Guide to Getting Second Personal Loans

Personal loans are a versatile tool. They can help you finance a large project or purchase you can’t or don’t want to pay for upfront.

If you already have a personal loan, however, you may be wondering if you can get another. Is it possible to get a second personal loan? Do lenders allow it? If so, which lenders should you consider for a second loan?

The short answer is, yes, it’s possible to get a second personal loan if you meet the eligibility requirements. There are some things you should consider before taking out another personal loan, though.

This guide goes over everything you need to know about taking out a second personal loan, including who is eligible, the best lenders, and how to decide if it makes financial sense for you.

Can I Take Out a Second Personal Loan if I Already Have One?

The short answer is, yes. You can most certainly take out a second personal loan but there are a few conditions that need to be met before it becomes reality.

You still need to qualify for the second personal loan before a lender will disburse it into your bank account. All the same eligibility criteria still apply.

The lenders will typically check your credit report, verify your income, and confirm your employment. They may also need to confirm your immigration status by checking and confirming your visas or residency status.

A second personal loan is a viable option if you can qualify. Most importantly, it’s a good idea if your debt-to-income ratio can withhold another loan. Your income must be more than the payments you have to make on your debt. This is one of the key ways in which lenders stop people from becoming over-indebted.

Dangers of Taking Out a Second Personal Loan

A second personal loan sounds like a great idea. But is it really worth it when you consider the monthly installments?

You already have a personal loan and you’re already locked in on monthly installments. A second loan could push you into a negative cash flow situation if you don’t manage it correctly.

Consider the project or purchase you want to finance with your second personal loan. Is it worth going into more debt? Is the project or purchase something you really need?

If you do need the thing you want the loan for, you should also figure out if there are cheaper borrowing options such as a home equity loan/HELOC or a 0% APR credit card that you can pay off during the intro period.

Borrowing more than you can afford can wreak financial havoc. Your credit score will also take a dive if you start missing loan installments which will make it much more difficult (or, at the very least, more expensive) to borrow in the future. You can also get trapped in a debt cycle where the interest charged is more than you can manage to pay off.

That being said, let’s assume you have checked your finances and you can take a second personal loan. Where do you start your search for lenders? Which banks offer personal loans for those who already have one?

Best Lenders for a Second Personal Loan

Here are some lenders we recommend for taking out another personal loan as well as who each is the best for and how to qualify:

1. AmOne (Best for Second Loans with Okay Credit)
2. Spring Loans (Best for Second Loans with Bad Credit)
3. First Premier Lending (Best for Second Loans with Bad Credit)
4. Upgrade (Best for Second Loans with Good Credit)
5. BestEgg (Best for Second Loans with Okay Credit)

Read on to learn more about these lenders!

1. AmOne (Best for Second Loans with Okay Credit)

AmOne, with its vast network of lenders, offers a platform that can be beneficial for individuals considering a second personal loan. By evaluating and connecting borrowers to various loan options, AmOne streamlines the process, ensuring individuals find a suitable solution even if they already have an ongoing loan.

Check rate on website

on website

AmOne Personal Loan

4.5

Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.

Min. credit score

600

Fixed APR

3.99%-35.99%

Variable APR

N/A

View details

Overview

• Minimum credit score: 600.
• Fixed APR: 3.99%-35.99%.
• Loan amounts: $1,000 to $50,000.
• Repayment: 1 to 7 years.

Qualifications

• Must be at least 18 years old.
• Must be a U.S. citizen or permanent resident.
• While there’s no specific income requirement, a consistent source of income is essential for the applicant.

Pros

• Suitable for individuals with lower credit scores.
• No cost for the matching service.
• Attractive loan rates.

Cons

• Acts as an intermediary, not a direct lender.
• Risk of multiple contacts from prospective lenders.
• Lack of clarity on lender details.

2. Spring Loans (Best for Second Loans with Bad Credit)

For those seeking additional financial flexibility with a second personal loan, Spring Loans stands ready to assist. Their diverse loan options cater to varying needs, ensuring that even borrowers with existing loans can find terms and rates that align with their current financial situation.

Check rate on website

on website

Spring Loans Personal Loan

4.2

Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.

Min. credit score

None

Fixed APR

27.00%

Variable APR

N/A

View details

Overview

• Minimum credit score: None.
• Fixed APR: 27.00%
• Loan amounts: $3,000.
• Repayment: 48 months.

Qualifications

• Demonstrate a recurrent income.
• Minimum age prerequisite: 18 years.
• Validate U.S. citizenship status with an SSN.
• Provide a legitimate U.S. driver’s license or a state identity card.
• Establish a functional bank account for incoming deposits.
• Adhere to any specific demands by the loan provider.

Pros

• Open to applicants with any credit background.
• Four-year loan period aids in structured financial management.
• The $3,000 offer addresses several short-term financial challenges.
• Wide-reaching eligibility criteria invite a broad spectrum of applicants.
• The focus on dependable income over job title benefits varied income sources.

