Can I get another personal loan if I already have one

You may be able to take out more than one personal loan, but there are good reasons to keep a lid on your loans. We share more.

Table of Contents Show

How do I qualify for a personal loan?
Can you get a loan if you already have one?
How many personal loans can you have at once?
Possible damage to your credit score
The potential to get into trouble with debt
NOW Finance No Fee Unsecured Personal Loan
NOW Finance No Fee Unsecured Personal Loan
Can I get a second personal loan if I already have one?
Can I get a personal loan if I already have a personal loan?
Is it hard to get a loan if you already have one?
Can I get 2 personal loans at the same time?

A personal loan can be a valuable financial tool, potentially giving you the funds to achieve a variety of goals from paying for a wedding, to completing home improvements or taking a much-needed vacation.

The beauty of a personal loan is that the balance is paid off within a set term, often at a fixed interest rate, so repayments are easier to budget for. In addition, personal loans are available through a wide variety of financial institutions including banks, credit unions and building societies – and healthy competition can be a plus for scoring a low interest rate.

Strictly speaking there is no limit on how many personal loans you can have at any one time. It’s really a question of whether you meet each lender’s criteria for a personal loan. The bigger issue is whether you really want to face the challenges of juggling multiple personal loans all at the one time.

How do I qualify for a personal loan?

Each lender will have its own specific criteria in regards to qualifying for a personal loan. As CommBank notes, you will typically need to meet minimum income requirements, be employed or earn a regular income, have a good personal credit rating and not be going through the process of bankruptcy.

How much you plan to borrow can shape your likelihood of being approved for a personal loan – and a number of lenders have online calculators that provide an estimate of your borrowing capacity.

Can you get a loan if you already have one?

Individual lenders may have their own policies about the number of personal loans they offer to the same customer. But that doesn’t mean you can’t apply for a loan with a different lender. The catch is that banks are required by law to lend responsibly, and your lender will likely want to know about any existing loan commitments whenever you apply for a new personal loan.

If the lender’s analysis of your income and expenses – including repayments on any other personal loans, suggests that extending more credit to you could leave you thinly stretched financially, you may be knocked back for a loan or offered a smaller loan than you initially requested.

How many personal loans can you have at once?

In theory at least, if you meet a lender’s criteria, and your income is sufficient to cover the repayments on multiple personal loans, there is no legal limit on the number of loans you can have. However, there are downsides to having lots of personal loans at once, including potential damage to your credit score and the risk of getting into serious financial trouble if you have unmanageable debt. Our Personal loan repayment calculator can help you understand how much a new loan could cost you.

Possible damage to your credit score

Moneysmart explains that each application you make for a loan can appear on your credit record, and having multiple applications can lower your credit score. This can make it harder to be approved for another personal loan – or something as important as a home loan, with the lender of your choice. Not sure what your credit score is now? You can get your free credit score with Canstar.

Get your free credit score

The potential to get into trouble with debt

Having multiple personal loans means juggling different repayments dates, various interest rates and dealing with more than one lender, plus multiple sets of statements.

The more loans you have, the easier it can be to lose track or fall behind on your loan repayments, and the Australian Financial Security Authority (AFSA) warns, this could see you caught up in a spiralling debt cycle.

The solution can simply be to limit the number of personal loans you take out. Or, if you already have several different personal loans, it may be worth thinking about debt consolidation. AFSA explains this is where you roll all your existing debts into one new loan, which can help to streamline the loan repayments.

A debt consolidation loan can also help you pocket savings through a lower interest rate or cheaper loan fees than you’re currently paying.

Ultimately, a personal loan can be a handy financial tool. But moderation and getting a good deal in terms of the interest rate and terms and conditions of a loan agreement are important. Sticking to just one or two personal loans can make it easier to manage your money, while also protecting your personal credit score. Canstar’s comparison tables may help you find a personal loan or car loan that’s suitable for your needs.

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If you have an existing personal loan and are hit with unexpected expenses, you may be considering a loan top-up. This allows you to add more funds to your existing loan amount, so you can keep all of your debt in one place and stay with your current lender. Find out how you can get a loan top-up and whether you’re eligible.

A personal loan top up is where you add a certain amount on to a personal loan you already have. This involves submitting another personal loan application with your existing lender and signing a new credit contract. Depending on how much your repayments are increased by you may want to extend your loan terms during this process.
Should I top up my loan or take out a new one?
If you are in need of extra funds, you might be considering whether it’s better to top up your existing loan or to apply for a new loan to consolidate your old and new debt. Weigh up the pros and cons of both options before you apply:

	Pros	Cons
Top up an existing loan	The convenience of staying with the same lender May have more of a chance of being approved	Application fees Possible restrictions to loan top-ups
Apply for a new personal loan	You may find a more competitive loan and reduce what you're paying	A possibility of early repayment fees with your current loan

Before applying for a personal loan top-up, ask your lender the following questions:

What fees will I be charged? Most banks will charge a single $100-$200 administration fee if you decide to top up your loan. This fee might be higher, lower or even non-existent depending on what kind of top-up options your lender offers. You need to check this before you apply.
Are there any restrictions to topping up my personal loan? You may not be able to apply for a personal loan top-up in the first 12 months of your loan or you may need to have a certain percentage of your loan paid off. Check if any restrictions apply.
Am I eligible for a personal loan top-up? You will need to meet certain criteria for a personal loan top-up. For example, you may need to meet the same eligibility criteria that were set when you applied for the personal loan. If your personal circumstances have changed, check the criteria again to ensure you can still apply.

