How many loans can you have?
Written by
Joe Towner
Reviewed by
Amy LancashireThere's no legal limit on how many loans you can have at once. In practice, how many you can hold comes down to whether you can afford the repayments, your credit history, and each lender's own rules.
Here's what really decides how many loans you can have, and what to weigh up before taking on another.
Is there a limit on how many loans I can have?
No law sets a maximum number of loans. You could hold a mortgage, a car loan and a personal loan at the same time, for example. The limit is practical, not legal: a lender will only approve a new loan if they believe you can afford it on top of what you already owe. Your credit history and each lender's own policies also play a part.
How do lenders decide?
Before approving a loan, a lender has to check if you can afford to repay it. This is called an affordability or creditworthiness assessment, and the FCA requires regulated lenders to carry one out. They typically look at:
Your income and regular outgoings
The loans, credit cards and other commitments you already have
Your credit history and how you've managed borrowing before, which is part of what affects your credit score
If taking on another loan would stretch your budget too far, they'll usually turn it down, no matter how many loans you already have.
Can I have more than one loan with the same lender?
Sometimes, but many lenders would rather you top up an existing loan than take out a second one alongside it. A top-up increases your current loan instead of running two in parallel, which can be simpler to manage. Some lenders might also cap how many loans you can hold with them at once, often one or two. It's worth checking the lender's terms before you apply.
Can I have loans with different lenders?
Yes. There's nothing stopping you borrowing from more than one lender, as long as each one approves your application. Every lender can see your existing loans and credit commitments on your credit file, so they'll factor those into their affordability check. The more you already owe, the harder it can be to get approved for more.
Does having multiple loans affect my credit score?
It can, in a few ways:
Hard searches - each full application will leave a hard search on your credit file, and several in a short space of time can lower your score
How much you owe - larger total borrowing can make lenders consider you a higher risk
Your track record - paying several loans on time can help your credit over time, while missed payments harm it
You can read more about how loans affect your credit score in our dedicated guide.
What are the risks of having several loans at once?
Holding more than one loan isn't necessarily a problem, but it comes with trade-offs:
Higher monthly repayments - more of your income goes on debt, leaving less for everything else
More to keep track of - several payment dates make it easier to miss one, which means late fees and damage to your credit score
The risk of a debt spiral - using new borrowing to cover existing borrowing can be a warning sign
If your debts are becoming hard to manage, free and impartial advice is available from MoneyHelper, StepChange and Citizen’s Advice.
What should I think about before taking out another loan?
Before applying, it's worth asking yourself:
Can I afford it? Be honest about whether the repayments fit your budget, now and if your circumstances change
Do I really need it? Or is there another way to cover the cost
Would a different option work better? Topping up an existing loan, or consolidating your debts into one loan, can sometimes be cheaper and simpler than a second or third loan
Have I checked my chances first? Using a soft credit check or eligibility checker lets you see how likely you are to be accepted without leaving a mark on your file
Does it depend on the type of loan?
Yes, to a point. The "no legal limit" rule applies broadly, but different types of borrowing work differently
Mortgages - you can have more than one, but lenders apply strict affordability rules, particularly on additional properties
Student loans - in the UK these follow government rules rather than an individual lender's policies
Payday and short-term loans - some lenders won't let you hold more than one at a time, and stacking them is risky and expensive
Guarantor loans - explained in our guide on what a guarantor loan is
Whatever the type, the same principle applies: total affordability matters more than the number of different loans.
Frequently asked questions
There are a range of financial products available that may suit your needs. We encourage you to research your options carefully and consider seeking independent financial advice before making any decisions. This blog is for informational purposes only and does not constitute financial advice.
