Personal loans can be a flexible way to manage surprise expenses, pay off higher-interest debt, or get through a financial rough patch. But what happens when one loan isn’t enough?
Maybe a second emergency hits before you’ve paid off the first loan. Or maybe the original loan amount didn’t quite stretch as far as you hoped. In situations like these, it’s not unusual for people to consider taking out another loan, and in many cases, it’s allowed.
That said, it’s not always a simple yes or no. Your ability to borrow again depends on your finances, your existing loan, and what lenders are willing to offer.
Can you take out more than one personal loan?
You can have more than one personal loan at the same time. Many borrowers do, especially when unexpected costs stack up or new expenses come along before the first loan is paid off.
But while it’s allowed, it’s not automatic. Each time you apply for a loan, the lender takes a fresh look at your financial situation to make sure it is within your reach to repay both loans.
Why You Might Take Out Multiple Personal Loans
Having multiple personal loans doesn’t always mean you’re borrowing too much. In many cases, it’s a way to deal with new expenses that come up over time.
Here’s why some people take out several loans:
Separate Needs at Different Times
Maybe you took out a loan for a medical bill a few months ago, and now you’re facing unexpected car repair or home renovation costs. A second emergency same-day loan might help without touching the first one.
The First Loan Didn’t Cover Everything
Some lenders won’t approve the full amount you need right away. If your first loan only covered part of the cost, you might find yourself needing to borrow again later.
You’re Consolidating Debt
Some borrowers use one loan to pay off several credit cards or combine older debts into a single monthly payment using a debt consolidation loan.
Risk of Having Multiple Loans
You can have multiple personal loans, but they can be harder to manage. Before taking out another loan, think about whether you can handle the extra payments without falling behind.
Bigger Monthly Costs
Two loans mean two sets of payments. That can put pressure on your budget, especially if you’ve already got other bills to cover.
More Chances to Miss a Payment
It’s easy to lose track when you’re paying off a number of loans. Missed payments can lead to late fees and hurt your credit score.
Future Loans Could be Harder to Get
Even if you’re paying on time, some lenders may think you already have too much debt and decide not to approve you for anything else.
It Can Get Stressful
Keeping up with multiple loans takes careful planning. If your income drops or an emergency comes up, it can be tough to stay on top of everything.
Will several loans hurt your credit score?
Having a few personal loans won’t automatically damage your credit. What matters most is how you handle them. If you manage your loans well, your credit should stay in good shape. But if the payments start to pile up, the risks grow quickly.
Each time you apply for a new loan, the lender will run a hard credit inquiry. This can cause a small, temporary drop in your score. It’s normal, and as long as you’re not applying again and again, it usually won’t have a big impact on your credit history.
If you already have a lot of debt, taking out more loans can make you look risky to future lenders. Even if you’re making all your payments, they may worry you’re stretching your finances too far.
On the flip side, paying a number of loans on time can actually help your credit. It shows you can manage debt responsibly, and that can work in your favor over time.
But missed payments are a different story. Falling behind, even once, can do real damage to your score and stay on your credit report for two years or more. That’s why staying organised and keeping up with every payment is so important.
What Lenders Look For Before Approving Another Loan
When you already have one personal loan and apply for another, lenders dig deeper into your financial picture so they can be confident you can handle two loan payments without falling behind.
How Much You Already Owe
Lenders will review your current loan balance and any other debts. If you’re already carrying a lot, it may raise a red flag, especially if your payments take up a large portion of your income.
How You’re Managing Your Loan Repayments
Your payment history matters. If you’ve been making all your payments on time, that works in your favor. But even one or two late payments on your current loan could make lenders think twice.
Your Debt-to-Income Ratio (DTI)
DTI is a key factor. It shows how much of your monthly income goes toward debt payments. The higher your DTI, the more likely a lender will see you as stretched too thin. A lower DTI makes you a stronger candidate for a second loan.
Your Income and Job Stability
Lenders want to know that your income is steady. If you’ve recently changed jobs or your earnings have dropped since your first loan, it might be harder to qualify for another one. A stable income gives lenders more confidence.
Changes to Your Credit Score
Your credit score may have gone up or down since your first loan. If it’s improved, you might qualify for better rates. But if it’s dropped, especially due to missed payments or new debt, lenders may offer less favorable terms or decline your application.
How Much You’re Asking For
The size of your second loan matters. A smaller amount that fits your budget shows you’re thinking carefully about what you can afford. Asking for a large second loan while still repaying the first may raise concerns.
Need help finding the right personal loan?
Taking out multiple personal loans can work when done right, but finding lenders willing to approve a second loan isn’t always easy. At Yup Loans, we understand that life sometimes throws more expenses at you than one loan can handle. That’s why we connect you with a network of lenders who look beyond your credit score and consider your full financial picture.
Our quick, no-fee online form takes just three minutes¹. You’ll get matched with lenders³ who are open to helping people in all kinds of financial situations, even if you already have a loan. There’s no paperwork to print, no pressure, and no judgment.
Need a second loan for a new expense or to help with existing debt? We’ll help you explore options that fit your budget and timeline. Request Funds to get started today.
FAQS About Getting Another Personal Loan
Can you have 2 personal loans at the same time from the same lender?
Most lenders have strict policies about only allowing one personal loan at a time per borrower. They view multiple loans from the same company as too risky, especially when you still have existing loan obligations to them.
This means you’ll usually need to get loans from different lenders if you want a second loan while still paying off your original loan. That’s where a service like Yup Loans becomes valuable, as we can connect you with multiple lending options3.
How many personal loans can you have at once?
There’s no legal limit on how many secured or unsecured personal loans you can have, but most people find getting approved for more than two or three at a time hard. Each additional loan makes lenders more nervous about your ability to pay everything back. The important thing is making sure you can comfortably afford all the monthly payments without stretching your budget too thin.
Is there a set debt-to-income ratio to qualify for a second loan?
While there’s no universal rule, most lenders prefer your total monthly debt payments to stay below 36% of your gross income. Some might go up to 40% for borrowers with strong credit and stable income. If you’re already close to these limits with your first loan, you might have a tougher time getting approved for another one.
Can you have multiple personal loans with bad credit?
Even with bad credit, you can still get approved for multiple personal loans, though it may take more effort to find the right lenders.
Many lenders in our network specialize in working with borrowers with credit challenges and look at factors beyond your credit score, like your income and payment history on existing loans. While you might face higher interest rates than someone with good credit, proving you can handle your current loan payments responsibly can work in your favor when applying for a second loan.