How many personal loans can you have at once?
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Some lenders let you take out multiple personal loans, but they may cap the total amount you can borrow. Your eligibility also depends on your financial portfolio and credit. If you already have a personal loan with a lender, check to see what its policy is for multiple loans.
Lender policies and your financial profile determine the number of personal loans you can have.
Jump to insightManaging multiple loans requires careful attention to debt-to-income ratios and credit scores.
Jump to insightConsider alternatives to personal loans if they better suit your financial needs.
Jump to insightLender policies
The potential for taking out multiple personal loans depends on your lender. For example, Best Egg will allow you to have two loans as long as the total of the two loans does not exceed $100,000. If the company you have your current personal loan with doesn't allow for second loans, you can always apply for a second personal loan with another lender. You can also consider refinancing your current personal loan into a new, larger loan.
Whether you obtain multiple personal loans through a single lender or several lenders, your application will undergo the same approval process. The lender will check your credit score and your debt-to-income ratio to ensure you don't take on more debt than you can afford. You have a better chance of getting approved if your income has gone up since your last loan — this will lower your debt-to-income ratio and strengthen your ability to pay.
Kyle Enright, the president of lending at Achieve, said: "Work with a lender that offers upfront explanations of fees, rates and terms. A good lender will review the total costs over the term of the loan – including origination fees and any discounts you may be eligible for – and help you figure out the best options for you."
Factors affecting loan approval
Your credit score and debt-to-income ratio are the two most important factors in getting approved for a personal loan.
Many lenders require a credit score of at least 580 to qualify for a personal loan. The higher your score, the better terms you may receive. For example, you may qualify for a larger loan, receive a better interest rate or have access to a longer term. Those with lower scores may also be subject to higher fees.
When approving personal loans, lenders also look at your debt-to-income ratio. Your debt-to-income ratio measures the percentage of your income that’s being used to make the minimum payments on your current debts. Lenders want to see that 36% of your income is being used to make payments on debt.
If you’re considering multiple loans, the first loan will impact your debt-to-income ratio, making it more challenging to qualify for the second loan. Paying off the loan or consolidating it into the new one may lower your overall debt payments.
Pros and cons of multiple personal loans
Personal loans provide a fast and convenient way to get additional funds. If you’re using a loan to finance a large purchase, your rates may be lower than other options, such as credit cards, offer. If you’re using it to consolidate debt, you'll be simplifying your payments and potentially lowering your overall interest rate.
Pros
- Funds can be used for almost any purpose
- Funding is typically quick
- Rates can be lower than credit cards offer
- Interest rates are fixed
- Payments are predictable
Cons
- Multiple payments can be hard to manage
- May have origination fees
- Will increase debt load
Managing multiple loans
The best tip for managing multiple loans is to set the payments on autopay. That way, you can't accidentally miss a payment. You'll also want to create and use a budget. Regularly using a budget to manage your finances will ensure that you have the money to make your monthly payments, and it may prevent you from going further into debt.
Alternatives to personal loans
If you need funds but a personal loan doesn’t seem right for you, look into the following options — each comes with its own benefits and drawbacks.
| Type of loan | When to use | Drawback |
|---|---|---|
| Personal line of credit | When you aren't sure how much you need to borrow | The convenience of the loan may cause you to overborrow |
| Credit card | When the amount you want to borrow is low | High interest rates |
| Home equity loan | If you own your home and have equity | Your home is at risk if the loan goes into default |
| Mortgage refinance | When you need to borrow a substantial amount but need low payments | High overall cost due to the length of the loan |
| Retirement plan loan | Only as a last resort | Affects your long-term retirement plans |
| Cash advance apps | If you frequently need to borrow small amounts | Can cause a cycle of short-term loans that’s hard to get out of |
| Buy now, pay later apps | If you need to make a one-time purchase | Frequent use can cause budgeting issues (payments are hard to track) |
Personal line of credit
A personal line of credit works similarly to a credit card. You'll receive a credit limit and can borrow against it as needed. This offers more flexibility than a personal loan and is good for situations where you aren't sure of the exact amount you'll need to borrow.
The drawback is that you may borrow more than needed, due to the convenient nature of lines of credit.
Credit card
Credit cards are lines of credit that let you borrow money when needed and pay it back over time. You can borrow the exact amount you need, up to the credit limit, and the minimum payments are typically quite low.
