How Many Personal Loans Can You Take at One Time?
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How Many Personal Loans Can You Take at One Time?
In many instances it is possible to take on several loan at one time, but consider whether you can manage the extra debt.
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There is the possibility of having several personal loan with some lenders or you may hold multiple personal loans from different lenders.
It is more likely that you will be denied multiple loans by the lender rather than the law allows. The lender may limit the amount of loans — or total amount of money — they’ll offer you.
They don’t typically decline applicants due to an existing loan, but they may deny your application if they already have .
The ideal personal loan will help you achieve your financial goals without damaging your credit or creating excessive debt with high rates of interest.
With that in mind, look at other avenues to obtain the cash you require before making the switch to a different loan.
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Receiving multiple loans at the same time from one lender
Some lenders have a maximum number of loans you can have or a limit on the amount you can borrow , or both.
This table shows the number of personal loans some popular lenders will give to a single borrower:
Lender
Maximum amount of loans
Maximum loan amount
2
$100,000
2
$140,000 to 1 loan
Total of $50,000 for 2 loans
1
$45,000
2
$50,000
No limit
$100,000
No limit
$75,000
No limit
$35,000
On NerdWallet and get personal rates from various lenders.
Some lenders require that borrowers pay a specific amount of payments before applying for a second loan. LendingClub For instance is a lender that requires borrowers to make monthly payments for three to 12 months prior to applying for the second loan. SoFi requires three consecutive payments towards an existing loan before requesting a second loan.
Upstart is a loan that requires borrowers to make six on-time payments before applying. Upstart applicants must wait 60 days before reapplying in the event that they repay the loan within less than six months or if they recently paid off a loan and one of the six previous payments were not made on time.
The fact that you have a personal loan from a different lender isn’t an automatic disqualification, the lenders say. If you’ve nearly finished paying off one loan and don’t have a lot of other debts to pay then you could be eligible for a second loan.
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The ability to qualify for a personal loan
There is no federal law that prohibit a person from having multiple personal loans According to Carolyn Carter, deputy director of the National Consumer Law Center. Some states regulate the number of loans a person is allowed to have at a time, she adds.
The biggest issue with obtaining a personal loan could be proving that you are eligible for it.
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” If your debt is excessive compared with your income, an obstacle in obtaining a personal loan could be proving you are eligible for it. “
When reviewing the details of a loan application, lenders typically look at your debt-to-income ratio or DTI which is the ratio that accounts for the entirety of your debt as a portion of your income.
When you make a loan and you increase your DTI. The majority of lenders want this number to be around 40% or lower.
The lender can deny your applicationor accept the application, but with a price because of your existing debt.
Also, you should consider the hit your credit score could receive when you seek another loan. Applications for loans typically result in a temporary drop your score by some points.
If you apply for several loans at once the impact on your credit can multiply and you may see a big dent in your credit score. (The hard inquiry is whether your application is granted or not.)
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Check if you are pre-qualified for a personal loan and not impacting your credit score
Simply answer a few questions to receive an estimate of your personal rate from a variety of lenders.
Alternatives to personal loans
Personal loans are an investment in the long run and are ideal for large, budgeted costs.
For instance, a consolidation loan as well as the loan for home renovation are both financially advantageous However, taking them out at the same time may make you more in debt.
If you want to avoid getting another personal loan Here are some alternatives:
Savings: If your expense is able to be put off — especially when it’s a discretionary expenditure — consider saving up for it prior to making the purchase. If you’re not able to save, try looking for other to pay down your original loan.
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A credit card with 0% interest If you have a great credit rating (typically 690 or greater) You may be eligible for a credit card that allows you to finance a large purchase interest-free for a introductory period of one year or longer.
Make sure you know the APR after the introductory period ends, in case you end up making payments past that period.
Payment plan: Many doctors, dentists and veterinarians allow patients to negotiate an arrangement for payment. Certain medical professionals offer assistance to patients with costly procedures.
Secured or co-signed loan If you’ve decided that the personal loan is the best choice then you could have a better chance of qualifying if you can offer collateral to or have a friend or family member co-sign the loan for you. (This is a major ask as a co-signer will be on the hook for the loan and co-signing may limit the amount that the co-signer is able to borrow on their own.)
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Before you take the plunge with a personal loan take the time to research take a look at how they’ll work into your budget.
About the writer: Annie Millerbernd is an individual loans writer. Her work has appeared on The Associated Press and USA Today.
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