How Many Personal Loans Can You Have at Once?

A man holding a stack of credit cards with multiple personal loans attached to them.

Post Written by: Integra Credit | July 14 2023

If you already have a personal loan and need another, it's logical to think your original lender is a good place to start. However, this may or may not be the case. Every lender has specific underwriting standards and criteria that might dictate how many personal loans you're allowed to have at one time. Let's explore how many personal loans can you have at once.

What Is a Personal Loan?

Whether you're moving, dealing with major vehicle repairs, or looking to consolidate debt, a personal loan may be the most suitable option. A personal loan is a fixed amount of money that is distributed as a single lump sum. These loans are often utilized to pay expenses or existing debt. Consolidating your debt with an unsecured personal loan can simplify your finances, allowing you to make one payment with a single interest rate. And unlike secured loans that require collateral — such as a car or a home — unsecured personal loans offer greater flexibility in how to use the funds. A few key distinct benefits of obtaining a personal loan include:

Excellent flexibility,

Easy to apply,

Quick to disperse,

Fixed interest rates,

Many personal loans are unsecured,

You can borrow larger amounts than a credit card,

Easy to manage, and

Predictable payment schedule.

Can I Have More Than One Personal Loan?

Yes, you can have more than one personal loan. Lenders set their own criteria for how many personal loans one customer can have active at one time. If you already have one personal loan and apply for a new loan, the lender will pull your credit and see all of your outstanding accounts. This may work for or against you, depending on your credit score and income.

Balancing Multiple Personal Loans

If you have multiple personal loans, it's imperative to know how to manage the debt. While making on-time payments is a given, there are several other steps you can take to balance multiple personal loans.

Create a budget. The first step to managing multiple personal loans is to create a budget. Having a budget can help you put your money to work in the most efficient manner possible and live within your means. Because there are no one-size-fits-all budgets, there are many budgeting methods you can use to best manage your personal loan debt.

Consider loan consolidation. Loan consolidation involves combining multiple personal loans into one loan. Consolidation can offer many benefit, including potential lower interest rates, fewer monthly payments, and it may help improve your credit score and pay off personal loans faster.

Pay more than the minimum payment to pay off loans faster. No matter the type of loan, you should always strive to pay more than the minimum monthly payment. Doing so can shorten the life of your loan and may reduce the total cost of the personal loan. If you're having a hard time finding additional funds, leverage the visibility offered by your budget or find additional sources of income or a side hustle.

Exploring Different Credit Options Beyond Traditional Personal Loans

If you need funds and have been declined for another personal loan, you may be eligible for a different type of credit or can use other alternatives to personal loans:

In most instances, using your personal savings will be the lowest cost of funds. This means using the funds you have accumulated may cost less than opting for a personal loan.

Just because you've been declined for a personal loan doesn't mean you're ineligible for a credit card. While they both involve you borrowing money, credit cards and personal loans are different types of credit. Personal loans are an installment type of credit, and credit cards are a revolving type of credit. Because of this, credit cards and personal loans may have different eligibility criteria.

Layaway or payment plans are similar to BNPL (Buy Now Pay Later). However, with layaway plans, you will make payments for goods and will not take receipt of the goods until some or the entire balance is paid.

Credit card cash advances may be an option if you're in dire need. However, credit card cash advances should be used sparingly due to the high interest rates and additional fees associated with this option.

A Home Equity Line of Credit is a secured lending product that uses your home equity as collateral. Because they are secured, you may enjoy lower interest rates.

Apply for a Personal Loan Through Integra Credit

At Integra Credit, we help people with all types of credit. Whether you need an installment loan, short-term loan, quick loan, or a line of credit, Integra Credit can help. Apply today or contact us with inquiries.

Frequently Asked Questions Regarding Personal Loans

What is the largest personal loan I can get?

The largest personal loan you can get depends on several factors, including your income, credit score, debt-to-income ratio, and the lender's policies. In general, the largest personal loans available can range from several thousand to tens of thousands of dollars, but the exact amount you can get will depend on your financial situation and the lender you choose. It is always recommended to only borrow what you need and what you can afford to repay.

What can a personal loan be used for?

A personal loan can be used for a variety of purposes, including but not limited to consolidating best, home improvements, major purchases, medical expenses, emergency expenses, and personal expenses. It's important to note that while personal loans can be used for a variety of purposes, it's always a good idea to carefully consider the terms and conditions of the loan and make sure you can afford to repay the debt before taking on a loan. Additionally, some lenders may have restrictions on the specific purposes for which a personal loan can be used, so it's important to research and compare different lenders to find the best loan option for you.