Should You Apply for More Than One Loan at the Same Time?

When you need to cover an unexpected expense, it can be tempting to submit several loan applications and accept whichever one is approved first.

However, applying for multiple loans at the same time can create additional risks. Several credit applications may affect your credit profile, make some lenders more cautious and leave you managing more debt than you intended.

In most cases, we believe a more considered approach is to compare several suitable options but submit only one formal application at a time.

Should You Make Multiple Loan Applications at Once?

Generally, you should avoid applying for several loans simultaneously.

Every credit provider has its own eligibility requirements and assessment process, but submitting more applications does not necessarily improve your chances of approval. Instead, it may result in several credit inquiries appearing on your credit report within a short period.

Moneysmart explains that the number of credit applications you make can be considered when calculating your credit score. It also warns that making too many applications within a short period can lower your score.

A more considered approach is to:

1. Work out how much you actually need.
2. Compare eligibility requirements, fees and repayment terms.
3. Choose the option that appears most suitable for your circumstances.
4. Submit one complete and accurate application.
5. Wait for the outcome before considering another application.

This approach does not guarantee approval, but it can help you avoid unnecessary applications and repayment commitments.

Comparing Loans Is Different From Applying for Loans

There is an important difference between researching several lenders and formally applying to them.

When you compare loans, you may review:

• Eligibility criteria.
• Available loan amounts.
• Interest rates and fees.
• Repayment frequency.
• Loan terms.
• Early repayment conditions.
• Consequences of missed payments.
• Customer support and hardship options.

You can generally conduct this type of research without making a formal loan application.

A formal application usually requires you to provide enough personal and financial information for a credit provider to assess whether it will offer you credit.

Many formal applications involve access to your credit report, which may result in a credit inquiry being recorded.

Some providers also offer an eligibility checker or quote before you apply. Before using one, check whether it involves a soft or hard credit check and whether it will appear as a credit application on your report.

How Multiple Loan Applications May Affect Your Credit Report

Your credit report contains information about your history of applying for and managing credit.

It may include:

• Your current credit accounts.
• Repayment history.
• Defaults.
• Previous applications for credit.

When a credit provider requests your report to assess an application, the request may be recorded as a credit inquiry.

In Australia, a credit inquiry can remain on your credit report for five years.

The inquiry does not necessarily show whether your application was approved, declined or ultimately accepted. It records that the application or inquiry occurred.

One inquiry does not automatically mean you will be refused credit. However, several applications within a short period may:

• Contribute to a lower credit score.
• Make some lenders view you as more reliant on credit.
• Suggest that you may be experiencing financial pressure.
• Affect future lending decisions.

Credit-scoring methods differ between credit reporting bodies and individual lenders, so there is no universal number of applications that will have exactly the same effect on everyone.

However, limiting unnecessary credit applications can help you avoid adding inquiries to your credit report without a clear reason.

For more information, you can read our guide to how applying for a loan may affect your credit score.

Multiple Approvals Can Create a Repayment Problem

Your credit report is not the only reason to think carefully before making several applications.

There is also a possibility that more than one application will be approved. If you then accept multiple loans, you could end up with overlapping repayments, fees and due dates.

For example, imagine you need to pay for an unexpected car repair and apply to three lenders. Two applications are approved, and you accept both loans before considering the combined cost.

You may then have borrowed more than the repair requires while also taking on two separate repayment schedules.

Even when each repayment appears manageable on its own, the combined amount may place more pressure on your budget.

Before accepting any credit contract, consider how the repayments would fit alongside your:

• Rent or mortgage payments.
• Food and transport costs.
• Utilities.
• Existing loans and credit cards.
• Buy now, pay later commitments.
• Insurance.
• Medical expenses.
• Other essential household costs.

We recommend avoiding a second loan simply because it has been approved. Approval does not mean that taking on additional debt is necessarily appropriate for your circumstances.

Can Applying to Several Lenders Improve Your Approval Chances?

