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How Many Personal Loans Can You Have At Once?

Victoria Araj5-Minute Read
UPDATED: October 31, 2023

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When applying for a personal loan, you’re sometimes borrowing based on only an estimate of how much you may need. If your calculations are off or an unplanned expense arises, you may realize you need more money than you borrowed.

In this case, you may be able to take out one or more additional personal loans to cover these costs. However, it’s important to evaluate your financial situation before making this commitment.

Let’s take a close-up look at the approval requirements for multiple personal loans. We’ll also consider some of the risks involved in being responsible for this extra debt.

How Many Personal Loans Can You Take Out At Once?

How many personal loans you can have at once depends in part on whether you’re trying to take out multiple loans from the same lender or different lenders. In the sections below, we’ll break down how it all works.

How Many Loans Can You Take Out From The Same Lender?

Some lenders allow for multiple outstanding loans through their company, while others don’t permit this. Most lenders that limit the number of outstanding loans allow for no more than one or two loans. Typically, lenders that allow an unlimited number of loans still put a limit on the combined balance of those loans, however.

Rocket Loans℠ will only approve borrowers for one personal loan at a time.

How Many Loans Can You Have From Different Lenders?

You can have as many personal loans from different lenders as you’re approved for. Approval generally depends on factors like your credit history and debt-to-income ratio (DTI).

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What Are The Requirements For Applying For More Personal Loans?

Your chances of being approved to have multiple personal loans at once largely depend on your credit score and DTI. Each lender requires a certain credit score and DTI to approve a borrower for a personal loan.

The application process for an additional personal loan is basically the same as the application process for the first personal loan with a given lender. Still, being approved for a second personal loan isn’t always as simple as applying again.

Many lenders require you to pay off a certain amount of your current loan before they’ll approve you for a new one. Your existing loan balance and any other debt you have will factor into your DTI and credit report. If your existing loan is nearly paid off, you may be more likely to get approved for another loan.

You may also need to make a minimum number of consecutive payments on your current loan before you can be approved for a new one.

How To Manage Multiple Personal Loans At Once

Managing two or more personal loans and their repayments can be tricky, but it’s not impossible.

The best way to pay off debt is usually by targeting your high-interest payments first. This can help you save money in the long run by eliminating high-interest charges every month.

Missing a payment or defaulting on a personal loan can also lower your credit score. Bad credit can make it harder to take out future loans, so you should prioritize those payments if you can afford it. Setting up automatic payments can also help ensure you don’t miss any.

Should You Take Out Multiple Personal Loans At Once?

Certain risks inevitably come with juggling multiple outstanding loans. Having multiple loans can affect you in these ways:

  • It can hurt your credit. With each loan application comes a hard credit inquiry. Every hard inquiry can lower your credit score by up to 10 points. You also risk seriously hurting your credit score if you miss any loan payments or default.
  • You could increase your DTI. Your DTI measures your monthly debt payments against how much money you earn each month. It’s an important factor in determining your eligibility for a mortgage and other types of loans. A higher DTI can lead to a higher interest rate on any future loans.
  • Your debt can keep building up. Beware of falling into a debt cycle where you keep taking out loans to make your monthly payments. The more money you put toward repayments, the less you have for your bills and other living expenses. If you must borrow another loan just to keep up with those, you can easily fall deeper into the debt hole.

If you qualify for a lower interest rate, have the income to make multiple repayments and absolutely need the money, another loan may not be a bad idea.

But if you can’t afford to repay multiple outstanding debts, you may want to find an alternative solution.

Personal Loan Alternatives

Having multiple personal loans won’t work for everyone. Let’s take a look at some other financing options that may be available to you:

  • Home equity loan: As with a personal loan, you can use the funds from a home equity loan for various purposes. The drawback is that you’re borrowing a fixed amount against the equity in your home. If you default on the loan, you could lose your home to foreclosure.
  • HELOC: Like a home equity loan, a home equity line of credit (HELOC) allows you to borrow against your home’s It comes with risks similar to a home equity loan, like the possibility of losing your home. The difference is that a HELOC is a type of revolving debt. That means you can borrow and pay back funds as needed during the loan term.
  • 0% APR credit card: Some credit cards come with a 0% annual percentage rate (APR) introductory During this period, which typically lasts 12 – 18 months, you can repay debt interest-free. However, after the promotional period, you’ll be subject to standard credit card interest.
  • Emergency funds: If you’ve built up a healthy emergency fund and can spare the money, it may be simpler to just pull from your savings. The downside to this, of course, is that you won’t have that money later on if you need it.

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FAQs About Having Multiple Loans Out

Still unsure whether having multiple personal loans is the right choice for you? Learn more from the answers to these frequently asked questions.

Can I apply for multiple loans at once?

While you can have multiple personal loans out at once, you probably won’t be able to apply for them at the same time. You may need to make a few payments on your initial loan before a lender will approve you for additional ones.

How long should I wait before applying for another loan?

Again, this can depend on your bank or lender’s policies. Some lenders require you to wait 3 – 12 months (or make 3 – 12 monthly payments) before you can apply for another loan.

Is taking out multiple personal loans bad?

Having multiple personal loans out isn’t inherently bad. However, if you have trouble making on-time payments, it can be a bad idea. Late payments, delinquency or a default can seriously hurt your credit score. More loans can also mean a higher DTI, potentially affecting your interest rate on future loans.

The trickiest part of juggling multiple loans can be remembering due dates. Debt consolidation can simplify this because it leaves you with only one monthly payment to worry about.

Final Thoughts

Unexpected expenses are just that – unexpected. You could get a personal loan, only to realize you need another loan for new expenses or that you didn’t borrow enough money.

If you’re sure you’ll qualify for a low rate again and you can make payments, you could apply for another loan. Just be mindful of the risks and any stipulations your lender may place on issuing you an additional loan.

If you think a personal loan can help you, apply online today with Rocket Loans to see what rate you may prequalify for.

Victoria Araj

Victoria Araj is a Section Editor for Rocket Mortgage and held roles in mortgage banking, public relations and more in her 15+ years with the company. She holds a bachelor’s degree in journalism with an emphasis in political science from Michigan State University, and a master’s degree in public administration from the University of Michigan.