Can I Have Two Personal Loans At The Same Time
No matter how much of a forward planner you are, there can be times when your financial needs change seemingly overnight.
Perhaps youre currently paying off a personal loan you took out to update your kitchen, but youve just been hit with some expensive, unexpected vet bills. Or maybe you jumped the gun when taking out a loan for your wedding and forgot to factor in some important costs.
Whatever the circumstances may be, the question you might have is: can I take out a second personal loan?
While the answer to this differs from one lender to the next, in many cases it is possible to have two personal loans at the same time but that doesnt necessarily mean its your best option.
How To Qualify For A Personal Loan
There are many steps to take to qualify for a personal loan, with the first being to make sure that its right for you. For example, if you want to borrow money to remodel your house or buy a car, a home equity loan or an auto loan may come with a lower interest rate. Unlike unsecured personal loans based solely on your creditworthiness, these loans are secured by the home you want to fix up or the car you want to buy.
Although paying for a family vacation or consolidating debt fits into the personal loan category, you may also want to check into a 0% introductory APR credit card. If you go that route, however, be sure that you can pay off the balance before the 0% rate expires.
What Are The Alternatives To Taking Out Another Personal Loan
Remember that taking out a second personal loan neednt be your only or best financing option. Depending on the amount you wish to borrow, the length of time it takes for you to pay it back, along with a number of other factors, there could potentially be an alternative option better suited to you.
Some possible alternatives include:
- If the amount you want to borrow is on the smaller end of the scale, then a credit card could potentially be an option for you just keep in mind that they tend to have higher interest rates than personal loans if you dont pay it back in full on time.
- Line of credit: Similar to a credit card, a line of credit is a flexible loan with a predetermined borrowing limit that you can access as needed. It is often secured against your property or another large asset. If youre not sure exactly how much you need to borrow, this could be an accommodating alternative to a loan.
- Overdraft:An overdraft can be accessed through your bank account once all available funds have been used. It provides similar flexibility to a line of credit, but you will typically be charged a fee for every transaction, additional to interest charges.
- Refinance to larger loan: Some banks and lenders may allow you to refinance to a larger loan amount in order to access more money without having to take on a second/separate debt.
Did you find this helpful? Why not share this article?
Georgia Brown
Personal Finance Editor
You May Like: Usaa Auto Loans Bad Credit
What Do I Need To Qualify For A Personal Bank Loan
If youre looking to get a bank personal loan, you need to get your paperwork in order first. Before applying, check your credit score and pull your credit report through AnnualCreditReport.com. This will give you an idea of whether or not youll qualify for a bank personal loan, as well as how low your interest payments will be.
Most banks require good to excellent credit from personal loan applicants. So you might need a higher credit score than you would for, say, a secured loan or even a credit card. Still, if you have a solid repayment history, avoid maxing out your credit cards, and can prove your creditworthiness, theres a strong chance youll qualify for a bank personal loan.
How Hard Inquiries Impact Credit Score
Multiple hard inquiries may add up to numerous new accounts. Opening such accounts may mean you’re having trouble paying bills or are at risk of overspending. As a result, hard inquiries have a negative effect. Credit scoring models do consider the possibility that you’re rate shopping for the best loan deal available. Each hard inquiry projects you as a credit hungry consumer, thereby lowering your credit score. Such consumers are often viewed as risky by lenders, which either makes lenders reject your credit application or approve it at a higher interest rate.
Read Also: Prosper Loan Approval Time
Discover Debt Consolidation Options Compared
|
Category |
|---|
Applicants need a credit score of 660 to get a personal loan from Wells Fargo, according to multiple third-party sources. That means the Wells Fargo personal loan credit score requirement is in the fair credit range. To put this in perspective, most other lendersâ credit score requirements for personal loans range between 585 and 700.
Keep in mind that just having a 660 credit score is not enough to qualify you for a Wells Fargo personal loan. Wells Fargo will consider your entire financial profile, including things like your income, existing debts and recent credit inquiries, when deciding whether to approve you. Itâs also worth noting that some applicants might be able to get a personal loan from Wells Fargo with a slightly lower score if itâs offset by other factors like an especially high income. But itâs best to wait to apply until your score meets the threshold.
Wells Fargo does not offer so-called medical loans. But Wells Fargo does give consumers four options to borrow for medical expenses: personal loans, home equity loans, the Health Advantage Credit Card and traditional credit cards with low interest rates.
