Can I apply for a short-term loan while I'm still owing on a personal loan?
Yes, you can have more than one type of loan at the same time. However, there are several important factors to consider before applying.
Check your affordability first
Before applying for a short-term loan, calculate the required monthly repayments for both loans combined and make sure you can genuinely afford to pay them both at the same time. If you can't comfortably cover both repayments each month, it's best not to take on the additional debt. You can learn more about what to think through in our guide on what to consider before applying for a personal loan.
How lenders assess your application
When you apply for any new credit, lenders are required by the National Credit Act (NCA) to carry out an affordability assessment. They will look at your income, existing debt obligations, and your credit profile. Having an existing personal loan doesn't automatically disqualify you, but it does reduce the amount of disposable income available, which may affect how much you qualify for — or whether you qualify at all. For a detailed breakdown of the criteria lenders use, read our article on how to know if you qualify for a loan.
Your credit score matters
Taking on multiple loans can impact your credit score. Each new credit application results in an inquiry on your credit report, and carrying high levels of debt relative to your income can lower your score over time. Staying on top of all your repayments is the best way to protect and improve your credit health. Visit our credit health section to understand your score and get tips on improving it.
Short-term loans typically carry higher costs
Short-term loans (such as payday loans) usually come with higher interest rates and fees than personal loans. Before applying, make sure you understand the total cost of the loan — not just the monthly repayment — so you're not caught off guard.
Could debt consolidation be a better option?
If you're already managing a personal loan and finding it difficult to keep up, taking on another loan may not be the right move. It may be worth considering debt consolidation, which combines multiple debt repayments into one, often at a lower interest rate — making it easier to manage your monthly budget.
Practical tips before you apply
- List all your current monthly debt repayments and compare them to your take-home pay.
- Keep your debt-to-income ratio at a manageable level — a DTI below 36% is generally considered healthy by most lenders.
- Avoid applying to multiple lenders simultaneously, as each application leaves a mark on your credit report.
- Consider whether a short-term loan is truly the right solution, or whether adjusting your budget might address the need instead.
The bottom line: it is possible, but borrow responsibly and only take on new debt when you're confident you can afford it without financial strain. Still have questions? Browse our FAQs or post your question on our forum.