Submitting more applications may seem to create more chances of approval, but it can also work against you.

Different credit providers consider different information when assessing an application.

Depending on the product and provider, this may include:

• Your income.
• Your living expenses.
• Your existing debts.
• Your account conduct.
• Your credit report.
• Your requirements and objectives.
• Your ability to afford the proposed repayments.

Australian credit licensees must comply with responsible lending obligations when those obligations apply. This can include making reasonable inquiries, taking reasonable steps to verify relevant financial information and assessing whether a proposed credit contract would be unsuitable.

Applying to more lenders does not change your underlying financial circumstances.

If a proposed repayment is not affordable, submitting additional applications will not solve that issue.

It is also important to provide complete and accurate information whenever you apply for credit. You should not hide existing debts, recent applications, expenses or changes in your financial circumstances.

What to Do Before Submitting a Loan Application

1. Confirm How Much You Actually Need

Start with the genuine cost of the expense rather than the maximum amount you may be able to borrow.

Borrowing more than necessary increases the amount you need to repay and may increase the total interest or fees you pay.

2. Review Your Existing Commitments

List your current debts and regular repayments, including:

• Credit cards.
• Personal loans.
• Buy now, pay later arrangements.
• Vehicle finance.
• Other credit commitments.

Consider whether another repayment could be managed without compromising essential living expenses or causing financial hardship.

3. Check the Eligibility Requirements

Before applying, review the provider’s published eligibility criteria.

Meeting minimum requirements does not guarantee approval, but checking them can help you avoid submitting an application for a product that is clearly unsuitable for your circumstances.

You can review our current eligibility requirements online before deciding whether an application with us may be appropriate for you.

4. Compare the Full Cost

Do not compare loans using an advertised interest rate alone.

Look at:

• Establishment fees.
• Ongoing fees.
• Default or missed-payment fees.
• The repayment amount and frequency.
• The repayment term.
• The total amount payable.
• Early repayment conditions.

We publish our current loan costs and conditions so that you can review them before deciding whether our product may be suitable for you.

5. Check Your Credit Report

Reviewing your own credit report can help you identify incorrect information or applications you do not recognise.

Australian consumers can request a free copy of their consumer credit report from a credit reporting body once every three months. You may also qualify for another free copy after being refused credit or having information corrected.

Checking your own report is not the same as submitting a loan application.

6. Apply to One Suitable Provider

Once you have compared your options, consider submitting one accurate application to the provider whose product appears to match your needs and circumstances.

Avoid submitting backup applications while the first application is still being assessed unless you understand the possible credit-reporting and affordability consequences.

What Should You Do if Your Loan Application Is Declined?

A declined application can be frustrating, especially when you are dealing with an unexpected expense.

However, immediately submitting applications to several other lenders may make the situation worse.

Instead, you may want to:

• Ask whether the lender can provide a general explanation.
• Check that the information in your application was correct.
• Review your credit report for errors or unfamiliar inquiries.
• Reassess your income, expenses and existing repayments.
• Consider whether the expense can be delayed or managed another way.
• Allow time to address the reason for the refusal before applying again.

Moneysmart recommends waiting before applying again because each credit application can be noted on your report and too many applications within a short period can affect your credit score.

If you find incorrect information on your credit report, you can request a correction without paying a credit-repair company.

The Office of the Australian Information Commissioner explains that you can ask the relevant credit provider or credit reporting body to correct inaccurate information.

What if You Have Already Submitted Several Applications?

If you have already made multiple loan applications, consider avoiding further applications while you work out what is happening with the existing ones.

You can contact each provider and check whether your application:

• Is still being assessed.
• Has been approved.
• Has been declined.
• Can be withdrawn.

Keep in mind that withdrawing an application may not remove a credit inquiry that has already been recorded.

If more than one application is approved, compare each contract carefully. You do not have to accept a loan simply because it has been offered.

Before signing, review:

• The amount you would borrow.
• The interest and fees.
• Repayment amounts and dates.
• Your total repayment obligation.
• What happens if you miss a payment.
• Whether you still need the loan.

