Can I Refinance a Personal Loan?
If you don’t have the best personal loan, you can consider refinancing it with another personal loan with better terms and interest rates.
Some lenders will allow you to refinance a loan from another lender, but not their own loans. Others will let you use your personal loan for any purpose, including refinancing another of their loans.
It’s a good idea to consider refinancing a loan if you’ve improved your credit score and can secure a better APR because it lets you take advantage of a lower interest rate that can save you a lot of money in the future.
If you’re looking for a loan that’s best for debt consolidation, consider specialized offerings as well as personal loans. Some lenders have dedicated debt consolidation loans with better rates than even the best personal loans.
When looking for the best personal loans, a major factor is your interest rate. Lenders look at many factors when deciding on your APR, such as:
- Loan amount
- Your credit score, income, and DTI
- Current market trends
However, if you barely meet the min credit score, you may find that you receive a much higher rate than the minimum APR advertised.