Managing Multiple Loans: How Many Loans Can You Have at Once?

It’s not uncommon to have more than one loan at a time. Maybe you already have a car loan but need help covering emergency expenses. Or you’re paying off student loans while also managing a mortgage. Whatever your situation, you might wonder: how many loans can you have at once?

The answer isn’t always simple. It depends on your credit score, income, debt-to-income ratio, and the type of loans you’re applying for. In this article, we’ll walk you through everything you need to know about having multiple loans at once—what’s allowed, what’s smart, and what to avoid.

Is There a Limit to How Many Loans You Can Have?

Legally, there’s no set number of personal loans or other types of loans you can have at one time. But lenders set their own rules. They look at:

• Your credit history

• Your total debt load

• Your income

• How well you’ve paid off other loans

If you can afford more debt and you’re managing your current loans responsibly, you may be able to take out another one.

That said, just because you can take out another loan doesn’t always mean you should. We’ll explain why below.

Common Types of Loans You Might Hold at the Same Time

Different types of loans serve different needs. You can hold multiple loans from the same or different categories:

• Personal Loans: Used for almost anything—home repairs, medical bills, travel, or emergencies.

• Auto Loans: For buying vehicles.

• Mortgage Loans: For buying or refinancing a home.

• Student Loans: Federal or private loans used for education.

• Credit Card Loans: Technically revolving credit, but can function like short-term loans.

• Payday or Title Loans: Short-term, high-interest loans (use with caution).

Some people have more than one personal loan or a personal loan and a car loan at the same time. Lenders care more about how you manage all your debt than how many loans you have.

How Lenders Decide If You Can Take Another Loan

If you apply for a second or third loan, lenders will look closely at your financial profile. Here are some of the main things they check:

1. Your Debt-to-Income Ratio (DTI)

This is the percentage of your monthly income that goes toward debt payments. Most lenders want to see a DTI under 36%, though some may allow up to 43% or higher for strong applicants.

Example: If you earn $4,000 per month and your total monthly debt payments are $1,200, your DTI is 30%.

2. Your Credit Score

Your credit score shows how reliable you are when it comes to borrowing and repaying. A higher score increases your chances of approval and getting a good interest rate.

3. Your Loan History

If you’ve made on-time payments on other loans, lenders will see you as less risky. If you’ve missed payments or defaulted, your chances drop.

4. Your Income

Lenders want to know you have enough steady income to cover your current debts and any new ones.

5. The Type of Loan

Some lenders limit how many personal loans you can have with them. Others allow multiple loans as long as you qualify.

Pros & Cons of Having Multiple Loans

Pros:

• Access to More Money: Useful for emergencies, large purchases, or consolidating debt.

• Build Credit: Responsible repayment on multiple loans can help improve your credit score.

• Financial Flexibility: You can use different loans for different needs.

Cons:

• Harder to Get Approved: New lenders may view you as a risk if you already have lots of debt.

• Higher Monthly Payments: Multiple loans mean multiple due dates.

• More Interest Over Time: Especially true if you’re using high-interest loans like payday or credit cards.

• Credit Score Risk: Missing even one payment can damage your credit.

Can You Get Two Personal Loans at Once?

Yes, it’s possible to have more than one personal loan at a time. Some lenders even allow you to take out a second loan before paying off the first. However, many lenders will want you to wait at least six months and show good payment history.

Even if one lender says no, you might qualify for a personal loan from a different one. Just keep in mind that each application causes a “hard inquiry” on your credit report, which can lower your score temporarily.

Should You Refinance or Take Out Another Loan?

If you’re thinking about adding another loan, ask yourself this question: Can you refinance a personal loan instead?

Refinancing means replacing your current loan with a new one—ideally with better terms. It can help you:

• Lower your interest rate

• Reduce monthly payments

• Change the loan length

• Consolidate debt

If your credit score has improved or rates have dropped, refinancing might be a better option than taking on more debt.

Tips for Managing Multiple Loans

If you decide to go ahead with multiple loans, here are some tips to stay on top of things:

Set Up Auto-Pay

Automatic payments help you avoid missed or late payments, which can hurt your credit.

Track Your Due Dates

Use a calendar or budgeting app to stay organized.

Pay More Than the Minimum

If you can afford it, paying extra reduces your interest and shortens the loan term.

Keep an Eye on Your Credit Score

More loans mean more responsibility. Monitor your score and make adjustments as needed.

When Taking Another Loan Might Be a Bad Idea

There are times when adding another loan could hurt your financial health more than help. Think twice if:

• Your income has dropped

• You’re struggling with current payments

• You have poor credit

• You’re already near your DTI limit

• You’re using new loans to pay off old ones repeatedly

In these cases, focus on paying down existing debt, cutting unnecessary expenses, or talking to a financial advisor.

Alternatives to Taking Out Another Loan

Before adding a new loan, explore these alternatives:

Debt Consolidation Loan

Instead of adding a new loan, combine multiple debts into one with a lower interest rate.

Balance Transfer Credit Card

Move existing high-interest debt to a 0% APR card if you qualify. Just be sure to pay it off before the promo period ends.

Talk to Your Lender

Ask for better terms on your current loan. Some lenders may lower your interest rate or offer a temporary payment plan.

Increase Your Income

Even a part-time job or side gig can help you avoid borrowing more money.

Work With a Credit Counselor

A nonprofit credit counselor can help you create a debt repayment plan that fits your budget.

Final Thoughts

So, how many loans can you have at once? Technically, as many as you can get approved for. But that doesn’t mean it’s always the right move. Before you apply for another loan, take a good look at your current finances, your credit score, and your ability to repay.

Sometimes, refinancing or consolidating is a smarter option. Other times, it’s better to focus on paying off what you already owe. Whatever you decide, make sure it helps you move toward long-term financial stability—not further away from it.