Can You Have Two Personal Loans?
Life is unpredictable.
One day, things are going exactly according to plan.
The next, you’re facing an unexpected financial burden and you just don’t have the funds to pay for it.
This is when the right loan can make all the difference. Usually, that means a personal loan.
However, if you already have one, you’re probably wondering if you can have two personal loans at the same time.
Can You Have Two Personal Loans? (The Short Answer)
The short answer is that, yes, if you want to have two personal loans at the same time, there is no law that says you can’t.
However, that doesn’t necessarily mean you’ll have an easy time securing two at once.
That’s because lenders are careful about whom they provide loans to. They want to make sure the people they lend to are going to be able to pay them back.
Just because you already have one personal loan doesn’t mean you can’t get another, but lenders will want more reassurance that you’ll be able to pay them back. After all, you already have one substantial financial obligation out there (it could be much more than that if you have a mortgage, student loans, etc.).
With all that said, it might not necessarily be a good idea to shoulder two personal loans at once, even if you can. A better option may be refinancing the one you currently have.
Refinancing Your Personal Loan
Perhaps the reason you are thinking about applying for another personal loan is because your budget is a little tight at the moment. Maybe it’s beyond tight. You might need this second loan to get you through a particularly rough spot.
If that’s the case, it might make more sense to simply refinance the personal loan you already have. You may have received unfavorable terms the first time around. Now that you know just how much even a fraction of interest can add to your overall payments, you can go back and consider all of your options, find a better lender, and use this new personal loan to refinance your current one.
So, while you technically have two personal loans temporarily, you won’t have to worry about making two payments going forward. In fact, you’ll only have one much more manageable payment to cover.
If you’re wondering if you can have two personal loans even though you don’t have one at all right now, then the solution is to simply borrow a larger amount.
One Personal Loan Should Usually Be Enough
Many people confuse payday and personal loans.
They certainly share some similarities. Both generally have short repayment periods (that’s not always the case with personal loans). They’re unsecured and are often the first choice for people who are facing emergency financial situations. That’s because neither comes with an obligation for how the money will be spent.
That said, one major difference is that payday loans usually don’t exceed $500. That’s because they’re tied to the borrower’s paycheck. They also carry massive interest rates, which means most people couldn’t afford to borrow much more than a few hundred dollars.
Personal loans, on the other hand, can easily be for $30,000 or more. So, if something you need in the very near future carries a substantial price tag (e.g. car or home repairs, a medical bill, etc.), this is often the best solution. The greater loan total amount also means you don’t have to have two personal loans at the same time.
Should You Ever Have Two Personal Loans at Once?
We’ve covered a few different scenarios in this article, but the truth is that it’s usually not a very good idea to have two personal loans at the same time.
For the vast majority of people, that’s simply too many obligations weighing on their monthly budget. One more unexpected incident or a bad decision could be enough to force a default, which is the last thing you want.
While you could certainly be facing an unprecedented obstacle, make sure you consider all of your options. Aside from the above, see if you can put off one of those expenditures until you successfully handle the other.
Do You Need a Personal Loan Right Away?
At US Loan Applications, we’re sympathetic to the fact that life throws a lot of curve balls, many of which are fairly costly.
Secure the loan amount you need to keep yourself from financial ruin. It only takes about 10 minutes to complete a simple application. But once you do, we’ll send it off to our network of lenders, ensuring you receive the best possible terms for your unique situation.