Keeping that in mind, consider other ways to get the money you need before turning to another lend.
Getting multiple loans from the same lender
Some lenders have a maximum number of loans you can have, a maximal come you can borrow or both. This table shows the number of personal loans some popular lenders will provide to a single borrower :
|lender||maximum number of loans||Maximum loan amount|
|LendingClub||2||$ 40,000 for 1 loanword $ 50,000 sum for 2 loans|
|rocket Loans||1||$ 45,000|
|LightStream||No restrict||$ 100,000|
|businesslike||No limit||$ 75,000|
|discover||No limit||$ 35,000|
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Some lenders require that a borrower make a certain number of payments before applying for another lend. LendingClub, for exemplar, requires borrowers make payments for three to 12 months before getting a second lend. SoFi requires three straight payments toward an existing loan before applying again. Upstart requires borrowers make six on-time payments before applying. upstart borrowers have to wait 60 days before reapplying if they pay off the loan in under six months or if they recently paid off a loanword and any of the end six payments were not on meter. Having a personal loan from another lender is n’t an automatic disqualification, lenders say. If you ’ ve about paid off one loanword and do n’t have a fortune of early existing debts, you may be approved for another lend.
Qualifying for another personal loan
There are no federal regulations prohibiting person from having multiple personal loans, says Carolyn Carter, deputy director of the National Consumer Law Center. Some states regulate the total of payday loans a person can have at once, she says. The bigger obstacle to getting another personal lend may be qualifying for it .
If your debt is high compared with your income, an obstacle to getting another personal loan may be qualifying for it.
When reviewing a loanword application, most lenders consider your debt-to-income proportion, or DTI, which accounts for all of your debt as a part of your income. Each time you take out a loanword, you raise your DTI. Lenders normally look for that count to be about 40 % or lower. The lender could reject your application, or approve it but at a high annual percentage rate, because of your existing debt. It ’ south besides worth considering the hit your credit mark could take when you apply for another loan. Loan applications much trigger a hard credit draw that can temporarily drop your seduce by a few points. If you apply for several loans in quick succession, the effect on your credit can multiply, and you could see a big dent in your score. ( The hard question happens whether your application is approved or not. )
Alternatives to personal loans
personal loans can be a long-run fiscal commitment and shape best for large, aforethought expenses. For model, a debt consolidation loanword and a loanword for home plate renovation can both be financially beneficial, but taking them out around the same clock time can put you promote in debt. If you want to avoid taking another personal lend, here are some alternatives : Savings : If the expense can be delayed — specially if it ’ s a discretionary expense — study saving up for it beginning. In the meanwhile, try looking for other ways to make money to pay down your original loan. 0 % interest credit calling card : If you have a beneficial credit score ( typically 690 or higher ), you may qualify for a 0 % APR credit card that could allow you to finance a large expense interest-free for an basic period of a year or longer. Be indisputable to find out the APR after the basic period ends, in case you end up making payments past that period.
Read more: What Is a Debt Management Plan? – NerdWallet
payment plan : many doctors, dentists and veterinarians allow patients to work out a requital plan. Some medical providers besides make medical credit cards available to help patients with dearly-won procedures. Secured or cosign loanword : If you ‘ve determined a personal loan is the best option, you may have a better luck of qualifying if you can put up collateral for a plug lend or have a supporter or kin member cosign a lend for you. ( This is a major ask ; a co-signer is on the hook for the loanword, and co-sign can reduce the sum the co-signer can independently borrow. ) Before you move forth with a personal loan, be sure to calculate your monthly payments and consider how they ’ ll fit into your budget .