How Many Personal Loans Can You Have at Once?

There’s no limit to how many personal loans you can have at once. You can hold loans from several lenders at the same time. You can even have multiple loans with the same lender, although there may be a cap on the amount you can borrow across the loans.

Personal loans can be helpful because you can use them for various expenses, such as home repairs and medical treatments. However, there are pros and cons you should know about. This article will explain how many personal loans you can have with various lenders and what to consider before applying.

How many personal loans can you take out at once?

You can have multiple personal loans simultaneously, often from the same bank. It’s easy to see why some borrowers wind up with more than one: You can use personal loans for almost anything.

For instance, a second personal loan can make sense if you’re paying off one loan you took out for debt consolidation but now need to finance an emergency vet visit, unexpected car repair, or moving costs.

Just be cautious with borrowing too much money. It’s easy to slip into debt when balancing multiple monthly payments. Your credit score may also take a hit because of the increased credit utilization and numerous hard inquiries on your credit report.

Can you get two loans from the same bank?

Yes, some banks allow you to take out multiple personal loans simultaneously. If you have a preferred bank—either because you like their rates and fees or just the convenience of managing all your finances within one platform—it’s worth researching how many personal loans you can have with that lender.

However, it likely has restrictions even if a lender allows multiple loans. For instance, most lenders impose a maximum amount you can borrow across all loans. Additionally, you must reapply and qualify for each new loan you take out.

Lenders that allow you to borrow multiple loans at once

Hoping to open an additional personal loan with the same lender? A decent number of personal loan companies permit this.

The table below shows lenders that allow you to hold multiple personal loans at the same time—and the total borrowing cap, no matter how many loans you have:

Lender	Max personal loans allowed at once	Max borrowing limit
American Express	2	$40,000
Best Egg	2	$100,000
Discover	No limit	$40,000
LendingClub	No limit	$50,000
LightStream	No limit	$100,000
Prosper	2	$50,000
SoFi	2	$100,000
Upstart	2	$50,000
Upgrade	No limit	$50,000
Wells Fargo	2	$100,000

Some of these lenders may require you to wait a set number of months or make a predetermined number of on-time payments before you’re eligible for another personal loan.

Not every lender allows you to take out multiple personal loans simultaneously. Avant and Rocket Loans restrict you to one loan at a time, but both lenders will allow you to refinance a personal loan. Happy Money requires you to pay off your current loan before applying for a new one.

Pros and cons of having multiple personal loans 

Taking out multiple personal loans at once can have immediate advantages, especially if you’ve racked up unexpected bills or need to make emergency home or car repairs. But be sure you’ve also considered the potential pitfalls.

Pros

• Handle unexpected expenses

  If you already have a personal loan but incur an expense that’s not in your budget, a personal loan may be the best way to handle the cost, especially if the only credit cards available to you are high-interest.

• Consolidate debt

  If you have a personal loan and multiple credit cards you’re struggling to pay off, a second personal loan—specifically a debt consolidation loan—could help rein in the credit card debt.

• Improve your credit score

  Taking out more than one personal loan could hurt your credit score (more on that below), but responsibly repaying both personal loans could boost your score in the long run.

• Potentially better terms

  If interest rates have dropped substantially since you first took out a personal loan, you might get better terms with your second personal loan.

Cons

• Cut into your monthly budget

  Taking on a second personal loan means committing to a new monthly expense and cutting costs elsewhere. In times of high inflation and stagnant wages, that might be challenging. Plus, managing multiple payments can get complicated.

• Increase your debt-to-income ratio

  Your debt-to-income (DTI) ratio reflects your monthly debts compared to your monthly income. The higher your DTI, the less likely lenders are to approve you for other loans, such as mortgages and car loans.

• Hurt your credit score

  Applying for a personal loan results in a hard inquiry on your credit report. The higher credit utilization is also detrimental to your credit score, as is the risk of missing a payment if the loans become too much to manage, even for a month.

• Interest costs

  The more personal loans you have, the more money you’ll pay in interest to the banks.

What lenders consider before approving a second loan

A lender will consider the same factors to approve you for your first, second, third, or 10th personal loan. They might have tighter scrutiny (and may offer stricter terms and higher rates) for each additional personal loan.

When applying for a second personal loan, you can expect most lenders to check the following:

Your credit score

Most lenders consider your credit score when making a loan approval decision. Personal loan credit score requirements vary by lender, but most want you to have at least a 620.

The exception? No-credit-check personal loans. These loans tend to have high rates and fees and often require collateral (secured personal loans). They aren’t ideal if your credit score is in decent shape.

Typically, borrowers with credit scores of 670 and above can qualify for additional personal loans, depending on other factors. A credit score of 740+ will qualify you for the best offers and rates, while scores below 670 will result in potentially high fees and rates.

