It might make sense for you to apply for several loans at the same time, depending on your financial circumstances. This article examines whether you can obtain more than one loan at a time, as well as whether your applications are likely to be successful.
Can you get more than one loan at a time?
You can apply for more than one loan at the same time. You may be able to apply for two loans with the same lender, or you might have better luck applying with a different lender. You also need to keep in mind that every loan application is considered on its own merits, and your credit utilisation ratio will likely affect the lender’s decision, particularly if you’re already borrowing a significant amount of money elsewhere.
In order to determine how much money you’re borrowing, lenders use your credit utilisation ratio. Keep your ratio below 30% if you can, and if you have a credit utilisation ratio higher than 50%, you are unlikely to get a second loan. You do, however, have a good chance of being approved for two relatively small loans if you apply simultaneously and don’t have a significant amount of outstanding credit.
Is it a good idea to apply for more than one loan at a time?
If, for example, you recently took out a personal loan with your bank to purchase a new car, now you want to do some home improvement, and you think a personal loan would be a good way to access the funds.
The second loan application should be accepted if your credit utilisation ratio is low enough and your credit score is good. It is important that you are able to afford the repayments on each loan, as you do not want to default soon.
How about other forms of credit?
People tend to have multiple forms of credit at the same time. For instance, it is perfectly normal to have a personal loan, credit card, and mortgage running simultaneously. It is important to consider how much credit you currently have and what your credit score is before applying for another loan.
Before applying, bear in mind that the lender’s decision about whether to approve your latest application will ultimately be influenced by your track record of paying the money back on time.
Koyo Loans offers personal loans
Our personal loans range from £1,500 to £10,000, and can be used for a variety of purposes, including debt consolidation and home improvement. You can use our loan calculator to find out how much money you could potentially borrow over a certain period of time. We offer affordable and easy-to-apply-for loans, and if approved, you will receive the funds within 48 hours of applying.
In the end, every borrower is different, but sometimes it makes sense to apply for several loans at the same time. Just be sure you can afford the repayments before you submit an application, and consider whether another personal loan is right for you right now.
Company number 11483187. Registered office: Huckletree Soho, Ingestre Court, Ingestre Place, London, W1F 0JL.