There’s no limit to the number of personal loans you can have at the same time. Some lenders, however, may cap the number of personal loans you can open with them simultaneously—or limit the total amount you can borrow across multiple loans.
Why would you want to take out more than one simultaneous personal loan? Personal loans can help with a wide range of expenses, such as home repairs and medical treatment. They also come with lower interest rates than many credit cards, and the money can hit your account in one or two days.
But just because you can have more than one personal loan at the same time doesn’t mean you should. Below, we’ll break down how many personal loans you can have with various lenders and the ramifications of applying for multiple loans at once.
In this guide:
- How many personal loans can you take out at once?
- Pros and cons of multiple personal loans
- What lenders consider before approving a second loan
- When does it make sense to take out multiple loans?
- Alternatives to personal loans
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, 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, a second personal loan can make sense.
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.
Lenders may even be hesitant to offer you other loans, such as mortgages and auto loans, down the line. Juggling and applying for multiple personal loans at once can signal you’re struggling to manage your finances—which makes you a high-risk borrower.
Can you get 2 loans from the same bank?
Some banks allow you to hold multiple personal loans at once. 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, even if a lender allows multiple loans, it likely has restrictions. For instance, most lenders impose a maximum amount you can borrow across all loans.
And you must reapply and qualify for each new loan you take out. This can get difficult as you accumulate more debt, resulting in a hard inquiry on your credit report every time. Plus, you may pay an origination fee for every new loan.
A lender might also impose other restrictions, such as requiring you to wait a certain amount of time or number of payments before you apply for another loan. And some lenders won’t let you apply for a second personal loan.
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||How many personal loans you can have at once||Max borrowing limit|
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.
Pros and cons of having multiple personal loans
Taking out multiple personal loans simultaneously can have immediate advantages, especially if you’ve racked up unexpected bills or need to make some emergency home or car repairs. But be sure you’ve also considered the potential pitfalls.
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.
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.
Cut into your monthly budget:
Taking on a second personal loan means committing to a new expense every month that will cannibalize part of your budget. That means cutting costs elsewhere—and in times of high inflation and stagnant wages, that might be challenging.
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.
Risks of applying for multiple loans at once
We don’t recommend applying for multiple loans at once to improve your chances of approval. Every time you apply for a loan, the lender will make a hard inquiry on your credit report, which reduces your credit score.
Instead, apply for prequalified quotes from several lenders, and compare quotes before committing to one loan application. Getting prequalified quotes won’t affect your credit score but will allow lenders to take a peek at your credit to give you a rate quote.
Once you choose the best loan option, submit a complete application with that lender, and only one hard inquiry will show on your credit report. Our guide to the best personal loan lenders is a terrific place to start.
We also advise against applying for several personal loans simultaneously to open more than one. This could backfire in several ways, including:
- You’ll get multiple hard inquiries on your credit report at the same time. In the future, lenders could see this and assume you were scrambling to get money—a dead giveaway you might not be good at managing debt.
- Starting two loans back to back can take a toll on your monthly budget. You’ll now have two new monthly payments you’re not used to making. If you’re already on a tight budget, finding the room to handle both payments can be challenging.
- When you have two payment dates to juggle, it’s easier to miss one. All it takes is one missed payment for your credit score to plummet.
Instead, consider applying for one larger loan from a single lender. Even if you need the money for two different purposes—for instance, paying for car repair and financing a bathroom remodel—you can use a single personal loan to fund both needs.
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 just 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.
The table below breaks down credit score ranges and how these affect your options for personal loans:
|Credit score range||Credit score category||Personal loan eligibility|
|800+||Exceptional||You should qualify for the best rates and lowest fees for personal loans.|
|740 – 799||Very good||In this range, you should get competitive personal loan offers.|
|670 – 739||Good||Rates and fees may be higher, but most borrowers with good credit can get personal loans.|
|580 – 669||Fair||At this credit score range, you may only be eligible for personal loans with specific lenders; expect higher fees and rates.|
|<580||Poor||With poor credit (or no credit at all), you may be limited to high interest rates or secured personal loans.|
Not sure what credit score you have? You’re entitled to a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) every year. Many banks and financial technology companies also offer free credit score monitoring within their apps.
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. If you’re on the fence about taking out a second loan, ask yourself these five questions:
- Do I have room in my monthly budget? Another personal loan will add another payment to your monthly expenses. Do you have enough flexibility in what you earn and how you spend to cover the additional cost?
- Do I have the right credit score for another personal loan? It’s possible to find lenders that overlook fair or even bad credit, but you might get stuck with unmanageable rates and fees if you take out a personal loan with a low credit score. Is the loan worth this higher cost?
- Do I have the right DTI for another personal loan? A high debt-to-income ratio might be a nonstarter with lenders. You may need to wait until you’ve paid off other debts (or increased your monthly income) before getting approved for another personal loan.
- Are there alternative ways to pay for this expense? Personal loans aren’t the only way to tackle debt consolidation, emergency costs, and home renovations. Consider 0% APR credit cards, home equity loans, and even family loans as alternatives.
- Can it wait? If you need to repair your home or car now or get an urgent medical procedure, you can’t put it off. But if you’re taking out a personal loan for a vacation, wedding, or home improvement, can it wait until you’ve saved up the money?
Still not sure whether you should take out another personal loan? Below are common scenarios in which consumers consider taking out additional personal loans—and our advice for when it makes sense:
|Debt scenario||Our advice|
|You have a debt consolidation loan you’ve been paying off to reduce your debt, but your car unexpectedly breaks down, and you can’t get to and from work without it.||You need your car to get to work! A personal loan may be the best way to fund the repair quickly.|
|You have a personal loan for medical debt that you took out a few years back, but your condition has worsened, and you’ve racked up more medical debt.||Instead of a personal loan, ask your doctor whether they offer a payment plan. Many medical offices are willing to work with you to make your debt more manageable.|
|You’re still paying off a personal loan from a previous expense, but you’re now hoping to sell your house at a profit. To get the best offer, you know you’ll need a home improvement loan to cover significant renovations, and you’d like to tackle the work while the housing market is hot.||A second personal loan could make sense. You could also consider a home equity loan or home equity line of credit, so take the time to compare your options.|
|You took out a personal loan to pay off your high-interest credit card debt, and you’re still working toward that goal. Now you’re engaged and thinking about a second personal loan to cover your wedding.||Consider waiting until you’ve paid off the first personal loan before taking out a second. During that time, you could even try to build a wedding fund in a high-yield savings account. That way, you won’t have to borrow as much to fund your dream wedding day.|
Alternatives to personal loans
Personal loans are a smart way to manage unexpected expenses, budget for home improvements, and even consolidate debt. But 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.
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% APR credit card
Some credit cards offer 0% APR 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% APR 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 APR card).
Not sure which card to choose? We’ve found the best balance transfer credit cards with 0% APR to consider.
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.
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.
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.