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Yes, you can refinance a personal loan, perhaps to get a better interest rate or more affordable monthly payment. To refinance a personal loan, you’ll simply take out a new loan to pay off the old one — which means you’ll have both a new rate and repayment term.
Though it’s relatively straightforward to refinance a personal loan, it may not always be wise, particularly if your new loan has a higher interest rate or a longer repayment term. In both cases, increased interest charges would increase the overall cost of your repayment.
- Pros, cons of refinancing a personal loan<
- When should you refinance?
- 7 steps to personal loan refinancing
- Does refinancing affect your credit?
- Lenders that offer personal loan refinancing
Pros and cons of refinancing a personal loan
Here are a few reasons why you might want to refinance a personal loan:
- Lower your interest rate: Depending on your credit, you might qualify for a lower interest rate through refinancing — which will help you save money on interest charges and potentially pay off the loan more quickly.
- Reduce your monthly payments: If you opt for a longer repayment term through refinancing, you could lower your monthly payments. Just keep in mind that choosing a longer repayment term means you’ll pay more in interest over time.
- Consolidate multiple types of debt: You can use a personal loan for almost any personal expense. For example, if you take out a personal loan for debt consolidation or credit card consolidation, you could also use it to consolidate your old personal loan.
Although there are potential benefits that come with refinancing your personal loan, there are also some important potential drawbacks to consider. Here are a few to keep in mind:
- Might pay more in interest: If you choose a longer repayment term, you could end up paying much more in interest over the life of the loan.
- Origination fees: Many personal loan lenders charge origination fees — sometimes as high as 8% or more, depending on the lender. These fees are deducted before the loan is disbursed to you, reducing the amount of money you actually get.
- Prepayment penalties: Some lenders charge prepayment penalties if you pay off the loan before the stated term. If the lender of your original loan charges this type of penalty, it could reduce your potential refinancing savings.
If you’re thinking about refinancing a personal loan, be sure to consider how much the new loan will cost you over time and if the possible savings are worth it. You can estimate how much you’ll pay for a new loan using our personal loan calculator below.
Enter your loan information to calculate how much you could pay
With a $ loan, you will pay $ monthly and a total of $ in interest over the life of your loan. You will pay a total of $ over the life of the loan.
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Learn More:
- Debt Consolidation Loan vs. Credit Card Refinancing: How To Choose
- $15,000 Personal Loans: Everything You Need to Know
When should you refinance a personal loan?
While refinancing a personal loan might be a good choice in some cases, it isn’t right for everyone. Here are a few situations where personal loan refinancing could be a smart move:
- Your credit score has improved. If you have a better credit score than when you originally applied, you might qualify for a lower interest rate. This could help you save money on interest and possibly pay off the loan sooner.
- You need to lower your monthly payment. If you refinance and choose a longer repayment term, you could reduce your monthly payments and lessen the strain on your budget.
- You want to switch to a fixed interest rate: A variable interest rate can fluctuate with market trends, which means your rate might go up in the future. With refinancing, you can switch to a fixed interest rate, which will stay the same over the life of the loan.
And here are some scenarios where refinancing might not be a good idea:
- You don’t qualify for better terms. If you can’t qualify for a lower rate or more favorable terms, then refinancing likely isn’t worth it.
- Origination fees outweigh your savings. Depending on the lender, origination fees can be as high as 8% or more. If these fees will eat up the savings you get through refinancing, then it might not be a good idea.
- You are about to buy a house or finance another purchase. Taking out a new personal loan can have a slightly negative impact on your credit score, though it’s usually only temporary. However, if you’re planning to apply for a mortgage, auto loan, or another type of financing, then it’s likely better to wait to refinance a personal loan until later so there’s no effect on your credit score.
If you decide to get a personal loan for refinancing, remember to consider as many lenders as you can to find a loan that suits your needs. Credible makes this easy — you can compare your prequalified rates from multiple lenders in two minutes.
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How to refinance a personal loan
If you’re ready to refinance a personal loan, follow these seven steps:
- Figure out how much you need to borrow. The answer might seem simple enough if you’re just aiming to pay off an existing personal loan. But keep in mind that there may be an origination fee on your new loan, which would be subtracted from the loan proceeds. So figure fees into how much you need to borrow to complete the refinancing process. Also, estimate your new monthly payment (using the calculator above) to ensure it fits within your monthly budget.
- Check your credit report and score. To benefit from personal loan refinancing, you’d likely need a better credit score than you had when you secured your original personal loan. With a higher score (and lengthier credit history), you might qualify for a lower interest rate on the new personal loan. If your credit (or another financial marker) isn’t up to snuff, you might consider refinancing with the assistance of a personal loan cosigner who agrees to repay the new debt if you can’t.