Cons

• The set 27% APR is higher than many alternatives.
• Restriction to a $3,000 loan might not cover all financial outlays.
• Possessing specific IDs is mandatory, sidelining some applicants.
• A prerequisite for an ongoing bank account may limit certain users.

3. First Premier Lending (Best for Second Loans with Bad Credit)

Understanding that financial needs evolve, First Premier Lending offers tailored solutions for those in need of a second loan. Their expertise in crafting customized lending pathways can help borrowers navigate the complexities of managing multiple loans while ensuring they achieve their financial objectives.

Check rate on website

on website

First Premier Lending Personal Loan

4.2

Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.

Min. credit score

None

Fixed APR

27.00%

Variable APR

N/A

View details

Overview

• Minimum credit score: None.
• Fixed APR: 27.00%.
• Loan amounts: $3,000.
• Repayment: 48 months.

Qualifications

• Maintain a consistent source of income.
• Must be at least 18 years of age.
• Possess valid U.S. citizenship and a legitimate social security number.
• Hold a current U.S. driver’s license or state-issued ID.
• Keep an active bank account for direct deposit.
• Satisfy any lender-specific criteria, such as credit rating, borrowing history, or place of residence.

Pros

• No minimum credit score requirement allows accessibility for those with varied credit histories.
• 48-month term provides clarity and allows for long-term financial planning.
• Specific loan amount of $3,000 can meet many short-term financial needs.
• Broad set of qualifications make the loan accessible to a wide range of people.
• Emphasis on consistent income, not necessarily employment type, allows flexibility for borrowers.

Cons

• A fixed APR of 27% is relatively high.
• Loan amount is capped at $3,000, which might not cater to larger financial requirements.
• Requirement of a U.S. driver’s license or state-issued ID could exclude some individuals.
• Mandatory active bank account could be limiting for those who are unbanked.

4. Upgrade (Best for Second Loans with Good Credit)

Upgrade emphasizes transparent lending, making it a good option for those considering a second personal loan. Their straightforward process and clear terms can guide borrowers, helping them make informed decisions about managing multiple loan commitments.

Check rate on website

on website

Upgrade Personal Loan

5.0

Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.

Min. credit score

560

Fixed APR

8.49% - 35.99%

Variable APR

N/A

View details

Overview

• Minimum credit score: 560
• Fixed APR: 8.49% – 35.99%
• Loan amounts: $1,000 to $50,000
• Repayment: 3 to 5 years (7 years on some larger loans)

Qualifications

• Possess an active bank account.
• Able to provide a legitimate email address.
• Minimum age requirement: 18 years (19 for Alabama residents).
• Credit score of 600 or higher.
• Annual income of $25,000 or more.

Pros

• Willing to accommodate borrowers with a credit score as low as 560.
• Offers flexibility with a range of loan amounts from $1,000 to $50,000. This can be suitable for both small and large financial needs.
• Provides options for repayment, allowing borrowers to choose a timeline that best suits their financial situation.
• Once approved, borrowers can access funds in just one day, which is useful for urgent financial needs.

Cons

• Origination fees can go as high as 9.99%, which might add a significant cost to the loan.
• Apart from the origination fee, there are fees for late payments and failed payments, which can add up if one is not careful.
• While there is an option to extend repayment for larger loans up to 7 years, it’s not standard for all loan amounts.

5. BestEgg (Best for Second Loans with Okay Credit)

BestEgg, known for its quick and user-friendly platform, offers personal loans designed to fit a range of scenarios, including those seeking a second loan. Their efficient application and approval process can be a boon for borrowers aiming to secure additional funds without lengthy wait times.

Check rate on website

on website

BestEgg Personal Loan

4.5

Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.

Min. credit score

600

Fixed APR

8.99-35.99%

Variable APR

N/A

View details

Overview

• Minimum credit score: 600.
• Fixed APR: 8.99-35.99%.
• Loan amounts: $2,000-$50,000.
• Repayment: 3 to 5 years.

Qualifications

• Targets borrowers with good to excellent credit; fair credit may qualify.
• Minimum credit score of 600.
• At least two years of credit history.
• Minimum annual income: $3,500 from various sources like employment, alimony, and more.
• Debt-to-income ratio: 40%, or 65% when including a mortgage.
• Must be a U.S. citizen.

Pros

• Soft credit check available for pre-qualification.
• Offers a diverse spectrum of loan amounts.
• Provides options for secured loans.
• Direct payments can be made to creditors for debt consolidation.
• Late fees are not charged.

Cons

• Charges an origination fee.
• Doesn’t offer rate discounts.
• Initial payment date isn’t customizable.
• Lacks a dedicated mobile app for loan management.

Considerations to Make Before Taking a Second Loan

As mentioned earlier you must be absolutely sure about a second personal loan before you commit to such a responsibility. Here are two concepts you must understand which can help you decide whether a second loan is a good idea.

The Cycle of Debt

When not managed properly, debt can lead to something called a debt cycle.

Borrowers are strapped for cash so they take out a loan or use a credit card to afford expenses, then eventually need to take on more debt to pay off the original debt.

