Can I apply for more than one loan at a time?
You can’t apply for more than one Provident loan at the same time, but it’s a different story when it comes to putting in requests with different lenders.
Yes, it is possible to apply for several loans from different companies at the same time. However, while there’s no rule against it, there’s a good chance it will harm your credit score and your chances of being loaned to if you do.
That’s because when you apply for a loan, a credit card, or similar, that company will do a credit check where they look at your credit report to work out whether it’s a good idea to let you borrow money. It’s known as a ‘hard inquiry’, which means a company has looked at your record as part of a decision about giving you credit.
The problem is that hard inquiry shows up on that same credit report, and each one can lower your credit score a little. So if you’ve made many loan applications at once, it’s going to really reduce your rating, making it harder to get things that require a good rating like a car on finance or renting a house.
Can it cause any other problems?
Yes. Outside of lowering your rating, each subsequent loan company that does a check will be able to see any earlier ones – although not whether or not they were successful. The more of these hard inquires you have on your record, the more it looks like you’re hurriedly looking for money you don’t have, which could suggest you’re not good at managing your finances. Because of that, whoever you apply for credit with might think you’re too much of a risk and that they won’t get their money back from you.
Applying for more than one loan at a time could lower your credit score and make lenders even less likely to trust that they can give you cash and get it back.
These hard inquiries stick around for up to two years, although the impact on your actual credit score will reduce over that time. The advice is generally to space out your applications for things like loans and credit cards by about six months.
Can I apply for more than one Provident loan at a time?
You can’t have more than one application going simultaneously at Provident. However, you can have more than one active loan with us, provided you pass the Affordability Assessment ensuring you can afford to make repayments.
In short, that means you can’t make a few requests for different amounts in one go in the hope you’ll be accepted for one.
It’s worth bearing in mind as well that if we’ve rejected your first application, you’ll have to wait three months before you make another one.
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