How Many Personal Loans Can You Have At Once?

If you need extra money for an upcoming project, car repair or surprise expense, you may need to take out multiple personal loans. You wouldn't be alone — personal loan balances in the U.S. reached approximately $567.5 billion by the end of 2023.¹ This could be due, in part, to consumers opting for multiple loans at once because of increasing economic difficulties.²

The need for multiple loans at once could happen easily. Say you’re getting new basement flooring. The project was estimated to cost around $7,000, so you took out a loan. Then the contractor announces that an unexpected complication is adding $3,000 to the cost. If you don’t have enough money to cover the extra expense, you might find yourself wondering how many personal loans you could have at once.

Let's explore some of the pros and cons associated with having multiple personal loans so you can make the best decision for your financial needs.

Can you have multiple loans at once?

Yes, you could have multiple loans at once, and lenders might approve additional loans if you’ve paid off some of your original loan and are in good standing as a borrower.

However, the specific conditions vary by lender and state of residence. Some lenders may limit the total amount you could borrow across all loans, while others will cap the number of concurrent loans per borrower.

Is it smart to take out multiple personal loans at one time?

Just like any financial decision, there’s not necessarily a right or wrong choice when taking out multiple loans at once — you decide what’s best for your financial situation.

Start by researching and assessing the pros and cons of taking out multiple personal loans at once to determine what makes the most sense for your income, expenses, credit history and goals.

Before you take on debt, make sure you have a strong understanding of your financial situation. Consider how much you’ll be able to afford in monthly payments and how long it will take to pay off. It’s always a good idea to do some calculations and determine how much you could ultimately pay over the life of the loan.

Pros and cons of having multiple personal loans

You should be aware of all the benefits and risks associated with taking out any type of loan, as well as multiple loans.

Pros of multiple loans at once

• Personal loans may have lower interest rates compared to credit cards.
• You may qualify for a new loan with a lower interest rate and a higher loan amount if your current loan payments are up to date and you have a good credit history.
• You can use a debt consolidation loan to help simplify your payments and possibly obtain a lower interest rate.
• Personal loans are useful for handling unexpected expenses such as medical bills upfront.

Cons of multiple loans at once

• Each loan application triggers a hard credit inquiry, which can remain on your credit report for two years and potentially lower your credit score.
• Multiple loans can increase your debt-to-income (DTI) ratio (DTI), affecting your ability to qualify for other loans or lines of credit, such as mortgages.
• Managing multiple loan payments may be challenging and increases the risk of missing payments, which could negatively impact your credit score — even one missed payment can impact your credit score.

Can I get more than one personal loan from the same lender?

Generally speaking, you could get more than one personal loan from the same lender, and there is no limit to the number of loans you can have at once — you’ll just need to get approved.³ However, it’s important to keep in mind that how many loans you can have at once varies by lender, as well as state laws.

Some lenders may specify a maximum number of concurrent loans or the total loan amount per borrower. Lenders might also require a certain number of payments to have been made on existing loans before permitting additional loans.

Most lenders will take into account whether your existing loan(s) are in good standing, as well as your DTI. It’s recommended that you keep this ratio lower than 36%.⁴ If you have a poor credit history or a high DTI, a lender might deny your application, regardless of how many personal loans you have at once.

How many loans can you have with OneMain Financial?

Laws and offers regarding how many personal loans you may have at once vary by state and lender. When doing business with OneMain, rather than thinking about how many loans you may take out at once, ask yourself how big a personal loan you could get.

If you have an existing loan with OneMain, you may be eligible for a loan renewal. Use a new loan renewal to pay off your current loan, then use the leftover funds for other things you need. Loan renewals are simple — you can check for offers to see if you prequalify without impacting your credit score or visit a local branch for details.

Need an extra loan? You’re not alone.

It's always nice to have a little extra cushion to help you take care of unexpected expenses, but before applying for an additional loan, be sure to weigh your options. Think carefully before taking on more debt and making any long-term financial commitments. You can also consider alternatives like borrowing funds from someone you know, cutting back on expenses or picking up a side gig. Either way, our OneMain specialists are here to help you navigate making the best decision for your needs.

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Source:
1 https://www.experian.com/blogs/ask-experian/research/personal-loan-study
2 https://www.experian.com/blogs/ask-experian/research/consumer-debt-study
3 https://www.experian.com/blogs/ask-experian/how-many-personal-loans-can-you-have-at-once
4 https://credit.org/blog/debt-to-income-ratio

*This article has been updated in 16 Mar 2023 and 29 May 2024. Melina Duffet and Kim Gallagher contributed to this post.