Skip to Main Content

Can you take out a second personal loan?

Woman works on laptop
Branislav Nenin/Shutterstock
Bankrate Logo

Why you can trust Bankrate

While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .

Maybe you took out a personal loan and realized you needed more money after signing on the dotted line. Is it possible to take out a second loan, or will you have to pay off the current loan first?

It depends on the lender. Some may say no, forcing you to look for another loan, while others could allow more than one at a time. A second personal loan can seriously impact your credit score and overall financial health if you are not careful.

Get pre-qualified

Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.

Can I take out two personal loans at the same time?

The ability to take out multiple personal loans depends on the lender. A number of the big online lenders have explicit policies about borrowers applying for multiple personal loans. Some lenders require you to make a specific number of consecutive payments or wait until a certain amount of time has passed since you took out the initial loan. Furthermore, the total amount you can borrow from each lender is generally capped at a certain amount.

LendingClub, for example, says that borrowers can have two loans from the lender at the same time. To qualify for a second loan, the combined maximum outstanding loan amount cannot exceed $50,000.

Prosper borrowers must wait a minimum of six months after they receive their first loan before applying for a second loan. There is also a combined maximum balance of $40,000.

Meanwhile, online lender SoFi says that you can apply for a second personal loan only if you have made your last three consecutive payments on time. However, Michigan residents are prohibited from having one more than one SoFi Personal Loan at a time.

Below is a table that outlines the number of loans allowed by some of the top lenders:

Lender Maximum number of loans
SoFi 2
Marcus by Goldman Sachs 2
Lending Club unlimited
Prosper 2
Stilt 3

Things to consider before getting another loan

The benefits of taking out a second personal loan depend entirely on the circumstances. You should never take on more debt than absolutely needed. However, even the best financial planners can’t always predict life events that impact your finances. Before taking on your second personal loan, consider the following drawbacks.

You risk falling into a debt cycle

Be careful of falling victim to a debt cycle where you are perpetually taking out additional personal loans and digging yourself into a financial hole. This can be one drawback of getting another loan.

If you find yourself frequently taking out new personal loans and maxing out credit cards, it might be time to examine your finances. Look at your monthly income and expenses and decide if there are fundamental changes you could make that would put you in a better financial situation.

Your credit score will be affected

Another major downside to taking out multiple loans is the effect it has on your credit score. Inquiries on your credit report usually cause a small drop in your credit score. This drop might not appear right away, but it will appear soon after you officially apply for the loan. If you get approved for a second personal loan, expect another inquiry.

Does it make sense to have multiple personal loans?

Even if you think you’re eligible for multiple loans, you should think twice before applying. Taking out a second personal loan could be a red flag that your finances aren’t in good shape.

If you use a personal loan to consolidate and pay off credit card debt, that could be a good thing. However, if you rack up credit card bills a second time, enough to warrant a second personal loan, the problem could lie with your spending habits or budget.

How to manage multiple personal loans

Defaults and late payments on personal loans affect your credit more than defaults and delinquencies on credit cards. So if you are in a situation where you have to make tough choices about which bills to pay, prioritize the payments on your personal loans first.

Another thing that you’ll want to do to manage multiple personal loans is to identify which loan you could funnel extra payments into. This could be the loan with the smallest principal amount of the loan with the highest interest rate. If you pay off that loan early, you will save money in interest and can use the monthly amount you were paying on the loan and channel it toward your other debts or into an emergency fund.

Alternatives to another personal loan

Before taking out a second personal loan, consider these alternatives:

  • Dedicated savings account: If the expense that you are considering can be delayed, you may be better off by avoiding another personal loan and saving up the money to pay for it instead.
  • Debt consolidation loan: Instead of taking out multiple personal loans, you may consider wrapping your existing loan and any additional credit card debt into a single debt consolidation loan.
  • Balance transfer credit card: You may be eligible for a balance transfer on a new or existing credit card. Many credit cards offer an introductory period with a 0 percent APR on new purchases and/or transfers, so you can begin paying off debt without additional interest costs.
  • Payment plan: If you are considering a second personal loan to pay a large medical bill, check with your provider to see if it offers a payment plan.

Get pre-qualified

Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.

The bottom line

How many personal loans can you have? While it’s certainly possible to open more than one loan at a time, it is unwise to have two unless the borrower is in a dire financial situation where the benefits outweigh the risks.

Learn more: