At a Glance

When you go to take out a personal loan, you may believe that you have enough money to cover all the items needed. However, if you find that you need more funds or forgot about one project when adding up the sum for the first personal loan, you may be wondering if you can take out more.

Read on to learn just how many personal loans you can take out and how to manage multiple streams of debt at once.

Can you have multiple personal loans at once?

In most cases, yes, you can have multiple personal loans at once. However, when looking at the question of can you get two loans at the same time, it can still be a case-by-case basis. When considering lending to you, a lender will evaluate your history with credit and will be able to see if your credit is outstanding.

While a lender may not have a hard and fast rule for how many loans you can have at the same time, they may be uneasy with the idea of lending you more money when you have many loans that are not yet paid off.

How many personal loans can you have from the same lender?

When wondering if I can get more than one loan at a time, the answer is very case-by-case depending on the lender. Some lenders may only allow you to have one, whereas others will have no limit. For example, Rocket Loans will only allow you to have one loan with them whereas LightStream allows unlimited.

Check with the lender you specifically are trying to borrow money from to see if you can take out more than one loan at a time.

What restrictions on personal loans should you check before applying?

When applying for a personal loan, there are several factors to consider that can make or break your decision. Consider the following restrictions and requirements before applying:

  • Credit score requirements
  • Payment history requirements
  • Potential origination fee
  • Income levels required
  • Any potential collateral that is needed
  • The number of loans that you can borrow

All the above factors can result in the denial of a loan application if the base requirements are not met. Be sure to research the restrictions included in loan borrowing prior to sending in an application for a loan.

Related: Credit score required for a personal loan

Risks of applying for multiple personal loans

The primary risk of applying for multiple personal loans is simply that you are taking on more debt. For borrowers who are financially stable and more than capable of meeting all their payments on time and in full, this risk may be completely mitigated. However, for borrowers who are not completely financially stable or who have a poor history with credit, this risk is high.

Asking yourself can you take out two loans at the same time is only half the issue. Once you have another personal loan, you will be responsible for another monthly payment that includes interest and any fees associated with the loan. If you are nearly unable to handle the cost of one personal loan, taking on more should not be the answer.

On top of this, applying for another personal loan will result in another hard check on your credit which can hurt your credit score marginally for up to a year.

Qualifying for another personal loan

The process of qualifying for another personal loan will be the same as when you qualified for your first loan. The steps to qualify are as follows:

1. Propose the amount you wish to borrow and the purpose of the funds if required by the lender

2. Submit an application that includes personal and financial information such as your address, SSN, income level, and more.

3. Wait for the approval or denial from the lender

4. Begin repayments if approved

The process of qualifying for a loan is quite simple. However, before going through this entire process you should be sure that you meet all the credit and income requirements that the lender demands.

When is it a good idea to open multiple personal loans?

If you need more money quickly, can qualify for a low-interest rate, can manage the debt, or have an outstanding project that needs to be done, taking on multiple personal loans can be beneficial. However, if you are unable to meet the obligations of another personal loan, it’s best that you do not take on more debt.

How to manage multiple personal loans?

As with any other type of debt, the key to managing multiple personal loans is simply making on-time and in-full payments to avoid late fees and extra charges. Consider setting up automatic payments through your lender if you know the money will always be in your account on the payment day.

Alternatively, pick a day to set a calendar reminder for on your phone or computer so that you never accidentally miss a payment.

How can you boost your chances of getting approved for a second loan?

The best way to boost your chances of getting approved for a second loan is to meet all the lender requirements for that loan. This means having a qualifying credit score, income level, debt-to-income level, and more. Additionally, your chances of getting approved for a second loan will be higher if a lender sees a positive history with credit in your past, as well as a history of on-time payments for your debt.

What are some alternatives to personal loans?

If having multiple personal loans at once isn’t right for you, there are several alternatives to consider:

1. A 0% APR credit card

A 0% introductory credit card offers holders no interest charges for a specific period. During this time, you can carry a balance without any drawbacks. Just be aware that after the introductory period, any unpaid balance that remains will begin accruing interest, and heavily depending on your APR rate.

2. Payment plan

For many products or services, companies may offer custom payment plans that allow purchasers to complete their payments over time. This can be especially beneficial for large, unordinary purchases associated with home projects. In many cases, these payment plans may cost less in the long run than a personal loan.

3. A secured or cosigned loan

If a high interest rate or too much outstanding debt is the stopping point for getting another loan, a secured or cosigned loan can help. A secured loan means some form of collateral is being put up against the money borrowed, which provides added peace of mind to a lender. A cosigned loan means someone else is signing the loan with you, and their credit information will be considered in the decision process as well.

Learn more: Personal loan with a cosigner

4. Credit card cash advance

Taking a cash advance on your credit card is a quick way you can receive cash. However, be sure to pay back the cash advance when required to avoid getting charged interest and any extra fees that may be associated with this strategy.

5. Home equity loan or line of credit

A home equity loan or line of credit allows you to borrow money against the value of your home. Be aware, though, that a failure to repay this loan can result in the loss of your personal property, so this loan type is best for those who have a stable financial history.

Leran more: Home Equity Loans vs. HELOC

6. A 401(k) Loan

As the name implies, a 401(K) loan allows a person to borrow money against the value of their 401(K). However, this means that if you cannot repay the loan, you stand at risk of losing your retirement funds.

Learn more: 401(k) loans

7. Balance transfer credit card

A balance transfer credit card allows a person to transfer their various debt balances to a single card. This can help consolidate your debt and allows you to make one single monthly payment, rather than multiple, with one single interest rate.

Learn more: Balance Transfer Credit Cards


In most cases, the answer to if you can take out more than one loan is yes. This is a case-by-case basis depending on a specific lender, though, so be sure to read the fine print or their website to see how they feel about having multiple streams of debt outstanding at one time.

No, you cannot increase your loan amount once you have borrowed the money. This is since the monthly payments, which encompass interest and any fees, are calculated based on the lump sum you took out. Changing the loan amount would also require recalculating those monthly payments. With that said, you can increase the amount you’re allowed to borrow on a line of credit.

Yes, in most cases taking out two personal loans from different banks will be allowed. Although, some lenders may not be willing to lend if they see you have too much outstanding debt that is unpaid, or a history of late payments.

In most cases, the term length for personal loans runs from one year to seven years. While the occasional loan may have a longer-term length, seven years is likely the longest you will be allowed to take out a personal loan.