application — especially a second loan application — if you have a decent credit score. Plus, improving your credit score helps you qualify for lower annual percentage rates (APRs).
• Debt-to-income ratio (DTI): Your DTI measures your existing debt compared to your gross income. The more debt you have — and the less income you have — the higher your DTI. Lenders may enforce a maximum DTI for loan approval, which can make it harder to get a second loan.

Should you take out multiple personal loans?

While you may be able to take out multiple personal loans, that doesn’t mean you should. Be sure to weigh the following risks before taking out any additional loans:

• Increased debt burden: Taking out an additional personal loan means you have more debt to repay. And the more debt you have, the more constraints you put on your budget. Use a personal loan calculator to estimate monthly payments, and make sure your budget can handle the added expense.
• Impact on your credit score: When you apply for a personal loan, the lender will perform a credit check. Though it’s temporary, hard credit checks can negatively impact your score — especially when there are multiple credit checks in a short period of time. A lower credit score can make it harder to borrow in the future.
• Higher risk of default: The more loans you have, the more loan payments you have to manage. With multiple loan payments due each month — and a higher percentage of your income going toward debt — there’s a higher risk of falling behind on payments.

Alternatives to taking out more than one personal loan

Taking out multiple personal loans isn’t always the best financial move. In some cases, one of these alternatives may be a better option:

• 0% APR credit card: Credit cards with 0% APR introductory periods can be a great way to finance a big purchase — as long as your credit limit allows it and you can pay off the debt quickly. But when the introductory rate expires, your rate will jump, and the debt will start to snowball.
• “Buy now, pay later” (BNPL) loans: BNPL loans let you make a purchase now and pay for it in a series of smaller installments. BNPL loans don’t typically require a hard credit check, and some may allow interest-free borrowing — as long as you make payments on time. BNPL loans are common when shopping online, but they aren’t always available.
• Home equity loans and lines of credit: If you’ve built up equity in your home, you may be able to borrow against that equity with a home equity loan or a home equity line of credit (HELOC). With a home equity loan, you take out an installment loan, with your equity as collateral. A HELOC provides a revolving line of credit you can tap anytime during the draw period. When the repayment period kicks in, you only have to repay what you borrowed.
• Payroll advance: A payroll advance lets you access part of your future paycheck before it lands in your bank account. Then you repay the advance out of your next paycheck (or paychecks). Payroll advances might be a good alternative if your employer offers them, but not all do.
• Borrow from friends or family: Depending on the type of financial support network you have, there may be friends or family willing to give you a low-interest or even interest-free loan. Be sure to put the terms of your agreement in writing to make sure expectations are clear.

Compare Personal Loan Rates

FAQ

How do multiple personal loans affect your credit score?

Having multiple personal loans can affect your credit score in a couple of ways. First, applying for a personal loan usually involves a hard credit check, which can temporarily lower your credit score — especially if you apply for multiple loans in quick succession. Second, how you handle your loan payments can impact your credit. If you fall behind on monthly payments, your credit score could suffer. On the other hand, successfully managing multiple payments can help you boost your credit.

How can I improve my chances of getting another personal loan?

You can improve your chances of getting another personal loan by making on-time payments on any existing loans. You can also reduce your DTI by earning more or paying down your debt. Finally, avoid overextending yourself, and don’t take on more debt than you can handle.

Can I get multiple personal loans with bad credit?

You might be able to get multiple personal loans with bad credit, but it won’t be easy. Lenders see bad credit as an additional risk and may be less willing to offer you a loan. However, some lenders are willing to work with borrowers who have bad credit. Just know that bad credit will likely mean paying higher APRs on loans — and multiple high-interest loans can be tough to manage.