When you already have several loans
Existing credit is not a bar to more, but every instalment you already pay comes off the affordability calculation before the new one is considered. There is also a point at which taking another loan stops being a solution — and it is worth being honest with yourself about where that point is.
What this actually means for your application
A new lender sees your existing commitments on your bank statements and your credit record, and must count them. That is why someone earning well can still fail an affordability assessment: the income is there, but it is already committed.
Consolidating several small expensive loans into one longer, cheaper one can genuinely reduce what you pay each month — provided you close the old facilities rather than running them up again. Where that does not happen, consolidation doubles the debt instead of halving the cost.
The clear signals to stop: borrowing to cover an instalment on an existing loan, taking a new loan every month, or having debit orders bounce more than occasionally. Any of those means a registered debt counsellor is a better call than another credit provider.
Check these three things before you sign — here or anywhere
- The lender’s NCRCP number is published on its own site, and it checks out in the National Credit Regulator’s register.
- The pre-agreement quote breaks out the total cost of credit: interest, initiation fee, service fee and VAT — as one figure you can compare.
- Nobody asks you for an upfront “release fee”. A registered credit provider never charges you before it pays out.
Related
Sources and last checked
- National Credit Regulator — register of credit providers — Regulator, as at 10 August 2026.
- National Credit Act 34 of 2005 and its regulations — Government, as at 10 August 2026.
Page last checked 10 August 2026. Statutory caps and lender terms change — confirm anything you intend to rely on with the provider or the National Credit Regulator. Found something wrong? Tell us and we will correct it.