Your debt-to-income ratio

Your debt-to-income ratio (DTI) is the sum of all your monthly debt payments divided by your monthly gross income. Each lender will have its own max threshold for your DTI.

For example, Prosper has a maximum DTI of 50%. If your DTI is higher than 50%, you won’t get approved for a personal loan from Prosper.

Let’s use an example to understand how to calculate your DTI. Assume:

• Your monthly gross income is $6,000.
• Your monthly debt payments are $2,100, including:
  • A mortgage payment (or rent) of $1,500.
  • An auto loan payment of $400.
  • A personal loan payment of $200.

To calculate your DTI in this scenario, you take your total monthly debt payments and divide them by your monthly gross income:

$2,100 / $6,000 = 0.35

Your DTI would be 35%. In this case, you’d meet Prosper’s DTI requirements.

Your aggregate loan balance

Each lender imposes maximum personal loan amounts you can have across all loans you hold with it.

Even if your credit score is strong and your DTI is low, a lender may reject your loan application because you’d surpass their allowable loan limit with the additional loan.

You can avoid this rejection by considering how much you’re already borrowing from that lender. Ensure your new loan request is small enough that you won’t cross the threshold.

When does it make sense to take out multiple loans?

Taking out multiple personal loans is not always a good idea, but it can make sense in certain scenarios. Here are some situations where taking out a second loan might be a good idea and times where it’s not. 

Please note that these suggestions are generalized. What’s best for you is highly dependent on your personal situation.

Debt scenario	Get a second personal loan?
You need your car to get to work, but it unexpectedly breaks down. You don’t have cash to fix it.	Yes, but only if you’ve exhausted other options first, like car-pooling, asking family for a loan, or asking the mechanic for a payment plan.
You have new medical debt you can’t pay, but you’ve already taken out a personal loan for something else.	No. Hospitals and doctors’ offices typically offer their own payment plans.
You borrowed money for your wedding, but you don’t have enough money for a honeymoon.	No. It’s not financially wise to borrow money for vacations.
You want to improve your home before putting it on the market, but you already have an existing personal loan.	Yes, but consider a home equity loan or a home equity line of credit.

Remember, to qualify for another personal loan, you must meet certain criteria. That usually means having a low debt-to-income ratio and a good credit score. Having room in your budget is also important to handle an additional payment. There are alternatives to consider first before applying for another personal loan.

Alternatives to personal loans

Personal loans are a smart way to manage unexpected expenses, budget for home improvements, and even consolidate debt. However, multiple personal loans at the same time might not be the best path forward.

Instead of a second personal loan, consider one of these options.

Emergency savings

If you’ve worked hard to build up your emergency fund, consider dipping into it to cover unexpected medical expenses and repair bills.

And if you’re thinking about taking out a second personal loan to fund something that’s not urgent, such as a kitchen remodel or a vacation, try saving up for it over several months instead of taking out a loan.

0% rate credit card

Some credit cards offer 0% interest for an introductory period. If you use the card for a single purchase and are confident you can pay it off before the promotional 0% rate expires, this could be a smart way to fund a purchase without paying interest.

Debt consolidation personal loans are a standard option for paying off mountains of credit card debt. Still, another effective strategy is a credit card balance transfer (to a 0% intro rate card).

Family loan

Taking out a second personal loan to tackle an unexpected expense can have disastrous effects on your credit score, especially if you miss a payment. Consider instead asking a family member if you can borrow money to cover the expense.

Loaning money to family can be complicated. Ensure your family knows you understand if they say no to preserve the relationship. If they lend you cash, prioritize repaying them within the agreed-upon terms.

Secured personal loan

Many lenders will allow you to have more than one personal loan simultaneously, but getting approved for the second can be challenging. Applying for a secured personal loan—and putting up collateral, such as your car—can help your chances.

Payment plan

If you’re dealing with high medical debt (for humans or pets!), ask the doctor whether they offer payment plans. You might be able to pay off your bill in monthly installments without the hassle of a personal loan.

You might also be able to get in-store financing for big-ticket items, including furniture and appliances, without going through a traditional lender. Buy now, pay later (aka point-of-sale) apps also offer an alternative way to pay for large purchases over several payments—no personal loan necessary.

Adding to an existing loan

There is a type of loan, commonly referred to as a “top-up” loan, where you can work with your lender to request additional funds on top of a loan you’ve already received. However, top-up loans are more common in Canada than in the United States, although some U.S. lenders might offer this on a case-by-case basis.

Home equity loan or line of credit

Home equity loans and home equity lines of credit are a suitable alternative to personal loans, but they require that you own a home—or at least have built up equity in a home you’re still paying off.

This might be better than managing multiple personal loans if you’re a homeowner. Get started with our roundup of the best home equity loans and best home equity lines of credit.