Lastly, you may just want to finance relatively minor medical expenses with a low APR credit card from Wells Fargo. The best choice is the Wells Fargo Platinum credit card.
Ways to Get a Wells Fargo Emergency Loan:
Best For Smaller Loans
Who’s this for? PenFed is a federal credit union that offers membership to the general public and provides a number of personal loan options for debt consolidation, home improvement, medical expenses, auto financing and more.
While most lenders have a $1,000 minimum for loans, you can get a $600 loan from PenFed with terms ranging from one to five years. You don’t need to be a member to apply, but you will need to sign up for a PenFed membership and keep $5 in a qualifying savings account to receive your funds.
While PenFed loans are a good option for smaller amounts, one drawback is that funds come in the form of a paper check. If there is a PenFed location near you, you can pick up your check directly from the bank. However, if you don’t live close to a branch, you have to pay for expedited shipping to get your check the next day.
Also Check: Credit Score Needed For Usaa Personal Loan
Can Multiple Personal Loans Make Sense
There are certain situations where it makes sense to take out multiple personal loans. For example, if you already took out a personal loan to consolidate credit card debt, but youre now facing unexpected expenses like auto repairs, it might make sense to apply for a second loan.
Or, if you took out a personal loan for a large expense like a wedding, and you now need to cover the cost of home remodeling so you can sell your home at a higher value, it might make sense to take out another loan for that purpose. However, you should never borrow more than you can afford to pay back.
Ready For Ing Personal Loan
If you want to borrow between $5,000 and $60,000, all you have to do is:
1. Apply
It only takes about 20 minutes to complete our online application form.
2. Accept the contract
While we work through your application, weâll keep you in the loop via email and SMS. If approved, you then review and accept your contract online.
3. Get paid, same day
Receive the money on the same day you accept your loan offer if youâre an existing customer, and elect for the money to be transferred to your Orange Everyday account.
Be aged 18+ and have a valid proof of ID ââ¬â driverââ¬â¢s licence, passport or Medicare
Earn $36,000 or more a year with PAYG payslips as your primary source of income
Be an Australian citizen, New Zealand citizen, or a permanent resident of Australia
Maintain an Australian residential address
Have a good credit rating and meet our credit lending guidelines
PAYG payslips
Important Information
Comparison rate
The comparison rate for the ING Personal Loan is based on an unsecured loan of $30,000 over a loan term of 5 years. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.
Don’t Miss: Usaa Student Loan Rates
Your Credit Score Will Be Affected
Another major downside to taking out multiple loans is the effect it has on your credit score. Inquiries on your credit report usually cause a small drop in your credit score. This drop might not appear right away, but it will appear soon after you officially apply for the loan. If you get approved for a second personal loan, expect another inquiry.
What Happens If You Cant Pay Back A Personal Loan On Time
Before you take out a personal loan, you should consider your situation and your ability to pay it back.
There can be serious consequences if you dont make your loan payment by the due date:
- your lender can request that you pay the full amount of the loan at once
- your lender might have the right to take something that you own, such as your car, if you have a secured loan
- your lender can report a missed payment to the credit bureaus, which could mean it will show up on your credit history and could hurt your ability to get credit in the future
- your lender will usually charge you a non-sufficient funds fee if you dont have enough money in your account to cover a payment that is supposed to be paid with a pre-authorized debit
- your lender could sue you for the debt
Act quickly if you are having trouble making repayments. If you cant make the full repayment, pay what you can. Contact your lender without delay.
You May Like: Usaa Rv Loan Terms
You May Not Be Able To Get One
Depending on where you bank, you may not have the opportunity to get a personal loan there. Even some big banks like Bank of America and Chase dont provide personal loans to their customers.
If youre considering getting a personal loan through your bank, save yourself some time and check to see if it offers them. You can do this by going to your local branch or checking the banks website.
Another thing to consider is that banks often require good or excellent credit to get approved, which can force you to start looking elsewhere. The definition of good credit will vary by lender, but its always a good idea to see where you stand before you apply. For some context, the consumer credit bureau Experian considers credit scores of 670 to 739 to be good. While for Equifax, 700 is the minimum score considered good.
Recommended Reading: What Does Carmax Pre Approval Mean
How To Get Money From Wells Fargo As Fast As Possible
- Fill out the application carefully. You should make sure that all information you enter on the application is correct and complete. That will eliminate any potential delays from Wells Fargo having to request additional information.