- Compare lenders and choose your loan option. Be sure to compare as many personal loan lenders as possible to find the right loan for you. Consider interest rates, repayment terms, fees, and any restrictions the lender might have on refinancing personal loans. After comparing lenders — you can prequalify without commitment or a hard credit check with top-rated online lenders — pick the loan that works best for your needs.
- Complete the application. Once you’ve chosen a lender, you’ll need to fill out a full application and submit any required documentation, such as tax returns or pay stubs.
- Get your funds. The time to fund a personal loan is typically about one week — though some lenders will fund loans as soon as the same or next business day after approval. Make sure to keep up with payments on your old loan while you wait for your funds.
- Pay off your old loan. Once you have your new loan funds, you can pay off your original loan. Contact your original lender to determine how to do this, then follow their instructions. Afterward, ask your original letter for documentation showing the loan has been paid off. You can also keep an eye on your credit report to make sure the loan shows as being paid — though keep in mind that it might take up to 30 to 45 days for the new status to show up on your credit report.
- Begin making payments on your new loan. Confirm your first payment due date and minimum payment amount with your (new) lender to ensure you get off to a good start. Unlike student loans, personal loans don’t feature a grace period, so you’ll be expected to begin paying down your new balance immediately. Consider enrolling in autopay to ensure you never miss a payment; some lenders might even offer an interest rate discount for doing so.
Check Out: Need a $10,000 Personal Loan? Follow This Process to Get It Fast
Does personal loan refinancing affect your credit score?
When you apply for personal loan refinancing, the lender will perform a hard credit check to determine your creditworthiness, which might cause a slight dip in your credit score.
However, this impact is usually only temporary, and your score will likely bounce back within a few months.
If you decide to get a personal loan for refinancing, remember to consider as many lenders as you can to find a loan that suits your needs. Credible makes this easy — you can compare your prequalified rates from multiple lenders in two minutes.
Lenders that offer personal loan refinancing
Before you refinance your personal loan, it’s important to carefully consider your lender options to find the right loan for you.
Here are Credible’s partner lenders that offer personal loan refinancing:
| Lender | Fixed rates | Loan amounts | Loan terms (years) |
|---|---|---|---|
Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 9.95% - 35.99% APR | $2,000 to $35,000** | 2, 3, 4, 5* |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 11.79% - 20.84% APR | $10,000 to $50,000 | 3, 4, 5, 6 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 8.99% - 35.99% APR | $2,000 to $50,000 | 2, 3, 4, 5 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 7.99% - 24.99% APR | $2,500 - $40,000 | 3, 4, 5, 6, 7 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 9.57% - 35.99% APR | $1,000 to $40,000 | 3, 5 |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 7.99% - 35.99% APR | $2,000 to $36,500 | 2, 3, 4, 5, 6 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 7.49% - 25.49% APR with autopay | $5,000 to $100,000 | 2, 3, 4, 5, 6, 7 (up to 12 years for home improvement loans) |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 18.0% - 35.99% APR | $1,500 to $20,000 | 2, 3, 4, 5 |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 8.49% - 17.99% APR | $600 to $50,000 (depending on loan term) | 1, 2, 3, 4, 5 |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 8.99% - 25.81% APR10 | $5,000 to $100,000 | 2, 3, 4, 5, 6, 7 |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 11.69% - 35.99% APR7 | $1,000 to $50,000 | 3, 5, or 7 years 8 |
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 8.49% - 35.99% APR | $1,000 to $50,000 | 2, 3, 4, 5, 6, 7 |
|
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Credible Rating
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
| 6.4% - 35.99% APR4 | $1,000 to $50,0005 | 3 or 5 years4 |
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Avant
If you have poor or fair credit, Avant might be a good choice for personal loan refinancing. You can borrow $2,000 to $35,000* with terms ranging from two to five years.**
Keep in mind that if you choose to refinance an existing Avant loan, you can only do so twice. If you want to refinance again after that, you’ll need to consider another lender.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
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Axos Bank
With Axos Bank, you can borrow $10,000 to $50,000 with a term from three to six years. If you’re approved, you could have your funds as soon as the next business day.
Keep in mind that you’ll generally need very good to excellent credit to qualify for a personal loan from Axos Bank.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
Best Egg
Best Egg personal loans range from $2,000 to $50,000 with repayment terms of two or five years.
In addition to your credit score, Best Egg also considers other proprietary credit attributes as well as your digital footprint — which means you might have an easier time qualifying even if you have less-than-perfect credit.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
Discover
If you’re looking for a long-term personal loan, Discover might be a good option — you can borrow $2,500 to $40,000 with a repayment term of three to seven years.
