If I am paying off a loan, can I request another?

by Lisa Baker

If you have a loan in progress and you are still paying it, you may wonder if you can ask for another . We already anticipate that depending on your situation you could be granted or not, but if you have good numbers it is practically a yes. Let’s see:

Ask for another loan if one is still being paid, is it possible?

“ If I am paying a loan, can I ask for another one? ”This is a question that many of the people who have asked for a personal loan and doubt about whether their bank or fintech could grant them another ask themselves . And the reality is that it depends on your financial situation .

On the way out, of course you can ask for another loan . There are those who are in this situation because an unforeseen event has arisen, they have a business idea or they want to ask for it for something as simple as going on a trip . Therefore, in any of these situations you can request a second loan.

What can the second loan be used for?

For what you want. For example:

  • Pay off the first loan
  • Cover new unforeseen expenses
  • Give yourself a well deserved treat
  • Reach a goal (ex: use it as an investment to start a business)

That is, if your financial situation is optimal, you can request a second personal loan to pay off the one you already have or have it in parallel with a view to new goals. But it is something that you can do or not depending on your financial situation, whether or not you are solvent , whether you can afford it.

The Bank of Spain recommends that the monthly payments of the loans do not exceed 1/3 of the income .

Are there other solutions?

As an alternative to the personal loan, we can consider the use of a credit card or quick financing , which is a way to defer payments and divide them, increasingly popular in online stores. It depends on the amount you need and its destination.

What to take into account when requesting another loan?

You can request a second easy loan, but before jumping into the pool, consider the following:

  • Borrowing capacity : this is what banks or fintech companies analyze before leaving you money. If you are at the limit, it may not be granted, but if you have margin you will have nothing to worry about. Basically, it consists of analyzing if you can afford it or you will drown.
  • Interest : in the event that the interest is lower than that of the first loan, you could ask for more amount to pay off the first one at once and enjoy more money to face new expenses or unforeseen events. But analyze it, to see if you can take it.
  • Payment terms : the time to pay off the loan is important, because not all loans can be extended 5, 8 or 10 years.

These 3 aspects are key when requesting your second personal loan. If you are clear about it and your financial capacity is good, you will have no problems getting it.

How do I know if my financial situation is good?

If more money comes in than goes out and you have a normal spending rhythm, you may not have any problem accessing your second loan. 

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