Depending on your financial circumstances, it might make sense to apply for several loans simultaneously. But is doing so a good idea? Here, we look at whether you can get more than one loan at a time and offer some insight into whether your applications are likely to be successful.

So, can you get more than one loan at a time?

Yes, it’s perfectly possible to apply for more than one loan at the same time. You might be able to apply for two loans with the same lender, or you might have more luck applying to a different provider. You also need to bear in mind that every loan application is considered on its own merit, and your credit utilization ratio will likely affect the lender’s decision, particularly if you’re already borrowing a significant amount of money elsewhere.

Lenders use your credit utilization ratio to consider how much money you’re currently borrowing. It’s best to keep your ratio under 30% if you can, and if it’s above 50%, you will probably struggle to get a second loan. However, if you are applying for two relatively small loans simultaneously and don’t have a significant amount of credit outstanding, there’s a fair chance that your applications will be successful.

Should you apply for more than one loan at a time?

It really depends on what you need the money for. For instance, let’s say you recently took out a personal loan with your bank to buy a new car. Now, you want to complete a home improvement project, and you think a personal loan is a perfect way to access the funds that you need.

Provided that your credit utilization ratio is low enough and your credit score is good, there’s no reason why your second loan application won’t be accepted. Just make sure you can afford the repayments on each loan, as you don’t want to default on your payments in the near future.

What about other forms of credit?

Most people have multiple forms of credit at the same time. For instance, it’s perfectly normal to have a personal loan, credit card, and mortgage running simultaneously. Again, you need to consider how much credit you currently have and what your credit score is before applying for another loan.

Your track record of paying the money back on time will ultimately affect the lender’s decision about whether to approve your latest application, so bear this in mind before applying.

Ultimately, every borrower is different, but it can sometimes make sense to apply for several loans at the same time. Just make sure you can afford the repayments before submitting an application and consider whether another personal loan is the right move for you right now.