Is It Possible To Get Several Personal Loans At Once?

Regardless of where they live and what they do, most people will get at least one personal loan during their lifetime. This is mostly due to the fact that these loans have low interest rates when compared to other types of consumer debt, which makes them attractive to a wide range of people regardless of income.

Personal loans are easy to take out, you do not need a perfect credit score for the bank to lend you the money, and repaying it is usually accessible enough to make their cost barely noticeable. However, what happens when you need a larger amount of money than what the bank would be willing to give you as part of the loan?

What you need to know about taking our several personal loans at the same time

The most important thing to remember when it comes to taking out multiple personal loans at the same time is the fact that there is no rule or law against it. This having been said, there are two ways in which you can get the loans:

  • Get personal loans from multiple lenders

One of the easiest ways to get several personal loans at once is to borrow money from multiple lenders. This can either be done by going to your local banks and finding out which ones do not have any restrictions when it comes to this sort of financial move.

Keep in mind that some lenders will either have specific terms and conditions that you will have to agree to if you want to take out a second personal loan, while others may forbid this practice entirely. In other words, it depends solely on the internal policies of the bank that you choose to work with.

The alternative is to go to the bank and take out a personal loan if you need to get money now, and then to use an online money-lending service in order to get another one. This is usually easier to do because most of these online platforms do not perform credit checks or ask that you provide them with detailed financial records.

Generally speaking, there is nothing stopping you from using 10-20 online lending platforms in order to borrow money, however, remember that each of them may have different eligibility requirements.

  • Get several personal loans from the same lender

This practice is more common than most people may think, and a large number of banks actually advertise this possibility. A good example would be refinancing a loan or debt consolidation. This having been said, it is also possible to take out two or more personal loans from the same lender. You will, however, have to have a great track record with the bank and also have a good credit score.

Be smart when it comes to borrowing money

Although borrowing money from the bank is often less expensive than using your credit card, do not forget that taking out several personal loans at once can still cause you to bleed money. Furthermore, if you cannot make the monthly payments on time, not only will your credit score go down, but the banks will be reluctant to give you any more money in the future.

Generally speaking, the best course of action, if you need more money than you can get with a single loan, is to borrow money from your bank and then to look at what online services you can use to get more. These web-based lending platforms do have higher interest rates when compared to banks, but if you shop around you should be able to find loaning options that are more affordable than using your credit card.

The golden rule here is to only borrow money from online platforms if you either need to buy something very expensive or if you are in a rush and do not have time to get a loan from the bank. Also, keep in mind that these platforms will not perform credit checks and will also not report the transactions to any of the main credit companies. This means that they can be used regardless of your credit score and that borrowing money from them will not affect your permanent financial records.

Conclusion

Taking out several personal loans at once should never be taken lightly. Although this financing option is more attractive than making payments using your credit card, the costs of the loans can quickly add up and put you in a difficult position. Furthermore, a larger number of loans means that the risk of lowering your credit score is greater.

While it is possible to take out multiple personal loans at the same time, only do so if you need the money. Do not treat this financial strategy as an easy way to borrow large amounts of money, but as a “get out of jail for free” card, in case you urgently need a lot of money.

Important Things That You Should Know About Private Student Loans

Parents usually dread the time when their children are about to enter college. Understandably, young people that have a clear idea of what they want to become expect that their parents would help them pursue their dreams. But what if the parents cannot afford a college education?

In many countries, getting a college degree may only be possible for the rich. If you are poor, you might have to give up your ambition, find a job to help support your family or get married. However, in the USA, many young people can proceed to college because of student loans. You can seek financial assistance from the federal government or from private firms that offer student loans.

While most students turn to the federal government to get a student loan, some may also apply for a private student loan.

What Is A Private Student Loan and How Does It Work?

A private student loan is one that you can get from private lenders. You can apply for a student loan in banks, other lending companies, or credit unions and not by the government. Borrowing money to pay for your college education can be compared to getting a car loan or a house loan. When you fail to pay, the bank or company that lent you money can get back the car or the house.

With a private student loan, your future income serves as collateral. Private lenders understand how having a degree can boost your earning power. A lender can wait until you are earning an income and collect what you borrowed through salary deductions and other garnishments.

A pessimist might envision a life of difficulty even if he is already a teacher or an engineer because the most portion of his salary will go to the bank or company that lent him the money to go to college. However, an optimist would look forward to a better life after he has paid up all his debts.

Unlike debts that you got from borrowing money or using credit cards, you cannot get rid of your debt by declaring bankruptcy. As long as you are earning an income, you must make regular payments until you have paid up everything.

So, why do people still apply for a private student loan when they know that their finances might suffer when they are already earning an income?

Reasons Why People Opt for a Private Student Loan

Some would wonder why many parents and students still opt to take a private student loan despite the strict repayment scheme. Here are some reasons why some students and families even go for a private student loan.

  1. Taking a costly course

If you want to become a doctor or a lawyer, seeking a federal student loan will not work. The maximum amount that you can borrow from the federal government is around $20,000. With this amount, it will be impossible to pay for your tuition fees and other expenses that the course may entail.

However, when you take a private student loan, you can borrow up to $180,000 or more, which is the amount of money that you might need to become a doctor or a lawyer.

  • Taking a private student loan is easy

When you or your parents have a high credit score, the banks and other lending companies will be willing to lend you money to the maximum. You may also find a cosigner that can absorb your debt if ever you cannot pay it back. Once your application is approved, you get the financing you need for your college degree.

  • You can take a private student loan when you max out your federal student loan

One important reason for some people to get a private loan is to supplement their federal student loan, which is usually around $20,000 for students taking a four-year course. If you have used up your federal loan before graduating, you can apply for a private student loan to pay for your remaining years in school. Because you might be in the last year of your studies when you get short of cash, you can apply for a smaller loan, something that you can quickly pay back when you already have a job.

  • You see that the return-of-investment is favorable to you

The first thing to ask yourself when thinking about a private student loan to augment your federal student loan is that will the additional cost be worth it? Private lenders will collect what you owe them once you start earning. Can you afford to pay your private student loan and your federal loan as well? If you think you can, then you can get a private student loan as well.

If you have a high credit score or someone to will serve as a cosigner, and you think that your expenses will be worth the cost of your education, taking a private student loan can be a hassle-free means of realizing your dream career.