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Will my loan top-up be listed on my credit report?

Yes. Your credit report shows your debt history and the state of your finances. It’s used by lenders to determine whether you are likely to be able to pay a loan back, and loan top-ups are relevant to this.

When you top up a loan, it gives you more outstanding debt than before, which naturally appears on credit report. You can check your credit report and credit score for free with finder, so you may want to do this before you apply for a loan top-up.

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Select your lender from the list below to see if personal loan top-ups are allowed and what loan restrictions may apply.

Lender	Allows top ups?	Criteria
ANZ	Yes	A loan approval fee may apply. To be eligible: 18 years or older Earn $15,000 p.a. Australian citizen, permanent resident or have a valid visa
Bank Ausralia	No	N/A
Bank of Melbourne	Yes	A loan approval fee may apply. To be eligible: 18 years or older Have an Australian residential address
BankSA	Yes	A loan approval fee may apply. To be eligible: 18 years or older Have an Australian residential address
Bankwest	No	N/A
Bendigo Bank	No	N/A
BOQ	No	N/A
Citi	No	N/A
CommBank	Yes	A loan approval fee may apply. To be eligible: 18 years or older Have a good credit rating Australian citizen, permanent resident, New Zealand citizen or hold a 457 visa Not an undischarged bankrupt Be employed Lives in Australia Meet minimum income requirements
Great Southern Bank	No	N/A
Gateway Bank	No	N/A
HSBC	No	N/A
IMB	No	N/A
Latitude	No	N/A
loans.com.au	No	N/A
ME	No	N/A
Moneyplace	No	N/A
MyState Bank	No	N/A
NAB	Yes	You can't increase your loan amount if you have already borrowed the maximum loan amount of $55,000. To be eligible: 18 years or older Australian citizen or permanent resident Earn a regular income Be able to afford the loan repayments
Now Finance	Yes	A loan approval fee may apply. To be eligible: 18 years or older Australian citizen or permanent resident (not on 457 visa) Be employed full-time, part-time, self-employed or casually (casual employees must be employed longer than six months)
NRMA	No	N/A
Pepper Money	No	N/A
Plenti	Yes	You can apply for a loan top-up if you've made at least six monthly payments towards your existing Plenti loan. Eligibility criteria: 18 years or older Australian citizen or permanent resident (not on 457 visa) Be employed full-time, part-time, self-employed or casually (casual employees must be employed longer than six months)
RACQ	No	N/A
RACV	No	N/A
SocietyOne	No	N/A
St.George	Yes	A loan approval fee may apply. To be eligible: 18 years or older Have an Australian residential address
Westpac	Yes	A loan approval fee may apply. To be eligible: 18 years or older Have an Australian residential address

Topping up a personal loan involves a couple of steps:

The first step is to decide whether a top-up loan is the best solution for your particular situation or if there are other options that are more suitable. There may be fees for simply inquiring about a top-up or for assessing your eligibility, which is why it’s a good idea to be certain before you apply.
Contact your lender. They tend to handle applications on a case-by-case basis and can either accept or decline your top-up application. They may want to discuss your financial needs, check your credit file and assess your eligibility before deciding whether to go ahead with a top-up.
Once your personal loan is topped up, you will need to continue managing your debt.

What to do if your lender doesn't allow a personal loan top-up

As you can see from the table above, not every lender will allow you to add extra funds on top of your personal loan. If you are looking to take out additional funds and you can't do so with your current lender, you can consider refinancing your personal loan. This will allow you to move your remaining debt to another lender as well as borrow additional money.

When you apply to refinance your personal loan you may list the reason for borrowing as "refinancing" or for the purpose you need the extra money. However, keep in mind that the lender will be able to see you already have a personal loan, listing the purpose as "refinancing" will make it clear that you will close your current loan if you are approved.

Eligibility requirements for loan top-ups vary depending on the lender. One bank might let you top up while another won’t. Generally, the requirements for topping up are similar to the requirements for taking out a whole new loan. However, they are usually considered on a case-by-case basis for existing customers, which means the requirements tend to be on the more lenient side. The following factors may affect your eligibility for a top-up loan.

Having a history of late repayments with your lender
If your loan has only been active for a short period of time
If your circumstances have changed since you first applied for your personal loan.
Having defaults on your credit report, which are payments of $150 or more overdue by 60 days or more

Your bank may also have particular top-up eligibility requirements. If you’ve decided that a top-up is the right course of action for your needs, the easiest way to find out whether you’re eligible is to contact your lender.
How to refinance your personal loan

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ANZ Fixed Rate Personal Loan

You'll receive a rate from 7.49% p.a. to 17.99% p.a. with a comparison rate from 8.18% p.a. to 18.59% p.a. if you're approved.
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Can I get a second personal loan if I already have one?

Yes, you can take more than one personal loan, as there are no restrictions. But, you would need to meet the eligibility criteria like income, job stability, age, credit score, existing loans etc., to avail the second loan.

Can I get a personal loan if I already have a personal loan?

Yes, an individual can avail of more than one personal loan. Similar to the first loan, an individual will have to meet the eligibility requirements of the second loan set by the lender. Loan providers consider several factors, such as your existing loans and current income before approving loan applications.

Is it hard to get a loan if you already have one?

Can I get 2 personal loans at the same time?

The Bottom Line If you can get approved, you can have as many personal loans as you want. Some lenders have dollar limits or a limit on how many loans you can have at once, so you may need to use different lenders.

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