However, they may be too convenient, leading to higher balances than necessary. Additionally, interest rates can be high, making credit cards challenging to pay off.
Home equity loan
Home equity loans can be a great alternative to a personal loan. If you own a home with equity, you can use the home as collateral on a loan or line of credit. Home equity loans typically have lower interest rates than personal loans, making them a more economical solution.
The drawback is that if you’re unable to make the payment, you risk putting your house into foreclosure. You'll want to ensure you can easily cover the minimum payments.
Mortgage refinance
Instead of taking a home equity loan, you could do a cash-out refinance. This is when you refinance your entire mortgage, taking out an additional amount that will be paid in cash to you.
While you will likely get a lower rate than you would with a personal loan, you will also be increasing the amount you owe on your home. This will mean either higher monthly payments or a longer term. You can counteract this by making payments that are larger than the minimum amount due.
401(k)
If you have a 401(k), you may be able to borrow against it. This would be borrowing money from yourself, so the interest charged on the loan is put into your account. How much you can borrow depends on your employer's policies, but it could be as much as 50% or $50,000, whichever is less. You'll generally have up to five years to repay the loan and must make payments at least quarterly.
If you don't pay the loan according to the loan's terms, or you leave your job before the loan is repaid, you may be charged taxes and penalties on the unpaid balance. The money is also withdrawn from your 401(k) balance and therefore not invested while you’re paying back the loan, which could cause you to miss out on market growth.
Cash advance app
If you frequently need small amounts to get you through until your next payday, you may want to consider cash advance apps. These apps will lend you a small amount, typically up to $200, without interest until your next payday.
The drawback of cash advance apps is that it's easy to become dependent on them and begin a cycle of short-term loans.
Buy now, pay later apps
Buy now, pay later (BNPL) services allow you to break up a purchase into four equal installments, typically without fees or interest. These are good if you need to make a one-time purchase and need a small, short-term loan.
Because BNPL apps are so convenient, they can cause overspending. The payments are also hard to keep track of, especially if you have several loans out at once.
FAQ
Can you have multiple personal loans at once?
Yes, you can have multiple loans at once — you just have to be able to qualify for additional loans. Some lenders have restrictions on how many loans or the total amount borrowed, but even if you've hit the limit with one lender, you can apply for a loan at a different lender.
How does having multiple loans affect your credit score?
Having multiple loans may affect your credit score. Total amount owed and your payment history both weigh heavily on your score. Too much debt also negatively impacts your score, while on-time payments have a positive impact.
What are the risks of having multiple personal loans?
The main risks of taking out multiple personal loans are having to manage several payments and the potential of taking on too much debt. Ensure you’re confident you can easily make the payments before taking on an additional loan.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Citibank, "How Many Personal Loans Can You Have at Once." Accessed May 2, 2025.
- Best Egg, "Can I get another loan or refinance my current loan?." Accessed May 2, 2025.
- Lending Club, "Personal Loan Eligibility: Criteria You Need to Know Before You Apply." Accessed May 2, 2025.
- Discover, "What is Debt to Income Ratio." Accessed May 2, 2025.
- Experian, "7 Alternatives if You Can’t Qualify for a Personal Loan." Accessed May 2, 2025.
- Credible, "9 Personal Loan Alternatives." Accessed May 2, 2025.
- The Funding Family, "7 Alternatives if You Can't Qualify for a Personal Loan." Accessed May 2, 2025.
- U.S. Bank, "What is a Personal Loan." Accessed May 2, 2025.
- Fidelity, "Thinking of taking money out of a 401(k)?" Accessed May 2, 2025.
- IRS, "Considering a loan from your 401(k) plan?" Accessed May 2, 2025.
- IRS, "Retirement topics - Plan loans." Accessed May 2, 2025.
- Affirm, "Affirm." Accessed May 2, 2025.
- Wells Fargo, "Personal Loan Rates." Accessed May 2, 2025.
- PNC, "Home Equity Line of Credit." Accessed May 2, 2025.
- Citibank, "Home Equity Rates," Accessed May 2, 2025.
- Bank of America, "Mortgage Refinance." Accessed May 2, 2025.
- Klover, "Klover." Accessed May 2, 2025.