- Check your credit report for errors. Before you apply, you should verify that everything on your credit report is accurate, as any incorrect negatives on there could impact your chances of approval. If you find any errors, you should dispute them right away to get them removed.
- Get your credit score above the minimum. Ideally, you should only apply for a Wells Fargo personal loan once your credit score exceeds the minimum requirement of 660. That will make it easier for Wells Fargo to decide whether you qualify, which could lead to a quicker decision.
- Apply online. Online applications have the fastest processing times since they are automated and streamlined.
Once you get approved for a Wells Fargo personal loan, the money will be delivered through an electronic funds transfer to your bank account, which usually takes 1 business day.
If you’re unsure of what your current credit score is, you can check it for free on WalletHub. You can also pre-qualify for a Discover personal loan online to gauge your chances of getting approved with your current credit score.
Don’t Miss: How To Become A Mlo In California
Paying Back A Personal Loan
With a personal loan, you agree to make regular payments. Most lenders will ask for your banking information so they can take the payments directly out of your account. This is called a pre-authorized debit.
Some lenders will send information about your personal loan payments to the credit bureaus.
If your lender reports to the credit bureaus, you can improve your credit score by making your payments on time. If you dont make your payments on time, it may have a negative impact on your credit score.
You may be allowed to make extra payments or pay off your loan before the end of the term without a penalty. This will help you save on interest fees and pay off your loan earlier than planned. Some lenders may charge a fee if you pay off your loan early.
You may also be able to renegotiate the terms of your personal loan agreement with your lender. This can help you manage your budget if your financial situation changes. There may be a fee for this service.
Best For Refinancing High
Who’s this for? SoFi got its start refinancing student loans, but the company has since expended to offer personal loans up to $100,000 depending on creditworthiness, making it an ideal lender for when you need to refinance high-interest credit card debt.
If you have high-interest debt on one or more card, and you want to save money by refinancing to a lower , SoFi offers a simple sign-up and application process, plus a user-friendly app to manage your payments.
Another unique aspect of SoFi lending is that you can choose between variable or fixed APR, whereas most other personal loans come with a fixed interest rate.Variable rates can go up and down over the lifetime of your loan, which means you could potentially save if the APR goes down . However, fixed rates guarantee you’ll have the same monthly payment for the duration of the loan’s term, which makes it easier to budget for repayment.
By setting up automaticelectronic payments, you can earn a 0.25% discount on your APR. You can also set up online bill pay to SoFi through your bank, or you can send in a paper check.
Once you apply for and get approved for a SoFi personal loan, your funds should generally be available within a few days of signing your agreement. You can both apply for and manage your loan on SoFi’s mobile app.
Read Also: Current Usaa Car Loan Rates
Reasons To Wait Before Borrowing Again
What You Need To Provide A Lender
Generally, lenders will require proof that you have:
- a regular income
- a bank account
- a permanent address
Most lenders will run a credit check when you apply for a personal loan. Your credit report helps lenders evaluate your ability to repay your personal loan. They will likely consider your debts. Your credit report, credit score and debts may affect your loan options, including your interest rate and the type of loan you qualify for.
Read Also: Usaa Auto Loan Eligibility Requirements
Lets Get Personal: Understanding How To Get A Personal Loan
The rise of personal loans
Sue is driving her daughter to a follow-up doctorâs visit for a broken leg, thinking about paying her recent medical bills. She asks Siri, “How do I get a personal loan?”
Jack has recently started a small food truck business that sells tacos. Sales are booming, but so are his credit card balances. He wants to take out a personal loan to pay off those looming bills and consolidate his debt but isnât sure where to start.
If you, like Sue and Jack, have heard of personal loans but find yourself Googling “how to get a personal loan from a bank,” youâre not alone. Many Americans have researched and taken out personal loans recently.1 The number of personal loans rose from 16.9 million to 19.2 million from 2017 to 2018.1 If you think thatâs a lot of dollars floating around, youâre right. The total balance for all personal loans grew from $102 billion at the beginning of 2017 to $120 billion at the beginning of 2018.1
What is an installment loan?
Sometimes personal loans are referred to as an installment loan, but the two terms really mean the same thing. Personal loans can be used for a lot of different thingsâthatâs part of the beauty.
To get a personal loan, youâll first need to apply for one from a bank or online financial company. Not everyone who applies will qualify, but if you do, the institution may lend you a certain amount, such as $10,000. Then you pay it back during a set amount of time.
Collateral and personal loans