Here is a simplified overview of a debt cycle:

1. Consumers need money.
2. They get credit to afford expenses (credit card, personal loan, etc.).
3. The lender requires payments to be made.
4. Borrowers can’t afford payments so they take out more loans or credit card debt.
5. The cycle repeats.

There’s nothing wrong with taking out loans. You just need to make sure you can afford repayment without having to go into more debt.

Remember a second loan also demands interest and monthly payments just like your first loan. This means your total required monthly payment will increase and more interest will accrue each month since you have two loans instead of one.

Check your debt-to-income ratio (your total debt divided by your total income) and make sure you’ll have enough of your monthly income remaining after your debt payments to afford essential expenses. You generally want to keep your debt-to-income ratio under 30%.

You must have enough to cover your housing and living expenses or else a second loan may be a bad idea.

Impact on Credit Score

If you can’t escape the debt cycle, you’ll inevitably end up over-indebted. You need more money and take more loans to cover the gap in your finances.

In the short term, this may seem like a sensible idea, but when your money depletes, you again face a shortage of cash. This shortage causes you to miss payments which has a negative impact on your credit score.

The businesses you owe money to report the missed payments to the credit bureaus. If you miss too many payments, you’ll damage your credit score quite badly.

This again has a bad effect on your debt cycle, because if you apply for any debt consolidation loans, you’ll get really bad interest rates compared to what you would have gotten if your credit scores were better (had you not missed any payments).

Does It Make Sense for Me to Have More than One Personal Loan?

Well, it depends on whether you can afford repayment and if you really need the thing you want to purchase or finance with the borrowed money.

The rule of thumb with any type of debt is to only take out what you can afford to repay according to the loan terms. If you can’t afford the monthly payments that come with the loan, don’t take it out.

In addition, you should only take out loans for things that are necessary. For example, maybe taking out a second personal loan to pay for a vacation isn’t the best idea. If you need to make car repairs to get to work, on the other hand, another loan may be a worthwhile investment.

How Many Loans Can You Have at Once?

There is no hard limit to how many loans you can have at once.

As mentioned previously, lenders typically like to see a debt-to-income (DTI) ratio under 30% or so. This means that you will need to demonstrate consistent income and not have too heavy of a debt load.

For example, a lender is much more likely to give you another personal loan if your income is $6,000 a month and your total monthly debt payments would be just $1,000 (DTI ratio of 16.67%) than if your total monthly debt payments would be $3,000 (DTI ratio of 50%).

So, yes, you can take out a loan if you already have one. You may even be able to take out additional loans if you have multiple already.

It’s not uncommon for people to have a personal loan, auto loan, mortgage, and even student loans at the same time.

Can You Get Two Loans from the Same Bank?

Each bank and lender has its own policies around if you can get out a second loan from it or not.

With that being said, most allow you to take out a second loan as long as you meet certain eligibility requirements.

Aside from credit score and debt-to-income ratio requirements, some banks may also require that you haven’t missed any payments on your first loan for a certain amount of time or that your first loan balance is under a certain amount.

Can You Take Out Two Loans from Different Places?

It is possible to take out two loans from different places if you meet the eligibility requirements—mainly credit score and debt-to-income ratio.

When lenders decide if you are eligible for a loan from them, they will consider your other loans which have an impact on your debt-to-income ratio. If they think you will be able to afford repayment on your new loan in addition to current loans, you are likely to be approved.

3 Simple Steps to Applying for a Second Personal Loan

If you are considering applying for a second personal loan and you’ve made on-time payments for half of your existing loan term, just follow these 3 simple steps.

Apply

Apply online for the loan amount you need. Submit the required documentation and provide your best possible loan application. Stronger applications get better loan offers.

Accept

If your application meets the eligibility criteria, the lender will contact you with regard to your application. Provide any additional information if required. Soon you’ll have your loan offer. Some lenders send a promissory note with your loan offer. Sign and return that note if you wish to accept the loan offer.

Repay

The loan then gets disbursed into your U.S. bank account within a reasonable number of days (some lenders will be as quick as 2-3 business days). Now you need to set up your repayment method. You can choose an autopay method online to help you pay on time every month.

Read More

• How to Get a Personal Loan Without an SSN
• Personal Loans for Non-US Citizens & Non-US Residents
• No Prepayment Penalty Loans
• Types of Personal Loans
• Soft Inquiry Personal Loans
• Personal Loans Without a Cosigner
• Getting a Personal Loan as a New Employee

Bottom Line on Second Personal Loans

Personal loans are wonderful financial tools. They can help you finance all kinds of projects and purchases. But you should only take one out if you know you can afford it.

Think about your financial situation. Can you handle payments on multiple loans? Is your income stable enough to manage repayment for the entire term? Or do you have enough savings to afford your loans if you lost your source of income?

If so, you can consider a second personal loan.

Are you still looking for a second personal loan? You could be eligible for one. Read through the tips and the eligibility criteria supplied above and apply today.

Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

See author's posts