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If I’m paying off a loan, can I borrow again?


If you have a current loan and you are still paying it off, you may be wondering if you can apply for another one. Depending on your situation, you may or may not be able to apply for another loan, but if you have good numbers, it’s practically a yes. Let’s see:

Asking for another loan if you are still paying one, is it possible?

“If I am paying one loan, can I ask for another one?” This is a question asked by many people who have taken out a personal loan and are hesitant about their bank or fintech being able to grant them another one. And the reality is that it depends on your financial situation.

Of course you can take out another loan. There are those who find themselves in this situation because they have an unforeseen event, have a business idea or want to borrow for something as simple as a trip. So, in any of these situations you can apply for a second loan.

What can the second loan be used for?

For whatever you want. For example:

  • Pay off the first loan
  • Cover new unforeseen expenses
  • Give yourself a well-deserved treat
  • Achieve a goal (e.g.: use it as an investment to start a business)
  • Renovate your home after having obtained a mortgage.

That is, if your financial situation is optimal, you can ask for a second personal loan to pay off the one you already have or have it in parallel for new goals. But it is something that you will be able to do or not depending on your economic situation, if you are or not, if you can afford it.

The Bank recommends that monthly loan payments should not exceed 1/3 of your income.

Are there other solutions?

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

What to consider when taking out another loan?

You can take out a second loan easily and in one click, but before jumping into the pool, consider the following:

  • Debt capacity: this is what banks or fintech companies analyze before lending you money. If you are at the limit, you may not be granted, but if you have margin, you have nothing to worry about. Basically, it consists of analyzing whether you can afford it or you will be drowned.
  • Interest: in the case that the interest is lower than the first loan, you could ask for more money to amortize the first one at once and enjoy more money to face new expenses or unforeseen events. But analyze it, to see if you can assume it.
  • Repayment 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 asking for your second personal loan. If you have it clear and your economic capacity is good, you will have no problems to be granted.


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