Just remember that choosing a longer term means you’ll pay more in interest over time.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
$2,500 - $40,000
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
LendingClub
LendingClub is one of the few lenders that allow cosigners on personal loans — which could make it a good choice if you need a cosigner to qualify for refinancing. With LendingClub, you can borrow $1,000 to $40,000 with a repayment term of three or five years.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
LendingPoint
LendingPoint specializes in working with borrowers who have near-prime credit scores — typically meaning a credit score in the upper 500s or 600s. With LendingPoint, you can borrow $2,000 to $36,500 with a term ranging from two to six years.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
LightStream
LightStream personal loans are available for $5,000 to $100,000, which could make it a good choice if you have a large loan to refinance or want to consolidate other debts along with your original loan.
Keep in mind that while LightStream doesn’t allow borrowers to refinance existing LightStream loans, you can use loan proceeds to refinance a loan from another lender.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
OneMain Financial
Unlike many personal loan lenders, OneMain Financial doesn’t require a minimum credit score, which could make it a good choice for borrowers with less-than-stellar credit.
Loans from OneMain Financial range from $1,500 to $20,000 — though keep in mind that you might have to provide collateral for higher loan amounts.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
PenFed
If you only need to borrow a small amount, PenFed might be a smart choice — you can borrow as little as $600 up to $50,000 with a repayment term from one to five years. Approved PenFed loans are typically funded within two to four business days after verification.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
SoFi
With SoFi, you can borrow $5,000 to $100,000 with repayment terms ranging from two to seven years. If you take out a personal loan with SoFi, you’ll have access to several borrower perks, including unemployment protection and career coaching.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
Universal Credit
Universal Credit offers personal loans from $1,000 to $50,000 with flexible repayment terms of three to five years. With fast funding and personalized recommendations to help you build your credit, a personal loan through Universal credit would be ideal for borrowers whose current scores need improvement.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
Upgrade
Personal loans from Upgrade range from $1,000 to $50,000 and come with repayment terms of three or five years. Upgrade also offers free credit monitoring and educational resources, which could help borrowers build their credit.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
Upstart
In addition to your credit score, Upstart will also consider your education and job history to determine your creditworthiness — this means you might qualify even if you have little to no credit. You can borrow $1,000 to $50,0005 with Upstart.
Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.
Range of fixed rates available from this lender
Minimum credit score needed to qualify
Total amount you can borrow from this lender
How long it takes to receive your money
Ready to find a personal loan?
Compare rates from top personal loan lenders to find the right one for you.
About Rates and Terms: Rates for personal loans provided by lenders on the Credible platform range between 5.20%-35.99% APR with terms from 12 to 144 months. Rates presented include lender discounts for enrolling in autopay and loyalty programs, where applicable. Actual rates may be different from the rates advertised and/or shown and will be based on the lender’s eligibility criteria, which include factors such as credit score, loan amount, loan term, credit usage and history, and vary based on loan purpose. The lowest rates available typically require excellent credit, and for some lenders, may be reserved for specific loan purposes and/or shorter loan terms. The origination fee charged by the lenders on our platform ranges from 0% to 12%. Each lender has their own qualification criteria with respect to their autopay and loyalty discounts (e.g., some lenders require the borrower to elect autopay prior to loan funding in order to qualify for the autopay discount). All rates are determined by the lender and must be agreed upon between the borrower and the borrower’s chosen lender. For a loan of $10,000 with a three year repayment period, an interest rate of 7.99%, a $350 origination fee and an APR of 11.51%, the borrower will receive $9,650 at the time of loan funding and will make 36 monthly payments of $313.32. Assuming all on-time payments, and full performance of all terms and conditions of the loan contract and any discount programs enrolled in included in the APR/interest rate throughout the life of the loan, the borrower will pay a total of $11,279.43. As of October 9, 2023, none of the personal loan lenders on our platform require a down payment nor do they charge any prepayment penalties.
Prequalified rates disclosure: Prequalified rates are based on the information you provide and a soft credit inquiry. Receiving prequalified rates does not guarantee that the Lender will extend you an offer of credit. You are not yet approved for a loan or a specific rate. All credit decisions, including loan approval, if any, are determined by Lenders, in their sole discretion. Rates and terms are subject to change without notice. Rates from Lenders may differ from prequalified rates due to factors which may include, but are not limited to: (i) changes in your personal credit circumstances; (ii) additional information in your hard credit pull and/or additional information you provide (or are unable to provide) to the Lender during the underwriting process; and/or (iii) changes in APRs (e.g., an increase in the rate index between the time of prequalification and the time of application or loan closing. (Or, if the loan option is a variable rate loan, then the interest rate index used to set the APR is subject to increases or decreases at any time). Lenders reserve the right to change or withdraw the prequalified rates at any time.
