How Many Cash Loans Can You Have All At Once?

8th July 2024

Loans Advice

With rising costs of living and continual bills to pay you may find yourself considering taking out an additional small personal loan to help with unexpected expenses. However, if you have multiple loans, you need to consider how many loans are too many, and whether you will be able to make the repayments on each loan on time. Learn more about the pros and cons of multiple loans and when to consider a consolidation loan.

Factors that determine how many cash loans you can have

Your ability to take out an additional loan will depend on your credit score, debt repayment history, income, and other liabilities. Responsible lending practices ensure that your lender puts your interests first, ensuring that you can afford the loans that you have and reducing the risk of you missing a payment or falling into default.

Borrowing power: your income and ability to repay

The first consideration that determines whether you can take out an additional loan is whether you have enough spare cash flow to meet the repayments, after taking into account your current expenses and financial obligations.

Do you already have a secured loan against your vehicle?

One way you may be able to qualify for an additional loan is by using your vehicle as security. If you don’t have an existing car loan or another personal loan secured against your car, this can give the lender additional confidence to provide you with the cash you need.

Whilst you’ll still need to meet the other lending criteria, including having income to cover your repayments, using your car as security may allow you to take out a second personal loan.

Other loans and liabilities you hold

When you apply for a second loan, the lender will consider your other loans, including any credit card balances, personal loans, mortgages, university debts and so on. Your debt-to-income ratio is one factor that may determine how many cash loans you can have at once.

One option if you do have multiple loans already is to consolidate those loans into one. This means you will make just one repayment which can help you to have a clear view of your finances and pay off your debts systematically.

Borrowing power: your income and ability to repay

The first consideration that determines whether you can take out an additional loan is whether you have enough spare cash flow to meet the repayments, after taking into account your current expenses and financial obligations.

Tips for managing and repaying multiple cash loans

Sometimes taking out multiple loans can help you through an expensive period of time, but you can still create a plan to ensure that you keep up with your expenses.

Create a budget

Juggling various loan obligations means you will want to consider implementing and following a budget. One way you can do this is to prioritise your repayments and bills first before any discretionary spending.

Pay on time

The easiest way to ensure bills are made is to automate it, with direct debits for your bills and repayments. For ongoing bills like council rates or electricity, you might choose to leave bill emails unopened until you have time to pay them so that they are not missed.

Put in extra

Once you are happy with your budget and everything is running smoothly, you might try to save a little extra and pay down your loan balance- doing this may mean you pay less interest across the lifetime of the loan and pay off the amount you owe a little faster.

Determining your personal cash loan limit

To work out how much you are comfortable repaying, evaluate your monthly income, fixed expenses, and any existing debts. You may consider your financial goals and ongoing financial obligations to identify how much debt you can reasonably manage.

Remember that things can change – like your job or primary income source. Think about how potential changes in your income or expenses may affect your overall spending, and be mindful that you want to be comfortable with repayments on an additional loan.

When taking out an additional personal loan, make sure you understand:

  • What loan fees and charges will you need to pay, and when you will need to pay them
  • The interest rate and how it works
  • What happens if you don’t pay the loan back on time

A personal loan from Red Tree Finance can help you get through a tricky time
Whether it’s a car breakdown, unexpected bills, school fees or medical expenses, sometimes an additional loan can help you stay on top of your finances. Our small personal loans are secured against a vehicle, and repayable within a year. To learn more about taking out a second cash loan to cover unexpected bills, pay for an emergency or something else, speak with our friendly team.


You can get another loan straight away, provided you meet the lending criteria. With some lenders, you may even be able to take out a loan before your current loan is paid off – there are no rules against having 2, 3 or 4 loans at the same time. However, a responsible lender will ensure that you can only borrow what you can reasonably afford to repay.

You can have multiple loans if approved by lenders, not all lenders will approve a second or third loan. If you have a car you can use as security this may help you to be approved for a second loan. Managing multiple loans can strain your budget, so be sure to consider your options before applying

Yes, you can have multiple loans from different lenders, provided lenders will approve your applications. The approval and terms of each loan will depend on several factors, including your creditworthiness, income, and the lending policies of the banks involved. The more loans you take out the harder it maybe to qualify for a new loan.

The information provided in this blog is of a general nature and is provided without considering your specific objectives, financial situation, or needs. It is intended for informational purposes only and should not be relied upon as financial, investment, or other professional advice.

Before making any financial decisions or taking action based on the information presented, you are strongly encouraged to assess its appropriateness in light of your individual circumstances. Red Tree Finance does not intend to provide personalised financial advice, and you should seek independent financial, legal, tax, and other relevant advice tailored to your unique situation.

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12 months
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WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The above uses a comparison rate of 47% and upfront establishment fees of $420.



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