If the combined repayments would be difficult to manage, avoid taking on additional debt.

You could instead consider speaking with the relevant service provider about a payment arrangement or contacting a free financial counsellor.

Alternatives to Making Another Loan Application

Depending on the expense and your circumstances, other options may be available.

You could consider:

• Using available savings.
• Asking the service provider about a payment plan.
• Requesting hardship assistance from an existing lender.
• Delaying a non-essential purchase.
• Reviewing your budget for temporary savings.
• Asking whether a due date can be changed.
• Seeking free financial counselling.
• Comparing other suitable forms of credit before formally applying.

Moneysmart recommends contacting your lender’s hardship team if you are having difficulty meeting repayments.

Depending on your circumstances and the provider’s assessment, assistance may include changes to your payment arrangements.

Borrowing should not be treated as a substitute for regular income or an ongoing way to pay ordinary weekly expenses.

Considering a Loan With Us

At Sunshine Loans, we offer unsecured Medium Amount Credit Contracts to eligible Australian consumers dealing with an infrequent, one-off personal expense.

Our current product information includes:

You can complete your application online, but every application remains subject to eligibility, assessment and approval.

To meet our general eligibility requirements, you will usually need to:

• Be at least 18 years old.
• Receive take-home income of at least $750 per week or $1,500 per fortnight.
• Have your income visible and verifiable through your bank statements.
• Receive income from a source other than government benefits alone.
• Demonstrate that repayments can be made without financial hardship.
• Use the loan for a personal rather than business purpose.

Government benefits may form part of your income, but they cannot be your only source of income.

Meeting these requirements does not guarantee that we will approve your application. We assess every application individually.

Before you apply, you can review our eligibility criteria, loan costs and frequently asked questions.

Sunshine Loans Pty Ltd holds Australian Credit Licence number 390556.

Frequently Asked Questions

Can I Apply for Two Loans on the Same Day?

You may be able to submit two applications, but it is generally better to compare products first and make one formal application at a time.

Several applications within a short period may affect your credit profile and could leave you with overlapping repayment obligations.

Do Multiple Loan Applications Affect Your Credit Score?

They can.

The number of credit applications you have made is one factor that may be considered when calculating your credit score.

Multiple applications within a short period may have a negative effect, although the exact impact varies between individuals and credit reporting bodies.

How Long Does a Loan Inquiry Stay on Your Credit Report?

In Australia, a credit inquiry can remain on your consumer credit report for five years.

Can I Have More Than One Loan at a Time?

It may be possible to have more than one loan, but each credit provider will assess your circumstances according to its criteria and applicable legal obligations.

Before taking on additional credit, you should consider whether you can manage all repayments without experiencing financial hardship.

Should I Apply Elsewhere Immediately After Being Declined?

Usually, it is better to understand why the first application was declined before applying again.

Check your application information, budget and credit report, and address any issues you identify.

Rapidly submitting further applications may create additional credit inquiries.

Does Checking My Own Credit Report Count as a Loan Application?

No.

Requesting a copy of your own credit report is not the same as formally applying for credit.

Australian consumers can access their report for free once every three months.

Make One Informed Application Rather Than Several Rushed Applications

Comparing several lenders can help you understand your options. Applying to all of them at once is a different matter.

Before submitting an application:

• Confirm how much you genuinely need.
• Check the eligibility requirements.
• Understand the full cost.
• Consider whether the repayments fit comfortably within your budget.
• Review any lower-cost or non-credit alternatives.

If you are considering borrowing from us, review our eligibility requirements and loan costs before deciding whether our product may be appropriate for your circumstances.

We assess every application individually, and approval is not guaranteed.

The information provided in this blog is for general informational purposes only and does not constitute financial advice. It is not tailored to the specific circumstances of any individual. Before acting on the information, you should consider whether it is appropriate for you, having regard to your objectives, financial situation and needs.